ASSESSMENT SCHEDULE
You should answer ALL the questions in this booklet.
YOU MUST HAND THIS BOOKLET TO THE SUPERVISOR AT THE END OF THE
ASSESSMENT.
Achievement Criteria
Achievement
Prepare financial statements
following good accounting
practice, with some additional
information correctly treated.
Achievement with Merit
Achievement with
Excellence
Prepare financial statements
following good accounting
practice, with the majority of
additional information correctly
treated.
Prepare financial statements
following good accounting
practice, with all or nearly all
additional information correctly
treated.
Prepare accounting entries for Prepare a range of accounting
balance sheet day
entries for balance sheet day
adjustments.
adjustments following good
accounting practice.
Prepare a wide range of
accounting entries for balance
sheet day adjustments
consistently following good
accounting practice.
Overall Level of Performance (all criteria within a column are met)
© NZCETA Practice Assessment 2007 Accounting AS 90224 (2.5) NCEA Level 2/Year 12 Page 1
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Evidence Statement
QUESTION ONE
Part A – Income Statement
Prepare a fully classified Income Statement for Sohan’s Electrical Services after taking into
account the additional information.
Classify the expenses under the following headings: Electrician’s Expenses; Administrative
Expenses; Finance Costs
Sohan’s Electrical Services
Income Statement for the year ended 31 August 2007
Evidence
Revenue
Electrical Fees
102 000
Add other income
Dividends Received
300
Less Expenses
Electrician’s Expenses
Advertising
Cell phone expenses (Sohan)
Electrical supplies used
Service Vehicle expenses
Depreciation on Service Vehicle
4 000
1 600
4 800
13 000
6 750
Administrative Expenses
Bad Debts
Office Expenses
Office Manager’s Salary
Postage and Stationery
Doubtful Debts
Depreciation on Office Furniture
1 680
14 900
45 000
1 100
900
2200
Finance Costs
Interest on Overdraft
Total Expenses
Profit for the year
Code
S
S
30 150
S
SC
S
S
SC
65 780
SC
S
S
S
SC
SC
770
SC
96 700
5 600
S#
S = correct stem, correct classification and correct figure if no C
S# = correct calculation (income minus expenses)
C = correct number regardless of classification
Shaded figures are not marked.
F = an item that should not be reported in the Income Statement
Judgement Statement for QUESTION ONE Part A
Achievement
Achievement with Merit
Achievement with Excellence
7xS+2xC
max 4 F
10 x S + 3 x C
max 2 F
13 x S + 5 x C
no F
© NZCETA Practice Assessment 2007 Accounting AS 90224 (2.5) NCEA Level 2/Year 12 Page 2
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Part B – Balance Sheet and notes extracts
Prepare the Current Assets and Non-Current Assets sections of the Balance Sheet and
Notes 1 and 2 for Sohan’s Electrical Services after taking into account the additional
information.
PLEASE NOTE: only notes 1 and 2 need to be prepared. The Property, Plant and Equipment
table is not required.
Sohan’s Electrical Services
Balance Sheet (extract) as at 31 August 2007
Current Assets
Accounts Receivable
26 100
SC
Non-Current Assets
Investments (note 2)
Shares in Electrical World Ltd
Property, plant and equipment (note 3)
Total Carrying Amount
24 000
S
26 050
C
Total Assets
76 150
Notes to the Balance Sheet (extract)
1)
Accounts Receivable
Accounts Receivable
less Allowance for Doubtful Debts
29 000
2 900
26 100
C
C
S#
S = correct stem, correct classification and correct figure if no C
C = correct number
S# = correct calculation (accounts receivable minus allowance for doubtful debts)
Shaded figures are not marked.
2)
Investments
Investments comprise Shares in Electrical World Ltd.
S
The current fair value of the shares is $ 24000 which is their market value on
balance sheet date.
S
© NZCETA Practice Assessment 2007 Accounting AS 90224 (2.5) NCEA Level 2/Year 12 Page 3
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Part C – Statement of Accounting Policies extract
Prepare the following Accounting Policies for Sohan’s Electrical Services.
Name and Nature
These financial statements are prepared for Sohan’s Electrical Services a sole
proprietorship specialising in providing electrical services.
S
Property, Plant and Equipment
Property, Plant and Equipment are stated at cost and (except for land) is depreciated.
S
GST
All amounts are stated exclusive of Goods and Services Tax (GST),
S
except for receivables and payables which are stated inclusive of GST.
C
Judgement Statement for QUESTION ONE Part B and Part C
Achievement
Achievement with Merit
Achievement with Excellence
4xS+2xC
5xS+3xC
max 2 F
7xS+4xC
no F
© NZCETA Practice Assessment 2007 Accounting AS 90224 (2.5) NCEA Level 2/Year 12 Page 4
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QUESTION TWO
Samantha Smith owns a children’s clothing store that she has run for a number of years. The
store is called Pink and Blue.
