You are on page 1of 36

2016. S.

42

JC Business Studies Ordinary Level Only Candidates Examination Number

EXAMINATION BOOKLET
Coimisin na Scrduithe Stit
State Examinations Commission
JUNIOR CERTIFICATE EXAMINATION 2016

BUSINESS STUDIES ORDINARY LEVEL


TUESDAY 14 JUNE 2016 MORNING 9.30-12.00

Answer Section A (starting on Page 2) and Section B (starting on Page 9)

Advising
CENTRE STAMP Examiners
Question Examiners
Marks
Marks

Junior Certificate Total


Sec. A
Ordinary Level Section
B

2
Calculators may be used.
Make and Model of Calculator Used: 3

1. Total of end of page totals 6

2. Aggregate total of all disallowed question(s) 7

3. Total mark awarded (1 minus 2) 8

4. Bonus mark if answered through Irish Total

Irish
5. Total mark awarded if Irish Bonus (3 + 4)
Bonus
Grand
Note: The mark in row 3 (or row 5 if an Irish bonus is Total
awarded) must equal the mark in the Grand Total box.
Grade

Page 1 of 23
SECTION A
(100 marks)
Answer all 20 questions. Each question carries 5 marks.

1. What do the following letters stand for? (Write each answer in full in the space provided.)

AGM

DIRT

2. Pauline Galvin is the Petty Cashier at Kingdom Ltd. On 15 May 2016, she paid Sinad Brown 18.50
out of Petty Cash for posting a parcel. Enter this transaction in the Petty Cash Voucher below.

PETTY CASH VOUCHER No. 67


Kingdom Ltd
Date

Details Amount

Signature:

3. Fill in the two missing Ps of marketing in the spaces provided:

PRODUCT PLACE

4. A consumer who returns a faulty good that cannot be repaired is entitled to either:

(i) OR (ii)

Complete both boxes.

5. Complete the following sentence:

A Shop Steward is

Page 2 of 23
6. Harry Nestor purchased groceries for 155.30 at his local supermarket. He handed the shop assistant
four 50 notes and received his change. The shop assistant used the least number of notes and coins
possible when counting out Harrys change.
Complete the note/coin analysis showing how much change Harry received and how many notes and
coins of each description were handed out to him.

NOTE/COIN ANALYSIS
CHANGE 50 20 10 5 2 1 50c 20c 10c 5c 2c 1c

7. John Burns has decided to change from a sole trader to a private limited company called Burns Ltd.
Name two advantages of making this change.

1.

2.

8. Complete the following sentence:

A semi-state company is one which is owned by the _______________________. The semi-state

company responsible for rail travel in Ireland is called _______________________________.

9. In each space provided below, write the correct insurance term for each explanation from the following
list:

UTMOST GOOD FAITH PREMIUM ASSESSOR


ACTUARY POLICY

(One of the terms above does not refer to any of the explanations below.)

INSURANCE TERM EXPLANATION

(i) The amount paid for insurance.

(ii) The person who estimates the compensation to be paid.

(iii) Must be truthful when seeking insurance.

(iv) The insurance contract.

Page 3 of 23
10. Stephanie Roche is going to the Olympics in Rio, Brazil in August 2016. She
was advised to bring US Dollars. She has saved 2,500 for the trip.
She visits her local bank to exchange her euro for dollars.
The current exchange rate is 1 = $1.12.
Calculate the amount of US Dollars she will receive for 2,500.

Answer Workings:

11. Place the following customers surnames in alphabetical order:

JOHN KEANE THOMAS KEADY PAUL KEATING COLM KEANEY

(i)

(ii)

(iii)

(iv)

12. Place a tick ( ) after each statement showing whether it is TRUE or FALSE

TRUE FALSE

Facebook, Twitter and Snapchat are forms of communication.

Ireland is a member of the European Union and the eurozone.

Teachers work in the Secondary Sector of Production.

