HND商务会计OUTCOME1.doc

RevisionQuestion1You are the assistant accountant with CCC plc. Your boss has asked you to prepare thedraft Trading and Profit and Loss Account and Balance Sheet for the year ended 31December 2004based on the following Trial Balance.Revision000 000Cash300 Debtors900Creditors630Stock at1January2004 360Purchases1200 DistributionCosts 204Office Expenses13210 Debentures2010 960Sales2130Profit and LossAccount at1January2004654Landand Buildings NBV 31/12/031500Plantand Machinery NBV 31/12/03 390Fixtureand Fittings NBV 31/12/03 90MotorVan NBV 31/12/03 90Discount Received132Ordinary Sharesof 1each 540Preference Shares51205166 5166Notes:1Management staff were awarded a bonus amounting to 15000 in mid December 2004. This bonus has not been paid yet .2Distribution costs include 9000 for a maintenance contract for motor vans which relates to the coming year. 3Closing stock at 31December 2004 was valued at 174000. 4 The estimated corporation tax of 114000 will be payable on the profits for the year. 5 The debentures interest should be provided. Notes:6 The directors propose that a dividend should be paid on ordinary shares of 3p per share and that the preference dividend be paid in full. 7 The directors propose to provide for the depreciation of fixed assets for the year as follows: Land and Buildings30000Plant and Machinery 24000Fixtures and Fittings 18000Motor Vans 36000Trading and Profit and Loss Account for year ending 31December 2004000 000SalesCost of goods soldOpening stockPurchasesClosing stockGross ProfitOther IncomeDiscount receivedExpensesAdministrationDistribution costsInterest payableDepreciationProfit on ordinary activities before taxationCorporation taxProfit on ordinary activities after taxationAppropriationsPreference dividendOrdinary dividendProfit for the yearRetained profit b/fRetained profit c/f Trading and Profit and Loss Account for year ending 31December 2004000 000Sales 2130Cost of goods soldOpening stock 360Purchases12001560Closing stock1741386Gross Profit 744Other IncomeDiscount received132876ExpensesAdministration147Distribution costs195Interest payable 96Depreciation108 546Profit on ordinary activities before taxation 330Corporation tax114Profit on ordinary activities after taxation 216AppropriationsPreference dividend 6Ordinary dividend16.2 22.2Profit for the year193.8Retained profit b/f 654Retained profit c/f 847.8Explainations:1Management staff were awarded a bonus amounting to 15000 in mid December 2004. This bonus has not been paid yet .Administration expenses13215147Accruals15 Balance Sheet B/S2Distribution costs include 9000 for a maintenance contract for motor vans which relates to the coming year. Distribution costs204-9195Prepaments9 Balance Sheet B/S3Closing stock at 31December 2004 was valued at 174000. 4 The estimated corporation tax of 114000 will be payable on the profits for the year. 5 The debentures interest should be provided. Interest 960X1096Explainations:6 The directors propose that a dividend should be paid on ordinary shares of 3p per share and that the preference dividend be paid in full. Preference dividend 120X56Ordinary dividend 0.03X54016.27 The directors propose to provide for the depreciation of fixed assets for the year as follows: Land and Buildings 30000Plant and Machinery 24000Fixtures and Fittings 18000Motor Vans 36000Depreciation expense108Fixed assetsbalance sheetNBV-Depreciation expenseEg. Vans 90-3654CCC plc Balance Sheet as at 31December 2004000 000 000Fixed AssetsLand and Buildings1470Plant and Machinery 366Fixtures and Fittings 72Motor Vans 541962Current AssetsCash 300Debtors 900Stock174 Prepayments 91383Creditors: amounts falling due within1yearCurrent LiabilitiesCreditors 630Accruals15Corporation tax due114Interest due 96Dividends due 22.2 877.2Net Current Assets 505.8Total Assets less Current Liabilities 2467.8Creditors: amounts falling due after more than1yearDebentures 960Net Assets1507.8Capital and ReservesOrdinary share capital 540Preference share capital120Profit and Loss account 847.81507.8RevisionQuestion 2DDD plc is a major sports equipment manufacturer have recently developed a new product.The management are now considering a limited launch of the new product 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 product Jan 80Feb 80Mar104Apr120May140Jun160Projected selling price 40All sales are expected to be on credit and customers are to pay in the month following the month of sale. RevisionQuestion 22The number of product produced each month is based on expected sales. 