MODEL ANSWERS PAPER 1 - Home - IAB€¦ · Level 3 Certificate in Bookkeeping ... MODEL ANSWERS PAPER 1 Suite 5, ... 2012 22 Marks Total Marks Question 3 = 55 Marks

Exam ID 321

Qualification: Level 3 Certificate in Bookkeeping (QCF)

(Accreditation number: 500/8479/3)

Level 3 Certificate in Manual Bookkeeping (QCF)


Level 3 Certificate in Applied Bookkeeping (QCF)


Examination: June 2012

Units: Record transactions and make accounting adjustments – M601/0732 Prepare financial statements for a not for profit organisation – D601/0757

MODEL ANSWERS PAPER 1

Suite 5, 20 Churchill Square, Kings Hill, West Malling, Kent, ME19 4YU Tel: 0844 330 3527, Fax: 0844 330 3514, Email: [email protected]

SECTION A

IAB L3 Cert (QCF)/June 2012 Exam MA (P1)

QUESTION ONE Paragon Fabrics Purchase Ledger Control Account – Answer Tasks A, B and C

General Ledger (Extract) DR Purchase Ledger Control CR

2012 Details £ 2012 Details £ 31 May Purchase ret’ns day book 1 4,200 1 May Balance b/f 1 124,560 31 May 31 May

Cash book – payments 1 Cash book – discounts 1

81,050 1,250

31 May Purchase day book 1 79.440

31 May Balance c/d 2 117,500

1 204,000 1 204,000

31 May Balance b/d ½ 117,500

9½ Marks

Paragon Fabrics Reconciliation of Balance per Purchase Ledger Control Account with the Total of Trade Creditors per the Purchase Ledger as at 31 May 2012 – Answer Task D

Schedule Reconciling Purchase Ledger Control Account Balance to Total

Trade Creditors per Purchase Ledger as at 31 May 2012

£ Balance per Purchase Ledger Control as at 31 May 2012 ½ 117,500 (CR) Total trade creditors per Purchase Ledger as at 31May 2012 ½ 117,500 (CR)

Difference 1 Nil

2 Marks

Page 1


Paragon Fabrics Schedule Amending Trade Debtor Balances per the Sales Ledger as at 31 May 2012 – Answer Task E

Schedule Amending Trade Debtor Balances per the Sales Ledger

as at 31 May 2012

£ Trade debtors per Sales Ledger as at 31 May 2012 ½ 106,660 (DR) Amendments (i) Customer personal account balance not entered on

the list of balances taken from the Sales Ledger as at 31 May 2012.

½ 3,200 (DR)

(ii) Cheque received from a customer not posted to the

customer personal account in the Sales Ledger ½ (4,600) (CR)

(iii)

Invoice issued to a customer not posted to the customer personal account in the Sales Ledger

½ 8,440

(DR)

Amended Sales Ledger balances 1 113,700 (DR)

Balance per Sales Ledger Control Account ½ 113,700 (DR)

3½ Marks Total Marks Question 1 = 15 Marks

Page 2

QUESTION TWO


Elite Travel General Ledger Accounts Answer - Tasks A, B, C, F,H and J

DR Limousines (Cost) CR

Date Details £ Date Details £ 31/5/11 Balance b/f 1 156,000 31/5/12 Fixed assets disposal 1 40,000 1/9/11 Bank ½ 80,000

DR Limousines (Provision for Depreciation) CR

Date Details £ Date Details £ 31/5/12 Fixed assets disposal 1 23,616 31/5/11 Balance b/f 1 65,376

31/5/12 Depreciation expense 1 30,848

DR Depreciation Expense CR

Date Details £ Date Details £ 31/5/12 Limousines dep’n 1 30,848

DR Fixed Assets Disposal CR

Date Details £ Date Details £ 31/5/12 Limousines cost ½ 40,000 29/2/12 Bank 1 17,250 31/5/12 Profit and loss 1 866 31/5/12 Limousines dep’n ½ 23,616

40,866 40,866

9½ Marks Page 3


Elite Travel Fixed Asset Register (Extract)

