5.4 Clubs and societies (3)
Resources |
Revision Questions |
Accounting
Login to see all questions
Click on a question to view the answer
1.
A company made the following contributions to its accumulated fund:
- Year 1: £5,000
- Year 2: £7,000
- Year 3: £3,000
- Year 4: £9,000
Calculate the total accumulated fund at the end of Year 4.
Calculation:
Total Accumulated Fund = £5,000 + £7,000 + £3,000 + £9,000 = £24,000
Answer: The total accumulated fund at the end of Year 4 is £24,000.
2.
A company sells bespoke knitted scarves. The following information is available for the year ended 31 December 2022:
- Sales revenue: £18,000
- Direct materials (yarn): £4,000
- Direct labour (knitting time): £6,000
- Factory overheads (rent, utilities, equipment depreciation): £3,000
- Sales commission: £1,000
Required: Prepare an income statement for the company for the year ended 31 December 2022.
Bespoke Scarves Income Statement
For the year ended 31 December 2022
| Item | Amount (£) |
| Sales Revenue | 18,000 |
| Direct Materials | 4,000 |
| Direct Labour | 6,000 |
| Factory Overheads | 3,000 |
| Sales Commission | 1,000 |
| Cost of Goods Sold | 14,000 |
| Gross Profit | 4,000 |
| Net Profit | 4,000 |
Note: This income statement shows the profitability of the bespoke scarf business. It starts with sales revenue, deducts the cost of goods sold (which includes direct materials, direct labour, and factory overheads), and then subtracts sales commission to arrive at net profit.
3.
Question 1
On 1st January 2023, the balance of the Receipts and Payments account was £2,500. During the year, the following transactions occurred:
- Receipts: £5,800
- Payments: £4,200
Prepare the Receipts and Payments account for the year ended 31st December 2023.
Answer 1
Receipts and Payments Account
| Item | Amount (£) |
| Opening Balance | 2,500 |
| Receipts | 5,800 |
| Payments | 4,200 |
| Closing Balance | 4,100 |