oe test cope 01239020: FORM TP 2011106 ‘® MAYITUNE 2011 CARIBBEAN EXAMINATIONS COUNCIL SECONDARY EDUCATION CERTIFICATE EXAMINATION, PRINCIPLES OF ACCOUNTS Paper 02— General Proficiency Centre No Candidate No: ‘Worksheet for Question 2(¢) Share of Working Cohan ‘Chester | Norbert | Tend ‘Remaining Income s s 3 3 Tanuary - June (50%) Fly - December (50%) TOTALS ‘TO BE ATTACHED TO YOUR ANSWER BOOKLET.rest cove 01239020 FORM TP 2011106 ce. MAYJUNE 2011 CARIBBEAN EXAMINATIONS COUNCIL SECONDARY EDUCATION CERTIFICATE EXAMINATION, PRINCIPLES OF ACCOUNTS Paper 02 ~ General Proficiency Centre No Candidate No: ‘Worksheet for Question 3 (6) Petty Cash Book Date ‘Otice | Cleaning Amount | 2011 Detaits ‘otat_| Supplies | Expenses Apr [Balance bia Apel | Cash Apr9 _ | Postage stamps [Apr9__| Mop and broom ‘Apr 11 _| Copying machine paper Apr 5_| Staples ‘Apr 15 _| Cleaning supplies Apr22_| Envelopes ‘Ape27_|Cleaner's wages Balance cfd ‘TO BE ATTACHED TO YOUR ANSWER BOOKLET 01:2390200F 2011.2 SECTION Answer the THREE questions inthis section. 1, MikailJackis a music artiste. On March 31, 2011, he provided the following informatien about his assets and lables: 2 8. 10. He ownr recording equipment valuod at $40 000. He also owns musietl instruments worth $15 000. ‘He ovns a car, which was bought at a cost of $65 000. The car was bought with the help ‘of a five-year loan of $30 000 from Easy Finance Company. Accumulated depreciation as at March 31, 2011 is $18 000. ‘There is an inventory of pre-ecorded CDs on hand, valued at $5 700. ‘He sold $200 worth of his pre-recorded CDs toa fan, who promised to pay in Apsil2011. ‘The Cancer Society owes him $8 000 for performing at a public function, He paid $650 in advance to Star Advertising Company which is working oa bis new sversing campaign, He holds a bank account of $8 925, and has petty cash on hand of $50. “He owes $2 500 in interst charges on a loan from Easy Finance Company. ‘He rents a recording studio for $1 $00 per month —three months ret femains unpaid at ‘March 31, 2011 Prepare a clasified Statement of Financial Position (Balance Sheet) for Mikal Jack, as at March 31,2011. (Use the order of permanence in classifying assets) (20marks) ‘Total 20 marks GO ON TO THE NEXTPAGE, 0123002078 20113. (Chester and Norbert have been in partnership for several years, Their pertership agreement provides for the following: Parners are to receive interest atthe rate of 10% per annum on their opening capital balances 2 Interest at rate of 5% per annum i to be paid oa partner’ drawings during the year 3. Norbert is to receive a salary of $1 500 per month, 4. Profits and losses are to be shared equally. ‘The following information has been extracted from their books: Partners’ Capital Accouats at January 1, 2010: 8 Chester 250000 Norbert, 150000 Partners’ Curent Accounts at January 1, 2010: 3 Chester 24000 Norbert (1 500) (On July 1,2010, halfway through the year, Chester and Norbert admitted Telford t the part- nership, Telford brought $40 000 in eash, 2 motor ear valued at $35 000 and equipment valued at $25 000. (@) Prepare tbe journal entry to record the admission of Telford into the partnership, ” Gmarks) Between January 1, 2010 and December 31,2010 the following activities occured: Partners’ Drawings: 8 Chester 6400 Norbert 7000 [Net Income of $122 330 was eamed evenly throughout the year ‘The ONLY CHANGE in the partnership agreement provides for proft or loss tobe shared ‘among the partners in the ratio of Chester 3 : Norbert 2 Telford I. "Note: all other provisions remain the same. () Prepare an extract ofthe Parmership Appropriation Account up tothe share of remaining profit for the year ended December 31, 2010, (marks) (© Complete the worksheet provided to arrive atthe share of remaining income or profit ‘camed by EACH pariner. (Gmarks) (@ Prepare the Current Accounts of the partners as at December31,2010. (7 marks) ‘Total 20 marks GOON TOTHENEXT PAGE3. Clris Luder and Sons maintains both a three-columa Cash Book and a Petty Cash Book, The ‘Pety Cash Account should start with $400 in hand every month. All peyments for ofie supplies and cleaning expenses are recorded in the Petty Cash Book, "The balances at April 1, 2011 were as follows: s Cash 850 Bank 4200 Peity Cash 15 Dring the month of April, the following transactions were recorded inthe books, a indicated, ‘April 1 Restored imprest by cash to petty cash book, 6 Paid wages of $2100 by cheque 7 Received cash of $1900 from P Rize to sete amount of $2 000. 9 Purchased postage stamps ata cost of $50. 3 mop and broom $34.60. 11 Bought copying paper at a cost of $40.0. 15 Boughtcleaning supplies at cost of $25.0; and staples for stapling machine a1 $31.20. 16 Deposited $1 200 (as into the bank. 16 8. John paid is debe of $1 00 by cheque, less 5% discount. 18 Chis Lader, owner, withdrew $500 in cash for private expens 22 Bought envelopes at cos of $63.30, 26 Pad deb of $2 900 to K. Band Enterprises by chegue ess 2 discount 27 Cleaners wages $128.30. 30 $. John's cheque received on psi 16 was retumed marked "return to drawer" (@) Draw up the three-column Cash Book for Chris Luder and Sons for the month of April 2011. (marks) (©) Using the worksheet provided, draw up the Petty Cash Book for Chris Luder and Sons forthe month of April 2011, (@marks) (©) Postthe TOTALS ofthe office supplies and cleaning expenses columns in the appropriate ledger. (Gmarks) ‘Total 20 marks GO ON TO THE NEXT PAGE 12360207F 2011SECTION 1 ‘Answer any TWO questions in this section. 4. B.C. Yen recorded the following Tvial Balance afte calculating gross profit. ‘rial Balance asst December 31,2010 8 8 Gross Profit 163.000 General Expenses 51570 Advertising 5.800 ‘Bank interest 1520 Commissions earned , 2200 Premises at cost 196000 ‘Fixtures and ftings at cost 110.000, Provision for depreciation: Premises 39200 Fixtures and fitings 33.600 Inventory at December 31, 2010 19030 ‘Accounts receivable 20 500 Provision for doubsful debis 2300 ‘Accounts payable 16500, Bank overdraft, 13.430 Cash 2700 Capital 136870 wr = «7120 ‘Adjustments required at end of year: Advertising expense includes $800 prepayment. Bank interest of $480 was owing at December 31, 2010, ‘Commissions received in advance, that is, not yet eared, $300. ‘Bad debts of $900 ae to be writen off from accounts receivable Premises are tobe deprecied at S% using the straight-line method. Fixtures and fitings are tobe depreciate st 20% using the reducing balance method. Provision for doubtful debs isto be $2 100. (@ Compete the worksheet provided forthe requited adjustments numbered 207 above (entering EACH item from B.C. Yen's Trial Balance which requires adjustment 2) showing how EACH item is to be adjusted and the emount ofthe adjustment. ‘The first one is done for you as an example, (10 marks) (©) Prepare the Fixed and Current Asses sections of. Yen's Balance Sheet a at December 31, 2010 showing clearly any changes taken into account. (10 marks) ‘Total 20 marks GOON TO THE NEXT PAGE, 91238020/F 2011“Martha's Cakes & Confectionery is a manufacturer producing a variety of baked goods for sale to supermarkets. At December 31, 2010, te following information became available: 8 Cost of raw materials used 56400 Closing stock of aw materials 3.905 Kitchen equipment 16.000 Provision for depreciation on kitchen equipment 7200 Office equipment 10.000 Provision for depreciation on office equipment 11000 Purchases: Ofice supplies & stationery 600 Boxes (for kitchen storage) 1200 ‘Smal kitchen appliances 900 Salaries - Office staff 5.800 “Wages - bakers & cake decorators 15800 Wages - delivery driver 8880 Other delivery costs 2900 Administrative costs 1950 ‘Advertsing 400 Eletscity 10 500 Notes: 1. The elocrcity cost is to be spportioned between the kitchen end the office as follows: Kitchen ~ 2/3; Office ~ V3. 