Answer - Tasks B, C and D

8½ Marks

Pa

ge

4

Item Description Date of Acquisition

Capitalised Cost

£

Annual Depreciation

£

Accumulated Depreciation

£

Net Book Value

£

Disposal Proceeds

£

Disposal Date

Limousines

Lincoln 120 (ET/0001) 1/6/07 40,000

Depreciation – Year ended 31/5/08 8,000 8,000 32,000




Disposed of ½ 17,250 ½ 29/2/2012

Chrysler 130 (ET/0002) 1/9/09 56,000



Depreciation – Year ended 31/5/12 1 7,168 ½ 27,328 ½ 28,672

- - -

Hummer H3 (ET/0003) 1/2/10 60,000




Lincoln Evolution (ET/0004) ½ ½ 1/9/11 ½ 80,000



Elite Travel Journal – Answer - Tasks E, G and I

Journal

2012 Details DR £

CR £

Journal Task E 31 May Depreciation Expense 1/4 1 30,848 Limousines (Provision for Depreciation) 1/4 1 30,848 Depreciation on limousines for the year

ended 31 May 2012 1/4

Journal Task G 31 May Fixed Assets Disposal 1/4 1 40,000 Limousines (Cost) 1/4

Limousines (Provision for Depreciation) 1/4 Fixed Assets Disposal 1/4

1 23,616

1 40,000 1 23,616

Transfer of the cost and accumulated

depreciation of limousine disposed of to the Fixed Assets Disposal account at the year end 31 May 2012 1/2

Journal Task I 31 May Fixed Assets Disposal 1/4 1 866 Profit and Loss 1/4 1 866 Transfer of profit on disposal of limousine to

the Profit and Loss Account at the year end 31 May 2012 1/4

11 Marks Page 5


Elite Travel Note – Answer - Task K

Note

Subject: Discrepancy between the contents of the Fixed Asset Register and physical count of limousines as at 31 May 2012 The physical count of limousines as at the year end 31 May 2012 does not include the Chrysler 130(ET/0002) which appears in the Fixed Asset Register. The discrepancy between the items per the list resulting from the physical count and the contents of the Fixed Asset Register needs further investigation so as to ascertain the reason for the discrepancy. 1

1 Mark Total Marks Question 2 = 30 Marks Page 6


QUESTION THREE

Riverdale Pet Supplies General Ledger (Extract) – Ledger Accounts Answer - Tasks B, D, F, I, K and L

General Ledger (Extract)

DR Provision for Doubtful Debts CR

Date Details £ Date Details £ 31/5/12 Balance c/d 1 1,030

31/5/11 31/5/12

Balance b/f Profit and loss 2

750 280

1,030 1,030

31/5/12 Balance b/d ½ 1,030

DR Sales Ledger Control CR

Date Details £ Date Details £ 31/5/12 Balance b/f 104,200 31/5/12 Bad debts 2 1,200 31/5/12 Balance c/d 1 103,000

104,200 104,200

31/5/12 Balance b/d ½ 103,000

DR Rates CR

Date Details £ Date Details £ 31/5/12 Balance b/f 24,800 31/5/12 Prepaid expenses 1 12,000 31/5/12 Profit and loss 2 12,800

24,800 24,800

DR Heat and Light CR

Date Details £ Date Details £ 31/5/12 Balance b/f 3,660 31/5/12 Profit and loss 2 4,368 31/5/12 Accrued expenses 1 708

4,368 4,368

DR Rent Receivable CR

Date Details £ Date Details £ 31/5/12 Profit and loss 2 9,600 31/5/12 Balance b/f 8,800 31/5/12 Accrued income 2 800

9,600 9,600

Page 7


Riverdale Pet Supplies General Ledger (Extract) Continued

DR Stock CR

Date Details £ Date Details £ 1/6/11 Balance b/f 156,620 31/5/12 Trading 1 156,620 31/5/12 Trading 1 162,000 31/5/12 Balance c/d 1 162,000

318,620 318,620

31/5/12 Balance b/d 1 162,000

DR Bad Debts CR

Date Details £ Date Details £ 31/5/12 Sales ledger control 1 1,200 31/5/12 Profit and loss 1 1,200

DR Prepaid Expenses and Accrued Income CR

Date Details £ Date Details £ 31/5/12 Rates 1 12,000 31/5/12 Balance c/d 1 12,800 31/5/12 Rent receivable 1 800

12,800 12,800

31/5/12 Balance b/d ½ 12,800

DR Accrued Expenses CR

Date Details £ Date Details £ 31/5/12 Balance c/d 1 708 31/5/12 Heat and light 1 708

708 708

31/5/12 Balance b/d ½ 708

29 Marks Page 8


Riverdale Pet Supplies Schedule Amending Closing Stock Valuation – Answer -Task G Schedule Amending Closing Stock Valuation as at 31 May 2012

Details

£

Original closing stock valuation 163,500 Amendment: Value of stock item (Doggy Treats) reduced from selling price

to cost price 2 (1,500)

