ZIMBABWE SCEOo) | General Cente g RAMENA TIONS COMICH, i | of Education Ordinary Level : PRINCIPLES OF on | PAPER | OF accounts | | | \ NOVEMBER 2007 SESSION ‘Additional maeriats: | { | i ‘Answer paper } j TIME. Shows” ~ : INSTRUCTIONS TO CANDIDATES ‘Write your name, Ceme number end candidate muaiber in the speces provided on the acswer [Knower ell questions in Scction A and any fwo questions from Section B. ‘Write your answere on the seperate enswer paper provided. Starr each question on a separate pase . If an answer extends beyond one shet:, all she sheets for that question mmst be kagt ingsther. All caleuintions nmust be shawn adjacent to the answer. Celentarors must not be used. " Ifyou use more than ane sheet of paper, fasten te sheets together. " IRFORMATION FOR CANDIDATES: » she nurabar af snails is given in brackets} wt the end ofeach quesdian or past question: = ‘Frncants used In this Question Peper are for oslewlation purposes oniy- : i I . \ nla cn peer __)|Section A Answer all questions in this section. A Mpala and W. Nkomo are in partnership and their agreement has the following; ° Profits and losses are to be shamd barween Mpala and Nkomo Ip the raity 5, respectively. Interest on capital is to be allowed at 10% per annum. Mpala is to receive an annual rolary of $36 000. interest on drawings is to be charged at 5% per annum. Capital accounts are to remain fixed. ‘The following balances were extracted from the parmership books on 31 December 260 after the preparation of the Trading Account. oo e ‘Trial Balance as at 31 December 2005 | Debit ] Credit ee } 7 Land and buildings at cost | 7s0.000 | Furniture, at cost | ane | { 29700 + Debtors } Be000 | Bank A I Stock: 31 Decenaber 2005 + 000! Drawings: A, Mpala i. 30500} aes pO mas ee £2500 |g a9 Ww. Nkemo a" / 39.000 sion for depreciation on furniture, 1 January 2005 | j 300900 rovision for depreciat \ ‘Gross proi | i ‘Loan ~ SADC (repayable on 30 June 2007) saan $2007Additional information: (i) interest on Loan a the rate of 10% per anaum is owing on 31 December 2005 @ F ture is to be depreciated by 15% per anmum on the reducing balance inethod. Gii)__A telephone bili of £356 is owing on 31 Deceraber 2005. Telephone is inchided in generai expenses, d ‘You are required 10 prepare: (a) the Partnership Profit and Loss Appropriation Account for the vear ended 31 December 2005. (uy (b) the Balance Sheet as at 31 December 2005. ns} For each of the following transactions given below, name the subsidiary book used, the account debited. the account credited and the source document. Your answer should be in the form of 'a table as given below. An example has been done for you. Example: Bought « motor ven for $209 on credit from J.J Motors 1 necount {Account [source | ! 1 Debited +f Credited [Document | ¢ * 7 1 | eJournal Proper Motor Var | Sod Motors Invoice J f : i : ; i 4 4 i 4 wo ; pas 2 + r : | L@ . ‘ bese t t Ga { i (® Bought goods for $5 600 on credit from P, Poshal. QQ) Gumal Transport Operators charged the business 3609 for carriage on purchases. (iii) Pard for stationery $1 500 ous of petty cash. os Heat”Paid $5 600 by chegue to P. Poshat ws) (0) Sold goods on credit to 8. Bands for $6006, GD Withdrew $16 000 from the banks for private use. (vii) A cheque of $8 000 received from T. Thandiwe, a debtor, was dishonoured by the bank. (vill) Soid an old typewriter for 55 000 on credit 10 J, Jamela, (x) Received spoiled goods from B. Banda $2 000 in respect of goods sold te him on (+) above. tg ‘T.Tsuro prepared the following Trial Balance from her ledger balances on 30 June 2008, Unformnateiy. dhe totals disagreed and she had to open a Suspense Account for the difference. rensehee 5 Capital - i July 200% » a2a09 Drawings 35200 | Debiors 16500 | Cash at bank 7474 Fixtures and fittings : : g400 | Stock ~ 1 July 2 11730 | Credixors . : 5 540 Sales i {194 240 Purchases i 1sz600 | General expenses” } 11800! Suspense Inc ntanntnlisoernnitilia, P2393 704 203704 ens Subsequently. investigations were carried out and the following eivors were discovered. @ __ Asale to M. Muleye of £34 was correctly enterad in the Sales Day Book ‘ur was wrongly posted tc M, Muleya account at $349. Gi) Tauro's private expenses 5600 had been debited to general expenses eccount, FU Nm«i @ () © ‘Write down the word(s) or figurels Do not write the whote sentence. @ ® © @ © uw A standing ord: to the wrong side expenses account r $300 for payment of electricity bill had been posted the bank acoount but correctly posted vo the general ‘The Purchases Day Book had been undercast by $400, A Purchases ledger credit balance of $360 for Z. Zano had been omitted from the trial balance figure, ‘You are required te prepare: Joumal envies to correct the above errors. {19} (Sarratives not required), s ‘Tne Suspense Account starting with the difference from the Tal Balance. Bt ‘The Teal Balance as it would appear after the conection of allerors, {6} - -equired 20 complete each of the following sentences, Carriage inwards is churged to the (1) ___ Account, and carriage outwards is debited wo the (it) _ Account. Loans that are going te be repaid in full within the nent six months are shown under @ liabilities, ané goodwill is classified as ay essen ‘Stock of stationery’ at the close of business is shown in the Stationery Account as & balance. show's how e business is being financed is siated as _———* i) + abilities. « “rhe provision for bad debts on ! January 2004 was $6 500. The sundsy debtors on 31 December 2004 were $150 090. The provision for bad debts was maintained at 5% of debuots. The provision transferred (o the Profit and Loss Account is ap __ and the net debtors smount to G8) S ‘Srv ae?—— ~ (s) Given that the total fixed assets are $600 000, current assets $280 000, long-term lintilities $80 000, and current jiabilities $100 000, ‘The working capital is equa} ws “rhe opening. stock of @ business is valued at $75 000 and its closing stock at 525 QU0. The business cost of sales tota! $250 000. The rate of stock turnover is __ __ times. 61)e os at ty cence SS 7 SECTION B ° ‘Answer any two questions. from this section « Ths following information wes availabe inthe Sales Ledger of B. Chikomo on 1 Mirch 2005. : oe : ai A Mutemia's Acoonnt “= "$15 000 DR ‘The following transactions were made during thementh of March: = = 2005 Mar 3 9 a5 Sold goods to Muteme for $20 000 tess 20% trade discount, ‘Matera was charged $1 506 interest for late payment. ‘Murema paid $16 500 by cheque, ‘A credit note for defective goods was {ssued 10 Mutcan in respoot of ene quarter of the goods sold fo him on 3 March. Supplied further goods to Mutema valued at $30 000. . goods _ -" Miutema paid $11 500 cach in full setflement of the amount owing on the goods sold to him on 3 March. ‘Miuterha received a debit mote in respect of an undercharge of $3 000 on the invoice of 20 Macob. ‘Muon paid S18 000 by cheque and was allowed « distoimt of $800. ‘You are required to prepare Mutema’s Account and balance it on 31 Mart 2005, . rsh8 ‘You are required to: . “Sy (9) Prepare and balance the’ Purchases Ledger Contro) Account for the month of November 2004. . ‘ inact » 7 ry ‘Namo the books of original entry ftom which each of the entries Gi) to (vil) would be obtained. se i a M. Maushe, a reuitler, did nét’keep his books on the double entry principle but his valuation of assets and Lisbilities on the dates shown were as follows: = ® 2 statement showing: Maushe's capital on January 2064, (©) 4 storement showing clearly Maushe"s Net Profit or Loss for the ear = ~~? | endad 31 Deoomber 2004, taking Ino acsounk the following