13. The following are meter readings taken from an Irish Water bill. Calculate the number of litres used
and the total charge. Enter your answers in the appropriate spaces.

Water Meter Readings Workings:

Present 763,940
Previous 687,940

No. of litres used

Rate per 1,000 litres 1.85

Total Charge

Page 4 of 23
14. Place the following Business Documents in the order in which they are used:

INVOICE RECEIPT STATEMENT CHEQUE ORDER

15. The following line graph shows the monthly sales for Hall Ltd for the last six months of 2015:

MonthlySales2015

8
7
6
Sales000

5
4
3
2
1
0
Jul Aug Sep Oct Nov Dec

Month

Using the above graph, answer each of the following questions:

Questions Answers

(i) Identify the month that had the highest sales.

(ii) Identify the month that had the lowest sales.

(iii) State the Sales Total for November 2015?

Page 5 of 23
16. Answer either (A) or (B).

(A) Balance the following Bank Account and bring down the balance at the end of the month:

Dr Bank Account Cr

Date Details F Total Date Details F Total


2016 2016
Apr 1 Balance b/d 1,200 Apr 6 Rent GL6 780
14 Cash Sales GL3 9,900 25 Purchases GL2 4,600

OR

(B) Balance the following Bank Account by completing the last three lines of the Balance column:

Bank Account

Date Details F Dr Cr Balance


2016
Apr 1 Balance b/d 1,200
6 Rent GL6 780
14 Cash Sales GL3 9,900
25 Purchases GL2 4,600

17. Complete the following cheque by filling in the missing details:

Date 5 May 2016


Bank of Ireland 92-39-57
HIGH STREET, CLONES,
To Kay Barry
Co. MONAGHAN Date
Balance 525.00 Pay
This
Cheque
76.50
New
Balance 448.50 THOMAS KENNY

0013622 0013622 923957 26691384

Page 6 of 23
18. Column 1 shows a list of economic terms. Column 2 is a list of possible explanations for these terms.
(One explanation does not refer to any of the terms.)

Column 1 Terms Column 2 Explanations


1. Inflation A. Something done without when something else is chosen
2. Opportunity Cost B. Buying on the spur of the moment
3. Scarcity C. A rise in the general level of prices in a year
D. When demand for a product is greater than the supply

Match the two lists by placing the letter of the correct explanation under the relevant number below:

1. 2. 3.

19. If you buy goods on Hire Purchase, you become the owner after

you have paid the deposit

you have paid the last instalment

you have brought the goods home

(Tick ( ) the correct box.)

20. The following figures are from the books of Casey Ltd:
Bank Overdraft 5,000 Machinery 63,500
Reserves 34,000 Issued Share Capital 250,000
Enter and total the Financed by section in the following extract from the Balance Sheet of Casey Ltd
as at 31 December 2015:

Extract from Balance Sheet of Casey Ltd as at 31-12-2015

Financed by:

TOTAL CAPITAL EMPLOYED

For examiner use only: Total Marks for Section A Cumulative total c/f:

Page 7 of 23
Note:
On the following pages, space is provided for answering all questions in
Section B.

Answer any five questions.

Please read the questions in Section B carefully before answering.


This area may be used for workings if required.

Page 8 of 23
For use with SECTION B Question 1
(A)
NOONE HOUSEHOLD SEPT OCT NOV DEC TOTAL
PLANNED INCOME

Peter Noone - salary


Aoife Noone - salary
Child benefit
A. TOTAL INCOME
PLANNED EXPENDITURE
Fixed

House mortgage
House insurance
Health insurance
Subtotal
Irregular
Household costs
Telephone costs
Light and Heat
Car running costs
Education costs
Subtotal
Discretionary
Presents
Entertainment costs
Holiday costs
Subtotal
B. TOTAL EXPENDITURE
Net cash (A B)
Opening cash

Closing cash

(B) Calculate the annual child benefit for the Workings:


Noone household. Answer:
Show your answer and workings.
(C) If the Noone household had to take out a Workings:
one-year loan at 9% per annum to purchase
the iPads, calculate the total cost of the Answer:
iPads. Show your answer and workings.

