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Answers 6D–INTIX Paper T6INT ACCA Certified Accounting Technician Examination – Paper T6(SGP) Drafting Financial Statements (Singapore) December 2006 Answers and Marking Scheme Marks 6D–INTAA Paper T6INT 1 (a) Tonson Income statement for the year ended 31 October 2006 $000 Sales revenue Less returns inward Opening inventory Add purchases Less closing inventory (275 – 25) Cost of sales Discounts received Gross profit General expenses Insurance Marketing expenses (W1) Wages and salaries (W
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AnswersACCA Certified Accounting Technician Examination \u2013 Paper T6(SGP) December 2006 Answers Drafting Financial Statements (Singapore) and Marking Scheme Marks 1 (a) Tonson Income statement for the year ended 31 October 2006 0\u00b75 $000 $000 Sales revenue 5,780 0\u00b75 Lessreturns inward (95) 1\u00b70 \u2013\u2013\u2013\u2013\u2013\u2013 5,685 Opening inventory 350 0\u00b75 Addpurchases 3,570 0\u00b75 \u2013\u2013\u2013\u2013\u2013\u2013 3,920 Lessclosing inventory (275 \u2013 25) (250) 1\u00b70 \u2013\u2013\u2013\u2013\u2013\u2013 Cost of sales (3,670) \u2013\u2013\u2013\u2013\u2013\u2013 2,015 Discounts received 50 1\u00b70 \u2013\u2013\u2013\u2013\u2013\u2013 Gross profit 2,065 0\u00b75 General expenses 60 0\u00b75 Insurance 75 0\u00b75 Marketing expenses (W1) 45 1\u00b75 Wages and salaries (W2) 715 1\u00b75 Energy expenses 66 0\u00b75 Telephone 80 0\u00b75 Property expenses 100 0\u00b75 Loan note interest 33 0\u00b75 Receivables expense (W3) 155 1\u00b75 Depreciation: Buildings 75 1\u00b75 Motor vehicles 32 1\u00b75 Furniture and equipment 240 1\u00b75 \u2013\u2013\u2013\u2013\u2013\u2013 (1,676) \u2013\u2013\u2013\u2013\u2013\u2013 Net profit before taxation 389 0\u00b75 Ta x (150) 0\u00b75 \u2013\u2013\u2013\u2013\u2013\u2013 Net profit for the period 239 0\u00b75 \u2013\u2013\u2013\u2013\u2013\u2013 \u2013\u2013\u2013\u2013\u2013\u2013 Total 19\u00b70 13 6D\u2013INTIX PaperT6INT 6D\u2013INTAA PaperT6INTMarks (b) Tonson Balance sheet as at 31 October 2006 0\u00b75 Cost/ Accumulated Net Book Assets Valuation Depreciation Value Non-current assets $000 $000 $000 Land 740 0 740 0\u00b75 Buildings 1,800 0 1,800 0\u00b75 Furniture and equipment (W4) 1,200 660 540 1\u00b70 Motor vehicles (W5) 240 112 128 1\u00b70 \u2013\u2013\u2013\u2013\u2013\u2013 \u2013\u2013\u2013\u2013\u2013\u2013 \u2013\u2013\u2013\u2013\u2013\u2013 3,980 772 3,208 0\u00b75 \u2013\u2013\u2013\u2013\u2013\u2013 \u2013\u2013\u2013\u2013\u2013\u2013 \u2013\u2013\u2013\u2013\u2013\u2013 \u2013\u2013\u2013\u2013\u2013\u2013 Current assets Inventory 250 1\u00b70 Trade receivables 900 0\u00b75 Lessallowance (45) 855 1\u00b70 \u2013\u2013\u2013\u2013\u2013\u2013 Prepayments 5 1\u00b70 Cash in hand 15 1,125 0\u00b75 \u2013\u2013\u2013\u2013\u2013\u2013 \u2013\u2013\u2013\u2013\u2013\u2013 Total assets 4,333 0\u00b75 \u2013\u2013\u2013\u2013\u2013\u2013 \u2013\u2013\u2013\u2013\u2013\u2013 Equity and liabilities Capital and reserves Ordinary share capital 2,000 1.0 Revaluation reserve (W6) 735 1\u00b75 Retained earnings ($315 + $239) 554 1\u00b70 \u2013\u2013\u2013\u2013\u2013\u2013 3,289 Non-current liabilities 7% Loan notes 470 1\u00b70 Current liabilities Trade payables 290 0\u00b75 Ta x 150 0\u00b75 Accruals 40 1\u00b70 Bank overdraft 94 574 1\u00b70 \u2013\u2013\u2013\u2013\u2013\u2013 \u2013\u2013\u2013\u2013\u2013\u2013 Total equity and liabilities 4,333 \u2013\u2013\u2013\u2013\u2013\u2013 \u2013\u2013\u2013\u2013\u2013\u2013 Total 16 Working Papers W1 Marketing expenses $ $ Balance as per TB 50,000 Income statement 45,000 Prepayment c/f 5,000 \u2013\u2013\u2013\u2013\u2013\u2013\u2013 \u2013\u2013\u2013\u2013\u2013\u2013\u2013 50,000 50,000 \u2013\u2013\u2013\u2013\u2013\u2013\u2013 \u2013\u2013\u2013\u2013\u2013\u2013\u2013 \u2013\u2013\u2013\u2013\u2013\u2013\u2013 \u2013\u2013\u2013\u2013\u2013\u2013\u2013 W2 Wages and Salaries $ $ Balance as per TB 675,000 Income statement 715,000 Wages accrued c/f 40,000 \u2013\u2013\u2013\u2013\u2013\u2013\u2013\u2013 \u2013\u2013\u2013\u2013\u2013\u2013\u2013\u2013 715,000 715,000 \u2013\u2013\u2013\u2013\u2013\u2013\u2013\u2013 \u2013\u2013\u2013\u2013\u2013\u2013\u2013\u2013 \u2013\u2013\u2013\u2013\u2013\u2013\u2013\u2013 \u2013\u2013\u2013\u2013\u2013\u2013\u2013\u2013 14 6D\u2013INTAA PaperT6INTMarks W3 Receivables Expense $ $ Balance as per TB 150,000 Income statement 155,000 Allowance for receivables 5,000 –––––––– –––––––– 155,000 155,000 –––––––– –––––––– –––––––– –––––––– Allowance for receivables $ $ Balance c/f 45,000 Balance as per TB 40,000 Bad debts 5,000 ––––––– ––––––– 45,000 45,000 ––––––– ––––––– ––––––– ––––––– W4 Furniture and Equipment Accumulated Depreciation $ $ Balance c/f 660,000 Balance as per TB 420,000 Inc. Statem’t (20% of $1,200,000) 240,000 –––––––– –––––––– 660,000 660,000 –––––––– –––––––– –––––––– –––––––– W5 Motor Vehicles Accumulated Depreciation $ $ Balance c/f 112,000 Balance as per TB 80,000 Inc. Statem’t 20% of ($240,000 – $80,000) 32,000 –––––––– –––––––– 112,000 112,000 –––––––– –––––––– –––––––– –––––––– W6Revaluation Reserve Depreciation on buildings for the year is calculated as $1,500,000 x 5% = $75,000 Therefore the net book value of the buildings is $1,065,000 at the end of the year, i.e. $1,500,000 – $360,000 – $75,000. When the buildings are revalued at the end of the year a revaluation reserve is created of $735,000. i.e. $1,800,000 – $1,065,000 = $735,000. 15 6D–INTAA PaperT6INT
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