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JIMO LIMITED The information relates to the financial year ended 30 June 2021 - NSC Accounting - Question 1 - 2021 - Paper 1
Question 1
JIMO LIMITED The information relates to the financial year ended 30 June 2021. The business sells formal clothing for men and women. REQUIRED: 1.1 Refer to Inform... show full transcript
Worked Solution & Example Answer:JIMO LIMITED The information relates to the financial year ended 30 June 2021 - NSC Accounting - Question 1 - 2021 - Paper 1
Step 1
Refer to Information B. Calculate the value of the closing stock of formal suits that was omitted from the stock sheets on 30 June 2021.
Answer
To calculate the value of the closing stock, we begin with the stock figures provided:
- Initial stock count: 230
- Stock omitted: 206
- Remaining count after adjustment: 24
- Adjusted closing stock value: $675,500
Thus, the value of the closing stock is $675,500.
Step 2
Refer to Information C. Use the table provided to calculate the correct net profit after tax for the year ended 30 June 2021. Indicate '+' for increase and '-' for decrease.
Answer
-
Incorrect net profit before tax: $4,918,950
- Audit fees: +$123,600
- Interest on loan: -$273,000
- Rent income: -$9,500
- Income tax: +$1,285,250
-
Net profit after tax calculation:
Finally, the net profit after tax for the year is calculated as:
Hence, the net profit after tax for the year is $3,474,800.
Step 3
Step 4
Refer to Information A–H. Complete the following on 30 June 2021: - Statement of Financial Position
Answer
- Total Assets: $16,762,000
- Non-current Assets: $8,700,000
- Current Assets:
- Inventories: $4,860,000
- Trade and other receivables: $3,811,410
- Cash and cash equivalents: $28,590
- Total Equity and Liabilities: $16,762,000
- Shareholders’ Equity: $9,720,000
- Non-Current Liabilities: $3,842,000
- Current Liabilities: $3,200,000