For examiner use only: Total b/f: Total for Question 1: Cumulative total c/f:

Page 9 of 23
For use with SECTION B Question 2

(A) (i)

Trading, Profit and Loss Appropriation Account of Turbo Ltd for the year ended 31 December 2015

Space for Balance Sheet on next page

Workings

Page 10 of 23
For use with SECTION B Question 2 (continued)

(A) (ii)
Balance Sheet of Turbo Ltd as at

For Office
(B) (i) Explain the term Cash in Hand in the Trial Balance. Use Only

(ii) Calculate the Gross Profit as a percentage of Cash Sales Gross Profit 100
using the formula provided. Show answer and workings. Cash Sales 1
Workings:

Answer: %

For examiner use only: Total b/f: Total for Question 2: Cumulative total c/f:

Page 11 of 23
For use with SECTION B Question 3

For Office
(A) Write the letter that Paulette OConnell sent to Joan Cooney on 14 June 2016. Use Only

Page 12 of 23
For use with SECTION B Question 3 (continued)

For Office
Use Only

(B) Explain two duties of a club treasurer.

1.

2.

(C) State two examples of assets that a club might have.

1.
2.

For examiner use only: Total b/f: Total for Question 3: Cumulative total c/f:

Page 13 of 23
For use with SECTION B Question 4

For Office
(A) (i) In what bank and branch does Eamon have his account? Use Only

Bank: Branch:

(ii) Is Eamons bank account a deposit account or current account?


Give one reason for your answer.
Answer:

Reason:

(iii) According to AIB Bank, how much money does Eamon have in his account on
31 May 2016?
Answer:

(iv) Explain the entry of 23 May 2016.

(v) Explain the term Paypath.

(B) Calculate the total interest Eamon will have to pay on his car loan
Workings:

Answer:

Page 14 of 23
For use with SECTION B Question 4 (continued)

(C) Complete the Loan Application Form using todays date.

LOAN APPLICATION FORM

PERSONAL DETAILS
Name Mr, Mrs, Ms

Address

Telephone
AIB Bank
Date Of Birth

EMPLOYMENT DETAILS
Occupation

Employer's
Name & Address

Net Salary Per Month

No. of Years in Your Present Employment

LOAN REQUIRED
Amount

Purpose

How long do you want the loan for?

How much can you repay each month?

Details of other existing loans


Lender Amount Annual Repayments

SIGNATURE DATE

For examiner use only: Total b/f: Total for Question 4: Cumulative total c/f:

Page 15 of 23
For use with SECTION B Question 5

(A) (i) Name two pieces of information in a Quotation that helped Molly to make her For Office
decision to buy from ROG Equipment Ltd. Use Only

1.

2.

(ii) Complete the Order:

Garden Supplies Ltd


Ennis ORDER No. 201
Co. Clare
Telephone: 065-684432
Fax: 065-684435 VAT Reg. No. IE8896543
e-mail: garden@ennis.ie

Date: ___________________

Please supply the following goods:


PRICE EACH
QUANTITY DESCRIPTION MODEL

Signed: Title:

Page 16 of 23
For use with SECTION B Question 5 (continued)

(B) Complete the Invoice:

ROG Equipment Ltd INVOICE No. 977


Salthill Industrial Estate, Galway

Telephone: 091-456375
Fax: 091-456376 VAT Reg. No. IE5546732
e-mail: rogequip@gmail.com

Date:

Your Order No.:

PRICE TOTAL
QUANTITY DESCRIPTION MODEL EACH

Total (Excluding VAT)

Trade Discount

Carriage Paid
Subtotal
E&OE
VAT

Total (Including VAT)

Workings (if required):

Page 17 of 23
For use with SECTION B Question 5 (continued)

(C) On 5 June 2016, after receiving payment from Molly Malone, Roger OGara issues a receipt on
behalf of ROG Equipment Ltd. On the same day, this transaction is entered into the Bank Account
of ROG Equipment Ltd.

