Fundamentals of Accounting 2
\nModule Code: \t\tACC1007<\/p>\n
Date:<\/p>\n
Theory\/ Practical:\t\tTheory<\/p>\n
Groups: \t\t\tBSc HTM & FSM<\/p>\n
Duration:\t\t\t3 hours<\/p>\n
INSTRUCTIONS:<\/p>\n
1.\tThis paper has three (3) pages and two ( 2 ) questions
\nSection B 1 computational question<\/p>\n
2.\tAttempt both questions<\/p>\n
3.\tTo be done individually.<\/p>\n
4.\tClearly write your name and ID number on your answer sheet<\/p>\n
5.\tUpon completion, responses should be submitted to your respective tutor as follows<\/p>\n
ATTEMPT BOTH QUESTIONS<\/p>\n
Question One<\/p>\n
The following is the draft payroll of the Thunderbolts for February 2022<\/p>\n
Elaine\tSherica\tShelly
\nINCOME
\nBasic Pay\t95,000\t120,000\t320,000
\nOvertime\t12,000\t0\t0
\nTravelling\t0\t15,000\t20,000
\nUniform\t10,000\t10,000\t15,000
\nProtective Clothing\t20,000\t0\t0
\nMaterial Aid & Supplies\t5,000\t0\t0
\nCommission\t0\t20,000
\nEntertainment Allowance\t0\t0\t35,000
\nGROSS PAY\t142,000\t165,000\t390,000
\nTotal Taxable\t\t\t\t3<\/p>\n
DEDUCTIONS
\nNIS\t\t\t\t3
\nNHT\t\t\t\t3
\nEDUCATION TAX\t\t\t\t3
\nINCOME TAX\t\t\t\t3
\nPension\t9,500\t12,000\t32,000
\nUnion Dues\t3,000\t3,000\t3,000
\nHealth Insurance\t3,200\t3,200\t3,200
\nLoan Repayment\t0\t0\t60,000
\nTotal Deductions<\/p>\n
NET PAY\t\t\t\t3<\/p>\n
Required<\/p>\n
1.\tCopy and Complete the payroll for the month\t\t\t\t( 18 marks )<\/p>\n
2.\tDefine the term Statutory Deductions and state its usefulness
\nto the national economy\t\t\t\t\t\t\t( 3 marks )<\/p>\n
3.\tState two advantages to the employer when wages and salaries
\nare determined by<\/p>\n
a.\tTime Rate
\nb.\tPiece Rate \t\t\t\t\t\t\t\t( 4 marks )<\/p>\n
Question Two<\/p>\n
The following balances were obtained from the books of The Cartwrights as at December 31, 2020 :
\nDETAILS\tDR\tCR
\nNet Income\t \t135,000
\nCapital
\nAdam\t \t250,000
\nJoe\t \t750,000
\nCurrent Account
\nAdam\t40,000
\nJoe\t \t10,000
\nDrawings
\nAdam\t60,000
\nJoe\t30,000
\nNon Current Assets Book Value\t1,200,000
\nDebtors\t60,000
\nBank\t \t55,500
\nLoan\t \t400,000
\nCreditors\t \t30,000
\nExpense Owing\t \t20,000
\nRevenue Prepaid\t \t25,000
\nClosing Stock\t285,500
\n1,675,500\t1,675,500<\/p>\n
The Articles of Partnership allowed for the following
\na.\tInterest is to be paid on capital at 5% p.a.
\nb.\tInterest is to be charged on drawings at 2.5% p.a.
