Name ___________________
Mahurangi College
Examination
Student Name_________________________ Class _______________
ACCOUNTING
ACHIEVEMENT STANDARD 90978
Prepare financial statements for sole proprietors
Level 1
External Assessment
Credits: 5
Estimated time: 60 minutes
Instructions:
· You should answer ALL the questions in this booklet.
· Use the resource booklet to answer the questions.
· Write in black or blue pen only.
· Do not use twink or correcting fluid.
Achievement Criteria
Achievement
Achievement with Merit
Achievement with Excellence
 Prepare financial statements
for sole proprietors.
 Prepare in-depth financial
statements for sole
proprietors.
 Prepare comprehensive
financial statements for sole
proprietors.
Note:
A Statement of Financial Position is the same as a Balance Sheet.
Statement of Financial Position has been used in this assessment.
Final Grade: _____________
© NZCETA Practice Assessment 2012 Accounting AS 90978 (1.3) NCEA Level 1/Year 11 Page 1
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QUESTION ONE: INCOME STATEMENT
REFER TO THE RESOURCE BOOKLET
Use the Trial Balance and additional information in the Resource to complete the following Income
Statement for Ginny’s Florist for the year ended 31 March 2012. Do not use abbreviations.
Ginny’s Florist Income Statement for the year ended 31 March 2012
Sales
Net Sales
Less Cost of Goods Sold
Goods available for sale
Gross Profit
Add Other Income
Less Expenses
Florist Expenses
Administrative Expenses
Finance Costs
Total expenses
Profit/Loss for the year
© NZCETA Practice Assessment 2012 Accounting AS 90978 (1.3) NCEA Level 1/Year 11 Page 2
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QUESTION TWO: STATEMENT OF FINANCIAL POSITION.
Refer to the Resource Booklet
Use the Trial Balance and additional information in the Resource Booklet to answer this question.
Prepare a fully classified Statement of Financial Position for Ginny’s Florist as at 31 March 2012.
Also, complete the Note to the Statement of Financial Position.
Ginny’s Florist Statement of Financial Position as at 31 March 2012
Current Assets
Total Current Assets
Non-current Assets
Property, Plant and Equipment (Note 1)
Intangible Assets
Total Non-current Assets
Total Assets
Less Liabilities
Current Liabilities
Total Current Liabilities
Non-current Liabilities
Total Liabilities
Net Assets
Equity
Closing Capital
Note 1 Property, Plant and Equipment
Shop Fittings
Building
Office
Equipment
Total
Cost
Accumulated Depreciation
Carrying Amount
© NZCETA Practice Assessment 2012 Accounting AS 90978 (1.3) NCEA Level 1/Year 11 Page 3
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QUESTION THREE: CASH BUDGET
The following information relates to Ginny’s Florist for the month of August 2012. Complete the
Cash Budget on the following page and circle the word “surplus” or “deficit” on the statement , which
matches the result.
Assume that four weeks equals one month.
Ginny’s Florist bank balance on 1 August 2012 is $5,887 in funds.
Ginny has estimated the following will occur during August:
Cash received for sales
24,678
Invoices to be issued
2,390
Cash paid for purchases
1,377
Invoices on hand for purchases
4,699
Office salaries paid
1.678
Other expenses paid
2,344
Depreciation on shop fittings
200
Commission Received
765
Interest paid on loan
120
Photocopy Paper paid by EFTPOS
65
Received from accounts receivable
723
Ginny’s Drawings (includes fresh flowers $52)
152
Payments to accounts payable
378
Other estimated information relating to August
•
regular direct debit for electricity, $300.
•
estimated direct credit from customers for sales $72
You are required to select relevant information to prepare a Cash Budget for the month of August
2012.
Use the space provided on the next page.
Do not use abbreviations
© NZCETA Practice Assessment 2012 Accounting AS 90978 (1.3) NCEA Level 1/Year 11 Page 4
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Ginny’s Florist
Cash Budget
for August 2012
Estimated Receipts
Estimated Payments
Surplus/Deficit of cash
Plus opening bank balance
Equals closing bank balance
© NZCETA Practice Assessment 2012 Accounting AS 90978 (1.3) NCEA Level 1/Year 11 Page 5
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ACCOUNTING
ACHIEVEMENT STANDARD 90978
Prepare financial statements for sole proprietors
RESOURCE BOOKLET
Ginny is the owner of Ginny’s Florist a retail store that makes and sells floral displays and
accessories. Ginny’s friend Amber makes a variety of table decorations. Amber keeps a display of
these in Ginny’s shop and in return pays Ginny a commission on each of her sales.
