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Book-Keeping & Accounts

Level 2
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Model Answers
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Vision Statement
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Book-Keeping & Accounts Level 2
Series 2 2008
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Book-Keeping & Accounts Level 2
Series 2 2008
QUESTION 1 ! 2--!+34!5+6!+7-!83!9+7:3-7;<89=!!><-!0/??/@83,!:78+?!A+?+3B-!@+;!97
-9+7-4!+:!.1!CB:/A-7!"$$%D! ! Trial Balance ! £ £ E+98:+?!)BB/F3:;!+:!1!G/H-IA-7!"$$
JD! ! ! ! 2--! ! %"KJ$$! ! 5+6! ! L$KL$$! EF77-3:!)BB/F3:;!+:!1!G/H-IA-7!"$$JD!
! ! ! 2--! ! "K1$$! ! 5+6! ! L$$! M:/BN!+:!.1!CB:/A-7!"$$%! O%K$'J ! ! P3H-;:I-3
:;! #.KO$$ ! ! C008B-!;+?+78-;! 1"KJ1O ! ! 28;B/F3:;!+??/@-4!+34!7-B-8H-4! 1KL'$
! 1KJ'$! Q+3N! ! 1K"J$! 2-A:/7;!+34!B7-48:/7;! 1.K"#$ ! "OK'%$! RF738:F7-!+34!0
8::83,;!+:!3-:!A//N!H+?F-! 11K"'$ ! ! P3H-;:I-3:!83B/I-! ! 1K""$! E+778+,-!/F:@+
74! "K''$ ! ! E+;<!83!<+34! 11O ! ! S7/;;!97/08:! ! #LKJ1$! P3;F7+3B-!! 1K$'$ !
! S-3-7+?!-T9-3;-;! 'K''J ! ! U+34!+34!AF8?483,;!+:!B/;:! %.K#$$ ! ! 27+@83,;D!
! ! ! 2--! 1$KL#$ ! ! ! 5+6! !!1'K1"$ ! ! ! "##K1O$ ! "##K1O$! ! ! ><-!9+7:3-7;<
89!+,7--I-3:!;:+:-;!:<+:D! ! ! P3:-7-;:!8;!+??/@-4!/3!:<-!9+7:3-7;V!B+98:+?!+BB/
F3:;!+:!JW!9-7!+33FI=! ! ! 5+6!8;!:/!A-!9+84!+!;+?+76!/0!X1$K$$$!9-7!+33FI=! ! !
*7/08:;!+34!?/;;-;!+7-!:/!A-!;<+7-4!A-:@--3!2--!+34!5+6!83!:<-!7+:8/!/0!.D1!7-;
9-B:8H-?6=! ! ! )448:8/3+?!830/7I+:8/3!+:!.1!CB:/A-7!"$$%D! ! Y8Z! P3;F7+3B-!/0!
X"O$!@+;!97-9+84=! ! Y88Z! S-3-7+?!-T9-3;-;!/0!X.$$!@-7-!+BB7F-4=! ! Y888Z! RF73
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QUESTION 1 CONTINUED REQUIRED ! 2+3! *4-5+4-!67-!*4/086!+9:!;/<<!=!)554/548+68/9
!)>>/?96!0/4!67-!@-+4!-9:-:!A1!B>6/C-4!"$$%D! 21.!E+4F<3! ! 2C3! *4-5+4-!67-!0/G
G/H89,!+>>/?96<!/0!67-!5+469-4<!89!>/G?E9+4!0/4E+6!67-!+6!A1!B>6/C-4!"$$%I! ! 28
3! J?44-96!)>>/?96<! ! 2883! J+586+G!)>>/?96<! 211!E+4F<3! ! (Total 25 marks)
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MODEL ANSWER TO QUESTION 1 ! 1+2! Dee and Kay Profit & Loss & Appropriation Acco
unt for the year ended 31 October 2007 ! 34.55!*4./67! ;65<.=>7!4-<-6?-@! A>?-57
B->7!6><.B-! C-55D! E+F+46-5! ;65<.=>75!+FF.H-@! ;-I4-<6+76.>! J+446+,-!.=7H+4@5
! A>5=4+><-!109$'$!K!"G$2! 3->-4+F!-LI->5-5!1'9'':!M!N$$2! ! O-7!*4./67! ! A>7-4
-57!.>!<+I67+FD![W1]! ! ;--! ! P+Q! ! E+F+4Q!R!P+Q! ! ! ES+4-!./!I4./67D! ! ;--!