\nc.\tJoe is to be paid a salary of $27,250
\nd.\tThe partners are to share profit in the same ratio as their capital
\nRequired :
\n1.\tPrepare the following
\n–\tThe Appropriation Account\t\t\t\t\t( 7 marks )
\n–\tThe Current Account\t\t\t\t\t\t( 11 marks )<\/p>\n
2.\tThe Cartwrights brother, Haase, is to be admitted to the
\nbusiness as both a silent and limited partner.<\/p>\n
Briefly explain the characteristics of a partner that is classified as
\na.\tA Silent Partner\t\t\t\t\t\t\t( 2 marks )
\nb.\tA Limited Partner\t\t\t\t\t\t( 2 marks )<\/p>\n
3.\tJoe Cartwright has recommended that with the Admission
\nof Haase as a partner, there should be a revision of the
\nArticles of Partnership.<\/p>\n
Briefly explain the Articles of Partnership and state its
\nrelationship to the Partnership Act\t\t\t\t\t( 3 marks )<\/p>\n
END OF TEST<\/p>\n
As an AI language model, I am not able to grade or administer tests. However, I can provide guidance on how to approach the questions in Fundamentals of Accounting 2 Test 2.<\/p>\n
Question One<\/p>\n
To complete the payroll for February 2022, you will need to calculate the deductions for NIS, NHT, Education Tax, and Income Tax for each employee. Then, you will need to subtract the deductions from the gross pay to get the net pay for each employee.<\/p>\n
Statutory deductions are mandatory deductions that are taken from an employee’s salary or wages by the employer and paid to the government. They include National Insurance Scheme (NIS), National Housing Trust (NHT), Education Tax, and Income Tax. The purpose of statutory deductions is to provide social security benefits and fund government programs.<\/p>\n
The two advantages of determining wages and salaries by time rate and piece rate are as follows:<\/p>\n
a. Time Rate: It provides a fixed amount of pay for a specific amount of time. This method can be beneficial for employers who need employees to complete tasks within a set timeframe. It also provides a consistent wage for employees, which can help them with financial planning.<\/p>\n
b. Piece Rate: It pays employees based on the number of items they produce or services they provide. This method can motivate employees to work efficiently and produce high-quality work to increase their pay. It can also be useful for employers who want to track productivity and output.<\/p>\n
Question Two<\/p>\n
To prepare the Appropriation Account, you will need to calculate the interest on capital and drawings for each partner, Joe’s salary, and the net profit for the year. Then, you will need to allocate the net profit to the partners based on their capital ratio and subtract their interest on drawings and add interest on capital. Finally, you will need to transfer the remaining profit to the partners’ current accounts.
\nTo prepare the Current Account, you will need to record the transactions that affected the partners’ current account balance during the year. This includes the interest on capital, interest on drawings, Joe’s salary, and the allocation of profit. You will also need to adjust for any previous balance and transfer the remaining balance to the partners’ capital accounts.<\/p>\n
A silent partner is a partner who contributes capital to the business but does not participate in the day-to-day management of the business. A limited partner is a partner who has limited liability and is not involved in the management of the business.<\/p>\n
The Articles of Partnership are a legal document that outlines the rights and responsibilities of the partners in a partnership. It includes details such as the capital contributions, profit-sharing ratios, and management responsibilities. The Articles of Partnership must comply with the Partnership Act, which is the law that governs partnerships in Jamaica. If there is a conflict between the Articles of Partnership and the Partnership Act, the Partnership Act takes precedence.<\/p>\n","protected":false},"excerpt":{"rendered":"
Fundamentals of Accounting 2 Module Code: ACC1007 Date: Theory\/ Practical: Theory Groups: BSc HTM & FSM Duration: 3 hours INSTRUCTIONS: 1. This paper has three (3) pages and two ( 2 ) questions Section B 1 computational question 2. Attempt both questions 3. To be done individually. 4. Clearly write your name and ID number […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2605,308],"tags":[2944,2655],"class_list":["post-6074","post","type-post","status-publish","format-standard","hentry","category-accounting-and-finance-assignment-help","category-finance-and-accounting-assignment-help","tag-acc1007","tag-help-write-my-homework"],"_links":{"self":[{"href":"https:\/\/www.colapapers.com\/us\/wp-json\/wp\/v2\/posts\/6074","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.colapapers.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.colapapers.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.colapapers.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.colapapers.com\/us\/wp-json\/wp\/v2\/comments?post=6074"}],"version-history":[{"count":0,"href":"https:\/\/www.colapapers.com\/us\/wp-json\/wp\/v2\/posts\/6074\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.colapapers.com\/us\/wp-json\/wp\/v2\/media?parent=6074"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.colapapers.com\/us\/wp-json\/wp\/v2\/categories?post=6074"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.colapapers.com\/us\/wp-json\/wp\/v2\/tags?post=6074"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}