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FORM TP 2015103
rESr coDE
01239020
MAY/JLINE 2OI5
CARIBBEAN EXAMINATIONS COUNCIL
CARIBBEAN SECONDARY EDUCATION CERTIFICATE@
EXAMINATION
PRINCIPLES OF ACCOUNTS
Paper 02
- General Proficiency
3 hours
READ THE FOLLOWING INSTRUCTIONS CAREFULLY.
1.
Answer ALL questions in Section I and TWO questions from Section II.
2.
Write your answers in the spaces provided in this answer booklet.
3.
DO NOT write in the marsins.
4.
ShowALL working clearly.
5.
You may use a silent, non-programmable calculator to answer questions.
6.
You are advised to take some time to read through the paper and plan your answers.
7
.
If you need to rewrite any answer
and there is not enough space to do so on the
original page, you must use the extra lined page(s) provided at the back of this
booklet. Remember to draw a line through your original answer.
8. If you use the extra page(s) you MUST
write the question number clearly in
page(s) and, where relevant, include
provided
at
the
top
of
the
extra
the box
the question part beside the answer.
13
DO NOT TURN THIS PAGE UNTIL YOU ARE TOLD TO DO SO.
Copyright @ 2014 Caribbean Examinations Council
All rishts reserved.
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-2SECTION I
{nswer the THREE questions in this section.
Write your answers in the
1.
spaces provided
in this booklet.
The following list of transactions for Len Hanson occurred during the month ofApril 2014:
April
01
Started business with $7 800 in the bank.
05
Bought on credit from Yazmin Company, goods with a total list price of $l 800
less l0o% trade discount. A cash discount of 5%o is available. if accounts are settled
within 30 davs.
06
Sold goods valued at $290 to Jon, who paid $120 by cheque, with the balance to
be paid later.
(a)
l0
Len Hanson took $60 worth of goods from the business to give to his friend as a
birthday gift.
l5
Purchased equipment on credit from Equipo Company, $3 500.
16
Returned goods to Yazmin Company with a list price of 5160.
20
Returned $250 worth of equipment to Equipo Company.
25
Settled the account with Yazmin Company by cheque.
28
Settled the account with Equipo Company by cheque, and was allowed S50 off
for early payment.
From 0l April2014, analyse and record EACH of the transactions above in appropriate
accounts in the General Ledger provided on pages 3-6. (Round off all figures to the
(16 marks)
nearest whole number.)
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$
Date
Details
$
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Date
Details
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Date
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Date
Details
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Date
Details
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Date
Details
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Date
Details
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Date
Details
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Date
Details
$
Date
Details
$
Date
Details
$
Date
Details
$
Date
Details
$
Date
Details
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-'7 (b)
Extract a Trial Balance for Len Hanson at 30 April 2014.
(4 marks)
Total20 marks
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-8,,
(a)
State TWO distinguishing features of a partnership.
(2 marks)
(b)
Barney and Swiper are in partnership. Their Current Account balances as at 31 March
2015 before appropriation were:
Accounts
Barney
Swiper
Current
S
2 500
(600)
State the significance of the brought down balance on EACH partner's current account.
(2 marks)
(c)
Other balances extracted from the books of Barney and Swiper include:
Capital
Accounts
s
60 000
3s 000
Barney
Swiper
Barney (01 October 2014 to 31 March 2015) 4 000
Swiper (01 January 2015 to 3l March 2015) l2 000
Drawings
Additional information:
The net income for the year ended 31 March 2015 is S82 000.
Barney earns an annual salary of$36 000.
Interest on capital is to be paid at the rate of 5%o per annum.
Interest on drawings is to be charged at the rate of l0%o per year.
Barney and Swiper share profits and losses in the ratio of 3:2 respectively.
{
g
Prepare the Profit and Loss Appropriation Account of Barney and Swiper for the year
(9 marks)
ended 3 1 March 2015 in the space provided on page 9.
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(d)
appropriation'
Prepare the partners' Current Accounts on 31 March2Ol5, after the
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(7 marks)
Total20 marks
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0123902013
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-t23.
