Red Top Manufacturing Enterprise produces plastic bowls. The information relating to its operations for the year ended 31st December 2021 is as follows:
Stocks 01/01/2021 31/12/2021
# #
Raw materials 140,000 220,000
Work-in-progress 260,000 340,000
Finished goods 550,000
Sales 4,550,000
Purchase of raw materials 1,489,000
Direct wages 850,000
Royalties 77,000
Discounts allowed 92,000
Factory fuel 660,000
Administrative expenses 44,000
Electricity 64,000
Maintenance 48,000
Selling and distribution expenses 33,000
Additional Information:
(i) 75% of electricity and maintenance costs are apportioned to the factory,
(ii) 60,000 units were produced and transferred to the trading account at a market value of # 55 per unit
You are required to prepare Manufacturing, Trading, Profit and Loss Account for the year ended 31st December 2021.
Wale started business on 1st January 2022 with D 100,000 as capital and kept few records.
His assets and liabilities as at 31st December 2022 were as follows:
D
Premises 280,000
Loan 150,000
Stock 62,000
Debtors 4,800
Creditors 13,200
Bank 12,400
Wale withdrew D 17,300 cash for his personal use and deposited an additional cash of D 8,000 into the business account.
You are required to:
(a) Calculate the Closing Capital;
(b) Prepare Statement of Net Profit for the year ended 31st December 2022;
(c) Prepare the Balance Sheet as at that date.
The Receipts and Payments Account of Queens Social Club for the year ended 31st December 2021 is as follows:
Receipts and Payments Account for the year ended 31st December 2021
| $ | $ | ||
| Balance b/d | 20,000 | Expenses on diner | 105,000 |
| Subscriptions | 280,000 | Donations to hospital | 190,000 |
| Bat sales | 221,400 | Affiliation fees | 6,000 |
| Donations | 50,000 | Bar supplies | 140,000 |
| End of the year dinner | 170,000 | General expenses | 183,000 |
| Club equipment | 24,000 | ||
| Bar expenses | 71,000 | ||
| Balance c/d | 24,400 | ||
| 743,400 | 743,400 | ||
| Balance b/d | 24,400 |
Additional information:
1/1/2021
$
Club equipment (cost $ 50,000) 45,000
Bar stocks 6,000
Subscriptions
In arrears 30,000
In advance 50,000
Creditors for bar supplies 15,000
Furniture and fittings 28,000
Provide depreciation of 10% on cost for club's equipment. You are required to prepare
(a) Statement of Affairs as at 1/1/2021;
(b) Bar Trading Account for the year ended 31/12/2021; (c) Subscriptions Account for the year;
(d) Income and Expenditure Account for the year ended 31/12/2021.
The following statements relate to Peter Associates for the year ended 31st December 2021:
Trading, Profit and Loss Account for the year ended 31st December 2021
| Le | Le | ||
| Opening stock | 110,500 | Sales | 1,040,000 |
| Add: Purchase | 545,250 | ||
| 655,750 | |||
| Add: Carriiage inward | 184,250 | ||
| 840,000 | |||
| Less: Closing stock | 140,000 | ||
| 700,000 | |||
| Gross profit c/d | 340,000 | ||
| 1,040,000 | 1,040,000 | ||
| Expenses: | Gross profit b/d | 340,000 | |
| General expenses | 50,000 | ||
| Bad Debt | 50,000 | ||
| Salaries | 100,000 | ||
| Net Profit | 140,000 | ||
| 340,000 | 340,000 |
Balance Sheet as at 31 December 2021
| Le | Le | Le | Le | ||
| Financed by: | Fixed Asset | 190,000 | |||
| Ordinary share Capital | 200,000 | Current Asset: | |||
| General reserves | 20,000 | Stock | 140,000 | ||
| Profit | 140,000 | Debtors | 50,000 | ||
| Bank | 30,000 | 220,000 | |||
| Current liability: | |||||
| Bank overdraft | 30,000 | ||||
| Trade creditors | 20,000 | 50,000 |
410,000 410,000
You are required to calculate:
(a) Returns on shareholder's funds;
(b) Acid test ratio;
(c) Net profit margin
(d) Working capital ratio;
(e) Stock turnover ratio.
