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    Answer FIVE questions, choosing TWO from Section A and THREE from Section B. If you change your mind, put a line through the box ( ) and then indicate your new question with a cross ( ).

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    Answer FIVE questions, choosing TWO from Section A and THREE from Section B. If you change your mind, put a line through the box ( ) and then indicate your new question with a cross ( ).

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    82 views40 pages

    London Examinations GCE: Accounting (Modular Syllabus)

    Uploaded by

    qwertydude123
    Answer FIVE questions, choosing TWO from Section A and THREE from Section B. If you change your mind, put a line through the box ( ) and then indicate your new question with a cross ( ).

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
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    of 40

    Surname

    Centre
    No.

    Initial(s)

    Paper Reference

    Candidate
    No.

    6 0 0 1

    0 1

    Signature

    Paper Reference(s)

    6001/01

    Examiners use only

    London Examinations GCE

    Team Leaders use only

    Accounting (Modular Syllabus)


    Advanced Subsidiary/Advanced Level
    Unit 1:The Accounting System and
    Costing
    Tuesday 17 May 2011 Morning
    Time: 3 hours

    Question Leave
    Number Blank

    1
    2
    3
    4
    5
    6

    Materials required for examination


    Nil

    Items included with question papers


    Source Booklet

    Instructions to Candidates
    In the boxes above, write your centre number, candidate number, your surname, initial(s) and signature.
    Check that you have the correct question paper.
    Answer FIVE questions, choosing TWO from Section A and THREE from Section B.
    Indicate which question you are answering by marking the box ( ).
    If you change your mind, put a line through the box ( ) and then indicate your new question with a
    cross ( ).
    All calculations must be shown.
    Write your answers in the spaces provided in this question paper.
    Do not return the insert with the question paper.

    Information for Candidates


    The marks for individual questions and the parts of questions are shown in round brackets: e.g. (2).
    There are 7 questions in this question paper. The total mark for this paper is 200.
    There are 40 pages in this question paper. Any blank pages are indicated.
    Calculators may be used.
    The source material for use with questions 1 to 7 is in the enclosed source booklet.

    Advice to Candidates
    Write your answers neatly and in good English.
    This publication may be reproduced only in accordance with
    Edexcel Limited copyright policy.
    2011 Edexcel Limited.
    Printers Log. No.

    P38646A
    W850/6001/57570 1/1/1/1/1/e2/

    Total

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    SECTION A
    Answer TWO questions from this section.
    If you answer question 1, put a cross in this box (

    ).

    Source material for question 1 is on pages 2 and 3 of the source booklet.


    1.

    (a) Prepare for Pavlena the:


    (i) statement of comprehensive income (trading and profit & loss account) for the
    year ended 30 April 2011
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    (ii) statement of financial position (balance sheet) as at 30 April 2011.


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    During the year repairs to fixtures and fittings were posted, in error, to the fixtures and
    fittings account.
    (b) (i) Name this type of error.
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    (1)
    (ii) Explain why the posting to the fixtures and fittings account was an error.
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    (iii) Prepare the journal entries, including narrative, to correct the error.
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    (c) Distinguish between straight line and diminishing balance as methods of depreciation.
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    (d) Evaluate the decision of Pavlena to use the diminishing balance method to depreciate
    her motor vehicles.
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    (8)
    (Total 52 marks)
    8

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    Q1

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    If you answer question 2, put a cross in this box (

    ).

    Source material for question 2 is on pages 4 and 5 of the source booklet.


    2.

    (a) Prepare the Sales Ledger Control Account for the year ended 31 March 2011, showing
    the total value of the revenue (sales) for the year.
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    (b) Prepare the following ledger accounts for the year ended 31 March 2011, showing the
    transfers to the statement of comprehensive income (profit & loss account). Balance
    the accounts as necessary.
    (i) Commission receivable account
    (ii) Rent account
    (iii) Wages account
    (iv) Marketing expenses account
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    (23)

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    (c) Prepare the statement of comprehensive income (profit & loss account) for the year
    ended 31 March 2011.
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    At a meeting with her accountant, Haider was informed that her accounts would need to
    comply with the accounting concepts of accruals and going concern.
    (d) Explain the meaning of:
    (i) accounting concepts
    (ii) the accounting concept of accruals
    (iii) the accounting concept of going concern.
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    (e) Evaluate the use of accounting concepts when preparing financial statements (final
    accounts).
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    (8)

    Q2

    (Total 52 marks)

    *P38646a01540*

    15

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    If you answer question 3, put a cross in this box (

    ).