! P+Q! ! ! Working: [1]!!!!!!!!!!!!!!!!!;--!1%"9:$$!L!:T2!M!1:9$$$!L!:T2 ! "! !
!!!!!!!!! U!!G9#N:! ! U!!!!G9N#:!!!!M!!!!!0'$ ! ! ! ! ! ! !!!!!!!!!!!!!P+Q!18$98
$$!L!:T2!M!1"9$$$!L!:T2! "! ! ! ! ! U!!!!#9G#G M!!!!!!!:$!!!!!!U!!!#9#0G! ! ! !
! ! ! £ £ #89:0$! 09:'$! !09""$! :"9#0$! ! ! ! ! ! ! "'9:"'! NN9''"! ! ! ! ! ! ! "$9
$#$! 0N9'N"! ! ! ! 0N9'N"!
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MODEL ANSWER TO QUESTION 1 CONTINUED Current Accounts ! D £ ";1$$ C;#D. £ K K ! ! £ 1'
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234
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56+789,:! =+>+9?-!?&@! ! ! ! ! 1<;'%" 1$;D%C 1%;$1$ .;$.$
1%;$1$
=+>+9?-!3&@! A9B-6-:B! E+>+6F! *6/08B!:G+6-! ! =+>+9?-!3&@! ! ! Capital Accounts
! ! D £ K £
<$$ #;#1C 1$;$$$ D;C#' 1<;'%" 1;#%"
D £ <";<$$ <";<$$ ! ! ! !
K £
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! ! =+>+9?-!?&@! ! ! ! ! ! ! ! ! %";.$$ .;$$$ %';.$$ %';.$$
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QUESTION 2 ! (+,,1-!2--!34-3+4-5!67-!/.88.91:,!/1:+8!+;;.<:6=!+6!>0!)<,<=6!"$$%?
! ! Trading and Profit & Loss Account £ @+8-=! Less:!B.=6!./!,..5=!=.85! @6.;C!+6!
0!@-36-DE-4!"$$F! Add?!*<4;7+=-=! ! Less?!@6.;C!+6!>0!)<,<=6!"$$%! I4.==!34./16!
! Less?! J<=1:-==!-K3-:=-=! L-34-;1+61.:!M!N-71;8-=! Net profit! ! ! £ Fixed asse
ts at net book value *4-D1=-=! ''A$$$! B+316+8! O-71;8-=! !HFA$$$! Add:!P-6!34./
16! ! 0>HA$$$! ! Current assets! Less?!L4+91:,=! @6.;C! >$AH$$! ! L-E6.4=! "%AHF
#! Current liabilities! J+:C! "GA0>#! B4-516.4=! ! !!'%A$$$! ! ""0A$$$! ! ! REQU
IRED ! R+S! B+8;<8+6-?! ! ! R1S! I4.==!34./16!+=!+!3-4;-:6+,-!./!=+8-=! ! R11S!
P-6!34./16!+=!+!3-4;-:6+,-!./!=+8-=! ! R111S! T+6-!./!=6.;C!6<4:.N-4!R61D-=S! !
R1NS! T-6<4:!.:!+N-4+,-!;+316+8!-D38.U-5!+=!+!3-4;-:6+,-! ! RNS! B<44-:6!4+61.!R
9.4C1:,!;+316+8!4+61.S! ! RN1S! 21V<1516U!4+61.!R+;15!6-=6!4+61.S! ! RN11S! @+8-
=!6.!+N-4+,-!;+316+8!-D38.U-5! ! RN111S!)N-4+,-!61D-!67+6!,..5=!+4-!;+441-5!1:!=
6.;C!RD.:67=S! ! R1KS! L-E6.4=W!;.88-;61.:!3-41.5!1:!5+U=! ! RKS! B4-516.4=W!=-6
68-D-:6!3-41.5!1:!5+U=! £ ""$A$$$!
