UNIVERSITY OF MALTA
SECONDARY EDUCATION CERTIFICATE
SEC
ACCOUNTING
May 2011
EXAMINERS’ REPORT
MATRICULATION AND SECONDARY EDUCATION
CERTIFICATE EXAMINATIONS BOARD
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Statistics
Table 1: Candidates’ grades in SEC Accounting May 2011
Grades
No. of
candidates
Option A
Option B
Total %
1
2
3
4
5
6
7
U
Absent
TOTAL
46
126
140
192
125
38
195
257
104
1058
46 126 140 131 85
61
40
4.3 11.9 13.2 18.1 11.8
38
3.6
30
2.8
165
92
24.3
47
57
9.8
740
318
100.0
General comments
The examiners seek to examine and assess candidates on all the areas listed in the
syllabus. It is, therefore, imperative that all topics are studied in sufficient detail.
Although generally the set question focuses primarily on a specific topic, candidates
sitting for Paper A must be exposed to questions that examine them on a number of
topics. This should not be a problem since the same principles will be assessed, however,
candidates must be trained to deal with these questions. Topics that examine the core
competences such as accounting for accruals and prepayments, depreciation, allowances
for doubtful debts, correction of errors and the preparation of the financial statements are
always an integral part of any examination.
Presentation of financial statements
All approved formats of the financial statements have been accepted. The same policy
will be applied in the May 2012 Examination Session where candidates shall not be
deducted marks for presenting these statements in formats that are not recommended by
the examining board. However, as from 2013 the statement of financial position (balance
sheet) must be presented as outlined by IAS 1. It is important that candidates preparing
for that session are instructed in this form of presentation. Uniformity in presentation is
recommended and the examining board is of the opinion that at this stage there is
sufficient time to change to the recommended format if, as yet, it is not being adopted.
The following comments summarise general weaknesses that have been noted, the
rectification of which, will assist candidates when these areas are examined in future
examinations.
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PAPER I
QUESTIONS 1 to 10 – Multiple choice questions
In the case of question 1 the only correct answer was credit notes received. Candidates
that answered debit notes sent out were not awarded marks. The returns document is a
credit note that is received from the supplier upon the return of goods.
Questions 6, 7 and 8 were the multiple choice questions that were generally answered
incorrectly.
Question 10 required candidates to calculate the dividend. Ordinary dividend that is
declared by the directors depends on the fortunes of the company and it is wrong to
assume that there was an ordinary final dividend. The interim dividend was the total
dividend paid. The examining board would like to take this opportunity to bring to
attention the change in the accounting treatment of proposed dividends.
QUESTION 11
This question was well answered by most candidates. Partnership is clearly a topic that is
understood by many of the candidates. Marks were generally lost in Part (d) of the
question which related to company accounts.
QUESTION 12
This question created problems to a significant number of candidates. The topics of
depreciation and bad debts are tested regularly but still candidates demonstrate
weaknesses in these areas. Accounting concepts are not given sufficient importance and
candidates generally fail to relate directly these concepts to the area of study.
QUESTION 13
Candidates sitting for Paper A generally obtained good marks, however Paper B
candidates were awarded very low marks. The control account is one of the relatively
easy topics. Concern remains on the purpose of the books of prime entry.
QUESTION 14
Candidates find difficulty in explaining the difference between the allocation and
apportionment of costs. Some are aware of the distinction but they find it difficult to
express themselves. The general purpose of accounting ratios is understood by many
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candidates. There was a mixed ability in the preparation of the bank reconciliation
statement.
PAPER IIA
QUESTION 1
•
•
•
The cash account has to be prepared to determine the cash sales for the financial
period. A common mistake was to simply add the cash sales banked, cleaning
expenses and drawings. One must take into account the opening and closing cash
balances. The decrease of €400 in the cash balance cannot be ignored to calculate
the cash sales.
Parts (b) and (c) were generally well answered.
Part (d) was answered correctly by most of the candidates although marks were
lost for incorrect calculations of rent, depreciation and doubtful debts.
QUESTION 2
Candidates were not sufficiently prepared to answer this question. Marks were mainly
lost in parts (a) and (f) of this question. Candidates failed to apply the accruals concept in
the treatment for the allowances for doubtful debts. More emphasis is to be given to
specific doubtful debts. The computation of the depreciation charge for the year by the
reducing balance method was often incorrect. There were mixed answers for Part (g)
illustrating that the disposal account causes difficulties to a good number of candidates.
Improvement has been seen in the accounting for accruals and prepayments.
QUESTION 3
Correction of errors is regularly tested and generally there has been an improvement in
this topic. Errors relating to discounts and proceeds from disposal were the two errors
were marks were mainly lost.
QUESTION 4
This question was answered correctly with many of the candidates obtaining satisfactory
marks.
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QUESTION 5
Marks were lost in the adjustment to net profit. Some of the candidates posted drawings
in kind only in the current account. An incorrect net profit implies an incorrect share of
profit.
PAPER II B
QUESTION 1
Very few correct answers were given to this question. Candidates sitting for this paper
are inadequately prepared in this topic. It is true that that accounting for not for profit
organisations involves higher order skills but this question tested the core concepts of the
topic and it did not involve major difficulties. Very few candidates prepared the
subscriptions account correctly.
QUESTION 2
This question tested the basic principles of double entry. It is amazing how a core area of
study has been so poorly assimilated by candidates.
QUESTION 3
This was an unpopular question with only a handful of candidates attempting it. They
faired very poorly. Candidates were unprepared in this area of study and it seems that
they improvised their answer hoping to gain some marks.
QUESTION 4
Most of the candidates answered incorrectly. Candidates demonstrated gross weaknesses
in correction of errors even though the errors tested were quite simple.
QUESTION 5
The quality of layout for this answer varied considerably. Typically, those candidates
with poor layouts make many elementary errors.
QUESTION 6
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Most of the candidates answered this question. Part (i) of the question was answered
quite well considering the general performance of candidates sitting for this paper.
Part (ii) was, however, answered very poorly.
QUESTION 7
The preparation of the petty cash book involves very simple book-keeping entries.
Chairperson
Examiners’ Panel 2011
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