2. Assets are wo be depreciated as follows Kitchen squipment @ 10% reducing balance, Office equipment @ 5% on cost 3. Value ofsmall kitchen appliances at year end was $500. 4, Sales amount for the year was $114 352, (2) Prepare the Manufacturing Account for Martha's Cakes & Confectionery, showing. cleanly (Prime cost Gi) Factory overheads ii) Toal cost of production (10 marks) (D) —Prepave the Income Statement for Martha's Cakes & Confectionery forthe year ended December 31, 2010, classifying costs appropriately. (Smarks) (c} Martha reports sn average unit cost of $10 perbaked item. Compute the number of baked items produced for the year ended December 31,2010. (Show all working clearly.) (marks) ‘Total 20 marks ‘GO ON TO THE NEXT PAGE 917390208 2011Fifty housewives in the Goodlands community started a buying cooperative. On May 1, 2009, they each paid a $6.00 registration fee, and agreed that each member would buy 25 shares at $10.00 each. (@) Prepare the joural entries to record the monies collected for: = Registration fees + Share purchase (marks) tthe end ofthe second year of operation, total share capital was $25 000, The following fgares ‘were extracted from the books a at April 30, 2011: Surplus 08 900, Undistibuted prosit “48 600 ‘The Board of Management has proposed the following: 1. Transfer of 20% tothe Education Pund, 2. Avwansfer of 15% to commence « Health Benefit Plan Reserve Fund 3. Members are to receive a 25% refund on the total patronage sales of $180 000 forthe year ended Apzl 30,2011. 4. Payment of 10% of share value as dividends (> Prepare the Appropriation Account forthe Goodlands Housewives Cooperative forthe year ended April 30,2011, (marks) (€}_ Mrs Susan Cunningham, a co-operative member who now owns 42 shares, bas receipts totalling $3845 in respect of ber purchases from the Goodlands Housewives Cooperative ring the last year. Calculate the amount ofthe patronage refund due to Mrs Cunningham. (Show all ‘working clearly.) (marks) (ii) Calculate the TOTAL amount that shouldbe paid to her, by the cooperative, out of this year’s surplus. (Show all working clearly.) (marks) (@) State ONEbenefit tothe housewives, of joining the Goodllands Housewives Cooperative Society (mark) ‘Total 20 marks GQ. ON TO THE NEXTPAGE: 912390200 2011@ » (Cartel Vee sells leathersandals. His transactions forthe month ended July 31,2010 were as follows ‘Wait Cost Price ‘Transactions Units © Beginning stock 10, 55 [Stock purchases 490 70 Sales @ $100 each 520 ‘Show workings for ALL calculations, (Calculate the amount of units held as unsold stock at yearend. (3 marks) i) Calculate the value of closing stock using the 8) FIFO method ©) LIFO metiod (2 marks) iy @™ o w Calculate the Gross Profit for Cartel Vee using the LIFO value for losing stock. (marks) State the MAIN reason why it s necessary to know the stock valuation method being used by «frm. (mark) Calculate the cost price that would be usd forthe AVCO method in valuing closing stock. @imarks) ‘What ratio canbe calculated to measure how quickly Cartel Vee sells his stock? (mark) At the end of Cartel Vee's first year of operation, his accountant presents the following tatios comparing the performance of Cartel Vee with a competitor Ratos Cartel Vee [Competitor [Current ratio 12.5 3:1 [Expense to sales ratio 28% 33 (Which ofthe ratios above measures contol of costs? (1 mark ) (8) Which ofthe mtios above measures firm's ability to meet its short-term debts? (mark) Gi) Prepare «shor report, using bud raos, comparing Cartel Vee’s performance with that of his competitor marks) ‘Total 20 marks ‘END OF TEST (012390207F 2011