Enter the receipt of money from Garden Supplies Ltd in the Bank Account of ROG Equipment
Ltd.

Dr ROG Equipment Ltd - Bank Account Cr


Date Details F Total Date Details F Total
2016 2016

OR

ROG Equipment Ltd Bank Account


Date Details F Dr Cr Balance
2016

For examiner use only: Total b/f: Total for Question 5: Cumulative total c/f:

The answer to Question 6 starts here:


For use with SECTION B Question 6

For Office
(A) The Bank told Mary that cheques would not be in use after 1 August 2016. Use Only

(i) Mary does not want to keep large amounts of cash in her house in case it is stolen.
State two ways by which she could keep her cash secure.
1.

2.

(ii) Mary will not be able to pay her farm bills by cash.
List one method by which she could pay her farm bills in future.
Answer:

Page 18 of 23
For use with SECTION B Question 6
(B) Analysed Receipts and Payments Account (Analysed Cash Book) of Mary Moran, Farmer

Dr Cr

Rec Cheque
Date Details Bank Date Details Bank
No. No.
2016 2016

For Office
(C) Mary Moran is interested in purchasing a computer. Explain two uses that Mary could make of the computer to help her manage the farm. Use Only

1.

2.

For examiner use only: Total b/f: Total for Question 6: Cumulative total c/f:

Page 19 of 23
For use with SECTION B Question 7
For Office
(A) The four factors of production are land, labour, capital and enterprise. Use Only

(i) State the rewards or payments for each factor of production.


The reward for land is:
The reward for labour is:
The reward for capital is:
The reward for enterprise is:

(ii) Explain two of the factors of production.


1.

2.

(B) (i) Which Government Department prepares the National Budget?

Answer:

(ii) Give one reason why the Government prepares a National Budget.
Answer:

(iii) Give one example of Government current expenditure on Education.

Answer:

(iv) Give one example of Government capital expenditure on Education.


Answer:

Page 20 of 23
For use with SECTION B Question 7 (continued)

(C) (i) Using all the information given, prepare the National Budget for the year 2017.
(ii) Indicate whether it is a surplus or a deficit budget.

(i) National Budget for the year 2017


000 000
INCOME

EXPENDITURE

(ii)

(iii) Show the Governments Planned Current Expenditure in the form of a Bar Chart.

For examiner use only: Total b/f: Total for Question 7: Cumulative total c/f:

Page 21 of 23
For use with SECTION B Question 8

(A) (i) Calculate how long the flight from Shannon to Rome takes for each of the airlines. For Office
Show your answers and workings. Use Only

Dine Air Alpha Airlines


Workings: Workings:

Answer Dine Air flight: Answer Alpha Airlines flight:

Hours Hours

Minutes Minutes

(ii) Explain two advantages and two disadvantages of using air transport.
Advantages:
1.

2.

Disadvantages:
1.

2.

(B) (i) Calculate the total cost of the flight for Martin with each of the airlines.
Show your answers and workings.
Dine Air Alpha Airlines
Workings: Workings:

Dine Air Total Cost: Alpha Airlines Total Cost:

Page 22 of 23
For use with SECTION B Question 8 (continued)

For Office
(B) (ii) On the basis of cost, which airline would you recommend Martin to fly with? Use Only

Answer:

(C) In each space provided below, write the correct term for each explanation from the following
list:

QUESTIONNAIRE
SPECIAL OFFER
MARKET
BRANDING
TEST MARKETING

(One of the terms above does not refer to any of the explanations below.)

EXPLANATION TERM

(i) The use of a name or logo to identify products


and make them well known.

(ii) A list of prepared questions which consumers


are asked as part of a survey.

