Jun 09

JUNE 2009
NUMERACY & ACCOUNTING
Instructions to candidates:
a) Time allowed: Three hours (plus an extra ten minutes’ reading time at the start – do not write anything during this
time)
b) Answer any FIVE questions with at least TWO questions from each Part
c) All questions carry equal marks. Marks for each question are shown in [ ]
d) Non-programmable calculators are permitted in this examination
PART A
1. a) Assume an exchange rate of £1 = 0.95 Euros.

i How many pounds would you get for:
 860 Euros
 1,230 Euros
 1,560 Euros [3]
ii How many Euros would you get for:
 £850
 £1,260
 £1,890 [3]
b) A company pays its employees on the following basis:
First 36 hours at £7 per hour
Next 4 hours at £9 per hour
Next 10 hours at £10 per hour
Income tax of 20% of GROSS pay is deducted by the employer.
Pension/health contribution of 10% of GROSS pay is also deducted by the employer.
i Calculate the take home pay of Baka, who worked 42 hours.
ii Calculate the take home pay of Chantal, who worked 45 hours. [4 each]
c) The following is the monthly sales analysed by product group of a retail store:
£
Product group A 12,000
Product group B 6,000
Product group C 24,000
Product group D 12,000
Product group E 12,000
Product group F 6,000
Draw a vertical bar chart to represent this data. [6]
2. The following are the values of orders (in £) received on an average day in a sales department:
420 430 530 410 510
680 560 520 530 570
420 570 480 840 580
560 580 570 660 740
560 640 540 540 590
480 520 540 580 770
530 710 760 570 620
540 540 560 570 580
540 520 620 570 560
610 560 730 580 660
TASKS
Starting with £400, group the above figures into intervals of 50 and then:
a) construct a frequency distribution [8]
b) find the arithmetic mean daily sales orders [4]
c) obtain the median [2]
d) draw a histogram to represent your frequency distribution [6]
continued overleaf
3. You are in the process of preparing material for inclusion in the directors’ report.
The following data needs presenting:
Profit per employee over the last ten years:
1998 $19,000
1999 $20,000
2000 $23,000
2001 $26,000
2002 $30,000
2003 $34,000
2004 $38,000
2005 $39,000
2006 $45,000
2007 $48,000
TASKS
a) Prepare a bar chart of this data. [10]
b) Calculate the average yearly profit per employee. [3]
c) Calculate the percentage increase in profit per employee from 1998 to 2007. [3]
d) Explain briefly how you would prepare a pie chart. [4]
4. Write notes on FOUR of the following:

a) a break even chart
b) trend analysis
c) moving averages
d) the median
e) scatter diagrams
f) the use of algebra to solve problems
g) compound interest [5 each]
PART B
5. The following balances were taken from the books of B Hornby for the year ended 31 May 2009:
£dr £cr
Purchases 98,000
Sales 263,000
Stock at 01 06 08 12,000
Returns inwards 2,000
Carriage inwards 5,000
Bad debts written off 900
Wages 46,000
Business rates and insurance 15,000
Lighting and heating 5,900
Communication expenses 4,800
Advertising 11,000
Premises 100,000
Equipment 40,000
Depreciation of equipment (01 06 08) 15,000
Debtors 19,000
Creditors 10,000
Bank 3,000
Cash 1,000
Capital (01 06 08) 99,600
Drawings 24,000
--------- ---------
387,600 387,600
====== ======
NOTES as at 31 May 2009:
 Stock was valued at £14,000.
 Wages owing amounted to £5,000.
 Insurance prepaid amounted to £2,000.
 The equipment is to be depreciated at 25% on cost.
TASKS
a) Prepare the trading and profit and loss account for the year ended 31 May 2009. [11]
b) Prepare the balance sheet as at 31 May 2009. [9]
continued overleaf
6. The following information relates to Vijay Ltd.
Year ended 31 May 2008 2009
Sales 920,000 1,350,000
Cost of sales 510,000 660,000
Expenses 170,000 240,000
Current assets 270,000 310,000
Current liabilities 150,000 190,000
Closing stock 50,000 55,000
TASKS
a) Calculate the following ratios for BOTH years:
i the gross profit to sales percentage
ii the net profit to sales percentage
iii the expenses to sales percentage
iv the current ratio
v the acid test [3 each]
b) Comment on the performance during the year ended 31 May 2009. [5]
7. Explain FOUR of the following:

a) ledger accounts
b) day books
c) cost accounting
d) capital expenditure
e) ordinary shares [5 each]
8. Write short notes on FOUR of the following:

a) control accounts
b) petty cash systems
c) depreciation
d) internal control
e) the purpose of a trial balance
f) debentures
g) the importance of monitoring the collection of trade debts [5 each]
© INSTITUTE OF COMMERCIAL MANAGEMENT

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JUNE 2009

NUMERACY & ACCOUNTING

1. a) Assume an exchange rate of £1 = 0.95 Euros.

4. Write notes on FOUR of the following:

7. Explain FOUR of the following:

8. Write short notes on FOUR of the following:

© INSTITUTE OF COMMERCIAL MANAGEMENT

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