Past Paper 6

Surname
Centre
No.
Initial(s)
Paper Reference
4 3 0 5
Candidate
No.
0 1
Signature
Paper Reference(s)
4305/01
Examiners use only
London Examinations
IGCSE
Team Leaders use only
Accounting
Question Leave
Number Blank
Paper 1
Monday 10 November 2008 Afternoon

Time: 2 hours 30 minutes
2
3
4
5
Materials required for examination
Items included with question papers
Nil
Nil
Instructions to Candidates
In the boxes above, write your centre number, candidate number, your surname, initials and signature.
The paper reference is shown at the top of this page. Check that you have the correct question paper.
Answer ALL the questions in Section A and Section B in the spaces provided in this question paper.
Final accounts and balance sheet may be set out in a range of acceptable forms. You may draw up
your own ruling for final accounts and balance sheet.
Ledger accounts and books of original entry should be completed (if required) in the format required
by the layout given.
Information for Candidates
The total mark for this paper is 100.

The marks for individual questions and the parts of questions are shown in round brackets: e.g. (2).
There are 6 questions in this question paper. Any blank pages are indicated.
There are 4 ruled pages at the end of this question paper which you may use if you cannot fit your
answer in the space provided.
Advice to Candidates
You are reminded of the importance of clear English and careful presentation in your answers.

Total
This publication may be reproduced only in accordance with

Edexcel Limited copyright policy.
2008 Edexcel Limited.
Printers Log. No.
M32101A
W850/4305/57570 4/4/5/4/4/
M32101A_IGCSE_Accounting_Paper_11 1
*M32101A0128*
Turn over
13/08/2008 14:14:11
Leave
blank
Section A
Answer ALL questions
Question 1
For each question, choose the best answer A, B, C or D and write it in the box.
(a)

Cash discount allowed is originally recorded in the

A general ledger
B journal
C purchases book
D cash book
(1)
(b)

Individual entries in the sales day book are posted to which of the following?
A debit side of the customers account
B debit side of the sales account
C credit side of the sales account
D credit side of the customers account
(1)
(c)

Postage costs recorded in the petty cash book are posted to the
A debit side of the cash book
B debit side of the postages account
C credit side of the cash book
D credit side of the postages account
(1)
(d)

A suspense account is opened when which of the following does not balance?
A the trading account
B the profit and loss account
C the balance sheet
D the trial balance
(1)
(e)

What does the closing balance on a creditors ledger control account represent?
A the amount owing to credit suppliers
B the amount due from credit customers
C the amount of total purchases for the year
D the amount paid to credit suppliers for the year
(1)
*M32101A028*
11/08/2008 10:39:22
(f) A sale on credit to A. Patel was posted in error to S. Patel in the sales ledger. This is an
error of

A commission

B omission

C principle

D reversal
Leave
blank
(1)
(g)

Working capital is the surplus of

A all assets over all liabilities
B current assets over all liabilities
C current assets over current liabilities
D all assets over current liabilities
(1)
(h)

In a partnership, to which of the following accounts would a partners drawings be debited?

A appropriation account
B bank account
C capital account
D current account
(1)
(i) A sports club has received subscriptions totalling 1040 during the year, of which 80
was received in advance. At the end of the year 120 was outstanding. Which amount for
subscriptions should be included in the income and expenditure account?

A 960

B 1000

C 1040

D 1080
(1)
(j) A business issues an invoice for stock with a list price of 20000. The invoice was subject
to a trade discount of 25% and a cash discount of 5%. VAT is charged at 10%.

How much VAT should be shown on the invoice?

A 1425

B 1500

C 1900

D 2000
(1)
Q1
(Total 10 marks)
*M32101A028*
Turn over
11/08/2008 10:39:22
Leave
blank
Question 2
Throughout Question 2, assume that the rate of VAT is 10%
Charles Brown is a wholesaler of footwear. He buys and sells mainly on credit terms. He does
not offer cash discount to any of his customers.
On 1 April 2008 his sales ledger contained the following debit balances.