Ginny’s Florist Trial Balance as at 31 March 2012
Accounts Receivable
Advertising
Bank
Building
Drawings
Freight inwards
Goodwill
Inventory
Purchases
Insurance
Interest on loan
Interest on Mortgage
Office expenses
Office equipment
Office wages
Rates
Electricity
Sales Returns
Shop Fittings
Shop Wages
3,746
2,450
1757
228,000
2,580
654
10,000
6,432
43,590
1,234
750
2,400
15,647
26,000
5,988
2,395
6,640
230
30,000
38,478
Accounts Payable
Accumulated Depreciation - building
Accumulated Depreciation – office equipment
Accumulated Depreciation – shop fittings
Capital
Commission Received
Loan (5% due 2018)
Sales
Mortgage
GST Payable
$428,971
1
2
3
4
5
6
7
8
9
Adjustments:
Inventory on hand 31 March 2012 is $7,250.
Interest of $250 is owing on the loan.
Invoices issued to customers for bouquets for $644 including GST have not been recorded.
Depreciation on the building is 5% straight line.
Shop fittings have a residual value of $2,000 and a useful life of 14 years.
Depreciation on the office equipment is 10% straight line.
Insurance of $230 has been paid in advance.
Shop wages of $150 are owing.
Electricity is allocated at the rate of 20% office and 80% shop.
© NZCETA Practice Assessment 2012 Accounting AS 90978 (1.3) NCEA Level 1/Year 11 Page 6
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1,456
79,800
10,400
8,000
39,304
7,699
20,000
174,569
86,000
1,743
$428,971
Assessment Schedule: Achievement Standard 90978 (1.3)
Ginny’s Florist
Assessment Criteria
Achievement
Merit
Excellence
Prepare financial statements for
sole proprietors means preparing
correctly classified financial
statements /extracts.
Prepare in-depth financial
statements for sole proprietors
means preparing correctly
classified financial statements /
extracts, including balance day
adjustments where the figure is
provided; distinguishing cash
and non-cash transactions for
the cash budget.
Prepare comprehensive
financial statements for sole
proprietors means preparing
correctly classified financial
statements /extracts with no
foreign items, including balance
day adjustments where the
figure is provided and where it
requires a calculation;
distinguishing cash and noncash transactions for the cash
budget.
© NZCETA Practice Assessment 2012 Accounting AS 90978 (1.3) NCEA Level 1/Year 11 Page 7
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QUESTION ONE: INCOME STATEMENT
Ginny’s Florist
Income Statement
for the year ended 31 March 2012
175,129 E
230 V
174,899
Sales
Less Sales Returns
Net Sales
Less Cost of Goods Sold
Opening inventory
Add Purchases
Add Freight inwards
Goods available for sale
Less Closing inventory
Cost of goods sold
Gross Profit
Plus Other Income
Commission Received
Less Expenses
Florist Expenses
Advertising
Shop Electricity
Shop Wages
Depreciation – Shop Fittings
Administrative Expenses
Insurance
Office Electricity
Depreciation – Building
Depreciation – Office Equipment
Office Wages
Rates
Office Expenses
Finance Costs
Interest on Loan
Interest on Mortgage
V
V
V
V
6,432
43,590
654
50,676
7,250
43,426
131,473 M
7,699 V
139.172
2,450
5,312
38,628
2,000
1,004
1,328
11,400
2,600
5,988
2,395
15,647
1,000
2,400
48,390
V
E*
M
E
40,362
M
E*
M
M
V
V
V
3,400
M
V
Total Expenses
92,152
Profit/Loss for the year
47,020 V*





V for correct stem and correct figure correctly classified, no abbreviations
M for the correct stem and correct figure, correctly classified (award V if number incorrect but
still correctly classified and correct stem). Correct process for Gross Profit.
E correctly calculated figure, correctly classified and correct stem (award V if number incorrect
but still correctly classified and correct stem)
E* boths parts needed for 1 E and correctly calculated and correctly classified. (award V if
number incorrect but still correctly classified and correct stem). V for the whole amount under
florist expenses.
V* for the correct process including correctly labelled Profit or Loss.
