Mid Term Revision Ans
BUS 10250 Financial Accounting Mid term Revision
Question 1
Financial year is from 1/6/20x8 to 31/5/20x9
Rent
Rent charged was $2,400 from 1/1/20x8 to 31/12/20x8 which was $200 per month.
Rent charged was $3,000 from 1/1/20x9 to 31/12/20x9 which was $250 per month.
Rent expense charge to income statement for year ended 31/5/20x9 should be:
1/6/20x8 to 31/12/20x8 total $1,400
1/1/20x9 to 31/5/20x9 total $1,250
Hence, total rent expense charge to the income statement for the year ended 31/5/20x9 was $2,650.
Rent has been paid to 30/6/20x9, i.e prepaid rent of one month = $250 carried down to next accounting year.
Rates
Rates charged was $2,040 from 1/4/20x8 to 31/3/20x9 which was $170 per month.
Rates charged was $2,280 from 1/4/20x9 to 31/3/20x0 which was $190 per month.
Rates expense charged to income statement for year ended 31/5/20x9 should be:
1/6/20x8 to 31/3/20x9 total $1,700
1/4/20x9 to 31/5/20x9 total $380
Hence, total rates charged to income statement for the year ended 31/5/20x9 was $2,080.
Rates had been paid to 31/3/20x9 and so there is two months rates accrued total $380.
Question 2
Andrea Howell
Income statement for the year ended 31 May 20X9
$
$
Sales
405,000
Less: Cost of sales
Inventory at 1 June 20X8 27,400
Add: Purchases (259,600-1,040)
258,560
285,960
Less: Inventory at 31 May 20X9 25,900
260,060
Gross profit
144,940
Add: Discount received
4,420 Provision for bad debts (0.5% x 46,200 – 280)
49
149,409
Less: Expenses
Depreciation on:
Property 900
Equipment 8,625
Discount allowed 3,370
Wages and salaries (52,360 + 140)
52,500
Bad debts 1,720
Loan interest 1,560
Carriage outwards 5,310
Other operating expenses (38,800 – 500 + 200)
38,500
112,485
Net profit for the year
36,924
Andrea Howell
Statement of financial position as at 31 May 20X9
$
$
$
Non current assets
Cost
Accumulated depreciation
Net book value
Property
90,000 13,400
Question 1
Financial year is from 1/6/20x8 to 31/5/20x9
Rent
Rent charged was $2,400 from 1/1/20x8 to 31/12/20x8 which was $200 per month.
Rent charged was $3,000 from 1/1/20x9 to 31/12/20x9 which was $250 per month.
Rent expense charge to income statement for year ended 31/5/20x9 should be:
1/6/20x8 to 31/12/20x8 total $1,400
1/1/20x9 to 31/5/20x9 total $1,250
Hence, total rent expense charge to the income statement for the year ended 31/5/20x9 was $2,650.
Rent has been paid to 30/6/20x9, i.e prepaid rent of one month = $250 carried down to next accounting year.
Rates
Rates charged was $2,040 from 1/4/20x8 to 31/3/20x9 which was $170 per month.
Rates charged was $2,280 from 1/4/20x9 to 31/3/20x0 which was $190 per month.
Rates expense charged to income statement for year ended 31/5/20x9 should be:
1/6/20x8 to 31/3/20x9 total $1,700
1/4/20x9 to 31/5/20x9 total $380
Hence, total rates charged to income statement for the year ended 31/5/20x9 was $2,080.
Rates had been paid to 31/3/20x9 and so there is two months rates accrued total $380.
Question 2
Andrea Howell
Income statement for the year ended 31 May 20X9
$
$
Sales
405,000
Less: Cost of sales
Inventory at 1 June 20X8 27,400
Add: Purchases (259,600-1,040)
258,560
285,960
Less: Inventory at 31 May 20X9 25,900
260,060
Gross profit
144,940
Add: Discount received
4,420 Provision for bad debts (0.5% x 46,200 – 280)
49
149,409
Less: Expenses
Depreciation on:
Property 900
Equipment 8,625
Discount allowed 3,370
Wages and salaries (52,360 + 140)
52,500
Bad debts 1,720
Loan interest 1,560
Carriage outwards 5,310
Other operating expenses (38,800 – 500 + 200)
38,500
112,485
Net profit for the year
36,924
Andrea Howell
Statement of financial position as at 31 May 20X9
$
$
$
Non current assets
Cost
Accumulated depreciation
Net book value
Property
90,000 13,400