Higher National Diploma in Accountancy

HNDA 2nd Year, Second Semester Examination — 2018

2202- Computer Applications for Accounting

Paper 1
Instructions to be followed,
Given data for Question no. l, 2, 3(i),4(ii) and 5(i) (use from given data file on the .desktop)
S Application to be used-MS-Excel &
HTML. Do not create a folder to save your
files.
Rename the dåta for paper 1 workbook using your Index No and compute your answers
in the relevant worksheets. But don't create any additional worksheet into the workbook
Complete the details which are included in this page given below.

Return the question paper to the examiner before leaving the examination hall.
Don't fill the page 9- Mark Sheet that is for examiner use.
Following balances have been extracted from the books of RYY Limited as at 31st March 2017&2018.
 Account Name 31/3/2017 31/3/2018

Inventories 980000 10208700

Trade and other payables 576000 600000
Cash and bank balances 689000 725000
Re6rement benefit liability 800000 860000
Cost of sales 475000 570000
Long tenn borrowings 3800000 3700000
Administrative expenses 75000 80000
Accrued Advertising expenses 17000 20000
Trade and other receivables 880750 987000
Other current assets 510000 580000
Other financial assets 75000 75000
Income tax expense 40000 42000
Revaluation surplus 89000 90000
Property, plant & equipment 67500000 67500000
Retained earnings 245000
Amounts due from related parties 350000 400000
Finance income 20000 20000
Goodwill 20000 19000
Investment in subsidiaries 79000 79000
Distribution expenses 29000 20000
Stated capital 64658750 72894700
Deferred tax liabilities 45000 45000
Revenue 1250000 1976000
Other income 90000 59000
Finance costs 38000 4000
0
Investment property 178000
Receivable other income 85000 67800
0 0
Instructions,
Use the lookup function for creating a model for spreadsheet
Define the Accounting codes as follows, Non-Current
Assets NCA 1000 - NCA1200
Current Assets CA1201 -CA1500
Current Liabilities CL1901 -
CL2200 Equity E1501 -E1700
Expenses E2207 - EX2500 Non-current Liabilities NCL1701 -
Income 12501 - 12700 NCL1900
, P ag e | 2 HNDA 2"d ApplicaüonforAccounting- 2"d
Based on the instructions given above, you are required to create a suitable spreadsheet modeli
for;

Year Computer 2018 semester

i. The Statement of Financial Performance for the period ended 3 1 st March, 2017 and 2018.
ii. Statement of Financial Position as at 31st March 2017 and 2018.
[Total Marks
281 Q2.

Particulars Dr. Cr.

Property and plant at cost 120,000

Motor Vehicles at cost 80,000

Provision for depreciation as at 01/04/2017

Property and plant 20,000

Motor Vehicles 38,000

Purchase 250,000

Sales 412,200

Inventory 50,000

Discount allowed 18,000

Discount received 4,800

Rent income 15,000

Income Tax paid 50000

Salaries 58,800

Bad debtors 4,600

Loan interest 5,100

Other operating expenses 17,700

Trade payable 36,000

Provision for Income Tax for 2016/2017 40000

Trade receivables 38,000

Cash in hand 300

Cash at Bank 1300

 Drawings 24000

Provision for doubtful debts 500

P ag e Year Computer 2018

I.
The
17% Long term loan 30000

Capital 121300

717800 717800

following Trial
Balance is
extracted from
Ranasinghe Plc Company business as at
31/3/2018.
 13 Applicationfor Accounting- 2d
Information for the adjustment entries are as follows:
(a) Closing stock as at 31.03.2018 is Rs.42,000
(b) Salaries need to be accrued by Rs.800
(c) Other operating expenses are prepaid by Rs.300
(d) The provision for doubtful debts is to be adjusted that it is 2% of trade
receivables

Year Computer 2018 semester

(e) Depreciation should be property and plant 1.5% and Motor vehicles 25%
(f) Income tax liability of the firm has been estimated to Rs.90000 for 2017/18
financial year and it is revealed under provision ofRs.20000 for previous
year.

You• are required to create a fen column worksheet, which shows the financial statements
of Ranasinghe Company, after the adjustments made for the year ended on 31 st March,
2018. (Marks 12)

Il. Following information is given for two projects.

Initial Cash Flow Project A (Rs.'OOO) Project B (Rs.'OOO)

Year (90,000) (80000)
1 38,500 16,500

2 20,000 18,500

3 16,000 19,500

4 36,000 21,500
5 45,000 23,500
By using excel functions create a model to calculate both projects.

i) Net Present Values (NPV) (Assume that the Cost of Capital is 15% per
annum) ii) Internal Rate of Returns (IRR)
(Marks 08)

[Total 20 Marks]
 Q3.
The following Comparative Statements of Financial Position have been extracted from the
books of Green Asia Company for the years ended on December 31st of 2018, 2017, 2016 &
2015.
Non -Current Assets 2018 2017 2016 2015
Plant et 390000 3900000 3700000 329500
0 0
Cash 18115 38876 48056 121460
Page 14 mvDA2d Applicaåonfor Accounång- 2d

P ag e Year Computer 2018

Account Receivables 411771 450000 348750 447863

Invento 120000 135000 12±822 95625
Pre aid Ex enses 33750 33750 33750 33750
Total Assets 448363 455762 425437 399369
6 6 8 7