additional information: from Maushe on 31 December 2004: me: i , @ $5 600 of the debts are m be written off as irrecoverable. @ Deprociate motor vehicles by 10% and fixtures by 5%. ii) Maushe had withdrawn $15 750 from the bank for private - Purposes during the year. ° ~ G9) During the year Maushe sold his'privaite vehicle Zor $28 600 and . eposited the amount info the business bank account. ~ 10) ona Nee' ZIMBABWE SCHOOL EXAMINATIONS COUNCIL b General Cectificate of Education Ordinary Level POSSIBLE ANSWERS NOVEMBER 2007 i PRINCIPLES OF ACCOUNTS 7212/4 za: ~ Bilnts.and Workings *s inte @> Now that the question is for e patmership where after calculating net trading profit, an ‘appropriation of this profit is required. @)__ Since gross profit is given, one has to start fom the proGit and loss appropriation account, Gi) Partner's current accounts are an integral part of the financial statements of a partnetship frm fi! these can be prepared either outside the balance sheet or within the balance sheet but the final balances should be used in the balance sheet if you are to ean marks. ‘Workings: = @ —_Jntereston loan hy x $100.00 = syo.000 » @) Depreciation: on furnirure “im x — (5260000-$39000) = S33. 150 (ii) General expenses (845 650+ $350) = sa7000 Gv) - Interest on drawings should te added to net trading profit, interest on capital and partners” salary ‘debited to profit and loss appropriation account. 1a) T } : ‘General expenses (46 650+ 350) | 47 000 ee Depreciation: Furniture 7 | 33150 [Rates and insurance 3180. 121 950 c ‘Net Trading Profit . 178 050 Add: Interest on Drawings i ¢ ‘hoe x $34,000 \ 1700 zs Shaq9 x $30 500 } 18 BES 1 yu $395 000 { 39:00 Wy x $380.00 {| 38.000 | 35900 113390 | “8 % x 867775 | 40.665 yx TTS mi | AIAinterest on capital Salary Share on Profit Jess: Drawings Jess: Interest on drawings Langsterm liabilities ‘Loan ~ SADC Bank alias [Land and buildings Furniture G9 000-33 150) Current Aspets Stock Debtors Bank ese: Current Liabilities Creates Interest on loan “Telephone bill azcrved | Working capita! ‘Qusation 2 Bins @ Do not copy the éxampie, you will not earn marks from it~ it is jast a guide, Gh) Remember tat subside Downs A seen names therefore showld be written in full. 6.6 porcnage jour! oF Book NOT jst purchase, « ‘bought on eredit are accompa ‘an inwoice in this case its « purchases ft Goods Tit antes ~ iti @ le voice, pepstenet Gi eae at eratrons or dobeor should be writen In ‘full, e.g, Gumal Transport Opersars NOT wat Opersiors. _Rdtungnoures enone em = cebyor Shoat be cradited to the cash book and rordabised to the A dishanoutes in ts ardet 12 repiace the debt ence e878.- Scare i coment. | | Purchases | t Invoice \ i 4 | centage on Invoice! i doumdrone | Caine ee | | Pety Cash Stationery Fey | i Book foucher | : {ivy Cash Book P. Poshai ‘Cheque Stub ' (y) Sates Joumal * B, Banda Sales Invoice { | (Cash Book Drewings Cheque Stud | 1} i Book 1. Thundiwe Bank [ot Cosh Statement | (iit) Joumal Proper | 3 Jamele Lwoice : | Gx) RetumsInwards | Reus Credit Nowe ( Journal Inward! Question 3 Hints - 4) Remember the six errors which do not affect the balanemng of the triel balance. Gi) Ufyou recognise the error as ane of the six, remember that correction of such an error shoul NOT pass through the suspensa account Gil) Errors whick are corrected using the suspense account include: = Incomplete dovisie entry. ie. an item entered on one side, e.g. debited but with no corresponding credit entry — Completion of double entry using different Ggures, Le. an amount on debit side is different from the one om credit for the seme transaction. = Incorrect additions or deductions, ie. overcasvundersost. ‘Where a balance is ominied from thelist extractad from the ledger (for this type of # error its correction requires 3 one legged journal