C Lyon
H Green
D Black
F White
1200
3200
1000
2500
The following are extracts from his books for April 2008.
Sales Journal
Date
Narration
April 1
C Lyon
April 5
Goods
VAT
Total
750
75
825
H Green
1200
120
1320
April 13
D Black
500
50
550
April 21
F White
2300
230
2530
April 28
C Lyon
600
60
660
5350
535
5885
Totals for Month
Returns Inwards Journal

Date
Narration
Goods
VAT
Total
April 3
C Lyon
120
12
132
April 8
F White
50
55
170
17
187
Totals for Month
*M32101A028*
11/08/2008 10:39:22
Leave
blank
Cash Book (Debit side)

Bank Column
Date
Narration
Bank
April 1
Balance b/d
3500
April 3
Cash Sales (including VAT)
240
April 5
C Lyon
1200
April 8
H Green
3200
April 15
Cash Sales (including VAT)
600
April 21
D Black
1000
April 30
F White
2500
The Journal
Date
April 21
Narration
Debit
Credit
C Lyon (Purchases Ledger)

C Lyon (Sales Ledger )
650
650
Being transfer of balance in purchases ledger set off

against balance in the sales ledger
*M32101A028*
Turn over
11/08/2008 10:39:22
(a) Prepare the account of C Lyon in Charles Browns sales ledger. Balance the account on
30 April 2008 and bring the balance down.
Leave
blank
C Lyon Account
Date
Narration
Date
Narration
(6)
(b) Prepare the total debtors account for the month of April 2008. Balance the account on
30 April 2008 and bring the balance down.
Total Debtors Account
Date
Narration
Date
Narration
(6)

*M32101A028*
11/08/2008 10:39:22
(c) Explain two ways in which Charles might find the total debtors account useful in the
running of his business.

(i) ........................................................................................................................................
........................................................................................................................................
........................................................................................................................................
........................................................................................................................................
(2)
Leave
blank
(ii) ........................................................................................................................................
........................................................................................................................................
........................................................................................................................................
........................................................................................................................................
(2)
At the end of April, Charles is advised that one of his debtors, D Black, has ceased trading
and is unable to pay his outstanding amount of 550. Charles decides to write this off as a bad
debt.
(d) Set out the journal entry for this transaction.
The Journal
Date
Narration
Debit
Credit
(3)
*M32101A028*
Turn over
11/08/2008 10:39:22
Charles has been experiencing problems in the past year in collecting payments from credit
customers. He has been advised to offer some form of discount to his customers but is unsure
which one to offer.
Leave
blank
(e) Explain the following terms.

(i) Trade Discount
........................................................................................................................................
........................................................................................................................................
........................................................................................................................................
........................................................................................................................................
(2)
(ii) Cash Discount
........................................................................................................................................
........................................................................................................................................
........................................................................................................................................
........................................................................................................................................
(2)
(iii) What would be the effect, if any, on the calculation of VAT, if cash discount was
introduced?
........................................................................................................................................
........................................................................................................................................
........................................................................................................................................
........................................................................................................................................
(2)
Q2
(Total 25 marks)
*M32101A028*
11/08/2008 10:39:23
BLANK PAGE
*M32101A028*
Turn over
11/08/2008 10:39:23
Leave
blank
Question 3
Luke and Simon have been partners for some years in a travel business. They share profits and
losses equally.
The business final accounts have been prepared and the appropriation account is as follows.
Luke and Simon
Appropriation Account
For year ended 30 September 2008
Net profit for the year
75000
Interest on drawings:
Luke
500
Simon
750
1250
76250
Interest on capitals:
Luke
12000
Simon
10000
22000
Partnership salary:
5000
Luke
49250
Share of remaining profit: Luke
24625
24625
Simon
49250
10
*M32101A01028*
13/08/2008 14:14:21
In addition the following balances appeared in the partnership books on 30 September 2008.
Account
Premises
200000
Bank
7025
Insurance prepaid
260
Light and heat owing
200
Fixtures and fittings (Cost)
25000
Provision for depreciation (furniture and fittings)
12500
Debtors
6500
Provision for doubtful debts
195
Creditors
4200
Capital accounts: Luke
120000
Simon
100000
Current account balances (1 October 2007): Luke

Simon
2340 (Cr)
650 (Dr)
Drawings for the year: Luke
35000
40000
Simon
*M32101A01128*
Leave
blank
11
Turn over
11/08/2008 10:39:23
Leave
blank
(a) Prepare the current accounts of Luke and Simon as they would appear in the ledger.
Luke Current Account
Date
Narration
Date
Narration
Narration
Simon Current Account

Date
Narration
Date
(8)
12
*M32101A01228*
11/08/2008 10:39:23
Leave
blank
(b) Prepare a balance sheet for the partnership as at 30 September 2008.
(12)
*M32101A01328*
13
Turn over
11/08/2008 10:39:23
Leave
blank
(c) Evaluate why the partners have agreed to be charged interest on drawings.

