2015 Accounting Written examination - vcaa.vic.edu.au€¦ · Friday 6 November 2015 Reading time:...
Transcript of 2015 Accounting Written examination - vcaa.vic.edu.au€¦ · Friday 6 November 2015 Reading time:...
ACCOUNTINGWritten examination
Friday 6 November 2015 Reading time: 3.00 pm to 3.15 pm (15 minutes) Writing time: 3.15 pm to 5.15 pm (2 hours)
QUESTION BOOK
Structure of bookNumber of questions
Number of questions to be answered
Number of marks
10 10 100
• Studentsarepermittedtobringintotheexaminationroom:pens,pencils,highlighters,erasers,sharpeners,rulersandonescientificcalculator.
• StudentsareNOTpermittedtobringintotheexaminationroom:blanksheetsofpaperand/orcorrectionfluid/tape.
Materials supplied• Questionbookof9pages.• Answerbookof18pages.
Instructions• Writeyourstudent numberinthespaceprovidedonthefrontcoveroftheanswerbook.• Answerallquestionsintheanswerbook.
• AllwrittenresponsesmustbeinEnglish.
At the end of the examination• Youmaykeepthisquestionbook.
Students are NOT permitted to bring mobile phones and/or any other unauthorised electronic devices into the examination room.
©VICTORIANCURRICULUMANDASSESSMENTAUTHORITY2015
Victorian Certificate of Education 2015
2015ACCOUNTINGEXAMQB 2
Question 1–continued
Question 1 (13marks)PartyTimesellsarangeofpartyballoonsandotherpartysupplies.Allstockismarkedupby100%oncost.Thebusinessreportsonamonthlybasis.ThefollowingjournalssummarisetransactionsforJanuary2015.
Cash Receipts Journal (summary)
Date 2015
Details Rec. No.
Bank Disc. Exp.
Debtors Control
Cost of Sales
Sales Sundries GST
31Jan. Totalstodate − 159800 500 62500 42000 84000 5400 8400
Theitemsinthe‘Sundries’columnwere:• GSTrefundfromtheATO$2400• Capitalcontribution$3000.
Cash Payments Journal (summary)
Date 2015
Details Chq. No.
Bank Disc. Rev.
Creditors Control
Stock Control
Wages Sundries GST
31Jan. Totalstodate – 108310 1 300 58000 19000 16800 13 400
Theitemsinthe‘Sundries’columnwere:• Loanrepayment$4200• InterestonLoan$600• AdvertisingExpense$5100• Drawings$3500.
Sales Journal (summary)
Date 2015
Debtor Invoice Number
Cost of Sales
Sales GST Debtors Control
31Jan. Totalstodate – 37500 75000 7500 82500
Purchases Journal (summary)
Date 2015
Creditor Invoice Number
Stock Control
GST Creditors Control
31Jan. Totalstodate – 56000 5600 61 600
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ThefollowingdocumentsforJanuary2015havenotyetbeenrecorded.
Party Time Party Time Party Time
Date: 31Jan.2015 Date: 31Jan.2015 Date: 31Jan.2015
CreditNote: 222 Memo: 67 Memo: 68
LCappreturnedpartysupplies.
$1800GST$ 180Total$1980
Aphysicalstocktakerevealed$48400ofstockonhandwhilethestockcards’totalwas$48100.
Wagestotalling$2100areowingtoemployees.
Signed: T Nguyen Signed: T Nguyen
a. RecordtheabovedocumentsintheGeneralJournalprovided. Narrationsarenotrequired. 7marks
b. CalculatethemissingamountforthetotaloftheGSTcolumnintheCashPaymentsJournal. 1mark
c. ShowhowtheDebtorsControlaccountwouldappearintheGeneralLedgerafterpostingtheinformationabove.
Youarenotrequiredtobalancetheaccount. 3marks
d. On3February2015,wagestotalling$6200werepaid(Chq453).
