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Accounting & Costing for Business PDF

Added on - 13 Jan 2022

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Accounting&CostingforBusiness
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Table of Contents
Task 1:Enter the transactions in Pat’s journal and ledgeraccounts and compile a trial
balance as at 31 December 2019.......................................................................................3
1.1 Pat’s journal account as at 31 December 2019.....................................................................3
1.2 Pat’s ledger account as at 31 December 2019......................................................................4
1.3 Pat’s Trial Balance as at 31 December 2019.........................................................................6
Task 2...............................................................................................................................7
2.1 “Financial statements provide useful information to a wide range of users” Discuss............7
2.2Shane’s trading and profit and loss account for the year to 31 March 2019 and the balance
sheet as at that date................................................................................................................9
2.2.1Shane’s trading and profit and loss account for the year to 31 March 2019....................................9
2.2.2 Shane’s balance sheet for the year to 31 March 2019.....................................................................10
Task 3: Identify and classify different types of cost of the new product............................10
Task 4: Calculate the variancesin as much detail as possible and identify possible causes
for the variances and recommend corrective actions for them.........................................12
4.1 Variance Calculation of Claudia Limited’s product X..........................................................12
4.1.1 Sales Variances..................................................................................................................................12
4.1.2 Direct Material Variances..................................................................................................................12
4.1.3 Direct Labour Variances....................................................................................................................13
4.1.4 Variable Production Overhead Variances.........................................................................................14
4.1.5 Fixed Production Overhead Variances..............................................................................................14
4.2 Possible Causes for the Variances of Claudia Limited’s Product X and Recommended
Corrective Actions for them....................................................................................................16
5.0References................................................................................................................18
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Task 1:Enter the transactions in Pat’s journal and ledger accounts and
compile a trial balance as at 31 December 2019
1.1Pat’s journalaccountas at 31 December 2019
Pat’s Business
General LedgerAccount
As at 31stDecember 2019
DateDescriptionRelevant AccountDebit
(Rs)
Credit (Rs)
01.12.19
Cashinvested by Patfor the
business
Casha/c10,000
Capitala/c10,000
02.12.19
Goods bought on credit from
creditors (Grass Rs.6000 and
Seed Rs.7000)
Purchases a/c13,000
Creditors a/c13,000
10.12.19
Goods sold on credit to
debtors (Fog Rs.3000 and
Mist Rs.4000)
Debtors a/c7,000
Sales a/c7,000
12.12.19
Goods returnedto the
suppliers (Grass Rs.1000 and
Seed Rs.2000)
Creditors a/c3,000
Purchase Return a/c3,000
15.12.19
Additional goods bought on
credit from creditors (Grass
Rs.3000and SeedRs.4000)
Purchases a/c7,000
Creditors a/c7,000
20.12.19
Goodssold on credit to
debtors (Fog Rs.2000 and
Mist Rs.3000)
Debtors a/c5,000
Sales a/c5,000
24.12.19Office expenses paid in cash
Office Expense a/c5,000
Cash a/c5,000
29.12.19
Cash received fromdebtors
(FogRs.4000 andMist
Rs.6000)
Casha/c10,000
Debtors a/c10,000
31.12.19
Cash paid to creditors (Grass
Rs.6000 and Seed Rs.8000)
Creditors a/c14,000
Cash a/c14,000
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1.2Pat’s ledger account as at 31 December 2019
DebitCash AccountCredit
01.12.19Capital10,00024.12.19Office expense5,000
29.12.19Debtors10,00031.12.19Creditors14,000
31.12.19Balance c/d1,000
20,00020,000
01.01.20Balance b/f1,000
DebitCapitalAccountCredit
31.12.19Balancec/d10,00001.12.19Cash10,000
10,00010,000
01.01.20Balance b/f10,000
DebitPurchases AccountCredit
02.12.19Creditors13,00031.12.19Balance c/d20,000
15.12.19Creditors7,000
20,00020,000
01.01.20Balance b/f20,000
DebitGrass’sAccount (Creditor)Credit
12.12.19Purchase return1,00002.12.19Purchases6,000
31.12.19Cash6,00015.12.19Purchases3,000
31.12.19Balance c/d2,000
9,0009,000
01.01.20Balance b/f2,000
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