...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
(5)
Q3
(Total 25 marks)
TOTAL FOR SECTION A: 60 MARKS
14
*M32101A01428*
11/08/2008 10:39:23
BLANK PAGE
*M32101A01528*
15
Turn over
11/08/2008 10:39:23
Leave
blank
Section B
Answer ALL questions
Question 4
The treasurer of the Sevenoaks College Drama Society has produced the following statements
for the societys committee, covering the financial year ended 31 December 2007.
Sevenoaks College Drama Society
Statement of Affairs
As at 1 January 2007
Assets
Scenery (Net Book Value)
7500
Stock of refreshments
100
Subscriptions due
50
Bank balance
3000
10650
Liabilities
Costume hire fee outstanding
650
10000

Receipts and Payments Account
For Period 1 January 2007 31 December 2007
Receipts
Bank balance 1 January 2007

Subscriptions : 2006
Payments
3000 Hire of costumes

50 Rent of theatre
1500
750
2007
1600 Administrative expenses
440
2008
90 Purchase of refreshments
845
Ticket sales
4000 Purchase of new scenery
7000
Refreshment sales
1200
Bank balance 31 December 2007
595
10535
16
10535
*M32101A01628*
11/08/2008 10:39:23
The following additional information is available on 31 December 2007 and is to be taken into
account.

Leave
blank
The closing stock of refreshments is valued at 165

Scenery has been valued at 12500
There are no subscriptions outstanding for 2007

(a) Prepare the trading account for the society to show the profit or loss on the sale of
refreshments for the year ended 31 December 2007.

Draw column lines in the table below for your layout.

Trading Account
Year Ended 31 December 2007
(3)
*M32101A01728*
17
Turn over
11/08/2008 10:39:23
(b) Prepare the income and expenditure account for the society, showing clearly the surplus
or deficit for 2007.

Leave
blank

Income and Expenditure Account
Year Ended 31 December 2007
(6)
18
*M32101A01828*
11/08/2008 10:39:23
Leave
blank
(c) Prepare the balance sheet for the society as at 31 December 2007.


Balance Sheet
As at 31 December 2007
(7)
Q4
(Total 16 marks)
*M32101A01928*
19
Turn over
11/08/2008 10:39:23
Leave
blank
Question 5
Ahmed Patel is a manufacturer of high performance motor car engines. His manufacturing
account for 2007 2008 is shown below.
Ahmed Patel
Manufacturing Account
For Year Ended 30 September 2008
Opening stock of raw materials

Purchases of raw materials
Closing stock of raw materials
000
120
540
660
100
000
000
560
720
Manufacturing wages
1280
Factory rent and insurance
Depreciation of machinery
Factory light and heat
Factory supervisor wages
180
220
80
260
740
2020
Work in progress
Opening stock
Closing stock
60
?
(20)
2000
(a) For the year ended 30 September 2008 identify

(i) cost of raw materials consumed
........................................................................................................................................
(1)
(ii) prime cost
........................................................................................................................................
(1)
(iii) total factory overheads
........................................................................................................................................
(1)
(iv) value of the closing stock of work in progress
........................................................................................................................................
(1)
20
*M32101A02028*
11/08/2008 10:39:23
The following additional information is available on 30 September 2008 and is to be taken

into account.

Leave
blank
During the year 1000 engines were manufactured

Three-quarters of production was sold
The firms pricing policy is to mark up factory cost of production by 50%

(b) For the year ended 30 September 2008 calculate

(i) the selling price of one engine
........................................................................................................................................
........................................................................................................................................
........................................................................................................................................
(2)
(ii) the total gross profit
........................................................................................................................................
........................................................................................................................................
........................................................................................................................................
(2)
(iii) the value of the closing stock of finished goods based on factory cost of production.
........................................................................................................................................
........................................................................................................................................
........................................................................................................................................
(2)
Q5
(Total 10 marks)
*M32101A02128*
21
Turn over
11/08/2008 10:39:23
Leave
blank
Question 6
Ben Farrell is the owner of a retail business which has been operating successfully for a
number of years.
The businesss summarised profit and loss account for the last two years is shown below:
Year ended
30 June
2007
Year ended
30 June
2008
000
000
Turnover
480
720
Cost of sales
240
396
Average stock
36
44
240
324
Variable expenses
80
95
Fixed expenses
18
18
142
211
Gross profit
Net profit
(a) Stating clearly the formula used, calculate the Net Profit Margin for each of the two
years.

