GCE A/L Accounting case studies

GCE A/L Accounting · Put your knowledge to work in context.

GCE Advanced Level Accounting is a school-leaving qualification in accounting taken in several jurisdictions, most notably the UK-linked syllabuses administered by Cambridge and other recognised awarding bodies. It is designed for students aged roughly 16 to 19 who intend to progress to university business or accounting degrees, professional accountancy training, or entry-level bookkeeping and finance roles. The GCE A/L Accounting case studies are 5 cases and about 4,216 words.

Revaluation, excess depreciation and disposal of a revalued lathe

Ravindu Engineering is a sole trader with a 31 March year end. On 1 April 2019 it bought a computer-controlled lathe for Rs 4,800,000 and depreciated it straight-line over eight years to nil residual value.

804 words, about 4 min 2

Clearing a suspense account and deciding which errors affect profit

Hasitha Traders' trial balance at 31 March 2024 failed to agree: the debit column was Rs 18,900 short of the credit column, and the difference was entered in a suspense account. The draft net profit for the year was Rs 486,000.

779 words, about 4 min 3

Admission of a partner: revaluation, goodwill and the cash the new partner must bring

Amal and Bimal have traded in partnership for nine years, sharing profits 3:2 and preparing accounts to 31 March. At 31 March 2024 their capital accounts were Rs 1,500,000 and Rs 900,000 respectively; the firm has no current accounts.

803 words, about 4 min 4

Standard costing variances and a special order where the material's opportunity cost decides the answer

Multiform Products makes a single component. The standard cost card per unit is: direct material 3 kg at Rs 250 per kg; direct labour 2 hours at Rs 180 per hour; variable overhead 2 hours at Rs 60 per hour.

929 words, about 5 min 5

Rapid growth, stretched working capital and rising gearing at a listed food processor

Serendib Foods PLC processes snack foods. Extracts from its financial statements (Rs '000): 2023 2024 --- --- --- Revenue 12,000 15,600 Gross profit 3,600 4,212 Profit before tax 1,200 1,170 Finance cost 120 390 Inventories 1,800 3,120 Trade receivables 2,000 3,900 Trade payables 1,200 2,340 Total assets 9,000 13,500 Equity 4,500 4,950 Non-current liabilities (bank loans) 2,000 4,500 Current assets were Rs 4,300,000 in 2023 and Rs 7,350,000 in 2024; current liabilities were Rs 1,900,000 and Rs 3,200,000.

901 words, about 5 min