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TEST CODE

0123.90tO

SECONDARY EDUCATION CERTIFICATE EXAMINATION

( 17 MAY 2010 (a.m.) )

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4. Silent electronic calculators may be used, but ALL necessary workings should be clearly shown.

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Copyright © 2008 Caribbean Examinations Council ® All rights re~eJ:\!ed.__ _. __ . ..

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(a) (i) $ 75000 8000 30000 38000 339000 5000 70000 145000 250000 15000 41000 60000 Prepare Peter Jones' classified Balance Sheet as at March 31. show the effect of the above transactions on the accounts. (7 marks) . The first transaction has been done for you. (10 marks) (b) The following transactions Mr Jones.Inventories Accruals Fixtures and Fittings Bank Capital Loan (repayable April 2010) Debtors Mortgage (repayable 2015) Land and Building Cash Creditors Motor vehicles . which occurred during the year were not recorded by On the work sheet provided. 2010. using the order of permanence.

_- 2500 15000 3500 8000 8200 --~- Share of profit 12300 (i) Calculate and enter the interest on drawings to be charged to EACH partner. sharing profits and losses in the ratio 3:2. Angel $ Karissa $ Angel $ Karissa $ Balance bid Drawings 14000 1 700 18 000 Balance bid --- 3000 - Interest o~ capital Salary ~-~. (2 marks) State ONE possible reason why Angel and Karissa earn different salaries. showing clearly the net profit of the partnership. prepare the Appropriation of Profits Account for Angel and Karissa for the year ended December 31. Interest on drawings is charged at the rate of 5% per annum and interest on capital is lO% per annum. Some of the Current Account entries for the partners for the period ended December 31.2009. Angel and Karissa receive salaries of $15 000 and $8 000 respectively.2009. (1 mark) (iv) (b) From the information in your Current Accounts. (10 marks) .Angel and Karissa are in partnership. 2009 are set out below. (3 marks) (iii) State the significance of BOTH balances brought down as at December 31.

On January 31. 2010. I I ! ! i i Prepare a Statement ofAffairs as at February 0 1.Khalel. he provided his bank manager with the following information but could not answer a number of questions. to convert KhaleI's Gardening Centre's single entry records. I 1 ! i . He also advised Khalel about using different methods to convert his records to double entry records.2009.2010 $ Property at cost Motor van value at year encL Inventory Accounts receivable (debtors) Accounts payable (creditors) Cash Prepaid water rates Electricity owing 40000 9000 4000 1475 925 1240 400 210 40000 7000 5600 2300 850 2360 500 110 -~ -! . the owner ofKhalel's Gardening Centre. 2009 $ January 31. The bank manager gave several reasons why this method was not very helpful. February 01. (5 marks) . kept only single entries of his transactions.

All sales were made on credit. but neither the loan nor the interest due had been recorded. 3.2010.2009. The account of one debtor for $75 had been written off as bad debt. Debtors paid $32 600 by cheque during the year. (ii) Prepare an Income Statement for Khalel's Gardening Centre for the year ended January 31. 2010.1. (i) Prepare a Sales TotaL(Control) Account for Khalel's Gardening Centre to calculate the total C~edit Sales for the period ended January 31. ---------(9 marks) In which classification section ofthe Balance Sheet should Khalel record the loan from his sister? (iii) . This is to be paid by June 30. 2010. Khalel borrowed $2000 from his sister on February 01. In addition to other liabilities. The interest rate was 5% per annum.

2008) Petty cash Bank General reserve . 83520 5000 22000 13 430 365000 109500 1200 20480 I' Stock of sheets.4. towels etc.--~-t"l' ! i 1 ! :1 I I I - 8000 13 830. Cancun Guest House Limited rents comfortable rooms and serves breakfast to its guests. i _.2008) Accounts payable Property and tools at cost Provision for depreciation . The company was started through the issue of the following: $ Net Profit for the year Stock of breakfast supplies i J.Property and tools (at 1 Dec. at cost (purchased December 01. Retained earnings (Dec. 2008) .

2. - Transfer of $15 000 to the General Reserve Full dividend on all Preference Shares 50% dividend on Ordinary Shares (a) Prepare the Appropriation Account of the company for the year ended November 30.2009. (b) as at Noverilber-JO. The stock of sheets. 2009. towels and similar items are depreciated over two years before they are replaced.-for Cancun Guest House (13 marks) . (Show all workings) (7 marks) Prepare a classified Balance Sheet Limited.

2009: Raw materials Work in progress Finished goods Rent and rates Machinery at cost Administrative expenses Factory wages Factory salaries Selling and distribution expenses Purchases of raw materials Carriage inwards on raw materials Returns outwards Carriage outwards Factory insurance Sales Stocks at December 31. At the end of the accounting year. the following information was available. Jeans and Things is a medium-sized factory which makes teens' clothing. 2009. 2009: Raw materials Work in progress Finished goods 33500 7300 82770 12300 500000 25230 135000 72 500 43820 247. December 31. Stocks at January 01.5.330 1500 3000 1000 15000 725650 ' 13220 6900 95240 .

Joe Mukram uses the LIFO method of stock valuation. I r-.----.--~ I ! . 2009.( October 21 October 26 October 31 l( L I I Using the stock form provided. During the month of October 2009 he recorded the following information: Date October 01 October 10 OCtober 15 Transaction Opening Balance Purchased -Sold Purchased Sold Sold Value 150 @ $25 200@ $27 230 @ $50 500 @ $30 400@$50 120 @ $55 .Joe Mukram owns and operates a tyre shop in Fast Town. determine--the value· of the-tyres remaining in stock at October 31.

An organisation. In order to report higher profits for the financial year. concept or principle that is being violated. j! (iv) ~ . (2 marks) (ii) IdentifY ONE external user of accounting information and state how this information is used by that user. (2 marks) (ii) Three brothers operating a business where the action of one brother is binding on the other two brothers. Mr Lumberj ack paid the insurance for his private house and recorded it as a business expense. Due to the banlauptcy of Mr Dragon. ! ! I Credit sales made in March of20 10 were not recorded until the money was received in May 2010. I II (v) (c) :1 I 1 Each of the transactions below violates an accounting concept or principle.and subscriptions. a debtor. to provide services to members and is often financed by donations. (4 marks) (ii) . (i) i . ! Groups of consumers or producers form an organisation to provide services to its members. fund-raising.IdentifY ONE internal user of accounting information and state how this information is used by that user. management has changed from the straight line method of depreciation to the reducing balance method. the business is likely to lose $20 000. operated by members. Management refuses to write off this amount as a bad debt or to create a provision for bad debts. (5 marks) State the Ii II il .