"GAF$$! 0>"A'$$! 0F"AH$$! !>$AH$$!
0>"A$$$! ''A$$$!
0$A"$$! !>A$$$!
0>A"$$! %HA'$$!
Balance Sheet £ 0#>A'$$! !!%HA'$$! ""'AF$$! !H"AH$$! 0'FA"$$! >HA'$$! QQQQQQQ! ""0
A$$$!
R">!D+4C=S! ! Workings must be shown ! RES! )6!>0!)<,<=6!"$$FA!(+,,1-!2--W=!,4.=
=!34./16!D+4,1:!9+=!H#XY!!@6+6-!two!3.==1E8-!4-+=.:=!/.4!! ! 67-!5-;4-+=-!1:!67-
!,4.==!34./16!D+4,1:!/4.D!"$$F!6.!"$$%Y! R"!D+4C=S ! (Total 25 marks) !
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MODEL ANSWER TO QUESTION 2 1+2! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! !
! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! 1I2! ! ! 132! !!4''5$$$!6!0$$!7!8$9!
4""$5$$$! ! !!4%85'$$!6!0$$!7!:89! 4""$5$$$! ! !!!!!!!!!!40:"5$$$!!!!!!!!!!!!!!
!!! 14";5<$$!=!4:$58$$2!>!"! ! 7!40:"5$$$!7!8?8!@3A-B! 4:$5$$$ ! !!!!!!!!!!!!4%8
5'$$!!!!!!!!!!!6!0$$! 140#:5'$$!=!0'<5"$$2!>!"! ! 4%85'$$!6!0$$!7!889! 40%$5$$$!
! 4'%5$$$ 7!"?#D0 4:85'$$! ! 4'%5$$$! !4:$58$$! 4:85'$$! ! 7!4#<5<$$!7!0?<:D0!
!4:85'$$! ! 4""$5$$$! 40%$5$$$! ! 7!0?";D0! ! 4:$5$$$!6!0"! 40:"5$$$! ! 7!"?%:!A
.E@FB! ! 4"%58<#!6!:<#! ""$5$$$! ! 7!8#?#%!G+HB! ! :85'$$!6!:<#! 0:"5'$$! ! 7!;#
?<#!G+HB!
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13332!
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1C32!
1C332!
1C3332!
1362!
162!
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QUESTION 3 ! 2+3-405-67!8/95+6!:6;<!=;4>!+!>/95+6!96;<!+47!=->?+;=+4?!0/=!5?>!@-
@<-=>A!@/>?!/0!BC/@!D+E!+4!+44;+6! >;<>9=5D?5/4F!!G4!?C-!E-+=!-47-7!H1!I-9-@<-=!
"$$%A!?C-!9/@@5??--!7-957-7!?/!+7@5?!650-!@-@<-=>!0/=! +!/4-J/00!>;<>9=5D?5/4!/0
!K#$$F!!LC-!650-!@-@<-=>M!>;<>9=5D?5/4>!>C/;67!<-!+66/9+?-7!?/!549/@-!/3-=!+! "$
!E-+=!D-=5/7A!>?+=?54,!54!?C-!E-+=!BC59C!?C-!@-@<-=>C5D!B+>!?+N-4!/;?F! ! O4D+57
!>;<>9=5D?5/4>!0/=!"$$P!>C/;67!<-!B=5??-4!/00!/4!H1!I-9-@<-=!"$$%F! ! I-D=-95+?5
/4!5>!?/!<-!D=/357-7!+?!"$Q!D-=!+44;@!/4!-R;5D@-4?!+47!1$Q!D-=!+44;@!/4!05S?;=->
!+47! 05??54,>A!</?C!=+?->!<-54,!<+>-7!/4!?C-!=-7;954,!<+6+49-!@-?C/7!+47!9C+=,-
7!/4!+66!05S-7!+>>-?>!C-67! +?!?C-!-47!/0!?C-!E-+=F! ! LC-!2-9-5D?>!+47!*+E@-4?>
!)99/;4?!0/=!?C-!E-+=!-4754,!H1!I-9-@<-=!"$$%!5>!+>!0/66/B>T! ! £ £ U+6+49-!<&7! HA1
"$! 2-4?! 1PA$$$ 8;<>9=5D?5/4>!=-9-53-7T! V+,->T!=->?+;=+4?! 'A1$$! ! "$$P! 1A$$
$! V+,->T!96;<! "$AH$$! ! "$$%! #"A1$$! WR;5D@-4?! "A'$$! ! "$$'! H$$! G4>;=+49-
!! "A1#$! X50-!>;<>9=5D?5/4>! HA#$$! X5,C?!Y!C-+?! "A$"$! 2->?+;=+4?!?+N54,>! "%
A$1$! (+54?-4+49-! 1A11$! ! ! Z-4-=+6!-SD-4>->! [A'H$! ! 2->?+;=+4?!>;DD65->! 1'
A$'$! ! ! U+6+49-!9&7! 11AP[$! ! '%A$H$! '%A$H$! ! LC-!0/66/B54,!+775?5/4+6!540/
=@+?5/4!5>!+6>/!+3+56+<6-T! ! At 31 December 2006 At 31 December 2007 WR;5D@-4?!
