London Examinations Ordinary Level GCE in Accounting (7011) : Mark Scheme With Examiners' Report
London Examinations Ordinary Level GCE in Accounting (7011) : Mark Scheme With Examiners' Report
London Examinations Ordinary Level GCE in Accounting (7011) : Mark Scheme With Examiners' Report
London Examinations
GCE Ordinary Level
June 2003
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July 2003
Order Code: UO014189
All the materials in this publication are copyright
London Qualifications Limited 2003
ACCOUNTING 7011
Mark Scheme
Page 2 of 10
Grade Boundaries
Page 10 of 10
(i)
May 5
May 13
May 23
(ii)
12004
300
48004
1600
6004
120
32004
4804
45804
May 31
9004
Sales
Sundries
458044
(i)
Credit Note 4
(ii)
Returns inward book 4
(iii)
Returns inward book 4
Feb 10 Barca Ltd
Less trade discount 25%
10 x 4 = 5 marks
(b)
804
204
604
6 x 4 = 3 marks
(c)
May 23
Sales 44
45644
2444
480
6 x 4 = 3 marks
(d)
(i)
(ii)
(iii)
Page 2 of 10
(iv)
Similarities
Both are checking systems. Both detect only arithmetical accuracy.
Award two ticks for one difference and two ticks for one similarity 4 x 4= 2 marks
Limitations Do not detect all errors (one tick). Award second tick to example of error
not detected e.g. error of commission
4 x 4 = 2 marks
(Total 24 marks)
Question 2
(a)
Trial Balance of T Venables at 31 March 2003 4
Debit
Credit
General expenses
3 2904
Cash at bank
7 9604
Wages and salaries
38 5004
Cash in hand
5754
Discount received
9064
Motor vans
18 0004
Premises
200 0004
Trade creditors
7 2504
Trade debtors
8 6004
Drawings
22 0004
Stock, 1 April 2002
6 3004
Sales
190 0004
Purchases
162 0004
Capital
269 06944
467 225
467 225
16 x 4= 8 marks
(b)
Transaction
Cheque drawn for
drawings
Paid general exps in
cash 125
4140 recd from debtors
and disc allowed 40
Purchases on credit
10600
Sales for cash (all paid
into bank mark up
was 50%) 15000
Sales on credit (mark up
was 50%) 6000
Account debited
Account
credited
Impact on
Net Profit
Drawings
20004
General Exps
1254
Bank 4140
4Discount
Allowed 404
Purchases
106004
Bank 150004
Bank
20004
Cash
1254
Debtors
418044
nil4
Impact on
Current
Assets
-20004
-1254
-1254
-404
-404
Creditors
106004
Sales
150004
Nil44
+500044
+106004
4
+500044
Debtors 60004
Sales
60004
+200044
+200044
32 x 4= 16 marks
(Total 24 marks)
Page 3 of 10
Question 3
(a)
(i)
Debit
1 April
3 April
3 April
8 April
10 April
(ii)
Bank
Discount
Sales
Returns
(2)
(3)
(4)
(5)
Credit
Balance
900 Dr4
4504
504
4004
10004
990 Dr4
6004
104
(b)
1 April
31 March
Balance b/d
Bank
1 April
Balance b/d
31 March
31 March
Bank
Balance c/d
Rent Account
4 0004
31 March
50 0004
31 March
54 000
31 March
Profit and
loss
Balance c/d
47 0004
7 0004
54 000
Balance b/d
Profit and loss
12 0004
277 0004
289 000
7 0004
Wages Account
283 0004
1 April
6 0004
31March
289 000
1 April
31 March
Balance b/d
6 000
20 0004
15 0004
20 000
20 000
1 April
Balance b/d
15 000
14 x 4 = 7 marks
(Total 13 marks)
Page 4 of 10
Question 4
(a)
(i) Trading account of Superstop for year ended 31 December 200244
Carriage inwards
1004
Sales
Opening Stock
1333044
Less Sales returns
Purchases
450004 58430
Less Closing Stock
49804
Less Purchases
2504
5230
Rets
Cost of sales
53200
Gross Profit
26600 44
79800
800004
200
798004
79800
12 x 4 = 6 marks
(ii)
Rate of Stock Turnover =
Rate of Stock Turnover =
Rate of Stock Turnover =
Cost of Sales4
Average Stock
532004
91554
5.81 times4
4 x 4 = 2 marks
(iii)
A rate of stock turnover of 5.81 means that stock has been bought and sold 5 times
over the year ended 31 December 2002. Up to 2 4
