100% COMPLETE WAEC GCE 2013 FINANCIAL ACCOUNT ESSAY ANSWERS (3ai)prime cost are the cost that can be traced to a particular production unit. (3aii) -direct materials: this is the expenditure on raw materials which can be traced to a particular production unit -Direct expenses: these are expenses which have direct indentfication with production e.g royalties -direct labour: this refers to the wages of employeess who are directly engaged in the production process (3b) -it saves time -it allow homogenous accoutn -it used to detect missing figures -it helps in locating errors -it provide a check on the accuracy of balance of the ledgers -total debtors and creditors can be easily calculated. 1a) Departmental account means account prepared separately for the department and here ledgers will be opened, trial balance will be prepared and also profit and loss account.it determines the financial status of each department in an institution. 1b) apportinate is a term used for differentiation and division of each department financial status into different account. 1C) purpose of departmental account - to determine the financial status of each department - it is used to determine profitability of each department - it is useful for decision - making processes. - it is used for determine gross profit of each department - it is used for monitoring the progress of each department (8) Debtor's account Debit Side Bal(1200) sales(8200) int Charge(140) Dishouned cheque(1400) Carriage out(110) Dishourned(1200 ) int on overdue(100) 12,350 Credit side cheque received(9200) return inwards(240) bad debt(800) set-off(400) bal c/d (1710) 10640 Creditor's control Debit side cash paid(250) cheques paid(4200) return out(220) set-off(400) bal c/d(5,250) 10,320 credit side bal(720) purchases(9600) 10,320 bal b/d(5250) (7) Tabulate Debit(dr) and Credit (cr) Subscription Debit: Balance(960) + I &E(34,560) + Balance(420) = 35940. Credit: Balance(360) +Cash(35,160) +Bal (420) = 35940. Balance b/d (420) Wages A/C Debit: Cash (26,976) + Bal (768) = 27,744 Credit: Bal (696)+ I&E(27,048) = 27,744 Club House Debit: Bal (48,600)= 48,600 (5) manufacturing trading profit & loss Account for the year ended 31/12/20010 Debit Side Stock Rm(105000) purchases(21000 0) 315000 expenses(56000) 371000 stock(90,000) 281000 wages(69000) royalties(50,00 0) prime cost(400000) over head expense gen exps(1/ 3*(33000)) (11,000) indirect labour(20,000) dep building (5/ 100*(120,000) (6,0000) equipmet (5/ 100*(100000) (5000) 42000 add WIP @ start(25000) 67000 less WIP@end(35000) 32000 g.p on Manufactured(78 000) market value(510000) Stock F.G(135000) market value(510000) stock F.G(645000) 80,000 G.p(565000) 125000 690000 general exps(2/ 3*(33000) (22000) admin exps(40000) S&D(45000) net profit(96000) 203,000 credit side market value(510,000) 510,000 sales(700,000) ret inwards(10000) 690000 690000 G.p b/d(125000) G.p on manifest(78000) 203,000 GOODLUCK!!!
Posted on: Fri, 20 Sep 2013 10:19:47 +0000
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