+?!4-?!<//N!3+6;-! ]5S?;=->!+47!05??54,>!+?!4-?!<//N!3+6;-! 8?/9N!/0!=->?+;=+4?!
>;DD65->! 8;<>9=5D?5/4>!54!+==-+=>!0/=!"$$P! 8;<>9=5D?5/4>!54!+==-+=>!0/=!"$$%!
8;<>9=5D?5/4>!54!+73+49-!0/=!"$$%! P$$! 8;<>9=5D?5/4>!54!+73+49-!0/=!"$$'! )99=;
-7!B+,->T! ! =->?+;=+4?!>?+00! %$$! ! 96;<!>?+00! .$$! :=-75?/=>!0/=!=->?+;=+4?!
>;DD65->! H$$! ! ! REQUIRED ! *=-D+=-!?C-!0/66/B54,!0/=!?C-!2+3-405-67!8/95+6!:6
;<T! ! ^+_! +!8?+?-@-4?!/0!)99;@;6+?-7!];47!+?!1!`+4;+=E!"$$%! ! ^<_! +!2->?+;=+
4?!L=+754,!)99/;4?!0/=!?C-!E-+=!-47-7!H1!I-9-@<-=!"$$%! ! ^9_! +4!G49/@-!+47!WSD
-475?;=-!)99/;4?!0/=!?C-!E-+=!-47-7!H1!I-9-@<-=!"$$%! ! ^7_! +!U+6+49-!8C--?!+?!
H1!I-9-@<-=!"$$%F! ! ! £ 1[A.#$! 1#A$#$! [AP#$! 1A"$$! £ \! \! [A.[$! '$$! H$$! '$$!
.#$! H#$!
^H!@+=N>_! ^#!@+=N>_! ^1$!@+=N>_! ^%!@+=N>_! (Total 25 marks)
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MODEL ANSWER TO QUESTION 3 ! Accumulated Fund at 1 January 2007! 1+2! ! 345678-9
:! >6?:5@-A!+9B!06::69,A! C-A:+5@+9:!A577D6-A! F5GAH@67:6/9A!69!+@@-+@A! I+9J! F
5GAH@67:6/9A!69!+BL+9H-! M+,-A!+HH@5-BN! ! @-A:+5@+9:!A:+00! ! HD5G!A:+00! O@-B6
:/@A! ! ! Ravenfield Social Club! 1G2! Restaurant Trading Account! ! for the yea
r ended 31 December 2007! ! £ ! ! F+D-A! ! P7-969,!A:/HJ! ;<E#$ ! ! ! *5@HQ+A-A!1.