(iii) Trying out a new product on a small number of


consumers.

(iv) Giving extra value for money, like three for the
price of two.

For examiner use only: Total b/f: Total for Question 8: Cumulative total:

Page 23 of 23
Blank Page
2016. S42

Coimisin na Scrduithe Stit


State Examinations Commission

JUNIOR CERTIFICATE EXAMINATION 2016

BUSINESS STUDIES ORDINARY LEVEL

TUESDAY 14 JUNE 2016 MORNING 9.30-12.00

SECTION B
(300 marks)

All questions carry equal marks.

Answer any five questions.

Marks will be awarded for workings, layout and presentation.

Dates should show the day, month and year.

Calculators may be used.

Page 1 of 9
1. This is a Household Budget question.
(To be completed on Page 9 of the Examination Booklet)

Answer all parts of this question:

The following is a budget for the Noone household for four months, September to December, 2016:

Opening Cash in Hand is 300.

Planned Peter Noone earns 3,400 net per month and expects this to decrease by 350
Income net per month from 1 November 2016.
Aoife Noone earns 1,900 net per month and expects this to increase by 160
per month from 1 October 2016.

Child benefit is expected to be 405 per month.

Planned House mortgage is 630 per month but this will increase by 75 per month from
Expenditure 1 October 2016.
The Noone household pays house insurance premium of 80 per month and this
will increase to 95 per month from 1 November 2016.
The Noone household pays a health insurance premium of 240 per month.
Household costs are expected to be 2,100 per month, except in December, when
they will be 200 less.
Telephone costs for the landline and broadband are expected to be 180 in
September and 160 in November. In addition, mobile phones will cost 110 per
month.
Electricity bills for light and heat are expected to cost 240 in October and 300
in December while heating oil will cost 670 in November.
Car running costs are expected to be 280 per month for Peter and 200 per month
for Aoife. Peters car will have four new tyres fitted at 75 per tyre in November.
Education costs will include new iPads costing 700 in September and a school
tour costing 500 in December.
Presents will cost 240 in October and 770 in December.
Entertainment will cost 180 per month except in December, when it will cost an
extra 100.
The Noone household is planning a holiday. Flights costing 1,000 must be paid
in September and accommodation costing 2,000 must be paid in November.

(A) Complete the blank Household Budget form (on page 9 of the Booklet) using all the above
figures. (50)
(B) Calculate the annual child benefit for the Noone household. Show your answer and workings.
(Answer in the space provided on page 9 of the Booklet.) (5)
(C) If the Noone household had to take out a one-year loan at 9% per annum to purchase the
iPads, calculate the total cost of the iPads. Show your answer and workings.
(Answer on page 9 of the Booklet.) (5)
(60 marks)

Page 2 of 9
2. This is a Final Accounts and Balance Sheet question.
(To be completed on Pages 10 and 11 of the Examination Booklet)

Answer all parts of this question:

The following Trial Balance was taken from the books of Turbo Ltd on 31 December 2015, the end of its
financial year. The Authorised Share Capital is 450,000 ordinary shares at 1 each.

Trial Balance of Turbo Ltd as at 31 December 2015 Dr Cr


Cash Sales 480,000
Cash Purchases 285,000
Carriage Inwards 3,170
Opening Stock at 1 January 2015 34,150
Wages 69,120
Advertising 2,650
Insurance 3,100
Light and Heat 4,700
Telephone 5,610
Dividend Paid 16,000
Premises 200,000
Machinery 130,000
Motor Vehicles 75,000
Cash in Hand 8,500
Bank Overdraft 37,000
Issued Share Capital in 1 Shares 320,000
837,000 837,000

Closing Stock at 31 December 2015 was 58,320.


