Student Number

__________________________

Family Name

__________________________

Other Names

__________________________

Section

Possible

20

20

60

TOTAL

100

Mark

Accounting
Sample 1
Final Examination
Time Allowed : 2 hours

UNSW Foundation Studies

UNSW Global Pty Limited
UNSW
Sydney NSW 2052

Copyright 2014

All rights reserved. Except under the

conditions described in the Copyright
Act 1968 of Australia and subsequent
amendments, this publication may not
be reproduced, in part or whole,
without the permission of the copyright
owner.

Directions to
Candidates
Accounting Final Examination
Time Allowed: 2 hours
Write your Student Number and Name on the cover of this Question
Booklet and the Answer Booklet.
1.

Section A.

Multiple Choice. 20 Questions.

(1 mark each)
Attempt all Questions. Use the Multiple Choice
Answer Sheet provided.

2.

Section B.

2 Questions.
(5 marks for Question 21)
(15 marks for Question 22)
Attempt all Questions.
Answer Questions 21 and 22 in the spaces provided
in this Question Booklet.

3.

Section C.

3 Questions.
(10 marks for Question 23)
(20 marks for Question 24)
(30 marks for Question 25)
Attempt all Questions.
Answer Questions 23, 24 and 25 in the spaces provided in the
Answer Booklet.

4. Place the Multiple Choice Answer Sheet inside this Question Booklet and
hand up all work as one together with the Answer Booklet.

UNSW Foundation Studies

Final Sample 1

BLANK PAGE

UNSW Foundation Studies

Final Sample 1

Section A:
Answer all Questions.
Use the Multiple Choice Answer Sheet provided.

From the accounting equation, owners equity is :

A
B
C
D

Assets - Liabilities (Revenue Expenses)

Assets + Liabilities + (Revenue Expenses)
Revenue + Expenses - Drawings
Revenue + Expenses + Drawings

The balance date refers to the final date of :

A
B
C
D

lodging a tax return

payment to creditors
registration of the business
the accounting period

The entries to record Bought motor vehicle on credit are :

A
B
C
D

debit Purchases and credit Motor Vehicle

debit Motor Vehicle and credit Accounts Payable
debit Motor Vehicle and credit Cash at Bank
debit Purchases and credit Cash at Bank

A Sales Invoice does not contain the following information :

A
B
C
D

delivery instructions
customers order number
name of customer
reasons for goods returned

A telephone expense of $120 was wrongly debited to the Maintenance Expense

account. The correction entry for this error should be :

A
B
C
D

dr Telephone Expense and cr Cash at Bank

dr Telephone Expense and cr Maintenance Expense
dr Maintenance Expense and cr Cash at Bank
dr Maintenance Expense and cr Telephone Expense

UNSW Foundation Studies

Final Sample 1

Sold motor vehicle for cash. What is the effect of this transaction on the
accounting equation ?

A
B
C
D

no change in total assets

change in liabilities
increase in assets but decrease in liabilities
increase in liabilities but decrease in assets

The Profit and Loss Statement is a :

A
B
C
D

general ledger
general journal
voucher
report

Which of the following is not found in the balance sheet ?

A
B
C
D

drawings
overdrafts
bad debts
vehicle

P. Traders records show Opening inventory at $20,000, Purchases $105,000,

Purchases Returns $2,000, Freight Costs $3,000 and the Closing inventory at
$28,000. What is the Cost of Goods Sold ?

A
B
C
D

$98,000
$79,000
$56,000
$85,000

10

The Discount Allowed Account is debited because :

A
B
C
D

revenues decrease
liabilities increase
expenses increase
assets decrease

UNSW Foundation Studies

Final Sample 1

11

According to the double entry rule, the receipt of cash from a debtor will be
recorded as :

debit Cash at Bank as assets increase and credit Accounts Receivable as assets
decrease
debit Accounts Payable as liabilities increase and credit Cash at Bank as assets
increase
debit Accounts Payable as liabilities decrease and credit Cash at bank as assets
decrease
debit Cash at Bank as assets increase and credit Purchases as expenses decrease

12

Purchased goods for cash is recorded in the :

A
B
C
D

cash receipts journal

cash payments journal
sales returns journal
purchases journal

13

Debts owing by P. Johnson are written off as bad debts and debited to :

A
B
C
D

Accounts receivable
Purchases account
Accounts payable
Bad debts account

14

Which of the following is not an equivalent of inventory ?