Non- Current Liabilities

Accounts Payables 537000 639000 48960 508770
0
Bonds ayable 10% due 2020 900000 600000 540000 292500
Total Liabilities 143700 123900 102960 801270
0 0 0
Shareholders' E ui
Ordinary Shares 1 1 100000 1000000
oooooo oooooo 0
Retained Earnin s 204663 231862 222477 2192427
6 6 8
Total Shareholders' E ui 304663 331862 322477 3192427
6 6 8
 Total Liabilities & Shareholders' 448363 455762 425437 399369
E ui 6 6 8 7

Required:
I. Prepare an analysis report by using the Comparative Statements of Financial Position above,
form the year 2018 to 2015.
i) Horizontal Analysis Report ii) Vertical Analysis Report iii) Trend Analysis
Report (Assume Based year 2015) iv) Prepare a pie chart above (i) to show the
Total Assets in year 2018 to 2015.
(Marks
10) Il. Calculaie the following ratios for Green Asia Company from the year 2018 to 2015
i) Current ratio ii) Acid ratio iii) Equity ratio
(Marks 06)

P ag e 6 Year Computer 2018 semester

[Total 16

Marks] I. Nimalka Ltd„ is expected to expand the process of manufacturing, so they plan to

purchase a new

machinery which costs ofRs.50, 000,000 with an estimated useful life period of five
years, and it has salvage value of Rs.50, 000. As the Accountant, you need to propose a
depreciation policy. The board of directors requested an analysis of depreciation.
 Using the above information separately create models to calculate depreciation expenses,
accumulated depreciation and net book value for the usefr.l life on straight line, sum of
year digit and decline balance method.
(Marks 09)

HNDÅffd ApplicaåonforAccounång-
IT. Using the following information, propose an appropriate model to develop six months cash
forecast of Lakmini 's business. Format for the cash forecast is given in the data sheet.
CASH FLOW FORCAST STATEMENT - 2019

JAN FEB MA APR MA JU TOTA

R Y N L

Cash Inflows

Sales 500000
Cash Recei t From
Debtors 800000
Interest 30000

T.otal Cash Inflows 13300

00

P ag e 7 HNDA2 Year Computer 2018 semester

 Cash Outflows
Purchase Raw Material 60000

Direct Labour 120000

Variable Overhead 50000

Total Cash Outflows 230000

Net Cash Flows

Balances

Start of Month 550000

End of Month

Other Information;

1) Cash sales will be increased by 5% in each month over the value of

preceding month.
2) Compared to the January, receipts from debtors are expected to increase by
5% in the first two months and then it will be increased by 10% in other
balance months.
3) Credit purchases of raw materials are expected to be increased by 15% in
each month than the preceding months.
4) Direct labour will be increased by Rs.8000 in the next three months, then
direct labour will be increased by Rs. 12000 over the value of the month of
January.
5) Variable overhead will be increased by 3% in the néxt three months and then
it will decrease by 2% over the preceding months.
6) Interest will, be increased by 1% in every six months.

(Marks 11)
Emp Receipt
No
[Total Marks 20]

d
| Applicationfor Accounting- 2nd
i) The following data is ext-acted from a pay sheet ofManushi Marketing Service Company for the
month of J
 HNDA2 Year Computer

Deduction ConmÉsion stucture

Festiva
Salary l
ETF Saks Rate
advanc Advan EPF Net EPF Total 1000000 0.50%
e ce 10% sala 15% Sala .00
2000000 1.00%
3000 .00
3000000 1.50%
3000 .00
4000000. 2.00%
3000 00

3000 5000000 2.50%

.00
3000

3000

Additional information,
Sales commission should be calculated by considering commission 'structure and
using Vlookup function.
Sales Comm
Com is
Name of mis sion Food
the sion Amou Basic Fuel Allowanc
salesmen Sales nt Salary Allowance e
1 Athukorala 5000000 45000 30
00
2 Dumilda 4600000 66000 100
00
3 Nalinda 1340000 38000 120
00
4 Ad.hlkari 3200000 58000 30
00
5 4890000 67000 100
00
6 Ammranas 3800000 28880 85
00
2. Salary advance should be Rs.3000 for each employee.
3. Festival advance should be 10% from the gross salary.
4. From the month of January, Company plans to calculate the EPF of which
is deducted from employees.
5. The EPF of 15% and ETF of 3% provided from the company.

Required,
1. Complete the blank columns for the pay sheet. (Both EPF and ETF to calculate
the basic salary)
2. Create a suitable spreadsheet model to extract the pay slip for themonth
 ofJanuary 2019.

HNDA2 Year Computer

(Use the VLookup function and Maximum number offormulas for proper pay slip
stucture)
(10 Marks)

| ApplicaüonforAccounüng-
HNDA2 Year Computer
 ii) Nimalka Ltd., is wanted to have a bank loan for purchasing the new machine. They need to
have Rs. 25,000,000.00 amount as a loan. People's bank provides 3 year period to settle the
loan with the 15.5% of interest rate.

Using the above information, prepare a loan amortization tables for both option. (Your
worksheet should show the monthly installment to be paid, interest charges, capital repayment
and ending balance separately at the end of each month)
(10 Marks)

[Total Marks 20]

You are required to create the following web page for leave application of SLIATE using html
including the following features.
e Use background colour, font colour, and font size to design the page.
Background colour - yellow
> Font colour - Black
Font size - Suitable size in the given sample.
Images are in the data folder.

(If the above web page is not clear, you can also check it in the data folder as a word
document)

[Total 16 Marks]
P ag e HNDA Year Computer 2018 semester
d
18 2" Applicaüonforßccounting-
P ag e HNDA Year Computer 2018 semester