Accounting初级考试题目及答案

Question 1
You are the assistant accountant with IDS plc. Your boss has asked you to prepare the draft Trading and Profit and Loss Account for the year ended 31 December 2003, based on the following Trial Balance (extracted from the computerised record keeping system) and the additional information shown below. In undertaking this task you may refer to the attached pro forma layout.
Please note — a Balance Sheet is not required
£00
£000
Trade Debtors 1,50
Trade Creditors 1,050 Administration Expenses 220
10% Debentures (2009) 1,600 Stock at 1 January 2003 600
Distribution Costs 340
Purchases 2,00
Sales 3,550 Profit and Loss Account at 1
January 2003
1,090
Land and Buildings (NBV @ 31/12/02) 2,50
Plant and Machinery (NBV
@ 31/12/02)
650
Fixture and Fittings (NBV
@ 31/12/02)
150
Motor Vehicles (NBV @
31/12/02)
150
Discount Received 220 Ordinary Shares of £1 each 900 Preference Shares 5% 200 Bank 500
8,61
8,610 Additional Information
1Clerical and management staff were awarded a bonus amounting to £25,000 in mid December 2003. This bonus has not been paid yet and it should be classified as an administrative expense.
2Distribution costs include £15,000 for a maintenance contract for motor vehicles which relates to the coming year.
3Closing stock at 31 December 2003 was valued at £290,000.
4It is estimated that corporation tax of £190,000 will be payable on the profits for the year.
5Interest on the debentures for the full year should be provided.
6The directors propose that a dividend should be paid on ordinary shares of 3p per share, and that the preference dividend be paid in full.
7The directors propose to provide for the depreciation of fixed assets for the year as follows:
Land and Buildings £50,000
Plant and Machinery £40,000
Fixtures and Fittings £30,000
Motor Vehicles £60,000
Question 2
IDS plc, who are a major sports equipment manufacturer, have recently developed and tested a new trail running shoe.
The management are now considering a limited launch of the new shoe over a six month period.
As the project manager for the development of the new product you have compiled and collated the following sales and cost information for the review period.
1Expected sales are:
Month Number of shoes
January 200
February 200
March 260
April 300
May 350
June 400
Projected selling price £50
All sales are expected to be on credit and customers are to pay in the month following the month of sale.
2The number of shoes produced each month is based on expected sales. It is planned to keep stock levels
constant at their current level throughout the trial period.
3Each pair of shoes requires 0.2 kg of raw materials, which costs £10 per kg. All purchases of materials are on credit and suppliers are to be paid in the second
month following the month of purchase.
4To produce one pair of shoes requires two hours of direct labour at £6 per hour. Wages are paid in the
month the shoes are produced.
5Variable production overheads are to be charged at the rate of £2 per unit (pair of shoes) produced. These are to be paid in the month the units are produced.
6Fixed monthly production overheads are as follows:
£1,000
Rent and
rates
Insurance £400
£800
Heat and
light
Depreciation £200
Other £250
These are to be paid in the month the units are produced.
7Other monthly fixed overheads are as follows:
Manager’s salary£2,000
Selling/distribution £1,000
These are to be paid in the month the units are produced/sold.
In order that senior management can assess the viability of the project and ascertain the cash flow implications, you are required to prepare and present the following information:
1An income and expenditure budget in tabular format for the six month period.
2A cash budget for the period (assume initial cash balance is zero).
3Using the appropriate formula calculate and show the number of shoes that are required to be sold to break-even over the trial period.
Question 1
IDC plc
Trading and Profit and Loss Account for year ending 31 December 2003
£000 £000 Sales 3,550 Cost of goods sold
Opening stock 600 Purchases 2,000
2,600
Closing stock 290 2,310 Gross Profit 1,240
Other Income
Discount received 220
1,460 Expenses
Administration 245
Distribution costs 325
Interest payable 160 Depreciation 180 910
550 Profit on ordinary activities
before taxation
Corporation tax 190
360 Profit on ordinary activities after
taxation
Appropriations
Preference dividend 10
Ordinary dividend 27 37 Profit for the year 323 Retained profit b/f 1,090 Retained profit c/f 1,413
Question 1 (alternative/re-assessment)
IDC plc
Balance Sheet as at 31 December 2003
£000 £000 £000 Fixed Assets
Land and Buildings 2,450 Plant and Machinery 610 Fixtures and Fittings 120 Motor Vehicles 90
3,270 Current Assets
Stock 290
Debtors 1,500
Prepayments 15
Bank 500 2,305
Creditors: amounts falling due within 1 year
Creditors 1,050
Accruals 25
Corporation tax due 190
Interest due 160
Dividends due 37 1,462
Net Current Assets 843 Total Assets less Current Liabilities 4,113
Creditors: amounts falling due after more than 1
year
Debentures 1,600 Net Assets 2,513
Capital and Reserves
Ordinary share capital 900 Preference share capital 200 Profit and Loss account 1,413
2,513
Question 2
1 Income and expenditure budget for six months
2 Cash Budget for six months
3 Break-even point:
Selling Price/unit = £40
Marginal Cost/unit = £16 (mats £2, labour £12, Var OHD £2)
Contribution/unit = £40 − £16 = £24
Break-even point = Fixed costs = £33,900 = 1,413 pairs of shoes
Cont/unit £24。