Pink and Blue
Cash Flow Statement for the month ended 30 September 2007
Evidence
Receipts
(Cash) Sales
23 000
(Cash from) Accounts Receivable/Customers
100
Total Receipts
Payments
Wages
Electricity
Rent
(Cash paid to) Accounts Payable/Suppliers
Interest (on Loan)
Code
S
SC
23100
S
S
SC
SC
S
14 000
250
1 000
1 300
250
Total Payments
Net increase (decrease) in cash
Opening bank balance
Closing bank balance
16 800
6 300
1 200
7 500
C*
S
C#
S = correct stem, correct classification and correct figure if no C
C = correct number
S# = correct calculation (accounts receivable minus allowance for doubtful debts)
Shaded figures are not marked.
Judgement Statement for QUESTION TWO
Achievement
Achievement with Merit
Achievement with Excellence
4xS+2xC
5xS+3xC
max 1 F
7xS+4xC
no F
© NZCETA Practice Assessment 2007 Accounting AS 90224 (2.5) NCEA Level 2/Year 12 Page 5
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QUESTION THREE
Ihakara’s Golf Centre sells golf accessories and equipment.
Ihakara’s Golf Centre
Trial Balance as at 31 March 2007 (extract)
Accumulated Depreciation –
3 400
Office Equipment
26 000
Capital
Advertising
Cost of Sales
Insurance
5 200
Land
150 000
400
GST
980
34 000
Interest Received
Shop Wages
78 000
Rent Received
100 000
21 000
Dividends Received
Office Equipment
Term Deposit (7% pa)
6 000
Sales
6 500
13 500
150 000
Additional information:
 Shop Wages due $500
 Interest is due to Ihakara’s Golf Centre on the Term Deposit
 The insurance is paid every six months. On 1 November 2006 $2700 including GST
was paid for the six months beginning 1 November 2006.
 Ihakara rents out one of his unused sheds for $500 excluding GST a fortnight. On
balance day his tenants had prepaid a fortnight.
 Depreciate the office equipment, 10% diminishing value.
 The net profit for the period was $42 000 (after taking into account the additional
information above)
Part A – General Journal Entries
Prepare the General Journal Entries to record the following balance day adjustments,
closing entries and reversing entries. You must include dates but narrations are not required.
Remember: do not abbreviate account names.
a)
Record the interest due on the Term Deposit
Date
31/3/07
b)
Debit
500
Credit
SS#
500
Record the insurance that has been prepaid
Date
31/3/07
c)
Particulars
Accrued Income
Interest Received
Particulars
Prepayments
Insurance
Debit
400
Credit
SS#
400
Record the rent that Ihakara’s tenants have prepaid
Date
31/3/07
Particulars
Rent Received
Income (Revenue) Received in Advance
Debit
500
Credit
SS#
500
© NZCETA Practice Assessment 2007 Accounting AS 90224 (2.5) NCEA Level 2/Year 12 Page 6
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d)
Record the depreciation on the Office Equipment
Date
31/3/07
e)
Date
1/4/07
Debit
2 800
Credit
SS#
2 800
Close off the Net Profit on balance day
Date
31/3/07
f)
Particulars
Depreciation on Office Equipment
Accumulated Depreciation on Office
Equipment
Particulars
Income Summary
Capital
Debit
42 000
Credit
S
42 000
Record the reversal of the balance day adjustment for the Shop Wages due
Particulars
Accrued Expenses
Shop Wages
Debit
500
Credit
S
500
Part B – General Ledger entries
Complete the General Ledger accounts below to show the relevant transactions for balance
sheet day and the first day of the next period, using the additional information provided.
Include dates and do not abbreviate account names.
DEPRECIATION – OFFICE EQUIPMENT
Date
Particulars
Accumulated Depreciation on Office
31/3/07
Equipment
Income Summary
INTEREST RECEIVED
Date
Particulars
31/3/07
Balance
Accrued Income
Income Summary
1/4/07
Accrued Income
Debit
Credit
2800
2800
Debit
Credit
500
7000
500
Balance
2800 dr
SS
0
S
Balance
6500 cr
7000 cr
0
500 dr
In the journals, to award S, S# the journal entry must be correct, ie. the correct stems, correct
figure in the correct column and there must be a debit entry that equals the credit entry
S = complete entry correct
SS# = first S – correct stems and any number the same in both debit and credit columns
the S# - correct number
Sf = allow follow through
Judgement Statement for QUESTION THREE
Achievement
Achievement with Merit
Achievement with Excellence
8S
11 S
correct dates mostly followed
15 S
correctly and consistently
applied dates
Overall Judgement Statement
© NZCETA Practice Assessment 2007 Accounting AS 90224 (2.5) NCEA Level 2/Year 12 Page 7
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S
SS
Sf
Sf
Question
Criterion
Achievement
Achievement with
Merit
Achievement with
Excellence
One and Two
First
2xA
2 x M and 1 x A
2 x E and 1 x M
Three
Second
A
M
E
© NZCETA Practice Assessment 2007 Accounting AS 90224 (2.5) NCEA Level 2/Year 12 Page 8
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