entry because the amount is alreaé! ; there, reposting the amount will double the ammount and thus creating another erro") ww wi Ifyou now ge durough the errors in this question, it should now be easy to correct thes a prepare a suspense account and a corrected trial balance. ‘Th our corrected tial balance you must show your workings for the inems being correctedfBince there wan @6 500 wees Br __-Sourmal Propet & Mi. Maleya 1 "4 ¥ Suspense ' pawns @ } “mani General expeases | “ ‘Suspense Bak ;o i Purcass i 400 uspense } Suspense | 5@ Creditors | \ o + * Suspense Account s | so Bank i ooo | ‘Difference es pet Tria! Balance fost Creditors 1 360. | MMuleya (os | aot | ao | . =I 2 | © orvectes ‘ria! Bainnce at of 30 Fame 2004 . Capita \ | 32409 ‘Drawings (15 200 * 600) } 15800 | t ‘Debtors (16 500+ 45) 16 545 | Bank (7474-600) } sam | t Fixtures and Patines: P8400) | Stock.” | uno °| i ‘Srodincize © 540+ 360) 5900 | Sales 1 | 154280 | Purchases (151 600 +400) | 352000 | \ uoeral expenses (11 800 ~600) | ame a, | tape | saneee { ‘Dusssion st i foe | i @ vim nm ang gan we AEN @ * eat or oa « Rae eames vnernen e n Ge) Tete Se aang esis ws ering APIO * : or Peg gure or reascing Ip Or : yi Sanasrys agure or erescas aE, mos Bemnere Sy, 004 Provision torbadaeels «= 6 Seas p09 = 74000 ve sano 16 97 602,4) Tenting Accomm : Profit and Lams Account oy Currgit 0!) Phaodlirexagle | non-curvent Debit {3G saves) Canal @ @) $100 5142500 6 nw ow @ $i ueruen2 tom > ray sttention to the following items which tend to confune mtuderts: % Trade discount hon be deducted before recording Figsres in the accounts Ineeron charged 1o 2 detion creases the balance owed vy & detror, therefore debtt 1 in a debuns sru. Bank 16500 Returns Inwerds Coat 11500 Discount Allowed | 0 Dak a0 Discount Allowed | 10 Bulance dé 14a an tian Thea etn A Co eRervby ine “oat, shanks Sr, wuyybat” Thaan thoriih be recarted va the credit side of the purchier sehr oemrek sac. . wo See Gaye we im by wae crediuns should be credited 10 the purchases ledger cant?Hats, . : j Ffox > Calenlation of capital if given assets and lnbiities is simply applying the dcoounting equation. ® ‘The question requires 2 statement, therefore an opening statement ora stament of afi oan | Dedone but NOT @ matzemstical calouintion Question 7(b) d ics opting capa! bs vr leon 7 (an ota be dt propre atten of affairs as at 31 December 2004, (i) Remember that Fusds trom private resources of the owner invested into the business are additional capital — 7 a) Statement of Affairs of M. Muse as at} January 2004? ay ; je oe : | +195:000 £090 a a8 Debtors (97 600.~ 5 600) Bank "Prepaid expenses 3 Lese: Current liabilities Creditors Additional Capital ‘Add: Net Profit Less: Drav Owner's Equity Financed by: 3ZIMBABWE SCHOOL EXAMINATIONS COUNCIL General Certificate of Education Ordinary Level PRINCIPLE ERIN S$ OF ACCOUNTS TULA = 6 JUNE 2008 SESSION yam accounting paper (8 sees) “TIME | Shours, INSTRUCTIONS TO CANDIDATES ‘Wine your name_ Centre number and candidat: number in the spaces provided on the answer ‘Write your answers on the separate answar paper provided. = Star: each question on a separate page. 2 an answer extends beyond ont sheet, al! the sheets for thet question mut be kept together, | Alf calculations mest be shown adjacent 10 ‘Calsiators must not be used. Jf you use more than ove sheet of paper, fasten the sheets together. the answer. { | i ' ‘Answer all questions in Section A and any two cuestions from Section B, INFORMATION FOR CANDIDATES “The mumber of marks is given in bracket: [] at the end of each question or part question. , Amounts used is this Question Paper are for caloulsrion purposes only. { il inetemmamenetans serrassemarrpaeammenurenpeearrretaet ~ | i "This question paper consists of) printed pages and 5 blank