NB:THIS IS AN OLD EXAM QUESTION I NEED ANSWERS FOR REVISION PURPOSES ONLY!!!

AFE Traders recruited you as their accountant for 31 May 2019 financial year. The business has

the following information.

Cost of sale N$ 175 812

Margin 22%

Opening Stock N$ 14 500

Closing Stock N$ 22 812

Total Expenses N$ 24 844

Debtors Turnover 12 Times

Creditors Turnover 8 Times

Current Assets N$ 51 596

Current Liabilities N$ 28 016

Calculate the following

a) Gross profit 3 Marks

b) Sales 2 Marks

c) Purchases 2 Marks

d) Inventory turnover (days) 4 Marks

e) Net profit margin 4 Marks

f) Debtors Balance 2 Marks

g) Creditors Balance 2 Marks

h) Current Ratio 2 Marks

i) Cash balance 2 Marks

j) Bank Overdraft 2 Marks

ROUND OFF YOUR ANSWER TO THE NEAREST ZERO DECIMAL PLACE!!! Question 2 22 Marks The following information was extracted from JJ Traders books for 31 May 2019 financial year. JU requested you to assist with missing information. Use the information below to complete the financial statements. 2 (a). 12 Marks JJ Traders Statement of Comprehensive Income as at 31 May 2019 Sales ? (a) Less: Cost of goods sold: Opening Stock 11 200 Add: Purchases ? (b) 177 338 Closing Stock 8 450 Cost of Sale Gross Profit ? (d) Less: Expenses: 2 (e) Net Profit Additional information: 1. Sales margin - 20% 2. Net profit margin - 4% Page 11 of 182 (b) 10 Marks Calculate the following: COKE Mark-up 25 Percent Sales NS 35 000 Inventory 01.03.2017 N$ 8 450 Inventory 28.02.2018 NS 7 450 Calculate: Gross Profit, Purchases and Cost of Sale? 3 Marks FANTA Margin 20 Percent Purchases NS 42 400 Inventory 01.03.2017 NS 12 600 Inventory 28.02.2018 NS 18 200 Calculate: Gross Profit, Sales and Cost of Sale? & Marks PEPSI Sales N5 68 500 Gross Profit N$ 22 800 Calculate: Percentage Mark-up. Margin and amount of Cost of Sale? 3 Marks Page 12 0f 16Question 3 40 Marks Ms Ji-Yong has not kept proper bookkee ecords, but she has kept notes in a personal note form of her business trans ctions as at 31 May 2019. The following transactions relate to financial year ended on 31 May 2018. DR CR Bank 18 200 Cash 1400 Accounts Receivable and Payable 7 8DO 6 850 Motor Vehicle (Net Depreciation) 22 500 Furniture and Fittings at cost 16 700 Inventory - 31 May 2018 8 490 Prepaid Rent and Accrued Stationery Expense 510 150 During the financial year ended 31 May 2019, the following transactions occurred, Paid suppliers N5 26 400 by cheque and NS 900 by cash. During the year received N$ 38 800 by cheque and NS 2 600 by cash. N$ 1 200 set-off was negotiated and granted. During year, customer refund amount to N$ 500. Stationery expense paid during the year was N$ 8 700 and was paid by bank cheque. Rent expense was also paid an amount of N$ 3 420 by cheque. The following expenses was paid by cheque Transport Expense N$ 750. Telephone Expense N$ 2 150 and Genera Expense N$ 680, Staff Welfare N$ 500 and by cash Municipal Service N$ 380. Motor vehicle was acquired on 01 June 2017 and is depreciated at 10% per annum, Furniture and fittings was also acquired on 01 June 2018 and depreciated at 10% per annum and both on straight line method and no scrap value At 01 June 2010, the following balances still exist in Ji-Yong books Page 13 of 18DR CR Bank 22 DDD Cash 2 630 Rent Expense 540 Stationery Expense 300 Inventory - 31 May 2019 5 540 Drawings - 31 May 2019 16 300 Accounts Receivable and Payable 760 260 NB: WORKINGS ARE NOT REQUIRED Required: ) Prepare statement of comprehensive income as at 3) May 2019 19 Marks b) Prepare statement of financial position as at 31 May 2010 29 Marks Question 4 13 Marks James Trading acquired a Motor vehicle on Of September 2009 at NS 258 800. This asset is depreciated at 10% per annum using straight line method, residual value is equal N$ 5 000, James Trading financial year ends on 30 November. Required: Depreciate the asset from acquisition date till 2010 financial year. Show each year depreciation and accumulated depreciation TOTAL MARK: 100 GOOD LUCK