FA mock Exam - 2

The following information is relevant to the preparation of the financial statements:

• Inventory at 30 September 20X6 had a cost of $23,500. Within this, there were several items which had cost $5,000 but which could be sold for only $3,500.

• The allowance for receivables should be increased to $6,000. The increase should be charged as an administrative cost.

• Plant and machinery is depreciated on a reducing balance basis at a rate of 20% per annum. Depreciation should be charged to cost of sales.

• The income tax charge based upon the profit for the year was estimated at $15,000.

Prepare the statement of profit or loss of Buzzard Co for the year ended 30 September 20X6. BUZZARD C0

Statement of profit or loss for the year ended 30 September 20X6

(Revenue – insert value)

The following information is relevant to the preparation of the financial statements:

• Inventory at 30 September 20X6 had a cost of $23,500. Within this, there were several items which had cost $5,000 but which could be sold for only $3,500.

• The allowance for receivables should be increased to $6,000. The increase should be charged as an administrative cost.

• Plant and machinery is depreciated on a reducing balance basis at a rate of 20% per annum. Depreciation should be charged to cost of sales.

• The income tax charge based upon the profit for the year was estimated at $15,000.

Prepare the statement of profit or loss of Buzzard Co for the year ended 30 September 20X6. BUZZARD C0

Statement of profit or loss for the year ended 30 September 20X6

(Cost of sales)

The following information is relevant to the preparation of the financial statements:

• Inventory at 30 September 20X6 had a cost of $23,500. Within this, there were several items which had cost $5,000 but which could be sold for only $3,500.

• The allowance for receivables should be increased to $6,000. The increase should be charged as an administrative cost.

• Plant and machinery is depreciated on a reducing balance basis at a rate of 20% per annum. Depreciation should be charged to cost of sales.

• The income tax charge based upon the profit for the year was estimated at $15,000.

Prepare the statement of profit or loss of Buzzard Co for the year ended 30 September 20X6. BUZZARD C0

Statement of profit or loss for the year ended 30 September 20X6

Prepare the statement of profit or loss of Buzzard Co for the year ended 30 September 20X6.

(Gross profit)

The following information is relevant to the preparation of the financial statements: • Inventory at 30 September 20X6 had a cost of $23,500. Within this, there were several items which had cost $5,000 but which could be sold for only $3,500. • The allowance for receivables should be increased to $6,000. The increase should be charged as an administrative cost. • Plant and machinery is depreciated on a reducing balance basis at a rate of 20% per annum. Depreciation should be charged to cost of sales. • The income tax charge based upon the profit for the year was estimated at $15,000.

Prepare the statement of profit or loss of Buzzard Co for the year ended 30 September

BUZZARD C0

Statement of profit or loss for the year ended 30 September 20X6

Prepare the statement of profit or loss of Buzzard Co for the year ended 30 September 20X6.

(Administrative expenses)

The following information is relevant to the preparation of the financial statements:

• Inventory at 30 September 20X6 had a cost of $23,500. Within this, there were several items which had cost $5,000 but which could be sold for only $3,500.

• The allowance for receivables should be increased to $6,000. The increase should be charged as an administrative cost.

• Plant and machinery is depreciated on a reducing balance basis at a rate of 20% per annum. Depreciation should be charged to cost of sales.

• The income tax charge based upon the profit for the year was estimated at $15,000.

Prepare the statement of profit or loss of Buzzard Co for the year ended 30 September 20X6. BUZZARD C0

Statement of profit or loss for the year ended 30 September 20X6

Prepare the statement of profit or loss of Buzzard Co for the year ended 30 September 20X6.

(Distribution costs – insert value)

The following information is relevant to the preparation of the financial statements:

• Inventory at 30 September 20X6 had a cost of $23,500. Within this, there were several items which had cost $5,000 but which could be sold for only $3,500.

• The allowance for receivables should be increased to $6,000. The increase should be charged as an administrative cost.

• Plant and machinery is depreciated on a reducing balance basis at a rate of 20% per annum. Depreciation should be charged to cost of sales.

• The income tax charge based upon the profit for the year was estimated at $15,000.

Prepare the statement of profit or loss of Buzzard Co for the year ended 30 September 20X6. BUZZARD C0

Statement of profit or loss for the year ended 30 September 20X6

(Profit before tax)

The following information is relevant to the preparation of the financial statements:

• Inventory at 30 September 20X6 had a cost of $23,500. Within this, there were several items which had cost $5,000 but which could be sold for only $3,500.

• The allowance for receivables should be increased to $6,000. The increase should be charged as an administrative cost.

• Plant and machinery is depreciated on a reducing balance basis at a rate of 20% per annum. Depreciation should be charged to cost of sales.

• The income tax charge based upon the profit for the year was estimated at $15,000.

Prepare the statement of profit or loss of Buzzard Co for the year ended 30 September 20X6. BUZZARD C0

Statement of profit or loss for the year ended 30 September 20X6

(Income tax charge)

The following information is relevant to the preparation of the financial statements: • Inventory at 30 September 20X6 had a cost of $23,500. Within this, there were several items which had cost $5,000 but which could be sold for only $3,500. • The allowance for receivables should be increased to $6,000. The increase should be charged as an administrative cost. • Plant and machinery is depreciated on a reducing balance basis at a rate of 20% per annum. Depreciation should be charged to cost of sales. • The income tax charge based upon the profit for the year was estimated at $15,000.

Prepare the statement of profit or loss of Buzzard Co for the year ended 30 September 20X6. BUZZARD C0

Statement of profit or loss for the year ended 30 September 20X6

(Profit after tax for the year)

The following information is relevant to the preparation of the financial statements:

• Inventory at 30 September 20X6 had a cost of $23,500. Within this, there were several items which had cost $5,000 but which could be sold for only $3,500.

• The allowance for receivables should be increased to $6,000. The increase should be charged as an administrative cost.

• Plant and machinery is depreciated on a reducing balance basis at a rate of 20% per annum. Depreciation should be charged to cost of sales.

• The income tax charge based upon the profit for the year was estimated at $15,000.

– Choose the correct calculation of cost of sales

All figures are in $000

• $20,000 + $145380 + $23,500 - $30,370

• $20,000 + $145,380 - $23,500 + $30,370

• $20,000 + $145,380 – $22,000 + $30,370

• none

The following information is relevant to the preparation of the financial statements:

• Inventory at 30 September 20X6 had a cost of $23,500. Within this, there were several items which had cost $5,000 but which could be sold for only $3,500.

• The allowance for receivables should be increased to $6,000. The increase should be charged as an administrative cost.

• Plant and machinery is depreciated on a reducing balance basis at a rate of 20% per annum. Depreciation should be charged to cost of sales.

• The income tax charge based upon the profit for the year was estimated at $15,000.

Choose the correct calculation of administrative expenses

All figures are in $000

• $67,300 + 2,500 - $6,000

• $67,300 + $6,000 - $2,500

• $67,300 + $6000

• none