A
B
C
D

stock
goods
merchandise
drawings

15

Clinton, a debtor of Kozwinski Trading, has paid $109 for an outstanding account of
$100. The Statement of Account sent to Clinton at the end of the month will show :

A
B
C
D

a credit balance of $9
a debit balance of $9
an opening balance of $109
a closing balance of $109

B
C

UNSW Foundation Studies

Final Sample 1

Use the information below to answer Questions 16 and 17.

Cheque Butt of Garden Supplies Pty Ltd.
Garden Supplies Pty. Ltd.

To: Mason Trading

For: Invoice 00116
(Discount $10)
Balance b/f
Deposits
Balance
This Cheque
Balance c/f

Cheque No. 216

Date: 7 April 20XX

$270

16

For Garden Supplies Pty. Ltd., the statement that best describes the transaction
which has taken place is :

sales of trading goods by cash of $270 allowing a discount of $10 in the price for bulk
buying
payment of $270 received from a debtor and allowed $10 discount for prompt
payment
payment of $270 for account outstanding and received $10 discount for
prompt payment
purchase of trading goods on credit of $270 receiving a discount of $10 in the price
for bulk buying

B
C
D

17

When Mason Trading receives cheque no. 216 from Garden Supplies Pty. Ltd., which
of the following entries must be made in the books of Mason Trading ?

dr Cash at Bank $270, cr Accounts Receivable $270 and dr Discounts Allowed $10,
cr Accounts Receivable $10
dr Purchases $270, cr Cash at Bank $270 and dr Accounts Payable $10, cr
Discounts Received $10

B
C
D

dr Cash at Bank $280, cr Sales $280 and dr Discounts Allowed $10, cr Accounts
Receivable $10
dr Accounts Receivable $280, cr Cash at Bank $270 and dr Discounts Allowed $10,
cr Accounts Receivable $10

UNSW Foundation Studies

Final Sample 1

18

The accounting convention that ensures the equality of the accounting equation is the :

A
B
C
D

continuity convention
historical cost convention
monetary convention
double entry convention

19

One of the guidelines for achieving strong internal control is to draw up an

organisation plan to establish :

A
B
C
D

responsibility for every function

an account for every purchase
a cash book to record bad debts
a bank reconciliation to record cash

20

From one accounting period to the next, the accounting cycle does not involve which
of the following functions ?

A
B
C
D

recording transactions on source documents

recording of transactions into journals and ledgers
preparing a trial balance and financial reports
preparing a chart of accounts
20 marks

UNSW Foundation Studies

Final Sample 1

Question 21
5 marks

Section B:
Answer Questions 21 and 22 in the spaces provided in this examination booklet.
Question 21
Indicate whether each of the following statements is true or false by writing T or F in the
spaces provided:

T/F
a.

Handling of cash and the approval of cash payments should be done by

the same person as a good internal control practice.

b.

Increase in sales returns is debited because revenue is decreased.

c.

The rate of return on owners equity is sometimes called the debt to

equity ratio.

d.

The Profit and Loss Statement is presented as at a given date.

e.

Given total assets are $15,425 and total liabilities are $1,425. Owners
equity is $17,000 when the proprietor makes an additional contribution
of capital of $3,000 cash.

UNSW Foundation Studies

Final Sample 1

Question 22
15 marks
Question 22
a) Discuss the accounting period convention and the significance of the accounting
period convention in profit determination.

5 marks

UNSW Foundation Studies

Final Sample 1

b) Discuss at least five essential features of a good accounting report.

5 marks

UNSW Foundation Studies

10

Final Sample 1

c) What is a trial balance? Discuss at least four limitations of the trial balance.

5 marks
UNSW Foundation Studies

11

Final Sample 1

Question 23
10 marks

Section C:
Answer Questions 23, 24 and 25 in the spaces provided in the Answer Booklet.
Question 23
Allan Kennedy operates a camera shop. For the following transactions, prepare the
transaction analysis chart for Kennedy Trading.
June 20XX

3 Kennedy Trading bought a dozen cameras and tripods for $12,000

from Photographic Supplies on credit.
5 Kennedy Trading paid wages of $400 with cheque no. 665.