Formula
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
Net Profit Margin for year ended 30 June 2007
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
Net Profit Margin for year ended 30 June 2008
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
(3)
22
*M32101A02228*
11/08/2008 10:39:23
(b) Stating clearly the formula used, calculate the Mark up for each of the two years.

Formula
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
Mark up for year ended 30 June 2007
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
Mark up for year ended 30 June 2008
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
(3)
Leave
blank
(c) Stating clearly the formula used, calculate the Rate of Stock Turnover for each of the two
years.

Formula
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
Rate of Stock Turnover for year ended 30 June 2007
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
Rate of Stock Turnover for year ended 30 June 2008
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
(3)
*M32101A02328*
23
Turn over
11/08/2008 10:39:23
Ben believes that the improvement in the net profit for the year ended 30 June 2008 was due
to the following.

Leave
blank
Turnover increased as a result of (i) cutting selling prices and (ii) changes in the
quality of stock
Running costs were reduced as a result of improved efficiency in operating the
business

(d) To what extent do you agree with Ben? Use figures to support your answer.

...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
(5)
Q6
(Total 14 marks)
TOTAL FOR SECTION B: 40 MARKS
TOTAL FOR PAPER: 100 MARKS
END
24
*M32101A02428*
11/08/2008 10:39:24
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
*M32101A02528*
25
11/08/2008 10:39:24
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
26
*M32101A02628*
11/08/2008 10:39:24
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
*M32101A02728*
27
11/08/2008 10:39:24
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
28
*M32101A02828*
11/08/2008 10:39:24

Past Paper 6

Uploaded by

Document Information

Original Description:

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Past Paper 6

Uploaded by

Copyright:

Available Formats

Surname

Examiners use only

Team Leaders use only

Monday 10 November 2008 Afternoon

Materials required for examination

Items included with question papers

Information for Candidates

The total mark for this paper is 100.

This publication may be reproduced only in accordance with

Cash discount allowed is originally recorded in the

Working capital is the surplus of

In a partnership, to which of the following accounts would a partners drawings be debited?

Totals for Month

Returns Inwards Journal

Totals for Month

Cash Book (Debit side)

Cash Sales (including VAT)

Cash Sales (including VAT)

C Lyon (Purchases Ledger)

Being transfer of balance in purchases ledger set off

(e) Explain the following terms.

(i) Trade Discount

(ii) Cash Discount

Net profit for the year

Light and heat owing

Fixtures and fittings (Cost)

Provision for depreciation (furniture and fittings)

Provision for doubtful debts

Capital accounts: Luke

Current account balances (1 October 2007): Luke

Drawings for the year: Luke

Simon Current Account

(b) Prepare a balance sheet for the partnership as at 30 September 2008.

Sevenoaks College Drama Society

Bank balance 1 January 2007

3000 Hire of costumes

1600 Administrative expenses

4000 Purchase of new scenery

Bank balance 31 December 2007

The closing stock of refreshments is valued at 165

Draw column lines in the table below for your layout.

Draw column lines in the table below for your layout.

Draw column lines in the table below for your layout.

Opening stock of raw materials

(a) For the year ended 30 September 2008 identify

(i) cost of raw materials consumed

(ii) prime cost

(iii) total factory overheads

(iv) value of the closing stock of work in progress

The following additional information is available on 30 September 2008 and is to be taken

During the year 1000 engines were manufactured

(b) For the year ended 30 September 2008 calculate

(i) the selling price of one engine

(ii) the total gross profit

Net Profit Margin for year ended 30 June 2007

Net Profit Margin for year ended 30 June 2008

Mark up for year ended 30 June 2007

Mark up for year ended 30 June 2008

Rate of Stock Turnover for year ended 30 June 2007

Rate of Stock Turnover for year ended 30 June 2008

You might also like