RecordthistransactionintheCashPaymentsJournal. Youarenotrequiredtototalthejournal. 2marks
Question 2 (7marks)Income Statement (extract) for the month ended 28 February 2015
Less Other Expenses $RentExpense 9000DiscountExpense 450DepreciationofEquipment 530 $9980
Additional informationThePrepaidRentExpenseaccounton1February2015hadabalanceof$12000.Thebalanceat28Februarywas$7000.
a. ShowhowthePrepaidRentExpenseaccountwouldappearintheGeneralLedgerat 28February2015aftertheaboveinformationhasbeenrecordedandpreparetheaccountforthenextreportingperiod. 3marks
b. ExplainhowDiscountExpenseandDepreciationofEquipmenteachmeetthedefinitionofanexpense. 4marks
2015ACCOUNTINGEXAMQB 4
Question 3 (6marks)Informationcontainedinfinancialreportsisrequiredtobebothrelevantandreliable;however,itmaybedifficulttoachievebothatthesametime.
Discussthisstatementwithreferencetothedepreciationofnon-currentassets.
Question 4 (18marks)GBJeanspreparesreportseverythreemonths.Allstockismarkedupby50%oncost.
Pre-adjustment Trial Balance (extract) as at 30 April 2015 Debit CreditAccumulatedDepreciationofVehicle 15200CashatBank 5500CreditorsControl 27600GSTClearing 6200InterestExpense 1800Loan 120000PrepaidSalesRevenue 3500Sales 420000Vehicle 35000Wages 95000
Additional information• Drawingsof$1200wereincorrectlypostedtotheWagesaccount.• PrepaidSalesRevenueof$2700hasnowbeenearned.• Thevehicleisdepreciatedattherateof20%perannumusingthereducingbalance
method.• On30April2015,theownertradedinthevehiclefor$12500.Anewvehiclecosting
$49500(includingGST)waspurchasedfromKerrMotors(Invoice344).• Theloanisrepayableatarateof$24000perannum.
a. PreparetheGeneralJournalentriesrequiredtorecordtheadditionalinformation. Narrationsarenotrequired. 11marks
b. PreparetheCurrentLiabilitiessectionoftheBalanceSheetasat30April2015. 4marks
c. GBJeanspreparesreportsusingtheaccrualaccountingsystem.
Outlinethreefeaturesoftheaccrualaccountingsystem. 3marks
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Question 5 (12marks)GHKSuppliesreportsannuallyon30June.Allsalesandpurchasesaremadeoncredit.Extractsfromthefinancialreportsforthelasttwoyearsshowedthefollowing.
30 June 2014 30 June 2015Income Statement NetProfit 105000 120000
Balance Sheet Current Liabilities BankOverdraft – 8000AccruedWages 1500 200CreditorsControl 85000 77000BankLoan–ATMBank – 25000Non-Current LiabilitiesBankLoan–ATMBank 50000 25000Owner’s EquityCapital 450000 620000
Additional information• Stocklevelsremainedconstant.• Alldrawingswerecash.• InApril2015,theownerhadcontributed$95000additionalcapital,comprising
$75000cashand$20000equipment.
a. PreparetheCapitalaccounttodeterminedrawingsfortheyearended30June2015. Youarenotrequiredtobalancetheaccount. 4marks
b. PreparetheCashFlowfromFinancingActivitiessectionoftheCashFlowStatementfortheyearended30June2015. 2marks
c. NetCashFlowfromOperatingActivitieswaslessthanNetProfitdespiteReceiptsfromDebtorsexceedingSalesRevenueby$5000.
Basedontheinformationprovided,explaintworeasonsforthisresult. 4marks
d. InMay2015,GHKSuppliestradedinmachineryonthecashpurchaseofnewmachinery(cost$52000plusGST).Thetrade-inallowancewas$10000.
CompletethetableprovidedtoshowhowthistransactionwouldbereportedintheCashFlowStatement. 2marks
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Question 6 (8marks)TheownerofBrant’sVendingMachinesisconcernedthatthebusinessisfrequentlyshortofcashandhastodrawonitsbankoverdraftonaregularbasis.Allpurchasesandsalesaremadeoncredit.Credittermsaren/30forcreditorsand5/14,n/30fordebtors.Theaccountantprovidedthefollowinggraphtoillustrateonefactorcausingthiscashshortage.
2011 2012 2013 2014 2015year
45
40
35
30days
25
20
Debtors and Creditors Turnover
36 3839
4143
34 35
27 26 26
Debtors Turnover Creditors Turnover
a. Explainhowthetrendindicatedbythegraphhascontributedtothecashshortageproblemthatthebusinessisexperiencing. 2marks
b. Discussstrategiesthatthebusinesscouldimplementtoovercometheproblem. 6marks
Question 7 (4marks)TheDebtRatioofabusinesshasincreasedfrom40%to70%overthepasttwoyears.