Seris Lann, a sole trader, is to present financial information to its bankers to support a loan request
to buy computers for the business. The following list of figures is provided for the year ended
31 December 2014.
$
Plant and machinery
163 450
Motor vehicles
37 000
Long-term investments
38 580
Accounts receivable
8 070
Closing inventories
24 5s0
Accounts payable
3 910
Bank overdraft
6 180
:,
Sales revenue
363 170
Cost of goods available for sale
206 850
Insurance prepaid at year end
I
Insurance paid
3 790
Interest expense paid
9 360
Salaries and wages paid
(a)
070
90 820
Miscellaneous expenses owing at year end
4 220
Miscellaneous expenses paid
4 880
Mortgage
93 600
Opening capital
9s 940
Using the information provided, prepare an Income Statement for the year ended
3l December 2014. Show clearly the amounts for EACH of the following in the space
provided on page 13.
*
(i)
Cost of goods sold
(ii)
Insurance expense
:F
(iii)
01239020/F
Miscellaneous expenses
(8 marks)
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(b)
Prepare a list showing EACH of the following amounts as at 31 Decembe
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2014.
(Marks will be awarded for showing clearly how you arrived at the
dollar amount.)
(D
Total non-current (fixed) assets
(2 marks)
(ii)
Total current assets
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(2 marks)
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(iii)
Total current liabilities
(2 marks)
(c)
Name and use an appropriate ratio to decide whether Series Lann should or should not be
given the bank loan. (Show your calculation and give your reason.)
(4 marks)
(d)
State ONE advantage and ONE disadvantage of using a computer system to maintain
accounts.
(2 marks)
Total20 marks
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-t6SECTION
II
Answer any TWO questions in this section.
Write your answers in the spaces provided in this booklet.
4.
The Bank Statement and Cash Book (bank columns only) for Orvie Elwin for the month of October
2014 are as follows.
Bank Statement
Dr
Cr
Balance
$
s
$
2014
Oct 01
Balance
900
03
T. Simeon
150
I
050
07
Cash sales deposit
850
l
900
l3
Vehicle loan
|
700
200
l5
Standing order
I
000
(800)
otD
2l
Debit transfer
825
(r 62s)
olD
29
Rent
2 300
(3 e2s)
o/D
29
Credit transfer
30
Bank charges
4 000
400
Cash Book (bank
2014
Oct 0l
*
75
(32s)
otD
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$
Balance
b/f
900
Oct
10
Light & Power Company
180
03
T. Simeon
150
13
Vehicle loan
|
07
Cash sales
8s0
29
Rent
2 300
24
D. Elwin
500
3l
Balance c/d
a
I
780
4
180
700
4 180
2014
Nov I
Balance B/d
1 780
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(a)
-
Prepare the updated Cash Book to show the adjusted balance.
(6 marks)
(b)
a Bank Reconciliation Statement
Starting with the updated cash book balance, draw up
for Orvie Elwin for the month of October 2014'
(5 marks)
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(c)
18 -
The following transactions were recorded in the books of Orvie Elwin for the month of
April.
April
Credit sales made to the followins:
ll
Jack Long
l8
Mary King
June Phillip
24
t9
27
$2 s00
$3 800
$4 2s0
Jack Long returned goods costing $300
June Phillip returned goods costing $150
16
28
(ii)
$3 800
Credit purchases from:
Up Top Ltd
Harry & Sons
Sealey's Ltd
05
(i)
s6 000
$2 600
Record the above transactions in the correctly labelled day books provided below
and on page 19. (Include folio references.)
(5 marks)
Total EACH day book at the end of the period. (Naratives required.)
(4 marks)
Amount ($)
4
,F
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01239020/F 20rs
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Date
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,
Details
Folio
Amount ($)
Details
Folio I
Amount ($)
Details
Date
Amount ($)
Total 20 marks
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(a)
The accounting department of Cav Crafts provided the following information from its
various books.
September 2013
August 2014
$
$
Credit purchases
196 700
Credit sales
262 920
Accounts receivable
5 010
7 800
Accounts payable
3 9s0
2 830
Cash received from accounts receivable
257 800
Cash paid to accounts payable
r94 400
Discounts allowed
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Discounts received
040
3 s60
Sales returns
|
Purchases returns
290
1 740
Interest on late payments received from accounts
receivable
Refunds for overpayments from accounts payables
660
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880
*
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-2tUsing the information on page 20 prepare EACH of the following accounts for the year
ended 31 August 2014:
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(ii)
Accounts Payable Control Account
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(5 marks)
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-23
(b)
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Sedeno Knitted Goods sold 100% of its completed goods during the year ended
30 November 2014. The following additional information is provided.
sr38 s00
Raw materials consumed
45 700
Production wages
2 400
Direct packaging expenses
51 900
Factory overheads
Opening work in progress
3 600
Closing work in progress
4 800
Mark-up percentage on total cost of production
50%
For the year endbd 30 Novemb er 2}l4,prepare EACH of the following accounts for Sedeno
Knitted Goods:
(i)
A manufacturing account showing clearly the total cost of production
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(iD
A trading account
(9 marks)
Total20 marks
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0123902027
266.
