#accounting

Described

Individual assignment: Cost and management accounting II submission date: Final exam date of the course Required Accuracy:100% In July ABC trading instrumentation inc. of Addis Ababa operand a subsidiary in Kenya to distribute its products in east Africa. You have been employed as management accountant in the subsidiary with the primary task of implementing financial controls on its activities. Investigation of the sales position reveals: Forecast sales quantity Birr 20 per unit            October--------- 30000                                                   November----- 30000                                                   December-------20000 Although 90 percent of sales are on a credit basis, early collection experience indicates that 80 percent of the credit sales are settled the month after invoicing, with the balance cleared in the following month. The customers are Mainly government agencies and health authorities; so there is little likelihood of bad debts. The subsidiary buys all its products from the parent company in Addis Ababa. It has been decided that its purchasing policy will be geared towards acquiring sufficient inventory in one month to fed the following months sales. All purchases are to be settled in the month after purchase. Gross margins are budgeted to be 40 percent on sales. Monthly fixed costs amount to $40,000, inclusive of $2000 in depreciation. In addition, basic salary costs will be $35,000 per month, plus commission of 10 percent on sales. Other variable selling costs will amount to  5 percent of sales value. All of the foregoing costs will be paid in the month of incurrence. Required prepare: 5 points each Sales budget Cash collection budget Purchase budget Selling and administrative expense budget

A business started trading on 1 January 2011. During the two years ended 31 December 2011 and 2012 the following Account on the dates stated:  debts were written off to the Bad Debts  31 August 2011  Patrick  Sh.850  Evans  Rahab  Sh.1,400  30 September 2011 28 February 2012 30 November 2012  31 August 2012  Mary David  Sh.1,800 Sh.600  Sh. 2,500  On 31 December 2011 there had been a  total of debtors remaining of sh.405,000. It was decided to make a provision for doubtful debts of sh.5,500.  On 31 December 2012 there had been a  total of debtors remaining of sh.473,000. It was decided to make a provision for doubtful debts of sh.6,000.

Musa, Levi and emem are in partnership owing a business known as fortune hunters and sharing profit and loss in the ratio of 5:3:2 respectively. with a gurantee made by Musa and Levi that in the event that emem's actual share of divisible profit falls below #60,000 the deficiency will be borne by both Musa and Levi. Other provisions of their activities of partnership includes: 1. Interest of 5% to be allowed on capital. 2. Annual salaries of #6,800 and #7,500 to be credited to Musa and Levi respectively. 3. Annual interest of 6% should be charged on drawings. 4. Interest of 10% should be charged on debit opening balance of their current accounts. 5. Interest of 8% should be allowed on loans from partners Partners balance of capital account ( 01/05/96) Musa... 250,000, Levi... 200,000.... Emem.. 300,000. Partners balance of current account (01/05/96)  Musa.. 67,200  Levi.. 15,000  Emem ... 48,000 Partners balance of loan account (01/05/96)  Musa.... 75,000  Emem.... 100,000 Resources contributed during the year Cash (on 31/08/96) Musa... 30,000 Emem 45,000 Computers (on 30/11/96)  Levi 60,000 Reduction in capital during the year Made on 31/12/96  Emem 30,000 Drawings Made on 30/06/96  Musa ... 20,000 Levi 25,000 Made on 31/10/96  Levi 28,000 Made on 31/01/97 Musa 16,000 Emem  18,000 The business yielded a net profit of # 320,000 for it's financial year ended 30/04/97. Requirements Prepare an appropriation account and partner fixed account capital account and current account in a column format for it's financial year ended 30/04/ 97 and statement of financial position extract?

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