Accounting a Level A2 Specimen Paper

Corporate and management accounting Specimen Paper First examination May 2005 Time: 3 hours Materials required for examination Answer Book (AB16) Items included with question papers Accounting paper (AB34) (6 sheets per candidate) Instructions to Candidates Answer FIVE questions, choose TWO from Section A and THREE from Section B. In the boxes on the answer book, write the name of the examining body (London Examinations), your centre number, candidate number, the subject title (Accounting), the paper reference (9011), your surname and signature. Answer your questions in the answer book. Make sure your answers to parts of questions are clearly numbered. Use additional answer sheets if necessary. If the accounting paper provided does not allow you to set out your answer in the way you wish, rule up a page of the answer book to suit your requirements. Information for Candidates The total mark for this paper is 100. The marks for parts of questions are shown in round brackets: e. g. (2). This paper has 7 questions. Calculators may be used. Advice to Candidates Write your answers neatly and in good English. This publication may only be reproduced in accordance with London Qualifications copyright policy.  © 2005 Revised GCE Advanced Subsidiary and Advanced Level Accounting 8011/9011 – Specimen Papers and Mark Schemes 23 SECTION A Answer TWO questions from this section 1. The balance sheets of Limsol Ltd as at 31 October 2003 and 31 October 2002 were as follows: 31October 2003 Fixed assets (Net) Current assets Stock Debtors Bank ? 127 500 79 500 27 000 234 000 Creditors: due within one year Creditors Proposed dividends 117 000 37 500 154 500 79 500 979 500 78 000 30 000 108 000 177 000 897 000 ? 33 500 102 000 49 500 285 000 ? 900 000 31October 2002 ? 720 000 Creditors: due after one year 10% Debentures 195 000 784 500 90 000 807 000 Issued share capital 750 000 ordinary shares of ? 1 each Reserves Share premium General reserve Profit and loss 750 000 7 500 27 000 784 500 600 000 150 000 57 000 807 000 24======================Revised GCE Advanced Subsidiary and Advanced Level Ac counting 8011/9011 – Specimen Papers and Mark Schemes Additional Information: (i) (ii) (iii) (iv) During the year ended 31 October 2003, fixed assets with a net book value of ? 0 000 were sold for ? 37 500 and fixed assets costing ? 300 000 were purchased. An issue of one bonus share for every four shares held was made on 30 June 2003. To improve the working capital position the directors sanctioned a further issue of debentures on 1 November 2002. An interim dividend of ? 15 000 was paid on 31 May 2003. Required: (a) Prepare a statement reconciling operating profit to net cash inflow or outflow from operations. (13) Prepare a cash flow statement for Limsol Ltd for the year ended 31 October 2003 in accordance with the requirements of FRS 1. 9) â€Å"The management of cash flow is more important than profitability to ensure the survival of a business†. Explain this statement. (4) (Total 26 marks) (b) (c) Revised GCE Advanced Subsidiary and Advanced Level Accounting 8011/9011 – Specimen Paper s and Mark Schemes 25 2. The balance sheets of Rumba Ltd and Samba Ltd at 31 July 2003 were as follows: Rumba Ltd ? 240 000 93 750 333 750 29 625 31 050 28 950 89 625 50 250 39 375 373 125 225 000 27 000 121 125 373125 Samba Ltd ? 144 000 37 050 181 050 15 675 14 280 7 455 37 410 43 680 (6 270) 174 780 135 000 39 780 174 780 Fixed assets Premises at cost Vehicles at net book value Machinery at net book value Current asssets Stock Debtors Bank Current liabilities Creditors Working capital Financed by: Ordinary shares of ? 1 each Share Premium Profit Loss On 1 August 2003 Combo Ltd was formed, with an authorised capital of 750 000 ordinary shares of ? 1 each, to take over the assets and liabilities of both companies at book value with the exception of: (i) (ii) (iii) (iv) (v) (vi) The premises of Rumba Ltd were revalued at ? 300 000, and Samba Ltd at ? 180 000. The purchase consideration was settled by issuing to the shareholders of Rumba Ltd and Samba Ltd ordinary shares in Combo Ltd at ? 1. 50 each. Required: (a) Calculate the purchase consideration and the number of shares issued by Combo Ltd. (11) (b) Journal entries to close the books of Rumba Ltd. (Narrations are not required). An extract from the balance sheet of Combo Ltd at 1 August 2003 to show the share capital and reserves. (4) (Total 26 marks) (11) (c) Revised GCE Advanced Subsidiary and Advanced Level Accounting 8011/9011 – Specimen Papers and Mark Schemes 7 3. The directors of Kaslan Ltd are considering investing in one of two machines to increase production capacity. The details are as follows: Machine Y ? 300 000 120 000 140 000 60 000 30 000 Machine Z ? 300 000 45 000 75 000 180 000 135 000 Capital cost Estimated net profit: Year 1 Year 2 Year 3 Year 4 The estimated profit is calculated after deducting straight-line depreciation. Both machines will have a life of fo ur years and an estimated scrap value of ? 60 000. The cost of capital is 15%. Present value of ? 1 Year 1 2 3 Q 15% 0. 870 0. 756 0. 658 0. 572 All costs and revenues occur at the end of each year. Required: (a) Calculate, for both machines, the: (i) cash flows (6) (ii) pay back period (4) (iii) net present values. (8) 28======================Revised GCE Advanced Subsidiary and Advanced Level Accounting 8011/9011 – Specimen Papers and Mark Schemes (b) Using your answer to (a), state with reasons, which machine you would recommend the directors of Kaslan Ltd to purchase. (5) The accounting rate of return method of investment appraisal has one advantage, it is simple to calculate. State three disadvantages. 3) (Total 26 marks) (c) Revised GCE Advanced Subsidiary and Advanced Level Accounting 8011/9011 – Specimen Papers and Mark Schemes 29 SECTION B Answer THREE questions from this section 4. Dynamic Ltd has an authorised capital of 100 000 ordinary shares of ? 1 each which had been issued in full. In accordance with the required procedures the authorised capital was increased to 200 000 shares. The directors deci ded to issue to the public a further 75 000 shares as follows: ? 0. 30 0. 70 0. 50 Application Allotment (Including premium) First and Final Call Applications were received for 112 500 shares. Applications for 15 000 shares were rejected and the monies refunded. The 75 000 shares were alloted on a pro-rata basis, the surplus application money was applied to the amount due on allotment. The total due on allotment was received in full. The amount due on the first and final call was also received in full. Required: (a) Show the ledger accounts to record the above transactions. (A bank account is not required). (10) Give three advantages to a company and its shareholders of making a rights issue. (6) (Total 16 marks) (b) 0======================Revised GCE Advanced Subsidiary and Advanced Level Accounting 8011/9011 – Specimen Papers and Mark Schemes 5. Patel Ltd manufactures three products, X, Y and Z.  · The standard time for each unit produced is: X Y Z  · 12 hours 9 hours 16 hours Labour details: Actual direct labour hours worked 9 251. Standard hourly rate of pay ? 6. Actual wages ? 55 320.  · During August the act ual output was: X Y Z 320 units 260 units 180 units Required: (a) (b) Calculate the standard hours of actual output. (2) Calculate the following variances: (i) (ii) (iii) (c) Total direct labour variance.