(A) From the above figures, prepare:
(i) A Trading, Profit and Loss Appropriation Account for Turbo Ltd for the year
ended 31 December 2015. (Answer on page 10 of the Booklet.)
(ii) A Balance Sheet as at 31 December 2015. (Answer on page 11 of the Booklet.) (45)
(B) (i) Explain the term Cash in Hand in the above Trial Balance.
(Answer on page 11 of the Booklet.)

(ii) Calculate the Gross Profit as a percentage of Cash Sales using the formula provided:
Gross Profit 100
Cash Sales 1

Show your answer and workings. (Answer on page 11 of the Booklet.) (15)
(60 marks)

Page 3 of 9
3. This is a question about Clubs and Writing a Letter.
(To be completed on Pages 12 and 13 of the Examination Booklet)

Answer all parts of this question:

Joan Cooney, lives in Lake Side View, Cavan. She has been elected
as the treasurer of the BOD Ladies Rugby Club.
The aims of the Club are:
(i) to increase club membership by getting more ladies to join
(ii) to raise finance which is needed to complete its new clubhouse,
to provide a training pitch and to purchase a minibus.

Joan was asked to take charge of this work as well as her other duties as club treasurer.

She contacted Paulette OConnell, Financial Consultant, 5 Thomond Park, Limerick, to get advice.

Paulette wrote a letter to Joan on 14 June 2016. In the letter, she thanked Joan for asking her for advice.
She gave one example of how to increase membership and one example of how to raise finance for the
club. She also stated that she would like to meet Joan at 2.30 pm on 21 June 2016 at her Limerick
office to talk about the clubs aims.

(A) Write the letter that Paulette sent to Joan Cooney on 14 June 2016.
(Answer in the space provided on page 12 of the Booklet.) (40)

(B) Explain two duties of a club treasurer.


(Answer in the space provided on page 13 of the Booklet.) (10)

(C) State two examples of assets that a club might have.


(Answer on page 13 of the Booklet.) (10)

(60 marks)

Page 4 of 9
4. This is a question on Banking.
(To be completed on Pages 14 and 15 of the Examination Booklet)

Answer all parts of this question:

Eamon Rice, who has been employed since 2008 as an assessor at Flynn Insurance Ltd, Long Road,
Roscommon, received the following Bank Statement by post:

AIB Bank Statement No. 3241


Main Street, Roscommon

Mr Eamon Rice Account Name: EAMON RICE


25 Highfield Road IBAN: IE37AIBK76935453961274
Roscommon Date: 31 May 2016

Date Details Dr Cr Balance



01 May 2016 Balance forward 236.00
03 May 2016 Paypath - monthly salary 1,862.00 2,098.00
10 May 2016 S/O Roscommon Credit Union 95.00 2,003.00
17 May 2016 Credit transfer 225.00 2,228.00
23 May 2016 ATM AIB Athlone Branch 150.00 2,078.00
26 May 2016 VDP Spar Stores 635.00 1,443.00
27 May 2016 D/D Vodafone 46.00 1,397.00

(A) (i) In what bank and branch does Eamon have his account?
(Answer on page 14 of the Booklet.)
(ii) Is Eamons bank account a deposit account or current account? Give one reason for
your answer. (Answer on page 14 of the Booklet.)
(iii) According to AIB Bank, how much money does Eamon have in his account on
31 May 2016? (Answer on page 14 of the Booklet.)
(iv) Explain the entry of 23 May 2016. (Answer on page 14 of the Booklet.)

(v) Explain the term Paypath. (Answer on page 14 of the Booklet.)


(30)
(B) Eamon, who will be 32 years old on 17 July 2016, is planning to buy a new
car. He needs to borrow 15,000 which he hopes to repay in monthly
instalments of 410 over the next four years. He already has a loan of
3,000 from Roscommon Credit Union which he pays back by standing
order on the 10th of each month. His telephone number is 086 5566992.

