KASNEB Financial accounting - Question 1a

Bidii Ltd. is in the business of manufacturing gas cylinders. The following b... [Click to view full question and step-by-step solution]

KASNEB Financial accounting - Question 1b

Statement of financial position as at 31 March 2016. ... [Click to view full question and step-by-step solution]

KASNEB Financial accounting - Question 2a

Income statement for the year ended 30 April 2016. ... [Click to view full question and step-by-step solution]

KASNEB Financial accounting - Question 2b

Statement of financial position as at 30 April 2016. ... [Click to view full question and step-by-step solution]

KASNEB Financial accounting - Question 3a

Income statement for the year ended 31 March 2016.... [Click to view full question and step-by-step solution]

KASNEB Financial accounting - Question 3b

Statement of financial position as at 31 March 2016. ... [Click to view full question and step-by-step solution]

KASNEB Financial accounting - Question 5a

Explain two objectives of the International Public Sector Accounting Standards Board (IPSASB).... [Click to view full question and step-by-step solution]

KASNEB Financial accounting - Question 5b

Describe three qualities of useful accounting information. ... [Click to view full question and step-by-step solution]

KASNEB Financial accounting - Question 5d

Describe three errors that do not affect the trial balance.... [Click to view full question and step-by-step solution]

CPA Financial accounting – May 2016 Past Paper & Answers

Q: KASNEB Financial accounting - Question 4b

(i) Gross profit margin.(ii) Return on capital employed (ROCE).(iii) Current ratio.(iv) Acid test ratio.(v) Inventory turnover.(vi) Trade receivables collec... [Click to view full question and step-by-step solution]

Unit: Financial accounting

12 Questions

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Questions

Download CPA Financial accounting May 2016 past paper with detailed answers and marking scheme. This paper is based on KASNEB examination standards and is ideal for revision and exam preparation.

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Financial Statements of a manufacturing entity

Bidii Ltd. is in the business of manufacturing gas cylinders. The following balances were extracted from the books of the company as at 31 March 2016;

Trial Balance
	Sh."000"
Issued and fully paid ordinary share capital (Sh. 10 par value)	441,000
General reserves (1 April 2015)	429,200
Retained profit (l April 201 5)	140,000
Production machinery (cost Sh.600 million)	390,000
Office equipment (cost Sh. 140 million)	100,000
Inventory(1st April 2015)
Raw Materila	46,000
Finished goods	667,000
Work-in-progress	33,000
Sales	2,400,000
Trade receivables	691,000
Trade payables	497,000
Carriage outwards	124,000
Factory wages	333,000
Carriage on raw materials	39,400
Purchases of raw materials	400,000
General factory expenses	66,000
Lighting expenses	72,000
Factory power	118,000
Administrative salaries	270,000
Sales agents' salaries	80,000
Commission to sales agents	19,000
Rent	120,000
Insurance expenses	132,000
General administrative expenses	144,000
Bank overdraft	26,800
Cash in hand	15,000
Bank charges	9,600
Discounts allowed	28,000
Royalties	37,000

Additional information:

1.Inventory as at 31 March 2016 was made up of the following:

	Sh."000"
Raw materials	60,000
Work-in-progress	25,000

2. The finished goods were sold at a mark-up of 66 ²/3
3. Lighting expenses, rent and insurance expenses are to be apportioned as follows: factory 70% and administration
4. Depreciation is to be provided as follows:

Production machinery	10% per annum on cost
Office equipment	10% per annum on reducing balance

5. Sales agents' salaries include sh 35,000  that relates to the 7 months ending 31 May 2016.
6.The directors have proposed the following:
- Sh. 100 million be transferred to general reserves.
- Dividend of Sh.0.8 per share be paid to ordinary shareholders
7. Factory wages included Sh. 143 million for indirect labour. Required:
(a)  Manufacturing account and income statement for the year ended 31 March 2016. (12 Marks)
(b)  Statement of financial position as at 31 March 2016.(12 Marks)

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Financial Statements of a manufacturing entity

Statement of financial position as at 31 March 2016.

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Financial Statements of a partnership

Income statement for the year ended 30 April 2016.

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Financial Statements of a partnership

Statement of financial position as at 30 April 2016.

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Correction of errors and preparing financial statements with incomplete records

Income statement for the year ended 31 March 2016.

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Correction of errors and preparing financial statements with incomplete records

Statement of financial position as at 31 March 2016.

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Analyzing Financial Statements

Explain three reasons why the amount of cash generated by a business entity might differ from the profit reported by the same business entity during the same financial period-

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Analyzing Financial Statements

(i) Gross profit margin.

(ii) Return on capital employed (ROCE).

(iii) Current ratio.

(iv) Acid test ratio.

(v) Inventory turnover.

(vi) Trade receivables collection period.

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Regulation and other principles guiding the accounting profession

Explain two objectives of the International Public Sector Accounting Standards Board (IPSASB).

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Introduction to Accounting

Describe three qualities of useful accounting information.

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Accounting for Assets and Liabilities

Explain in what way, if at all, the practice of providing for depreciation ensures that property, plant and equipment are replaced at the end of their useful economic lives.

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Correction of errors and preparing financial statements with incomplete records

Describe three errors that do not affect the trial balance.

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CPA Financial accounting – May 2016 Past Paper & Answers

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CPA Financial accounting – May 2016 Past Paper & Answers

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