14 The owner, Allan Kennedy withdrew $150 cash for personal use.
17 Kennedy Trading received $300 from debtor J. Mason.
27 Kennedy Trading paid Photographic Supplies $12,000.

Complete your answer in the spaces provided in the Answer Booklet.

UNSW Foundation Studies

12

Final Sample 1

Question 24
20 marks
Question 24 (a)
The following information was extracted from the books of a firm for the month of October
20XX:

Total debtors at 1 October 20XX

$1400

Sales on credit

$8640

Cash received from debtors

$5000

Sales Returns

$320

Discount allowed to debtors

$360

Bad debts written off

$480

Offset by contra from accounts payable

$100

Required:
Prepare the Debtors Control Account (or Accounts Receivable Control Account) in the
General Ledger in the T format for October 20XX.
Question 24 (b)
For each of the items listed, write the appropriate source or journal from which the figure
would be obtained.
a.

Total debtors at 1 October

20XX

$1400

b.

Sales

$8640

c.

Cash received from

debtors

$5000

d.

Sales Returns

$320

e.

Discount allowed to
debtors

$360

f.

Bad debts written off

$480

g.

Offset by contra from

accounts payable

$100

Complete your answer in the spaces provided in the Answer Booklet.

UNSW Foundation Studies

13

Final Sample 1

Question 25
30 marks
Question 25
Given below are the transactions of K. Moss in the month of August 20XX.
20XX
1 Aug

K. Moss commenced business on 1 August 200X. K. Moss deposited

$25,000 in a bank account. Other assets and liabilities introduced into the
business were: stock $6,000, motor vehicle $5,000, accounts payable
$1,530, loan from C. Nash $1,500, accounts receivable $600.

Purchased furniture for office use on credit from Funny Furniture

Warehouse $1,200 (inv no. 206).

Purchased goods for resale from ABC Retailers $900 (inv no.693A).

Purchased office equipment for cash $600 (chq no. 69201).

Cash sales $200 (rec. no. 74).

Paid wages $500 (chq no.69202).

Sold used motor vehicle on credit to an employee, A. Jones, for $5,000.

10

Credit sales to S. Spencer $200 (inv no. 265).

11

Received commissions $50 (rec. no. 75).

12
15

Total amount owing by T. Tab was $300. T. Tab paid 50 cents in a dollar
as a final settlement (rec. no. 76) and the balance was written off as bad
debts.
Cash purchases $970 (chq. No. 69203).

16

Cash sales $80 (rec. no. 77).

17

Damaged goods returned by S. Spencer $25 (CN 15).

19

Returned goods to ABC Retailers $100 (CN A12).

20

Credit sales to Sims Pty. Ltd. $2,000 (inv no. 266).

21

Sold goods to P. Michael on credit $550 (inv no. 267).

22

K. Moss withdrew $25 to buy flowers for a sick relative (chq no. 69204)

24

Purchased trading goods from J. Downey on credit $655 (inv no. 901)

25

Paid advertising $60, stationery $20 and rates $90 (chq no. 69205, 69206
and 69207 respectively).

27

Cash sales $1,310 (rec. no. 78).

UNSW Foundation Studies

14

Final Sample 1

Required:
Record the transactions into the appropriate journals. Prepare the General Journal, Cash
Receipts Journal, Cash Payments Journal, Sales Journal, Purchases Journal, Sales Returns
Journal and the Purchases Returns Journal of K. Moss. Show clearly the totals for each
journal.

Complete your answer in the spaces provided in the Answer Booklet.

UNSW Foundation Studies

15

Final Sample 1

End of Examination

Please:

Check that you have answered the required number of questions, and followed all
directions.

Check that you have printed your name and student number on the Multiple Choice
Answer Sheet, the Answer Booklet and the Question Booklet.

Hand in the Multiple Choice Answer Sheet, the Answer Booklet and the Question
Booklet as directed at the conclusion of the examination.

Thank you.

UNSW Foundation Studies

UNSW Foundation Studies UNSW Sydney NSW 2052 Australia
Telephone: 61 2 9385 5396 Facsimile: 61 2 9662 2651 Email: foundation.year@unsw.edu.au Web: www.ufs.unsw.edu.au
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