Calculate the total interest Eamon will have to pay on his car loan. Show your workings.
(Answer on page 14 of the Booklet.) (10)

(C) Eamon gets a Loan Application Form from his AIB branch.
Complete the Loan Application Form using todays date. (Answer on page 15 of the Booklet.)
(20)
(60 marks)

Page 5 of 9
5. This is a question on Business Documents.
(To be completed on Pages 16, 17 and 18 of the Examination Booklet)

Answer all parts of this question:

Molly Malone is the Purchasing Manager at Garden Supplies Ltd, Ennis Co. Clare.
She checks Quotations from three different suppliers. She decides to buy from
ROG Equipment Ltd.

On 25 May 2016, she sends an order (No. 201) to Roger OGara, The Manager,
ROG Equipment Ltd, Salthill Industrial Estate, Galway, for the following goods:

40 Green Plastic Wheelbarrows Model GPW 13 @ 135.00 each


20 Ash Garden Seats Model AGS 48 @ 90.00 each
100 Darby Garden Forks Model DGF 02 @ 30.00 each
30 Ash Garden Trellis Model AGT 32 @ 40.00 each

(A) (i) Name two pieces of information in a Quotation that helped Molly to make her decision.
(Answer on page 16 of the Booklet.)

(ii) From the above details complete the blank Order No 201 (on page 16 of the Booklet).
(21)

(B) All the goods ordered are in stock, except for the Ash Garden Trellis. The Wheelbarrows,
Garden Seats and Garden Forks are delivered by courier to Garden Supplies Ltd on 30 May
2016. Molly checks the goods when they arrive and signs the Delivery Docket. The courier
then hands her Invoice No. 977, dated 30 May 2016.

Trade Discount on all goods is 15% and VAT on all goods is 20%.
From the above details, complete the blank Invoice No. 977 (on page 17 of the Booklet).
(30)

(C) On 5 June 2016, after receiving payment from Molly Malone, Roger OGara issues a receipt on
behalf of ROG Equipment Ltd. On the same day, this transaction is entered into the Bank
Account of ROG Equipment Ltd.

Enter the receipt of money from Garden Supplies Ltd in the Bank Account of ROG Equipment
Ltd. (Use only one of the bank accounts on page 18 of the Booklet.)
(9)
(60 marks)

Page 6 of 9
6. This is a question on Farm Accounts, Information Technology and Paying Bills.
(To be completed on Pages 18 and 19 of the Examination Booklet)

Answer all parts of this question:

Mary Moran is a farmer who keeps an Analysed Receipts and Payments Account Book (Analysed Cash
Book). All money received is lodged to her bank current account on the same day and all payments are
made by cheque.
On 1 April 2016, there was balance of 2,750 in the farm bank account.
Mary made the following transactions during April 2016:
Receipt Cheque Amount
2016 Transaction
No. No.
April 4 Sold livestock 53 13,700
5 Purchased feed for livestock 323 3,050
8 Paid for repairs to machinery 324 2,350
11 Received milk cheque 54 4,600
13 Paid for clerical work 325 1,400
15 Received an EU Payment (BPS) 55 9,000
18 Purchased feed for livestock 326 5,200
19 Sold livestock 56 6,500
22 Sold old machinery 57 1,800
25 Purchased livestock 327 7,500
28 Paid for repairs to hay barn 328 4,900
29 Purchased fertiliser 329 650

(A) The Bank told Mary that cheques will not be in use after 1 August 2016.
(i) Mary does not want to keep large amounts of cash in her house in case it is stolen.
State two ways by which she could keep her cash secure.
(Answer on page 18 of the Booklet.)
(ii) Mary will not be able to pay her farm bills by cash.
List one method by which she could pay her farm bills in future.
(Answer on page 18 of the Booklet.) (9)

(B) Write up the Analysed Receipts and Payments Account (Analysed Cash Book) of Mary Moran for
the month of April 2016 (on page 19 of the Booklet). Please note that BPS stands for Basic
Payment Scheme. Use the following analysis columns:
Debit (Receipts) side: Livestock BPS Other
Credit (Payments) side: Livestock Repairs Feed Other
Total each analysis column and balance the Bank Columns at the end of April 2016. (43)

(C) Mary Moran is interested in purchasing a computer.


