ZIMBABWE SCHOOL EXAMINATIONS COUNCIL General Certificate of Education Ordinary Level MARKING SCHEME JUNE 2020 SESSION PRINCIPLES OF ACCOUNTING 4051/2(a) (b) 2 Ben Gobvu: Income Statement for the year ended 30 June 2018. | Net profit $ $ $ Sales 125 000 Less Returns Inwards $000 120 000 (1) Opening inventory 12.000 Add Purchases 95 000 (1) (92.000 +3 000) Customs duty (8 000+ 2000) | 10.0001) 105 000 117.000 ventory 17.000 100 000 20 000 (1) Add Provision for bad debts 30(1) 20.050 Less Expenses Stationery (3 600 - 300) 3300 (1) General expenses 5.000 (1) (7.000 - 2.000) Depreciation: Motor vehicle 750 (1) Furniture & fittings _240(1) Ben Gobvu: Statement of Financial Position as at 30 June 2018. Add Net profit Less Drawings 5 $ 3 Cost NBV Depreciation ‘Non- current assets(1) Motor vehicles 15000} 32501) | 11750 Furniture and fittings 6 000} _660(1) | _5340 21.000 3.910 17-090 (1) Current assets (1) Inventory 17.000 Trade Receivables (11 000 - 350) 10 450 (1) Bank 3.500 Inventory of stationery 300(1) 31-250 (1) Less Current liabilities (1) Trade Payables (12 000 + 3 000) 15.4000) | 15.850 Financed by Capital 30.680 Balance 10.7601)(@)(i) Statement of Affairs as at | January 2017 Dr G $ $ Motor vehicles 60 000 Office equipment 20.000 Inventory 9.000 (1) Trade receivables 500 Bank 4.200 Trade payables 6.000 Rent owing 200 (1) Capital a) (i) Statement to calculate profit or less for year ended 31 December, 2017. $ $ Motor vehicles (60000-6000) | 54 000(1) Office equipment 18.000 (1) Inventory 15.000 (1) Trade receivables 12.000 (1) 99.000 Less: Trade payables 3 100 (1) Rent owing 1300 (1) 4400 95300 Add Drawings: - Cash 6700 (1) Inventory 3.500 (1) 10 200 or (2) 105 500 Capital at | January, 2017 92.000 (1) tional capital 4800 (1) 96 800 Profit for the year $700 (1) (b) Bank Account, 2017 $ 2017 $ Yan1 | Balance b/d | 5 200(H) [Dec 31 | D. Jura 7-400 (1) Dec 31 | Sales 8200 (1) 31 | Drawings | 1800 (1) 31 | C. Dick 200 (1) 31 | @/D) 4.000 2018 Balance e/d Jan | Balance b/d | ~ 4000 (1) Oy (6)(a) (i) Bank overdraft of $1 250 (1) (ii) Bought goods by cash for $450 (1) (iii) Sold a motor van for $5 600 and received a cheque (1) (iv) Bought office equipment, $3 000 and paid by cheque (1) (v) Deposited $400 cash into the bank (1) (vi) The proprietor took cash $100 for his private use (1) )@) Updated Cash Book 2018 $ 2018 Mar 20 | Dividends 222 (I) [Apri | Balance bid 31 | Balance cfd | 4379 (1) | Mar23 | Insurance 4601 Apr | Balance b/d (ii) Bank Reconciliation Statement as at 31 March 2018 $ $ ‘Overdraft as per eash book (1) 4379 (1) Add deposits not yet credited 250 (1) 4629 Less unpresented cheques 116 (1) Overdraft as per bank statement (1) 45130) (©) (i) Current Ratio = Current Assets: Current Liabilities = $55 000: $22 000 (1) 25:1 (1) wo (ii) Acid-test Ratio = Quick Assets: Current Liabilities = $33 000: $22 000 (1) =15:1 @ [ol (6)5 (a) (i) Statement of change in equity for year ended 31 December 2017 Dividends paid: Ordinary share dividend ‘Ordinary General Reserve | Retained Income Total Share Capital 3 5 5 5 Balance at | January 2017 150 000 (1) 15 000 3 500 (i) 168 500 Profit for the year 38 500 (1) 38 500 Transfer to general reserve 5.000 (1) (5.000) 7 500) (1) 7.500) Balance at 31 December 2017 | 150.000 20.000 29.500 (1) 199 500 OR Statement of change in equity for year ended 31 December 2017 Preference | Ordinary General Retained Total Share Share Reserve | Income Capital | Capital 3 $ $ $ $ Balance at 31 January 2017, 100.000 150 000 135 000 3500 (1) 268 500. Profit for the year 38 500 (1) 38 500 “Transfer to general reserve 5.000(1) | (5000)(1) Dividends pai Ordinary share dividend Hee 7 500) (1) 7.500) Balance at 31 December 2017 29.0000) | 29500() | 299500 fi] i)__ Statement of Financial Position (Capital Structure Extract) $ $ Authorised Capital 200 000 Ordinary shares of $1 each 200 000 (1) 50.000 8% Preference shares of $2 each 100 000(1) 300.000 Issued capital 150 000 Ordinary shares of $1 each 150 000 (1) 50.000 8% Preference shares of $2 each 100 000(1) 250 000 Reserves General Reserves (15 000 + 5 000) 20000 (1) Retained Profit 29 500(1) 49 500 Shareholders Funds 299.500 (1) 76 o @ Commission Received Account 2017 § 2017 3 Dec 31 | Income Statement (1) | 3.000 (1) | July 1 Balance b/d 1200 31 | Balance e/a 200 | Aug31_— | Bank 1000 Oct.31 | Cash L000 2018 Jan Balance bid 200 (1) By] i) Insurance Account 2017 $ 2017 3 Sept30__ | Cash 1200 [duly 7 Balance b/d 50 Dec31 | Bank 900 | Dec31 —_| Income Statement (1) | 2.450 (1) 31 | Balance efd 400 2500 2018 Jan 1 Balance b/d 400 (1) a @ i Sales Ledger Control Account 2018 $ 2018 $ Mar | Balance bid | 4268 Mar 1 | Returns inwards T6i7q) 3 Credit sales | 8 723(1) 31 | Setoit 2055 (1) 31 | Bank 7462 (1) 3M Discount allowed 857 (2) 31 | Balance o/d 1.0001) 1991 Apri Balance bid 1 000 (717 (i) Purchases Ledger Control Account 2018 $ 2018 $ Mar 31 | Set-off 2.055 (1) Mar 1 | Balance b/d 5231 31 | Returns ourwards | 1435 (1) Credit Purchases} 10 415 (1) 31 | Bank 9900(1) | 31 31 | Discount Received | 256 (2) 31 | Balance e/d 2.000 (1) 5.646 S646 Apr | | Balance b/d 2000 7) (b) (Note: (1 Mark each, Mark the first 2 on each item (i), (ii), (ii) ~ accuracy ~ processing high volumes of information ~ speed of processing information ~ ease and capacity of storing information > ete 2] (ii) ~ cost of installation ~ choice of most appropriate software ~ cost of training/re-training staf? + dependence on computers, resulting in great loss of information if system crashes + lack of security of information due to viruses and hacking 2 ~ processor (CPU) ~ key board = mouse ~ scanners ~ hard/floppy disks + printers 2)