page. i Copyright: Zimbabwe Schoo! Examissiions Counsil, 12008. - penasce neat 2 : [rar over,I - 31 December 2004; Section A Answer all questions in this section. The following Tri Balance was extracted from the books of G. Rashe, a retailer, on ‘Trial Balance as at 31 Derember 2004 Credit | s Capital: 1 Janwary 2004 340 900 \ ‘Drawings | Stock: 1 January 2004 i Petty cash | Bank overdraft 29200 Sundry debtors \ Sundry creditors 57 800 i Motor vans, at cost ¥ Pixtures and fittings, at cost { ‘Purchases { Provision for bad debts: 1 January 2004 6900] Sales 315 9001 Rerums 9.000! ‘Sundry expenses } Carriage inwards | * Rent and rates ' Interest on overdraft | Discoums 8100! ! January 2004 } Motor vans 18 000 Fixtures and fittings I axsaol ) 704.000 | . “Fao The following matiers are to be taken imto account: @o (i) Stock at 31 December 2004 was valued at $48:900. One-quarter of the salaries and wages was for staff employed in Te-packaging goods bought for resale, - Gi) A cheque of $8 700 was paid to a creditor on 31 December 2004 bitt had not been ‘wotered in te books at the close af business. ian aearrest 3 0 ec trate tert (W) Deproviate motor vans at 10% p.a, on cost and fixtures and fittings by 510 000, (vi) Rates paid in advance at 31 Deceraber 2004 amounted to $4 200. ‘You are required to prepare: (a) the Trading and Profit end Loss Accounts for the year ended 31 December 2004, . (3) &). the Balance Sheet as at 31 December 2004. 03] . : 1 i t 4 i smiah nea cheer* ‘The following account appeared in the Ledger of N. Nkiwane, ee TOT Te me 2004 a 1) Balance b/d { 5 720 | January 6! Bank aI 15! Sales ¥156 | | Discount 18, 19: Sales 5 1366 18° Returns 120 25: Sales 2} Type | 2100 | i i Answer the following questions relating to the above account, wo Explain what the balance on 1 January means. (i) Caloulate the balance on 31 January. (Gi) What name is given to the discount on January 67 (iv) In which subsidiary book was the discount originally entered? (¥) For what reason would the discount be given? entry on 25 5 relates to an undercharge on the goods so| & Seis taka, ‘What document did N. Nciwand ond toe Thedblana? (vil) State the full name for the returns on 18 January. (vill) Name the subsidiary book used for the entry on January 29. Ge) Inwhich ledger of N.Nkiwane io. Thodlans’s Accouat found? -~* (%) Where @xactly in the Balance Sheet is the balance in T, Thodhlans’s Account on 1 February found? {10} The following transactions relate to the business of D. Desert for the month of December 2004. s December 1 Stock of unused fuel 36 000 10 Bought fuel by cheque 10 000 Bought fuel on credit form Wedzera oil | Company + 4 20 Bought fuel for cash 29° Stock of unused fuel :+ 2 coo Prepare and balance the Motor Fuel Account, Pay epsolal a/tention a Tn sones K. Kondo, a hairdresser, received her bank statement on 1 May 2005 with the following deiails; eae $ Balanoe as on 30 April 2008 275 000 Bank charges 10.009 Standing order: Insurance 29500 Credit transfer: dividends 67300 Dishonouréd cheque IVD 13700 Direct debit. ZESA 18450 Interest Eamed 9550 ‘The following information was also available: s ‘The balance brought down in the cash book was 249 800, “Unpresented cheques 65.000 Bank deposits entered in the cash book but not yot credited on the bank statement 70 000 On analysis of the bank statement, Kondo diseavered thst she tnad boen incorrestly credited with $25 000 belonging to R. Kondo, ‘by the bank. ‘You are required to prepare: (a) snamended Cash Book. ) the Bank Reconciliation Statemient as on 1 May 2005. mon re @ . 8)6 The following information hasbeen extctd fom the books of Special Service Lid for the month of September 2005: @) Total debtors balance at 1 September ” sdbion Cash sales for the month 942 000 Gil) Credit sales 800.000 (iv) Cash received from debtors 350 000 (%) Discounts allowed to debtors 120.000 (vi) Bad debts written off . 