    Source material for question 3 is on pages 6 and 7 of the source booklet.


    3.

    (a) Distinguish between the terms profit and profitability.


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    (b) Calculate the following ratios for Hilltec and Microtech:


    (i) Gross profit to revenue (sales) percentage
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    (ii) Profit for the year (net profit) to revenue (sales) percentage
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    (iii) Return on capital employed


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    (iv) Current ratio
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    (v) Collection period for trade receivables (debtors)


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    (6)
    (c) State four non financial factors that Bell Computers may need to consider when
    purchasing one of the businesses.
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    (d) Advise Bell Computers whether it should purchase Hilltec, Microtech or neither of
    the businesses. Give three reasons for your decision.
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    (e) Evaluate the use of ratios in determining the suitability of a business for purchase.
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    (8)

    Q3

    (Total 52 marks)
    TOTAL FOR SECTION A: 104 MARKS

    *P38646a02140*

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    SECTION B
    Answer THREE questions from this section.
    If you answer question 4, put a cross in this box (

    ).

    Source material for question 4 is on pages 8 and 9 of the source booklet.


    4.

    (a) Prepare the following to record the dissolution:


    (i) Dissolution account
    (9)
    (ii) Partners capital accounts
    (5)
    (iii) Cash (Bank) account.
    (6)
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    (b) State two reasons why a partnership may be dissolved.


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    (2)
    Marios stated that, by selling many of the assets to Woodman & Co, the partnership would
    be able to realise the goodwill in the business.
    (c) (i) Explain the term goodwill.
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    (ii) Suggest two possible reasons why Woodman & Co may wish to pay for goodwill
    when purchasing the business of Marios and Tamsin.
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    (d) Evaluate trading as a partnership as an alternative to trading as a sole trader.


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    Q4

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    If you answer question 5, put a cross in this box (

    ).

    Source material for question 5 is on pages 10 and 11 of the source booklet.


    5

    (a) Distinguish between stock valuation and stock rotation.


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    (b) Calculate the value of the closing inventory (closing stock) at 30 April 2011.
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    (c) (i) Calculate the Revenue (Sales) for the month of April 2011
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    (4)
    (ii) Prepare the statement of comprehensive income (trading and profit & loss
    account) for the month of April 2011.
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    Hinal is considering renting a mobile phone from Shavani. Hinal estimates that he will use
    his mobile phone for 75 minutes per month.
    (d) (i) Calculate the cost to Hinal for one month of the
    Low Usage tariff
    High Usage tariff.
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    (ii) Advise Hinal whether he should enter into a Low Usage tariff or High Usage
    tariff agreement.
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    *P38646a02940*

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    (e) Evaluate the use of First In First Out (F.I.F.O) as a method of valuing inventory (stock).
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    (Total 32 marks)

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    Q5

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    If you answer question 6, put a cross in this box (

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    Source material for question 6 is on pages 12 and 13 of the source booklet.


    6.

    (a) (i) Explain the term appropriation of overheads.


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    (ii) Advise Easy Gardening how to appropriate the business advertising expense
    between the shop and the workshop.
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    (b) Prepare the departmental statement of comprehensive income (departmental trading


    and profit & loss account) for the year ended 31 March 2011.
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    The owners of Easy Gardening are considering closing the repair workshop and using this
    as additional space for the shop. The owners believe that this will increase profits.
    (c) Evaluate this belief of the owners.
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    (Total 32 marks)
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    Q6

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    If you answer question 7, put a cross in this box (

    ).

    Source material for question 7 is on pages 14 and 15 of the source booklet.


    7.

    (a) Explain the term suspense account, stating which of the items (i) to (iii) above would
    require an entry into the suspense account.
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    (b) Calculate the corrected gross profit for the year ended 31 March 2011.
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    (c) Prepare journal entries to correct the errors in (iv) to (vii) above. Narratives are not
    required.
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    (d) Show the effect of correcting each of the errors in (iv) to (vii) above on the net profit
    for the year ended 31 March 2011. Draw up a table and show each item separately,
    recording whether the correction would increase or decrease the net profit for the year,
    together with the value of the increase or decrease.
    Where the correction would have no effect on the profit for the year you should state
    No Effect.
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    (e) Evaluate the use of a trial balance as assurance that the Ledger is accurate.
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    (4)

    Q7

    (Total 32 marks)
    TOTAL FOR SECTION B: 96 MARKS
    TOTAL FOR PAPER: 200 MARKS
    END

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