'<$'$!R!K#$!S!K$$2! .'<.K$ ! ! ""<%'$ ! OD/A69,!A:/HJ! !;<=;$ ! ! ! T@/AA!7@/06:
! ! C-A:+5@+9:!U+,-A!1'<.$$!S!%$$!R!'$$2! ! V-:!7@/06:! ! ! Income and Expenditu
re Account! 1H2! for the year ended 31 December 2007! ! £ ! ! *@/06:! ! )995+D!A5G
AH@67:6/9A!1#"<.$$!R!E$$!R!'$$2! ! W60-!A5GAH@67:6/9A!1.&"$!?!K<#$$2! ! ! ! OD5G
!U+,-A!1"$<K$$!S!=$$!R!=#$2! "$<K#$ ! C-9:! .E<$$$ ! X9A5@+9H-!! "<.#$ ! W6,Q:!Y
!Q-+:! "<$"$ ! (+69:-9+9H-! .<..$ ! T-9-@+D!-?7-9A-A! ;<'K$ ! X@@-H/L-@+GD-!A5GA
H@67:6/9A!U@6::-9!/00!1.<"$$!S!.<$$$2! "$$ ! Z-7@-H6+:6/9!S!-45678-9:![$\"!?!1.;
<=#$!R!"<'$$2]! K<##$ ! Z-7@-H6+:6/9!S!06?:5@-A!+9B!06::69,A!1$\.!?!.#<$#$2! .<#
$# ! ! ! ! Surplus! ! £! .;<=#$! .#<$#$! ;<E#$! .<"$$ K<."$! 1E$$2 ! 1%$$2! 1=$$2!
!!!1K$$2! KE<;%$!
£ "%<$.$! ! ! ! ! ! .%<';$! =<.%$! !'<"$$! !!!!=%$!
£ =%$! #K<#$$! !!!!!.%#! #;<E;#! ! ! ! ! ! ! ! ! ! #.<%.#! !!"<=K$!
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MODEL ANSWER TO QUESTION 3 CONTINUED ! Balance Sheet at 31 December 2007! 123! £! £!
! ! ! ! ! Fixed Assets! 456789-:;! ! ! 1.<=>#$!?!"='$$!@!A=##$3! ! ! B7C;6D-E!+
:2!07;;7:,E! ! ! 1.#=$#$!@!.=#$#3! ! ! ! ! ! ! ! Current Assets! F;/GH! <=><$ !
! F6IEGD78;7/:E!7:!+DD-+DE! '$$ ! ! J+:H! ..=K<$ ! ! ! ! .%=A'$ ! ! ! Current Li
abilities! LD-27;/DE! A#$ ! ! F6IEGD78;7/:E!7:!+2M+:G-! A$$ ! ! ! )GGD6-2!N+,-E!
1'$$!?!>#$3! .=%#$ ! ! ! ! "=<$$ ! ! ! ! ! ! ! ! ! ! )GG696O+;-2!06:2!+;!.!P+:6+
DQ! ! ! F6D8O6E! ! ! ! ! ! R70-!E6IEGD78;7/:E!1A=#$$!@!.%#3! ! ! ! ! ! !
£! NBV .<="$$! ! .A=#<#! "%=%<#! ! ! ! ! ! ! ! ! ! ! ! .<=>'$! <"=%"#! ! AK=<%$! !
!"=>A$! A>=<$$! !!A=A"#! <"=%"#!
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QUESTION 4 ! 2!3+4!5+6!75-!108809:;,!+<<0=;7!>+8+;<-?!:;!5:?!>00@?!0;!.!)=,=?7!"
$$AB! ! 2-;7!C+4+>8-! DE!F"A$! G:,57!H!5-+7! DE!F.'$! 2-;7!E-<-:I+>8-! JE!F'K$!
! 2-;7!C+4+>8-!:?!6=-!0;!.!3=84L!.!M<70>-EL!.!3+;=+E4!+;6!.!)CE:8N! ! J=E:;,!75-
!4-+EL!75-!108809:;,!C+4O-;7?!+;6!E-<-:C7?!9-E-!C+:6!+;6!E-<-:I-6!>4!<5-P=-B! !
2006! £ )=,!.! 2-;7!C+4+>8-! %'$! ! Q-C!.! G:,57!H!5-+7! /%$! ! M<7!.! 2-;7!C+4+>8
-! 'RK! ! J-<!.! G:,57!H!5-+7! K$A! ! J-<!.! 2-;7!E-<-:I+>8-!S5+81T4-+E!E-<-:C7!
