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.