© NZCETA Practice Assessment 2012 Accounting AS 90978 (1.3) NCEA Level 1/Year 11 Page 8
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Question one
N1
N2
3V/M/E
5V/M/E
A3
7V/M/E
A4
19V/M/E
M5
20V/M/E
including
3 M/E
M6
11 V/M/E
including
4 S/C
plus
1P
Max 2 F
Max 1 F
E7
13 V/M/E
including
3 E and 3
M
plus
1P
No F
E8
15 V/M/E
Including 3
E and 4 M
plus
1P
No F
© NZCETA Practice Assessment 2012 Accounting AS 90978 (1.3) NCEA Level 1/Year 11 Page 9
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QUESTION TWO: STATEMENT OF FINANCIAL POSITION
Ginny’s Florist
Statement of Financial Position as at 31 March 2012
Current Assets
Accounts Receivable
Bank
Prepayments
Inventory
Total Current Assets
Non-current Assets
Property, Plant and Equipment (Note)
Intangible Assets
Goodwill
Total Non-current Assets
Total Assets
Less Liabilities
Current Liabilities
Accounts payable
GST Payable
Accrued expenses
Total Current Liabilities
Non-current Liabilities
Loan ( 5% due 2018)
Mortgage
Total Liabilities
Net Assets
Equity
Opening Capital
Add Profit for the year
E
V
M
V
4,390
1,757
230
7,250
13,627
169,800
Vf
10,000
V
179,800
193,427
V
E
M
1,456
1,827
400
3,683
20,000
86,000
109,683
83,744
39,304
47,020
86,324
2,580
83,744
Less Drawings
Closing Capital
Cost V
Accumulated Depreciation V
Carrying Amount V






V
V
106,000
Shop
Fittings
30,000
E10,000
20,000
V
Vf
V
V*
Building
Office
Equipment
228,000
26,000 V
M 91,200 M13,000
136,800
13,000 Vf
V correct stem (no abbreviations) and figure, correctly classified
Vf for transferring PPE total from table or transferring profit from Question One
V* for correct process
M correct figure, correctly classified and correct stem (award V if number incorrect but still
correctly classified and correct stem)
E correctly calculated figure, correctly classified and correct stem (award V if number incorrect
but still correctly classified and correct stem)
F foreign item
© NZCETA Practice Assessment 2012 Accounting AS 90978 (1.3) NCEA Level 1/Year 11 Page 10
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Question Two
N1
N2
8V/M/E
10 V/M/E
A3
12V/M/E
A4
14V/M/E
M5
16 V/M/E
including
4 M/E
Max 2 F
M6
17V/M/E
including
5 M/E
plus
1 V*
No F
E7
20 V/M/E
including
6 M/E
plus
1 V*
No F
E8
21V/M/E
Including
7M/E
plus 1 V*
No F
© NZCETA Practice Assessment 2012 Accounting AS 90978 (1.3) NCEA Level 1/Year 11 Page 11
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QUESTION THREE: CASH BUDGET
Ginny’s Florist Cash Budget for the month ended 31st August 2012
Estimated Receipts
Sales
Commission Received
Cash from Accounts Receivable
Total estimated receipts
M
V
V
24,750
765
723
26,238
Estimated Payments
Purchases
Office Salaries
Office Expenses
Drawings
Interest on Loan
Electricity
Payments to Accounts Payable
Stationery
Total estimated payments
Surplus of cash
Plus opening bank balance
Equals closing bank balance
V
V
V
M
V
M
V
M
1,377
1,678
2,344
100
120
300
378
65
6,362
19,876
5,887
25,763 V*
Notes:
 V for correct stem and correct figure correctly classified
 V* correct processing over all three areas (net increase, bank balance at the beginning and
bank balance at the end)
 M for correct stem and correct figure correctly classified (award V for incorrect figure)
 F Foreign item
 Accept direct credit from customers for sales $72 added into Accounts Receivable or sales.
Question Three
N1
N2
3 V/M
4 V/M
A3
6 V/M
Max 3 F
A4
7 V/M
Max 2 F
M5
8 V/M
Max 2 F
M6
9 V/M
E7
10 V/M
E8
12 V/M
plus V*
plus V*
plus V*
Max 1 F
No F
No F
© NZCETA Practice Assessment 2012 Accounting AS 90978 (1.3) NCEA Level 1/Year 11 Page 12
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