O-Level Accounting Q.Paper

Only available on StudyMode
  • Topic: 1980, 1987, 2008
  • Pages : 9 (2055 words )
  • Download(s) : 931
  • Published : January 17, 2011
Open Document
Text Preview
Paper Reference(s)

7011/01

London Examinations GCE
Accounting Ordinary Level
Thursday 8 January 2009 – Morning

Source booklet for use with Questions 1 to 6. Do not return the insert with the question paper.

Printer’s Log. No.

H33195A
W850/7011/57570 4/4/4/

*H33195A*

Turn over

This publication may be reproduced only in accordance with Edexcel Limited copyright policy. ©2009 Edexcel Limited.

SECTION A SOURCE MATERIAL FOR USE WITH QUESTION 1 1. Freda Latte has opened a coffee shop which also supplies refreshments to companies. She paid £5 000 of her personal savings into a business bank account on 1 October 2008 and immediately set up a double-entry bookkeeping system. VAT applies where indicated at the rate of 10%. During the month of October 2008, Freda recorded the following transactions in her books of original entry. Purchases Day Book Date 1 October Details Espresso Supplies Less trade discount Goods £ 700 (70) 630 Sales Day Book Date 4 October Details City Traders Less trade discount Goods £ 1 300 (130) 1 170 Purchases Returns Day Book Date 5 October Details Espresso Supplies Less trade discount Goods £ 100 (10) 90 Main Journal Date 1 October Details Equipment VAT Filter Ltd Purchase of equipment on credit 2

VAT £

Total £

63

693

VAT £

Total £

117

1 287

VAT £

Total £

9

99

Debit £ 2 000 200

Credit £

2 200

H33195A

DR Bank £ 1 Oct 1 Oct 20 Oct 31 Oct Capital Bank City Traders Sales for month (including VAT) 670 3 300 5 000

Cash Book Cash £ 1 Oct 800 12 Oct 15 Oct 20 Oct Cash Espresso Supplies General expenses Purchases (including VAT) City Traders (returned cheque) Drawings Rent Balances c/d 720 5 651 8 970 670 Bank £ 800 594 535

CR Cash £

550

29 Oct

30 Oct 31 Oct 31 Oct 8 970 800

150 100 800

(a) Prepare the ledger accounts in the books of Freda Latte for the month of October 2008, using the information provided in the books of original entry and in the cash book. Balance and total these accounts. (27) (b) Prepare a trial balance at 31 October 2008. Assume that a trial balance failed to agree. (c) (i) Name the account used for entering the amount required to balance the trial balance. (ii) What actions can be taken to discover the errors? An error of original entry does not affect the agreement of the trial balance. (d) (i) Using your own figures, give an example of an error of original entry. (2) (1) (3) (13)

(ii) Name two other types of error in the ledger which would not affect the agreement of the trial balance. (2) (Total: 48 marks) Answer space for question 1 is on pages 2 to 7 of the question paper. H33195A

3

Turn over

SOURCE MATERIAL FOR USE WITH QUESTION 2 2. Matthew and Arnold are in partnership. They deal in spare parts for cars and also have a small workshop where they repair cars for their customers. Here is their trial balance at 31 December 2008. DR £ Administration expenses Bank balance Buildings at cost Capital accounts: Matthew Arnold Carriage inwards on spare parts Cash Current accounts: Matthew Arnold Debtors and creditors Drawings: Matthew Arnold Equipment at cost Income from car repairs Motor van at cost Provision for depreciation on equipment at 1 January 2008 Provision for depreciation on motor van at 1 January 2008 Provision for doubtful debts at 1 January 2008 Purchases of spare parts Rent Returns Sales of spare parts Stock of spare parts on 1 January 2008 Wages 2 570 30 500 246 420 246 420 36 330 38 000 470 300 105 100 8 400 14 200 2 100 720 15 700 13 200 26 500 68 250 12 900 1 700 3 600 2 150 975 255 30 000 20 000 7 060 1 860 50 000 CR £

H33195A

4

The partnership agreement provides that

• • • •

Each partner is to receive 10% interest on his capital account. Each partner is to pay 5% interest on drawings. The partners’ annual salaries are: Matthew £15 000 and Arnold £8 000. The remaining profit is to be shared equally between the partners.

Additional information...
tracking img