WAN, Architecture Overview Research Paper Example | Topics and Well Written Essays - 1500 words

WAN, Architecture Overview - Research Paper Example regard, this proposal aims at coming with up a clear description of the different types WAN connections that can be integrated into an organization (DiMarzio, 2001). The term WAN (Wide Area Network) refers to a large-scale internet connection that exists over a huge geographical terrain and typically connects two or more Local Area Networks. It is usually made up of a significant number of interconnected devices such as hubs, multiport switches, routers and satellite dishes (DiMarzio, 2001). One of the key needs of the WAN architecture to an organization is to provide faster access to files. Most organizations face the challenge of having to reload files. This is usually experienced in slow network connection situations (Meyers, 2004). Consequently, this affects the ability of the organization to succeed in meeting its set out business goals. However, with the WAN it becomes easier to enjoy speedy access to organizational data (DiMarzio, 2001). The WAN architecture is also of great need particularly in effective management of remote organization offices. That is, the WAN provides an efficient platform for managing and sharing of data between multiple office locations. To be precise, adoption of WAN solutions maximize the organizational network speed between remote business offices and accelerates file transfer (Karris, 2009). Another indispensable need of the WAN architecture is the ability to reach the global customer base. With an all-time internet access, it facilitates maximal access to the targeted global customer group. That is, it makes it easy to reach a wide customer set of customers, which is crucial in promoting business continuity. It thus plays a huge in increasing profits and meeting the set out business goals (DiMarzio, 2001). Communication is always a crucial need for effective business operations. In this sense, adoption of the WAN architecture technology acts a key need specifically in improving optimal performance of key business

Intervention Strategies Article Example | Topics and Well Written Essays - 250 words

Intervention Strategies - Article Example ne membrane lung disease (now called as a respiratory distress syndrome or RDS) and as a result, was placed on a ventilator for several weeks during the period he was still in the hospital nursery. Paul spoke his first words at 11 months and had his first walk attempts at approximately 14 months. He mostly avoids any of the physical activities as a toddler and as a young kid, preferring more sedentary activities like looking at books or watching cartoon shows on television for some hours on end. He was enrolled in a nursery school at age 5 and had shown great promise during his kindergarten years, as observed by his teacher and reported to his parents. He then showed the first signs of depression and withdrawal from his peers. The intervention strategy selected for Paul is cognitive behavioral therapy (CBT) as it is shown to be effective in a good number of similar cases. CBT combines behavioral therapy and cognitive therapy; it focuses on the etiology of depressive disorders such as low self-esteem and feelings of being overwhelmed due to over-sensitivity on trivial matters, in turn usually caused by emotional maladjustments and dysfunction behaviors (Lehmann & Coady, 2001, p. 176). Paul is entering adolescence which is a period of great changes, both physiologically and emotionally. CBT is focused on his dysfunctional thinking patterns which caused his low self-esteem, brought about by over-simplification (generalization) and magnification (stress on the negatives and ignoring the positives) where everything seems to be extremely very important, urgent or necessary. The intervention therapy tries to cure him by modifying his behavior pattern and at the same time develop mental flexibility by doing away with his unrealistic thoughts due to arbitrary inferences and selective abstractions (Verduyn, Rogers & Wood, 2009, p. 49). Paul showed excellent response to CBT even in just a few weeks after starting therapy. It was emphasized to him that his anxieties and