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Monday, September 21, 2015

Test Answers-Financial Accounting

 11:33:00     No comments   



Slamometer: Income statement for the year ended 31 March 20X4
                                                                                                N
Sales revenue                                                                     1,013,000
Cost of sales (W2)                                                              (647,929)
                                                                                         ––––––––
Gross profit                                                                         365,071
Distribution costs (W2)                                                    (224,271)
Administrative expenses (W2)                                          (67,920)
                                                                                                                                                             
Profit from operations                                                        72,880
Interest receivable                                                                   910
Finance cost $(1,800 + 1,310 + 3,360)                              (6,470)
                                                                                      ––––––––
Profit before tax                                                                  67,320
Income tax expense (W1)                                                 (32,870)
                                                                                       ––––––––
 Profit for the year                                                             34,450
                                                                                      ––––––––
                                                                                                                                               
Slalometer Other comprehensive income for the year
ended 31 March 20X4
                                                                                                 N
Profit for the year                                                               34,450
Other comprehensive income
Gain on property revaluation                                                  200
Income tax relating to components of other Comprehensive
income
                                                                                                (60)
                                                                                             –––––
Other comprehensive income for the year, net of tax           140
                                                                                             –––––
Total comprehensive income for the year                          34,590
                                                                                            –––––
Workings
(W1) Taxation                                                                          N
Income tax at 25%                                                           32,000
Tax under provided
in previous year                                                                    870
                                                                                    ––––––––
                                                                                         32,870
                                                                                    ––––––––

(W2) Classification of expenses
Note:
                                                Cost of     Distribution    Administrative
                                                sales        costs               expenses
                                                  N              N                        N
Expenses per note (b)
Distribution costs                                   152,571
Raw materials                       366,238
Manufacturing overheads     159,302
Staff costs                               98,789       56,400
Directors                                12,300       15,300             63,500
Depreciation (4,000 + 7,300)11,300
Office rent                                                                         2,300
Audit                                                                                 1,500
Legal and accountancy                                                        620
                                        ––––––––   ––––––––        ––––––––
                                        647,929        224,271              67,920
                                    ––––––––       ––––––––       ––––––––
• Ordinary dividends declared/paid in the year are included in the
statement of changes in equity, not the income statement or
statement of comprehensive income.
• Dividends on redeemable preference shares are always treated as
a finance cost. 

here are the answers as promised, how did you fair
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