Explain two uses that Mary could make of the computer to help her manage the farm.
(Answer on page 19 of the Booklet.) (8)
(60 marks)

Page 7 of 9
7. This is a question on National Budget and Economics.
(To be completed on Pages 20 and 21 of the Examination Booklet)

Answer all parts of this question:


(A) The four factors of production are land, labour, capital and enterprise.

(i) State the rewards or payments for each factor of production.


(Answer on page 20 of the Booklet.)
(ii) Explain two of the factors of production.
(Answer on page 20 of the Booklet.)
(18)
(B) (i) Which Government Department prepares the National Budget?
(Answer on page 20 of the Booklet.)
(ii) Give one reason why the Government prepares a National Budget.
(Answer on page 20 of the Booklet.)
(iii) Give one example of Government current expenditure on Education.
(Answer on page 20 of the Booklet.)
(iv) Give one example of Government capital expenditure on Education.
(Answer on page 20 of the Booklet.)
(12)
(C) The following figures were presented on budget day as projections for 2017.

Planned Current Expenditure 000


Health 35,000
Social Protection 15,000
Education 25,000
Justice 10,000
Debt Servicing 5,000
Planned Current Income
PAYE 28,000
PRSI and USC 12,000
VAT 21,000
Corporation Tax 16,000
Other Income 3,000

(i) Using all the above information, prepare the National Budget for the year 2017.
(Answer on page 21 of the Booklet.)
(ii) Indicate whether it is a surplus or a deficit budget.
(Answer on page 21 of the Booklet.)
(iii) Show the Governments Planned Current Expenditure in the form of a Bar Chart.
(Answer on page 21 of the Booklet.)
(30)
(60 marks)

Page 8 of 9
8. This is a question on Delivery Systems and Marketing.
(To be completed on pages 22 and 23 of the Examination Booklet)

Answer all parts of this question:

(A) Martin Daly is a marketing manager. He wishes to fly from Shannon


Airport to Rome on 19 July 2016. He checks the websites of two airlines
for the cost of tickets. Their flight times are:

Airlines Shannon - Departure Rome - Arrival


Dine Air 06:40 09:30
Alpha 07:20 10:05

(i) Calculate how long the flight from Shannon to Rome takes for each of the airlines.
Show your answers and workings. (Answer on page 22 of the Booklet.)
(ii) Explain two advantages and two disadvantages of using air transport.
(Answer on page 22 of the Booklet.) (30)

(B) The following are the charges for both airlines. Martin will be checking in online. He will be
checking in two bags but will not be reserving a seat.

Airline Charges Dine Air Alpha Airlines



Fare 35.00 82.00
Airport taxes 48.50 16.50
Booking charge 2.50 7.00
Reserved seat 10.00 5.00
Online check-in fee 5.00 12.50
Bag check-in charge 15 per bag 5 per bag
(i) Calculate the total cost of the flight for Martin with each of the airlines.
Show your answers and workings. (Answer on page 22 of the Booklet.)
(ii) On the basis of cost, which airline would you recommend Martin to fly with?
(Answer on page 23 of the Booklet.) (18)

(C) In each space provided (on page 23 of the Booklet), write the correct term for each explanation
from the following list:
QUESTIONNAIRE SPECIAL OFFER MARKET BRANDING TEST MARKETING
(One of the terms above does not refer to any of the explanations below.)
EXPLANATIONS
(i) The use of a name or logo to identify products and make them well known.

(ii) A list of prepared questions which consumers are asked as part of a survey.

(iii) Trying out a new product on a small number of consumers.

(iv) Giving extra value for money, like three for the price of two.

(12)
(60 marks)

Page 9 of 9
Blank Page
Blank Page
Blank Page

You might also like