70!/$!)CE:8!"$$%!! ! C8=?!+O0=;7!0=7?7+;6:;,!+7!.!)=,=?7!"$$AU! "L#"$! ! 2007 3+
;!.! 2-;7!C+4+>8-! 'RK! ! (+E!.! G:,57!H!5-+7! /%'! ! )CE!.! 2-;7!C+4+>8-! 'RK!
! 3=;!.! 2-;7!E-<-:I+>8-!S5+81T4-+E!E-<-:C7!70!/.!M<7!"$$%U! .L%'$! ! 3=;!.! G:,
57!H!5-+7! K.$! ! 3=84!.! 2-;7!C+4+>8-! 'RK! ! )66:7:0;+8!:;10EO+7:0;B! ! )7!/.!
3=84!"$$%L!F.'$!9+?!+<<E=-6!10E!8:,57!H!5-+7N! ! ! REQUIRED ! S+U! MC-;!75-!thre
e!+<<0=;7?!8:?7-6!+>0I-!+;6!C0?7!75-!E-P=:E-6!7E+;?+<7:0;?N!!V+8+;<-!75-!+<<0=;7
?!! ! +;6!O+@-!75-!+CCE0CE:+7-!7E+;?1-E?!70!75-!CE01:7!+;6!80??!+<<0=;7!10E!75-!
4-+E!-;6-6!/.3=84!"$$%N! ! S.$!O+E@?U! ! S>U! *E-C+E-!75-!*E01:7!H!G0??!)<<0=;7!
-W7E+<7!10E!75-!4-+E!-;6-6!/.!3=84!"$$%N! S#!O+E@?U! ! S<U! *E-C+E-!75-!V+8+;<-!
Q5--7!-W7E+<7!+7!/.!3=84!"$$%L!?509:;,!75-!+O0=;7?!70!>-!-;7-E-6!=;6-E!! ! D=EE-
;7!)??-7?!+;6!D=EE-;7!G:+>:8:7:-?N! SK!O+E@?U! ! S6U! Q7+7-!75-!O-+;:;,!01!75-!+
<<0=;7:;,!7-EO!XO+7<5:;,!CE:;<:C8-YN! S"!O+E@?U! ! S-U! Q7+7-!10=E!74C-?!01!-EE0
E?!75+7!60!;07!CE-I-;7!75-!7E:+8!>+8+;<-!1E0O!>+8+;<:;,N! SK!O+E@?U! ! (Total 25
marks)
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MODEL ANSWER TO QUESTION 4 ! 2+3! Rent Payable A/c! ! ! ! 2006 £ ! .!)4,! 5+67! !
%'$ ! .!=9>! 5+67! ! '?/ ! ! ! ! 2007 ! .!@+6! 5+67! ! '?/ ! .!)EF! 5+67! ! '?/
! .!@48! 5+67! ! !!!!'?/ ! ! ! ! !/DA#< ! ! ! ! ! ! .!)4,! 5+8+69-!:&;! #?< ! !
! ! ! ! Light & Heat A/c ! ! ! ! ! ! ! ! ! ! 2006 .!G-E! .!H-9! 2007 .!(+F! .!@4
6! .!@48! 5+67! 5+67! ! 5+67! 5+67! 5+8+69-!9&;! ! ! ! ! 2006 .!)4,! 2007 A.!@48
! A.!@48! ! ! ! ! ! ! ! ! ! £ A%$ /$< ! A%' /.$ !!!!.'$ !.D%// ! ! !
2006 .!)4, 2007 A.!@48 A.!@48
! ! ! 5+8+69-!:&;! ! ! ! ! *BC!)&9! ! 5+8+69-!9&;! ! ! ! ! ! ! ! ! ! !
! £ "<$! ! ! AD#$$! #?<! ! !/A#<! ! ! !
2006 .!)4, ! 2007 A.!@48
.!)4,
! ! 5+8+69-!:&;! ! ! ! ! *BC!)&9! ! ! ! ! ! ! ! ! ! 5+8+69-!:&;! ! !
£ .'$! ! ! .D#</! ! ! !.D%//! ! .'$! !