-|
The treasurer of the People's Popular Political (PPP) party presented the following data at
31 December 2014.
Number of registered members
l
Annual subscription per person
s200
Members with subscriptions outstanding at
0l
January 2Ol4
40
Members with subscriptions outstanding at
3l
December 2014
60
Members who paid in advance at 01 January 2014
110
Members who paid in advance at 31 December 2014
All
(a)
800
(i)
98
other members were paid up
Compleiq the worksheet below to calculate EACH of the following:
Subscriptions outstanding at 01 January 2014 and at 31 December 2074
WORKSHEET
Calculation of Subscriptions Outstanding
Date
Working Column
Subscriptions in advance at
0l
$
January 2014 and at 31 December 2014.
Calculation of Subscriptions in Advance
Date
Working Column
$
*
#
(5 marks)
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01239020tF 2015
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(iD
Prepare and complete the Subscriptions Account for the PPP parry for the year
ended 31 December 2014.
(8 marks)
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(b)
The PPP party lists the following transactions for the period ended 31 December 2014.
On the form provided below, classify EACH item as follows:
(i)
Write either capital or revenue in the Expenditure Type column, to indicate the
type of expenditure involved for EACH item.
(ii)
Insert a check mark (r/) in the appropriate column to indicate whether the item is
to be reported in the Income & Expenditure Account or in the Balance Sheet.
The first item has been done for you as an example.
CLASSIFICATION OF EXPENDITURE
Accounts where item should be reported
Item
Expenditure
lYpe
Description
No.
0
Income & Expenditure
Account
Revenue
Paid salaries to office
Balance
Sheet
-i
Invested in an ID card-making
machine. $5 000
Paid for printing of the PartY's
Manifesto booklet for its
annual convention meeting,
$20 000
Made a downpaYment of
$60 000 for the Purchase ofa
new bus
Paid $100 000 for building
works which extended and
improved the partY's
headquarters building
Paid for advertisement for a
political rally, $25 000
(4 marks)
*
!F
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-29(c)
I
Prepare the Receipts and Payments Account of the PPP parly for the period ended 31
December 2014, using relevant information from (a) (ii) and (b) on pages 27 and28.
(3 marks)
Total20 marks
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0r239020tF 2015
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-307.
(a)
The Vegi Lands Farmers' Co-operative provides the following information about its
operations for the year ended 31 December 2014:
Share capital of $500 000 was originally sold to members at $5 each.
Surplus for the year totalled $65 000 and was earned from the total sales of $350 000.
Undistributed surplus from previous years amounted to $ 125 000.
The co-operative plans to share its total surplus as follows:
Dividends of $0.50 per share to be paid to existing shareholders
20%o to be transferred to the Members' Educational Fund
5%o of total sales to be paid to members as patronage refunds
30o/o to be transferred to a Disaster Relief Fund
Prepare the co-operative Appropriation Account for the year ended 31 December 2014.
(Show working clearly).
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- 31 (b)
A sister co-operative, Flat Lands
Cane Farmers Co-operative, presented the following
balances for its financial year ended 31 December 2014:
$
Building at cost
Investment in Vegi Lands Farmers' Co-operative
Ordinary share capital
Undistributed surplus
Long-term loan to members
Interest revenue outstanding from loans
Accumulated depreciation : building
Equipment rental fees receivable
Inventories
Members'welfare fund
Flood relief fund
(i)
250 000
45 000
200 000
73 900
120 000
8 000
35 000
39 000
26 000
40 000
95 000
Prepare the Co-operative Balance Sheet Extract for the capital section only, for
the year ended 31 December 2O14.
(4 marks)
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(ii)
Identifii and total EACH of the following amounts for Flat Lands Cane Farmers'
Co-operative:
a)
b)
Non-current (fixed) assets
(3 marks)
Current assets
(2 marks)
*
4
Total20 marks
END OF TEST
IFYOU F'INISH BEFORE TIME IS CALLED, CHECKYOURWORI( ON THIS TEST.
01239020/F 2015
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-33EXTRA SPACE
If you use this extra page, you MUST write the question number clearly in the box provided.
Question No.
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