Klassy Kicks has two departments. The following information is provided for the year ended 31 December 2013: Adults Teenagers $ %$4 Stock 1 January 2013 Purchases 35 000 30 000 105 000 - 45 000 185 000 Stock 31 December 2013 50 000 Auywer 225 000 7 000 5 000 Sales 315 000 8 000 5 000 Returns Outwards Returns Inwards Wages of assistants 28 000 50 000 The following expenses cannot be traced to any particular department: 2$ Rent 9 000 Selling expenses Electricity 48 400 6 000 Insurance 2 000 ADDITIONAL INFORMATION: (1) (2) (3) (4) (5) Floor space is taken up – Teenagers 700 sq. ft. and Adults 1 300 sq. Rent is to be shared on the basis of floor space ft. Selling expenses are to be shared in the ratio of turnover Insurance are to be shared in the ratio of turnover Electricity expense is to be shared in the ratio of turnover

Klassy Kicks has two departments. The following information is provided for the year ended 31 December 2013: Adults Teenagers $ %$4 Stock 1 January 2013 Purchases 35 000 30 000 105 000 - 45 000 185 000 Stock 31 December 2013 50 000 Auywer 225 000 7 000 5 000 Sales 315 000 8 000 5 000 Returns Outwards Returns Inwards Wages of assistants 28 000 50 000 The following expenses cannot be traced to any particular department: 2$ Rent 9 000 Selling expenses Electricity 48 400 6 000 Insurance 2 000 ADDITIONAL INFORMATION: (1) (2) (3) (4) (5) Floor space is taken up – Teenagers 700 sq. ft. and Adults 1 300 sq. Rent is to be shared on the basis of floor space ft. Selling expenses are to be shared in the ratio of turnover Insurance are to be shared in the ratio of turnover Electricity expense is to be shared in the ratio of turnover

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Capital 1 January 2019 350 000Drawings 20 000Sales (70% on credit) 950 000Gross profit 250 000Total expenses 80 000Bank favourable 26 000Net profit 74 000Trade creditors 26 000Property, plant and equipment 350 000Fixed deposit 20 000Inventory 72 000Trade Debtors 80 000Mortgage Loan 100 000 Additional InformationThe opening balance of the inventory, debtors and creditors was R50 000, R60 000 and R30 000respectively. Assume a 365 day year. Calculate the following ratios and explain what each ratio means in relation to theindustry average given in brackets. Show your calculations as marks will be awardedfor these. Round off to 2 decimal places. Q.2.1.3 Average creditors settlement period (60 days). Assume purchases are equalto cost of sales and 60% of all purchases are on credit. Q.2.2 Discuss how the solvency ratio is calculated and what is measured by this ratio. Please help with the both questions mentioned
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Q26 You are required to prepare the balance sheet as on 31-12-2017 by using net change method from the following details. Liabilities OMR Assets OMR Share capital 200,000 Furniture & fixtures 200,000 Bank loan 50,000 Inventories 60,000 Creditors 70,000 Debtors 36,000 Cash 24,000 320,000 320,000 Balances of Debtors and creditors remain unchanged throughout the year. General price indices are on 1-1-12017----200; Average for the year ------240; on 31-12-2017----300. a. Retained earnings of OMR 15,000 by CPP method b. No Balancing figure neither in HCA nor CPP method c. No retained earnings d. None of them is correct
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Capital 1 January 2019 350 000 Drawings 20 000 Sales (70% on credit) 950 000 Gross profit 250 000 Total expenses 80 000 Bank favourable 26 000 Net profit 74 000 Trade creditors 26 000 Property, plant and equipment 350 000 Fixed deposit 20 000 Inventory 72 000 Trade Debtors 80 000 Mortgage Loan 100 000 Calculate the following ratios and explain what each ratio means in relation to the industry average given in brackets. Show your calculations as marks will be awarded for these. Round off to 2 decimal places. Q.2.1.4 Current ratio (2:1).
Bay Holdings Limited: 30 June 2021.Required: Statement of financial position as at: 30 June 2021InformationBALANCE SHEET ACCOUNTSOrdinary share capital 2 648 000Retained income (1 Jul 2020) 490 000Shareholders for dividends 280 000Fixed deposit 60 000Mortgage bond 336 000Fixed/tangible assets (Carrying value) 4 021 000Debtors control 45 000Creditors control 85 200Creditors for salaries 12 300Provision for bad debts ?SARS (Income tax) 400 000SARS (PAYE) 6 650Expenses payable (accrued) 7 200Income receivable (accrued) 7 950Bank 28 450Trading stock/inventory 129 600Consumable stores 5 600 Additional information1.The net profit after tax for the year amounted to R875 0002.Provision for bad debts should be adjusted to 5 % of debtors.3.One third of total fixed assets matures on 31 August 2021.4.A portion of loan amounting to R48 000 will be paid on 31 December 2021.5.SARS (Income tax) owes the business R25 000 for tax overpayment.