Explainonepositiveeffectandonenegativeeffectthatthisincreasecouldhaveonthebusiness.
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Question 8 (14marks)GoFitPaddleboardsisanewbusinessthatwillreportmonthly.RelevantdetailsforNovember2015areshownbelow.
Long Boards Pacific Highway, Broadbeach 4218
To:GoFitPaddleboards MarinePde Melbourne3000
4November2015Taxinvoice427
Item Paddleboardpackages (board/cover/paddle)
Unitprice$750
Quantity210
Total$157500
Delivery
GST:Invoicetotal:
4200161 700$ 16170$177870
Creditterms:net30days
Additional information• InNovember,thebusinesssold200paddleboardpackagesfor$1540each(includingGST)
(Invoices1–137).• Aphysicalstocktakeon30Novembershowedninepaddleboardpackagesonhand
(Memo3).• Thesellingpriceofeachpaddleboardpackagewillbereducedto$880(includingGST)
beforethenextyear’smodelisreleasedinDecember.Afreelesson(costprice$132includingGST)willbeprovidedwitheachpaddleboardpackagesold(Memo4).
a. PreparetheStockCardforNovember. 6marks
b. PreparetheGeneralJournalentryorentriesrequiredtorecordthestockadjustment(s)arisingfromtheinformationprovided.
Narrationsarenotrequired. 4marks
c. OtherexpensesforNovembertotalled$58000(plusGSTof$1560).Thebusinessmadeonepaymentof$9750totheAustralianTaxationOffice(ATO)forGSTon29November2015.
ShowhowtheGSTClearingaccountwouldappearintheGeneralLedgerat30November2015.
Youarenotrequiredtobalancetheaccount. 4marks
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Question 9 (14marks)Terry’sTimberhasrecentlycommencedreportingonamonthlybasis.Thebusinesssellsoncreditandpayscashforpurchases.Thebusinesshasprovidedrelevantaccountbalances,bothactualandbudgeted,forOctober2015.
Account balances 1 October 31 October (actual) (budgeted)AccruedWages 1700 1900DebtorsControl 48000 51000GSTClearing 600Cr notprovidedLoan–NIMBank 120000 115000Machinery 90000 90000PrepaidRent 2000 notprovided
Additional information (budgeted) for October• Thebusinessexpectscreditsalesof$50000(plusGST)inOctober.• Wagespaidwillbe$23200.• Rentispaidthreemonthsinadvanceat$2000permonthplusGST.Thenextpaymentwill
beinOctober.Therentchargedwillincreaseby10%from1Decemberonwards.• Interestontheloanis$5400perannum.ItispaidhalfyearlyinMarchandOctober.• CostofSalesis50%ofSalesRevenue.• Cashpurchasesofstockarebudgetedtobe$18000(plusGST).• Thedepreciationonthemachineryis12%perannumstraight-line.
a. PreparetheOperatingsectionoftheBudgetedCashFlowStatementforthemonthending31October2015. 7marks
b. PrepareaBudgetedIncomeStatementforthemonthending31October2015. 5marks
c. PriortoOctober2015,thebusinessbudgetedonanannualbasis,butnowitbudgetsonamonthlybasis.
Statetwobenefitsofpreparingbudgetsonamonthlybasisinsteadofanannualbasis. 2marks
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Question 10 (4marks)WDBootssellsarangeofworkbootstobusinessesandthepublic.InJanuary2015,thebusinessmovedtosmallerrentedpremisestoreducecostsandcommenceonlinesales.Thebusinesswillrequireasignificantcomputerupgrade.Theownerofthebusinesshopesthatthegrowthofonlineshoppingwillenablethebusinesstomaintainexistingsaleslevelsin2015.Thefollowingfinancialindicatorshavebeencalculated.
31 December 2013 2014 2015WorkingCapitalRatio 3:1 2.9:1 2:1StockTurnover 60days 62days 41daysReturnonAssets 15% 15% 18%
Explainhowthechangesinthebusinessoperationshaveledtotheresultsabove.
