HND商务会计OUTCOME1

RevisionQuestion 1You 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 31 December 2004based on the following Trial

Balance.Revision￡000 ￡000Cash300

Debtors900Creditors630Stock at 1 January2004

360Purchases1200 DistributionCosts 204Office Expenses13210 Debentures2010 960Sales2130Profit and LossAccount

at 1 January2004654Landand Buildings NBV

31/12/031500Plantand Machinery NBV 31/12/03 390Fixtureand Fittings NBV 31/12/03 90MotorVan NBV 31/12/03 90Discount Received132Ordinary Sharesof ￡1 each 540Preference

Shares5 1205166 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 31 December 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 Buildings￡30000Plant and Machinery ￡24000Fixtures and Fittings ￡18000Motor Vans ￡36000Trading and Profit and Loss Account for year ending 31 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

31 December 2004￡000 ￡000Sales 2130Cost of goods soldOpening stock 360Purchases 12001560Closing

stock 174 1386Gross Profit 744Other IncomeDiscount received 132876ExpensesAdministration 147Distribution costs 195Interest payable 96Depreciation 108 546Profit on ordinary activities before taxation 330Corporation tax 114Profit on ordinary activities after taxation

216AppropriationsPreference dividend 6Ordinary dividend 16.2 22.2Profit for the year 193.8Retained 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 31 December 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 31 December 2004￡000 ￡000 ￡000Fixed AssetsLand and Buildings 1470Plant and Machinery

366Fixtures and Fittings 72Motor Vans 541962Current

AssetsCash 300Debtors 900Stock 174 Prepayments

9 1383Creditors: amounts falling due within 1yearCurrent LiabilitiesCreditors 630Accruals 15Corporation tax

due 114Interest due 96Dividends due 22.2 877.2Net Current Assets 505.8Total Assets less Current Liabilities

2467.8Creditors: amounts falling due after more

than1 yearDebentures 960Net Assets 1507.8Capital and ReservesOrdinary share capital 540Preference share

capital 120Profit 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 80Mar 104Apr 120May 140Jun 160Projected 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 :1 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

21Expected sales are: Month Number of product Jan 80Feb

80Mar 104Apr 120May 140Jun 160Projected 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 80 10X0.2X80160 Feb

8010X0.2X80160 Mar 104 10X0.2X104208

Apr 120 10X0.2X120240 May 140 10X0.2X140280

Jun 160 10X0.2X160320 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 Mar 104 6X2X1041248 Apr 120 6X2X1201440 May 140 6X2X1401680 Jun 160

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 Mar 104

2X104208 Apr120 2X120240 May 140 2X140280 Jun 160

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 cost 160 160 208 240 280 320 1368Direct Labour 960 960 12481440 1680 1920 8208 Variable Production Overheads 160 160 208 240 280 320 1368 Fixed Production Overheads Rent 400 400 400 400 400 400 2400

Insurance 160 160 160 160 160 160 960 Power 320 320 320 320 320 320 1920 Depreciation 80 80 80 80 80 80 480

Other 100 100 100 100 100 100 600 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

80Mar 104Apr 120May 140Jun 160Projected 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 Mar104X404160

Apr120X404800 May140X405600 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 ￡10 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 10X0.2X80160 Apr 8010X0.2X80160

May 104 10X0.2X104208 Jun 120 10X0.2X120240 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 104 6X2X1041248 Apr 120 6X2X1201440 May 140 .