3Each product 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 monthfollowing the month of purchase. 4To produce one product requires two hours of direct labour at 6 per hour. Wages are paid in the month the product are produced. 5Variable production overheads are to be charged at the rate of 2 per unitproduced. These are to be paid in the month the units are produced. 6Fixed monthly production overheads are as follows: Rent and rates 400Insurance 160Heat and light 320Depreciation 80Other 100These are to be paid in the month the units are produced. RevisionQuestion 27 Other monthly fixed overheads are as follows: 800Selling/distribution 400These are to be paid in the month the units are produced/sold. You are required to prepare and present :1An income and expenditure budgetin tabular format for the six month period.2 A cash budgetfor the period assume initial cash balance is zero.3 Calculate the number of product that are required to be sold to break-evenover the trial period. Explanation for Income and expenditure budgetQuestion 21Expected sales are: Month Number of product Jan 80Feb 80Mar104Apr120May140Jun160Projected selling price 40All sales are expected to be on credit and customers are to pay in the month following the month of sale. Sales80X403200 Jan80X403200 Feb104X404160 Mar120X404800 Apr140X405600 May160X406400 JunExplanation for Income and expenditure budget2The number of product produced each month is based on expected sales. 3Each product 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 monthfollowing the month of purchase. Month Number of product Materials Cost Jan 8010X0.2X80160 Feb 8010X0.2X80160 Mar10410X0.2X104208 Apr12010X0.2X120240 May14010X0.2X140280 Jun16010X0.2X160320 Explanation for Income and expenditure budget4To produce one product requires two hours of direct labour at 6 per hour. Wages are paid in the month the product are produced. Month Number of product Materials Cost Jan 80 6X2X80960 Feb 80 6X2X80960 Mar104 6X2X1041248 Apr120 6X2X1201440 May140 6X2X1401680 Jun160 6X2X1601920 5Variable production overheads are to be charged at the rate of 2 per unitproduced. These are to be paid in the month the units are produced. Month Number of product Materials Cost Jan 80 2X80160 Feb 80 2X80160 Mar104 2X104208 Apr120 2X120240 May140 2X140280 Jun160 2X160320Explanation for Income and expenditure budget6Fixed monthly production overheads are as follows: Rent and rates 400Insurance 160Heat and light 320Depreciation 80Other 100These are to be paid in the month the units are produced. 7Other monthly fixed overheads are as follows: 800Selling/distribution 400These are to be paid in the month the units are produced/sold.6 amp 7 are fixed costs for every month.Question 2Income and expenditure budgetfor six monthsJan Feb March April May June Total Income Sales Expenditure Material cost Direct Labour Variable Production Overheads Fixed Production Overheads Rent Insurance Power Depreciation Other Other Fixed Overheads Management Salary Selling/Distribution Total ExpenditureQuestion 2Income and expenditure budgetfor six monthsJan Feb March April May June Total Income Sales 3200 3200 4160 4800 5600 6400 27360 Expenditure Material cost160160 208 240 280 3201368Direct Labour 960 9601248144016801920 8208 Variable Production Overheads160160 208 240 280 3201368 Fixed Production Overheads Rent 400 400 400 400 400 400 2400 Insurance160160160160160160 960 Power 320 320 320 320 320 3201920 Depreciation 80 80 80 80 80 80 480 Other100100100100100100 600 Other Fixed Overheads Management Salary 800 800 800 800 800 800 4800 Selling/Distribution 400 400 400 400 400 400 2400 Total Expenditure3540 3540 3924 4180 4500 482024504Explanation for Cash budgetQuestion 21Expected sales are: Month Number of product Jan 80Feb 80Mar104A