HND商务会计OUTCOME1

HND商务会计OUTCOME1 RevisionQuestion You 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 3 December 2004based on the following Trial Balance.Revision?000 ?000Cash300 Debtors900Creditors630Stock at January2004 360Purchases200 DistributionCosts 204Office Expenses320 Debentures200 960Sales230Profit and LossAccount at January2004654Landand Buildings NBV 3/2/03500Plantand Machinery NBV 3/2/03 390Fixtureand Fittings NBV 3/2/03 90MotorVan NBV 3/2/03 90Discount Received32Ordinary Sharesof ? each 540Preference Shares5 20566 566Notes:Management staff were awarded a bonus amounting to ?5000 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 3 December 2004 was valued at ?74000. 4 The estimated corporation tax of ?4000 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 Buildings?30000Plant and Machinery ?24000Fixtures and Fittings ?8000Motor Vans ?36000Trading and Profit and Loss Account for year ending 3 December 2004?000 ?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 3 December 2004?000 ?000Sales 230Cost of goods soldOpening stock 360Purchases 200560Closing stock 74 386Gross Profit 744Other IncomeDiscount received 32876ExpensesAdministration 47Distribution costs 95Interest payable 96Depreciation 08 546Profit on ordinary activities before taxation 330Corporation tax 4Profit on ordinary activities after taxation 26AppropriationsPreference dividend 6Ordinary dividend 6.2 22.2Profit for the year 93.8Retained profit b/f 654Retained profit c/f 847.8Explainations:Management staff were awarded a bonus amounting to ?5000 in mid December 2004. This bonus has not been paid yet .Administration expenses32547Accruals5 Balance Sheet –B/S2Distribution costs include ?9000 for a maintenance contract for motor vans which relates to the coming year. Distribution costs204-995Prepaments9 Balance Sheet –B/S3Closing stock at 3 December 2004 was valued at ?74000. 4 The estimated corporation tax of ?4000 will be payable on the profits for the year. 5 The debentures interest should be provided. Interest 960X096Explainations: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 ?20X56Ordinary dividend ?0.03X5406.27 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 ?8000Motor Vans ?36000Depreciation expense08Fixed assetsbalance sheetNBV-Depreciation expenseEg. Vans 90-3654CCC plc Balance Sheet as at 3 December 2004?000 ?000 ?000Fixed AssetsLand and Buildings 470Plant and Machinery 366Fixtures and Fittings 72Motor Vans 54962Current AssetsCash 300Debtors 900Stock 74 Prepayments 9 383Creditors: amounts falling due within yearCurrent LiabilitiesCreditors 630Accruals 5Corporation tax due 4Interest due 96Dividends due 22.2 877.2Net Current Assets 505.8Total Assets less Current Liabilities 2467.8Creditors: amounts falling due after more than yearDebentures 960Net Assets 507.8Capital and ReservesOrdinary share capital 540Preference share capital 20Profit and Loss account 847.8507.8RevisionQuestion 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. Expected sales are: Month Number of product Jan 80Feb 80Mar 04Apr 20May 40Jun 60Projected 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 ?0 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 ?60Heat and light ?320Depreciation ?80Other ?00These 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 : An 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 2Expected sales are: Month Number of product Jan 80Feb 80Mar 04Apr 20May 40Jun 60Projected 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 Feb04X40460 Mar20X404800 Apr40X405600 May60X406400 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 ?0 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 80 0X0.2X8060 Feb 800X0.2X8060 Mar 04 0X0.2X04208 Apr 20 0X0.2X20240 May 40 0X0.2X40280 Jun 60 0X0.2X60320 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 Mar 04 6X2X04248 Apr 20 6X2X20440 May 40 6X2X40680 Jun 60 6X2X60920 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 2X8060 Feb 80 2X8060 Mar 04 2X04208 Apr20 2X20240 May 40 2X40280 Jun 60 2X60320Explanation for Income and expenditure budget6Fixed monthly production overheads are as follows: Rent and rates ?400Insurance ?60Heat and light ?320Depreciation ?80Other ?00These 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 460 4800 5600 6400 27360 Expenditure Material cost 60 60 208 240 280 320 368Direct Labour 960 960 248440 680 920 8208 Variable Production Overheads 60 60 208 240 280 320 368 Fixed Production Overheads Rent 400 400 400 400 400 400 2400 Insurance 60 60 60 60 60 60 960 Power 320 320 320 320 320 320 920 Depreciation 80 80 80 80 80 80 480 Other 00 00 00 00 00 00 600 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 480 4500 482024504Explanation for Cash budgetQuestion 2Expected sales are: Month Number of product Jan 80Feb 80Mar 04Apr 20May 40Jun 60Projected selling price ?40All sales are expected to be on credit and customers are to pay in the month followingthe month of sale. Cash Sales Receipt0 Jan80X403200 Feb80X403200 Mar04X40460 Apr20X404800 May40X405600 JunExplanation for Cash budget2The number of product produced each month is based on expected sales. 3Each product requires 0.2 kg of raw materials which costs ?0 per kg. All purchases of materials are on credit and suppliers are to be paid in the second month following the monthof purchase. two months laterMonth Number of product Materials Cost PaymentJan 0 Feb 0 Mar 80 0X0.2X8060 Apr 800X0.2X8060 May 04 0X0.2X04208 Jun 20 0X0.2X20240 Explanation for Cash budget4To produce one product requires two hours of direct labour at ?6 per hour. Wages are paid in the monththe product are produced. Month Number of product Materials Cost PaymentJan 80 6X2X80960 Feb 80 6X2X80960 Mar 04 6X2X04248 Apr 20 6X2X20440 May 40 .