! ! Rent Receivable A/c! £ '/$ ! "D#%$ !!!!'?$ !/DA$$ ! ! ! ! .!)4, 2006 .!H-9 200
7 .!@46
! ! ! ! !
5+8+69-!:&;! ! ! *BC!)&9! 5+8+69-!9&;!!!!!!!!! ! ! ! ! ! ! ! !
!!!!!!!!
! ! 5+67! ! ! ! 5+67! ! ! ! ! ! ! ! 5+8+69-!:&;!
£ "D#"$! ! .D%'$! ! !/DA$$! ! '?$!
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MODEL ANSWER TO QUESTION 4 CONTINUED ! R Jay 123! Profit & Loss Account extract
for the year ended 31 July 2007 ! £ £ ! ! ! ! ! ! 183! ! ! ! ! ! 4-56!7-8-9:+2;-! 4-
56!=+>+2;-! @9,A6!B!A-+6! ! ?<#$$! .<#CD! "<#%$! ! !
!
Balance Sheet extract at 31 July 2007 Current Assets! *7-=+>E-56F! ! Current Lia
bilities! )887H+;F! £ #GC! ! ! .<$%$!
1.'$!I!'G$3! ! ! 1J3! KA-!E+68A95,!=79589=;-!E-+5F!6A+6!6A-!-L=-5F-F!F-6!+,+95F6
!F+;-F!7-:-5H-!EHF6!2-!+==7/=79+6-! 6/!6A-!+88/H5695,!=-79/J!0/7!MA98A!6A-!F+;-F
!7-:-5H-!9F!7-=/76-JN! ! 1-3! O77/7!/0!=79589=;-! ! O77/7!/0!/E9FF9/5! ! O77/7!/
0!8/EE9FF9/5! ! P/E=-5F+695,!-77/7F! ! O77/7F!/0!/79,95+;!-567>! ! O77/7F!/0!7-:
-7F+;
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QUESTION 5 ! 1/2345-6!1/23/7-758!95:!;+8!36-2<8-8!/0!#=$$$!8>4+6-!2-56-8=!/0!?;<
@;!A=#$$!@/78<85!/0!5;-!0+@5/6B! ?/6C8;/3!+7:!5;-!6-2+<7:-6!@/236<8-8!5;-!+:2<7<
856+5<D-!+6-+!+7:!:<856<E45</7!@-756-F! ! G-75!+7:!<7846+7@-!+6-!+HH/@+5-:!/7!5;
-!E+8<8!/0!0H//6!83+@-F! ! '$I!/0!5;-!5/5+H!H<,;5!J!;-+5!<8!45<H<8-:!<7!5;-!0+@5
/6B!+6-+F! ! #$I!/0!,-7-6+H!-K3-78-8!+6<8-!<7!5;-!0+@5/6B!+6-+F! ! L/6!5;-!B-+6!
-7:-:!A$!M-35-2E-6!"$$%!5;-!0/HH/?<7,!<70/62+5</7!<8!+D+<H+EH-N! ! ! £ O3-7<7,!85/
@C!/0!6+?!2+5-6<+H8! A"=$$$! O3-7<7,!85/@C!/0!?/6C!<7!36/,6-88! ."=$$$! O3-7<7,!
85/@C!/0!0<7<8;-:!,//:8! .%=$$$! 1H/8<7,!85/@C!/0!6+?!2+5-6<+H8! AP="$$! 1H/8<7,
!85/@C!/0!?/6C!<7!36/,6-88! ..=Q$$! 1H/8<7,!85/@C!/0!0<7<8;-:!,//:8! .'=#$$! M+H
-8!/0!0<7<8;-:!,//:8! %#$=$$$! *46@;+8-8!/0!6+?!2+5-6<+H8! "QQ=$$$! 1+66<+,-!<7!
.='$$! (+@;<7-!/3-6+5/68R!?+,-8! .$"=$$$! M+H+6B!/0!0+@5/6B!843-6D<8/6! "$=#$$!
