I got 12,315 and a lot of the other answers posted here end in 315 which means majority of our workings are correct to get that 315 ending, which means we get most marks. One of us along the line has miscalculated something which gives the difference of round thousands. I got the same depreciation. I took off the transfer and dividends.
Did you spot the loan interest owing? Did you take away the increase in unrealised profit, I think the change was 1,500?
Can you think of any adjustments there were other than the obvious accruals/prepayments?
yeah i did the loan interest owing and unrealised profit i made sure to tick everything as i was going along so i didn't miss any and i had plenty of time left so i checked through everything a few times
Do we have to calculate administrative expense as a whole or do we do like the normal profit and loss where all the expenses is listed down? Because it's for internal use
I think although it was a mix of a PLC and Manufacturing account, it should have been listed otherwise it would be useless for internal use. It wasn't a minimum requirement question. However if you did it as a whole expense and showed workings of each expense in the workings box and got them right you will still get the same profit figures and I would assume you could get most of the marks.
what did people do with the £60,000 of fixed asset that was brought in March. Did you do £240,000 less the £60,000 then less the provision for depreciation which I think was £68,000 then do the reducing balance 20%. Then do I think 3 months worth of depreciation on the £60,000. That would give you £25,400. Not taking the £60,000 out of the £240,000 would have given you a depreciation figure of £37,400. The difference is £12,000 which is why some people have got £315 or £12,315... depends what you did with the depreciation
Well calculated, I did take it off and got 12,315. However, as there aren't many marks for totals/profits making this mistake would only probably lose you 3-4 marks, which is fine if the rest of the paper went well.
yeah i did the loan interest owing and unrealised profit i made sure to tick everything as i was going along so i didn't miss any and i had plenty of time left so i checked through everything a few times
Check Robyn98's reply, if her figures are correct that's a very probable reason for the 12,000 difference.
Do you remember adjusting depreciation for the purchase with 3 months depreciation?
Do we have to calculate administrative expense as a whole or do we do like the normal profit and loss where all the expenses is listed down? Because it's for internal use
Normal layout as was internal layout, just deducted corp tax, dividend and transfer after the normal expenses. Added man profit and deducted provision too after all other expenses were deducted
There's no way I can remember all the information from memory.
Based on other people's answers i'm pretty sure it ends in 315. I got £12,315. Some people got £315 possibly due to not taking away the purchase when calculating depreciation as there was only 3 months dep on the purchase.
If you stopped at net/operating profit, I got 227,315.
Normal layout as was internal layout, just deducted corp tax, dividend and transfer after the normal expenses. Added man profit and deducted provision too after all other expenses were deducted
Do you think they wanted interest in expenses, like normal Manufac accounts, or under operating profit like a PLC account? I think they might give marks for either based on the question being a bit different.
Do you think they wanted interest in expenses, like normal Manufac accounts, or under operating profit like a PLC account? I think they might give marks for either based on the question being a bit different.
I did direct expenses down to prime cost then added my factory overheads, adjusted for WIP then did man profit. Moved on to the p&l then did sales less COS then listed all the expenses including loan interest got to a net profit figure then deducted corp tax, dividend and transfer, added man profit back then deducted PUPOS to get 12,315 as my final net profit figure
I did direct expenses down to prime cost then added my factory overheads, adjusted for WIP then did man profit. Moved on to the p&l then did sales less COS then listed all the expenses including loan interest got to a net profit figure then deducted corp tax, dividend and transfer, added man profit back then deducted PUPOS to get 12,315 as my final net profit figure
That's exactly what I did. Hopefully they aren't picky about interest being in expenses or below net profit.
I definitely did that wrong oh no hopefully doesn't drop me down too much
Looking at mark schemes that will only lose a maximum of 4 marks. 2 for the depreciation charge, 1 (maybe) for expenses total and 1 (maybe) for retained/net profit unless there is own figure marks.
Based on the 315 it's very probable everything else was right which is 24 or 25/28. That's still 85-89% which is very good for the hardest question.
Most defiantly, was the first question and the hardest one. What about the other questions?
I posted the question and answers for the share issue Q3, check page1 comments. That was quite straight forward.
Q2 had too much to remember so I have no idea what the ratios should be, only one I remember was 12.7 for something. Interest cover was quite high I think, like 14? and dividend cover was around 2/3? These are ballpark figures I can't remember any specifics.
Importance of liquid ratio:shows how many liquid assets you have per current liability, shows vulnerability to sudden cash payments or cash-flow problems. Improved by 1) Reduce gap between debtor collection/creditor payment period. 2) Hold less stock if possible. 3) Reduce gearing so you don't have high cash outflows.
Authorised Share Capital: Maximum legal amount of shares a business can issue, stated in memorandum of association (3 marks)
Advantage of pref share issue: don't dilute control as no voting rights, assuming non-participating shares. cash payment for shares, helpful if raising capital for investment/asset
Disadvantage of pref share issue: Gearing increases, business seen as higher risk to investors as high debt capital. Existing share holders have lower EPS as interest payments are higher, may lead to lower DPS and so less interest from investors -> share price falls.
Saw about the share issue question and that's the same as what I calculated so hopefully that's correct. Similar answers to written questions just interested to know about ratios.
I got this, and 227,315 for net/operating profit. I was debating whether they even wanted us to include dividends and transfers as it's a manufacturing account but I did it anyway as there's nothing to lose.
Dividends shouldn't be included in manufacturing a/c but later in profit&loss section. However i think i made a mistake by not including manufacturing profit in finished goods transferred (i did then i crossed it out😭) but seems like i forgot to 'correct' everything cuz many ppl have the same answer anw u r right, theres nothing to lose now😂