Additional helpful information would be: forecast figure; competitors figure; previous years
figures etc. Award up to 2 ticks for each point up to a maximum of two points gives
maximum 4 ticks
6 x 4 = 3 marks
(b)
An overvalued closing stock at the end of 2002 would overvalue net profit in 2002
(two ticks). Since closing stock becomes opening stock in 2003 ..opening stock would be
overvalued and this would undervalue net profit in 2003 (2 ticks). The figure of 1,000 is not
required simply the direction of change needs to be indicated
4 x 4= 2 marks
(Total 13 marks)
Page 5 of 10
Question 5
(a)
1 Jan
1 Jan
Balance
b/d44
Bank4
1 Jan
Balance b/d
1 Jan
31 Dec
10 000
23 000
31 Dec
Balance c/d
18 0004
23 000
18 0004
1 Jan
1 Jan
5 0004
3 80044
3 60044
7 400
Balance b/d
4 4004
3 00044
1 0004
1 0004
5 000
18 x 4 = 9 marks
(b)
Profit and Loss Account for year ended 31 December 2002. 44
Prov for depr
3 6004
Disposal
1 0004
Balance Sheet at 31 December 2002. 4
Fixed Assets
Delivery vans at cost
Less prov for depr
18 0004
4 4004
13 6004
8 x 4 = 4 marks
(Total 13 marks)
Page 6 of 10
Question 6
(a)
Income and Expenditure Account of Bromsgrove High School Camp 2002. 44
Maps
4204
Fees
30 00044
Coaches
7 5004
Maps
30044
Site fees
6 0004
Add owing
225 6 2254
Food and drink
4 0004
Less closing stock
400 3 6004
Bad debts
3204
Depreciation
1 8004
Mountain rescue
2804
Ambulance fees
1504
Staff travel
2 3004
Total Expenditure
22 595
SURPLUS
7 7054
30 300
30 300
18 x 4 = 9 marks
(b)
At I August 2001 the Accumulated fund was 26 980 and was made up of
Tents
20 0004
Cash at bank
6 2004
Pots and pans
4604
Debtors
3204
4 x 4 = 2 marks
(c)
Page 7 of 10
Question 7
Balance Sheet of Catalonia Ltd at 31 December 20024
Cost
Aggreg Depr
Fixed Assets
Premises
1756504
Plant & machinery
1200004
60000
Motor vehicles
900004
50000
Net Value
1756504
600004
400004
2756504
Current Assets
Stock
Debtors (-700) 4
Bank and Cash (+900) 4
882004
140004
193504
1215504
320004
895504
365200
Authorised Capital
1,000,000 50p Ordinary Shares4
5000004
Issued Capital
500,000 50p Ordinary shares (fully paid) 4
Profit/loss balance (-700 4 -75 000) 4
Share Premium
Shareholders Funds
2500004
902004
250004
365200
20 x 4 = 10 marks for original balance sheet
Page 8 of 10
Page 9 of 10
Question 5
This was a demanding question to unlock. It tended to be done by the better candidates. As
such the answers showed a pleasing improvement in the ability to deal with the disposal of
an asset.
Question 6
(a) Mostly acceptable income and expenditure accounts were presented. Many did,
however, include the cost of the tents as an expense rather than as an asset.
(b) Relatively few candidates realised that the accumulated fund at 1 August 2001 was
made up of: tents; cash; pots and pans; and debtors.
(c) Some ingenious answers here showing good understanding of the purposes of
accounting. Either course of action was acceptable with appropriate justification.
Question 7
The majority of candidates were able to provide very well prepared company final accounts.
Improvement areas would include: the identification of shareholders funds and full
narrations for Authorised and Issued Capital.
Part (b) was badly done, largely due to candidates not reading the question carefully and
following the instructions. Credit for adjustments in part (b) was only given when candidates
showed these adjustments within the original balance sheet, as instructed.
Lowest mark
for award of
grade
69
56
44
37
31
Note: Grade boundaries may vary from year to year and from subject to subject, depending
on the demands of the question paper.
Page 10 of 10