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1CV10 - Practice Exam
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Practice exam : Introduction to Financial and Management Accounting (1CV10/1CV11)Date :
Time :
Teachers :
Examiner :
This exam consist of 5 questions and 6 numbered pages.
The exam of students who registered for the exam will be graded. The exam of students who
did not register for the exam will not be graded.
You are allowed to use a simple calculator.
Explain your answers.
Please hand in these exercises at the end of the exam.
Good luck!
-1-
, Question 1 (24 points)
M. Manchoc sometimes produces, but mostly just buys and sells chocolate for the high-end of
the market. The customers of M. Manchoc are either big companies or luxury stores. The
statement of financial position (balance sheet) of M. Manchoc at the start of 2013 was as
follows.
Statement of financial position 01/01/2013
Building € 70,000 Equity € 50,000
Machines 10,000 Loan 50,000
Inventories 15,000 Accrued Wages 3,000
Cash 13,000 Trade payables 5,000
Total 108,000 Total 108,000
The following transactions took place during January 2013.
1. Inventories were bought on credit for € 10,000.
2. Sales revenue totaled € 20,000, half on credit, half cash (cost of these sales: € 12,000).
3. Trade payables were paid € 4,000.
4. An amount of € 10,000 was paid for wages. At the end of January Accrued Wages had
reduced to € 1,500.
a. Record these transactions in a set of double entry accounts (no need to balance the
accounts at the end of the period) and prepare the trial balance.
b. Prepare the income statement for the month and statement of financial position at the
month end.
c. At the start of February M. Manchoc bought a machine for € 5,000 which is expected to
be used for 5 months after which it can be sold for € 3,000. M. Manchoc decides to use
the reducing balance method for depreciation.
i. Determine the monthly depreciation percentage.
ii. Determine the book value of the machine at the end of March, which is two
months after its purchase (rounded to whole eurocents).
In July, M. Manchoc introduced a new product for which he had no starting inventories and
recorded the following sales and purchases during July:
July 2: Purchase 300 units a € 2.50
July 8: Sale 200 units a € 7.-
July 13: Purchase 300 units a € 3.-
July 20: Sale 350 units a € 7.-
M. Manchoc uses the AVCO (weighted average costs) method.
d. Determine the closing inventories figure amount at the month end for this new product
(rounded to whole eurocents).
-2-
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