):2<7<856+5<D-!+7:!8+H-8!?+,-8! #Q="$$! S-36-@<+5</7!/0!0+@5/6B!->4<32-75! .Q=.
$$! S-36-@<+5</7!/0!:-H<D-6B!D+78! ."=.$$! S-36-@<+5</7!/0!+:2<7<856+5<D-!->4<32
-75! A=$$$! 9<,;5!J!;-+5! A$=$$$! G-75! ."=$$$! T7846+7@-! P=$$$! U-7-6+H!-K3-78
-8! .%=$$$! ! ! REQUIRED ! L/6!5;-!B-+6!-7:-:!A$!M-35-2E-6!"$$%=!36-3+6-!5;-!0/H
H/?<7,!+@@/4758N! ! V+W! (+740+@546<7,! V.Q!2+6C8W! ! VEW! X6+:<7,!+7:!*6/0<5!J!
9/88! VY!2+6C8W! ! (Total 25 marks) !
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MODEL ANSWER TO QUESTION 5 ! Computer Components Ltd @+A! Manufacturing Account
! for the year ended 30 September 2007 ! £ £ ! ! ! F"G$$$ ! ! ! ! B<-878,!C6/5D!/0!?
+E!=+6-?7+;C! "IIG$$$ ! ! ! ! *4?5H+C-C!/0!?+E!=+6-?7+;C! !!!.G'$$ ! ! ! J+??7+,
-!78! "KKG'$$! ! ! ! ! !!FNG"$$! ! ! L-CCM!5;/C78,!C6/5D!/0!?+E!=+6-?7+;C! ! "I#
GI$$! ! Cost of raw materials consumed! ! ! ! 97?-56!5/C6CM! ! .$"G$$$! ! ! (+5H
78-!/<-?+6/?CO!E+,-C! ! FI%GI$$! ! Prime cost! ! ! ! .IG.$$ ! ! ! 9-<?-57+67/8!/
0!0+56/?P!-Q47<=-86! "$G#$$ ! ! ! R+;+?P!/0!0+56/?P!C4<-?:7C/?! "NG$$$ ! ! ! L7,
H6!S!H-+6!@F$G$$$!T!$U'A! 'GN$$ ! ! ! V-86!W."G$$$!T!@FG#$$!&!#G$$$AX! "G'$$ ! !
! >8C4?+85-!WNG$$$!T!@FG#$$!&!#G$$$AX! 'G#$$ ! ! ! Y-8-?+;!-T<-8C-C!@.%G$$$!T!$
U#A! !!'$GF$$! ! ! ! ! NN%GK$$! ! ! ! ! ! Z/?D!78!<?/,?-CC! ! ."G$$$ ! ! ! B<-87
8,!C6/5D! ..GI$$ ! ! ! J;/C78,!C6/5D! !!!!!!!N$$! ! ! ! ! NN'GF$$! ! Factory cos
t of production ! @[A! Trading and Profit & Loss Account for the year ended 30 S
eptember 2007 ! ! ! ! ! ! ! R+;-C!! B<-878,!C6/5D!/0!0787CH-3!,//3C! J/C6!/0!<?/
34567/8! L-CC!5;/C78,!C6/5D!/0!0787CH-3!,//3C! ! Gross profit! ! V-86!W."G$$$!T!
@.G#$$&#G$$$AX! >8C4?+85-!!WNG$$$!T!@.G#$$&#G$$$AX! L7,H6!S!H-+6!@F$G$$$!T!$U"A!
)3=78!+83!C+;-C!E+,-C!!! 9-<?-57+67/8!/0!3-;7:-?P!:+8C!! 9-<?-57+67/8!/0!+3=78!
-Q47<=-86! Y-8-?+;!-T<-8C-C!@.%G$$$!T!$U#A!! ! ! ! ! ! ! ! Net profit £ .%G$$$ NN'
GF$$ !!!.'G#$$ ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! £ %#$G$$$! ! ! ! NNIG'$$! F$FG"$$!
! ! ! ! ! ! ! ! !!K$GI$$! "."GI$$! ! ! ! ! !
! ! ! ! ! ! ! ! !
FGI$$ .G"$$ IG$$$ #IG"$$ ."G.$$ FG$$$ !!!!'G#$$
!
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