Amended Closing Stock Valuation at 31 May 2012 2 162,000

4 Marks

Page 9


Riverdale Pet Supplies

Journal – Answer -Tasks A, C, E, H and J

Journal

2012 Details DR £

CR £

31 May

Journal Task A Bad Debts

1 1,200

Sales Ledger Control 1 1,200 Balance on debtor account written off as bad

debt

Journal Task C

31 May Profit and Loss 1 280 Provision for Doubtful Debts 1 280 Adjustment to increase the provision for

doubtful debts at the year end

Journal Task E 31 May Prepaid Expenses and Accrued Income 1 12,000 Rates

1 12,000

Heat and Light 1 708 Accrued Expenses

Prepaid Expenses and Accrued Income Rent Receivable Adjustments to account for expenses prepaid and rent receivable accrued at the year end

1 800

1 708

1 800

Journal Task H

31 May Trading 1 156,620 Stock (opening) 1156,620 Stock (closing) 1 162,000 Trading 1162,000 Transfer of opening and closing stock to the

Trading Account at the year end

Page 10


Riverdale Pet Supplies Journal (continued)

Journal

2012 Details DR £

CR £

31 May

Journal Task J Profit and Loss

1 1,200

Bad Debts

1 1,200

Profit and Loss 1 12,800 Rates

1 12,800

Profit and Loss 1 4,368 Heat and Light

Rent Receivable Profit and Loss

1 9,600

1 4,368

1 9,600 Transfer of income and expenses to the Profit

and Loss Account at the year end 31 May 2012

22 Marks Total Marks Question 3 = 55 Marks Total Marks This Unit = 100 Marks

Page 11


SECTION B

QUESTION ONE Lakeside Dinghy Club Members’ Accumulated Fund as at 1 June 2011 – Answer Task A £ Assets of Club:

Cash at bank ½ 6,840

Club dinghies and safety equip’t (net book value) ½ 32,000 Clubhouse fixtures and fittings (net book value)

Club safety boat (net book value) ½ 4,500

½ 12,500 Clubhouse rent (prepaid) ½ 1,000

Total Assets 56,840

Liabilities of Club: Members subscriptions (received in advance) ½ 5,120 Clubhouse heat and light (accrued) ½ 320

Total Liabilities 5,440

Members Accumulated Fund ½ 51,400

4 Marks Page 12


Lakeside Dinghy Club Accounts – Answer Task B

DR Members Subscriptions (Income) CR

Details Income & expenditure 2

Balance c/d 1

£ 67,480 5,240

Details Balance b/f 1 Receipts ½

£ 5,120 67,600

72,720 72,720

Balance b/d ½ 5,240

DR Clubhouse Rent CR

Details Balance b/f 1 Payments ½

£ 1,000 12,200

Details Income & expenditure 2 Balance c/d 1

£ 12,000 1,200

13,200 13,200

Balance b/d ½ 1,200

DR Clubhouse Heat and Light CR

Details £ Details £ Payments ½ 1,260 Balance b/f 1 320 Balance c/d 1 400 Income & expenditure 2 1,340

1,660 1,660

Balance b/d ½ 400

15 Marks Page 13


Lakeside Dinghy Club

Income and Expenditure Account – Answer Task C


Income and Expenditure Account for the Year Ended 31 May 2012

Income £ £

Members subscriptions

1 67,480

Dinghy hire Sailing lessons Expenditure Instructor salaries

½ 36,480

½ 4,650 ½ 32,120 104,250

Clubhouse heat and light 1 1,340 Clubhouse rent 1 12,000 Safety boat maintenance

Boatyard maintenance Health and safety training Operating expenses

½ 5,800

½ 5,600 ½ 2,400 ½ 16,940

Depreciation (£16,000 + £1,000 + £2,500) 1½ 19,500

100,060

Surplus of income over expenditure

2 4,190

10 Marks

Page 14


Lakeside Dinghy Club Balance Sheet – Answer Task D


Balance Sheet as at 31 May 2012

£ £ £ Fixed Assets Club dinghies and safety equipment (net book value)

1 41,200

Clubhouse fixtures and fittings (net book value) Club safety boat (net book value)

1 3,500 1 10,000

Current Assets Clubhouse rent (prepaid)

1 1,200

54,700

Cash at bank 1 5,330

6,530 Less Current Liabilities Members subscriptions (received in advance)

1 5,240

Clubhouse heat and light (accrued) 1 400 5,640

1 890

½ 55,590

Represented by: Members opening accumulated fund 1 51,400 Surplus in year 1 4,190

Members closing accumulated fund ½ 55,590

11 Marks

Total Marks This Unit = 40 Marks Total Marks This Paper = 140 Marks Page 15

MODEL ANSWERS PAPER 1 - Home - IAB€¦ · Level 3 Certificate in Bookkeeping ... MODEL ANSWERS PAPER 1 Suite 5, ... 2012 22 Marks Total Marks Question 3 = 55 Marks

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