END OF QUESTION BOOK
Instructions
• Aquestionbookisprovidedwiththisanswerbook.• Answerallquestionsinthespacesprovidedinthisbook.• Writeyourstudent numberinthespaceprovidedaboveonthispage.• RefertoInstructionsonthefrontcoverofthequestionbook.
Students are NOT permitted to bring mobile phones and/or any other unauthorised electronic devices into the examination room.
©VICTORIANCURRICULUMANDASSESSMENTAUTHORITY2015
ACCOUNTINGWritten examination
Friday 6 November 2015 Reading time: 3.00 pm to 3.15 pm (15 minutes) Writing time: 3.15 pm to 5.15 pm (2 hours)
ANSWER BOOK
SUPERVISOR TO ATTACH PROCESSING LABEL HEREVictorian Certificate of Education 2015
STUDENT NUMBER
Letter
2015ACCOUNTINGEXAMAB 2
THIS PAGE IS BLANK
3 2015ACCOUNTINGEXAMAB
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THIS PAGE IS BLANK
2015ACCOUNTINGEXAMAB 4
Question 1 –continued
Question 1 (13marks)a. 7marksParty TimeGeneral Journal
Date 2015
Details General Ledger Subsidiary Ledger
Debit Credit Debit Credit
b. 1mark
Working space
Total of the GST column in the Cash Payments Journal $
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c. 3marksDebtors Control
Date 2015
Cross-reference Amount Date 2015
Cross-reference Amount
1Jan. Balance 12200
d. 2marksCash Payments Journal (summary)
Date 2015
Details Chq. No.
Bank Disc. Rev.
Creditors Control
Stock Control
Wages Sundries $
GST
31Jan. Totalstodate – 108310 1300 58000 19000 16800 13400
2015ACCOUNTINGEXAMAB 6
Question 2 (7marks)a. 3marks
Prepaid Rent Expense
Date 2015
Cross-reference Amount Date 2015
Cross-reference Amount
b. 4marks
Explanation
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Question 3 (6marks)
Discussion
2015ACCOUNTINGEXAMAB 8
Question 4 (18marks)a. 11marks
Working space
GB Jeans General Journal
Date 2015
Details General Ledger Subsidiary Ledger
Debit Credit Debit Credit
Question 4 –continued
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b. 4marksGB Jeans
Balance Sheet (extract) as at 30 April 2015
Current Liabilities $ $
c. 3marks
Outline
2015ACCOUNTINGEXAMAB 10
Question 5 –continued
Question 5 (12marks)a. 4marks
Capital
Date Cross-reference Amount Date Cross-reference Amount
b. 2marksGHK Supplies
Cash Flow Statement (extract) for the year ended 30 June 2015
$ $
Cash Flow from Financing Activities
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c. 4marks
Reason 1
Reason 2
d. 2marks
Cash Flow Statement Item Inflow/Outflow/No effect Amount ($)
OperatingActivities
InvestingActivities
FinancingActivities
2015ACCOUNTINGEXAMAB 12
Question 6 (8marks)a. 2marks
Explanation
b. 6marks
Discussion
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Question 7 (4marks)
Positive effect
Negative effect
2015ACCOUNTINGEXAMAB 14
Question 8 –continued
Question 8 (14marks)a. 6marks
Working space
Stock Card
Product: Paddleboard Package Cost Assignment Method: FIFO
Date 2015
Details IN OUT BALANCE
Qty Cost Total Qty Cost Total Qty Cost Total
b. 4marksGeneral Journal
Date 2015
Details General Ledger Subsidiary Ledger
Debit Credit Debit Credit
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c. 4marks
Working space
GST Clearing
Date 2015
Cross-reference Amount Date 2015
Cross-reference Amount
2015ACCOUNTINGEXAMAB 16
Question 9 –continued
Question 9 (14marks)a. 7marks
Working space
Terry’s Timber Budgeted Cash Flow Statement (extract) for the month ending 31 October 2015
$ $
Estimated Cash Flows from Operating Activities
Estimated Net Cash Flows from Operating Activities
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b. 5marksTerry’s Timber
Budgeted Income Statement for the month ending 31 October 2015
$ $
Revenue
c. 2marks
Benefit 1
Benefit 2
2015ACCOUNTINGEXAMAB 18
Question 10 (4marks)
Explanation
END OF ANSWER BOOK