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3 - 4 SL Fa PL

This document provides a practice question and solution for constructing a profit and loss account from financial data for an education publishing company called Master It Education. The question asks students to (a) calculate values for gross profit, net profit before interest and tax, net profit before tax, net profit after interest and tax, and retained profit based on financial data provided, and (b) construct a fully labelled profit and loss account showing the company's revenues, expenses, profits and appropriation of profit for the year ended March 31, 2016. The solution shows the calculated values for part (a) and provides a correctly constructed profit and loss account that meets the requirements of part (b).

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SOURAV MONDAL
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94 views3 pages

3 - 4 SL Fa PL

This document provides a practice question and solution for constructing a profit and loss account from financial data for an education publishing company called Master It Education. The question asks students to (a) calculate values for gross profit, net profit before interest and tax, net profit before tax, net profit after interest and tax, and retained profit based on financial data provided, and (b) construct a fully labelled profit and loss account showing the company's revenues, expenses, profits and appropriation of profit for the year ended March 31, 2016. The solution shows the calculated values for part (a) and provides a correctly constructed profit and loss account that meets the requirements of part (b).

Uploaded by

SOURAV MONDAL
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Unit

 3.4  SL  Final  Accounts/Profit  &  Loss     www.BiztopiaEducation.com  


IB  Business  Management  resource  by  Biztopia  Education  
 

 
   
Quantitative  practice  kit  
 for  IB  Diploma  Business  Management  by  Biztopia  Education  
 
Unit  3.4  Standard  Level  Final  Accounts    
Profit  and  loss  account  only  
Product  code:  SL-­‐FA-­‐PL-­‐001  Free  Download  
 
 
Contents:   ü   1  Profit  &  loss  practice  question  
  ü   1  Profit  and  loss  account  to  construct  
  ü   Suggested  answer  
   
   
   
   
   
Suitable  for:   ü   Learning  activity  
  ü   Homework  sheet  
  ü   Assessment  
  ü   Revision  activity  
   
   
   
   
   
   
   
   
   
   
Syllabus:   First  examinations  2016  
 
ã  2018  Biztopia  Education  FREE  DOWNLOAD   1  
Unit  3.4  SL  Final  Accounts/Profit  &  Loss     www.BiztopiaEducation.com  
IB  Business  Management  resource  by  Biztopia  Education  
 
Practice  question.    Master  It  Education  
 
Master  It  Education  is  an  education  publishing  company  based  in  London,  specializing  in  
IELTS  and  TOFEL  books  and  digital  resources.  
 
Table  1:  Selected  financial  data  for  Master  It  Education  for  year  ended  31st  March  2016.  
Figures  in  £  000s  
 
Gross  Profit   A  
Retained  profit   E  
Expenses   500  
Net  profit  before  interest  and  tax   B  
Sales  revenue   7000  
Net  profit  before  tax   C  
Cost  of  goods  sold   4150  
Net  Profit  after  interest  and  tax   D  
Interest   60  
Dividends   620  
Tax   470  
 
 
(a)     Calculate  the  values  of  A,  B,  C,  D  and  E  in  Table  1  (no  working  required)     [5]  
 
(b)   Construct  a  fully  labelled  profit  and  loss  account  for  Master  It  Education.     [4]  
 
   

ã  2018  Biztopia  Education  FREE  DOWNLOAD   2  


Unit  3.4  SL  Final  Accounts/Profit  &  Loss     www.BiztopiaEducation.com  
IB  Business  Management  resource  by  Biztopia  Education  
 
Suggested  Answer.  Master  It  Education  
 
 
(a)     Calculate  the  values  of  A,  B,  C,  D  and  E  in  Table  1  (no  working  required)     [5]  
 
  A  =   2850    
  B  =     2350  
  C  =   2290  
  D  =     1820  
  E  =   1200  
 
  Award  [1]  for  each  correct  answer  (working  not  required),  up  to  maximum  of  [5].  
 
 
 
 
(b)   Construct  a  fully  labelled  profit  and  loss  account  for  Master  It  Education.     [4]  
 
 
  Master  It  Education    
Profit  and  loss  account  for  Master  It  Education  for  the  year  ended  31st  March  2016  
   
Sales  revenue   7000  
Cost  of  goods  sold   4150  
Gross  Profit   2850  
   
Expenses   500  
   
Net  profit  before  interest  and  tax   2350  
   
Interest   60  
   
Net  profit  before  tax   2290  
   
Tax   470  
   
Net  profit  after  interest  and  tax   1820  
   
Dividends   620  
Retained  profit   1200  
 
Award  [4]  if  profit  and  loss  account  is  correct.  
Award  [3]  if  the  profit  and  loss  account  format  is  correct  but  has  one  mathematical  error.  
Award  [2]  if  the  profit  and  loss  account  format  is  incorrect  or  has  two  mathematical  errors.  
Award  [1]  if  some  understanding  of  the  profit  and  loss  account  but  has  numerous  errors.  
 

ã  2018  Biztopia  Education  FREE  DOWNLOAD   3  

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