70.000 (vii) Doubéful debts provision 90 000 (viii) Cheques received from debtors,” 250.000 eS © @) @) © Balances in sales ledger, off sot against purchases ledger * accounts 8500 ‘A debtor, who had been allowed a cash discount of $20 000, ‘had his cheque retumed by the bank marked ‘refor to drawer” 100000 © Prepare 8 Sales Ledger Contyol Account for the month of September. . (6) State the subsidiary books from which ensties (i). (i), GW), OD, | (vil), (vill) and 69 are extracted. State any three purposes of preparing Control Accounts. BI sua zzd0eSECTIONS. Answer aby two questions from this secuos 5, Zimbn, who owns Gwanda Gros : Rath the foliowing deaails of his Sanat econ unlined bonkers 2004 2005 December 31 December 31 x 5 x. Cash inpand 122.000 28.000 Cash ot bank 250.000 Bank overdraft 152.000 Equipment et oost 1.100.000 1100 000 Trade debrors 314 000 278 000 ‘Trade creditors 136.000 190 000 Stock | 2,0 000 256 000 Insurance prepaid 137.000 111000 ‘Accrued rent ‘ 225 000 101 000 “The following information was available: During 2005. Zimbe vithérew $100 000 in cash every month for personal use and goods worth $50 000 every FO months. ao (i) Depreciation on equipment fg ex there of 20% por annum on the watieD Gown value. {iy Bguipment was beustt on) January 2004. You are required 10 prepare: (a) a Staiementof Asi 25 2 31 December 2004. @. (bya Statement of AfTax5 1.31 December 2006 shoving Teas the BE oy ‘profit for the yeas ae | frern over8 R. Taona prepared the following Trial Balance on 31 March 2004; a aa | Sag] $s Deliver vehices | 34000} | ‘Stock: 1 April 2063 25150 | Debtors: } 33750 i | Bank | 21600 | Creditors ! | 27320 \ Purchases | 151.250 \ Sales \ 204.250 | Discount allowed | 4570 | Reres | 14.000 Capital: 1 Apri! 2003 | 160000 | Drawings | 30.000 \ Sundry expenses ; 12500 | I Suspense | 15250 | | Hee | ewe | sui the following errors were discovered and when the necessary amendments hed been mode in the accounts, the Suspense Account belance was. 4 @® — The Sales day book had been undercast by $15 200. (i) A sale of goods to T. Shrub for $1 240 had teen posted to the wrong side . oF, Shrub's account. Gil). Discount allowed to a debtor, S. Forest, correctly entered in the Cash Book as S66 had been posted to her accownt 2s $860. (iv) A rates payment of S2 710 bad been debited twice in the Rates Account. () A purchase of a delivery scooter for $46 000.haé been emered in the Purchases Account. ‘You ate required io: (a) draw up the Suspense Account 6) (b) rewrite the Trial Balance as it would appear after the correction a of the exrors, t {€) stave any ewo errors not revealed by a trial balance. a nan ait1 Magan word a sniatl ivctory. pooks op 31 December 2004. ‘The following tatances were exuscted frezn bes > Siocks (1 January 2004), Raw materials 50 000 Finished goes 7500 Work-in-oro press 30.000 Purchases of raw materialy 505 000 Sales of finished goods 1,900 900 Factory direct wages 130000 Factory overbeads 260 000 Patent fees 70 00) ‘Storks (31 December 2004): ‘ Raw materials 40.000 Finished goods 60.000 Work-in-prowess 20 000 SeUiing and administration 21 000 Carriage outwards 19 000 ‘You are required to prepare: (2) _ the Manufacturing Account forthe year ended 3} December 2004. {io} () the Trading and Profit and Loss Account for the year ended 31 December 2004, BI san neve,ree JUNE Dt IPLES OF ACCOUNTS 7 wi PeeQuestions 2 Entand Wortines ® Qum-gharer fs sees end wages for aa employed inthe rppariasina of sds Som Tesale increases the value of pureiises, dhercfore ‘porchases is. __ Trading Accotmt, Gi) Cheque paid to a creditor omitted reduces the creditors’ balance and iacrentes the overdraft. an Remember thar provisions For disoounts allowed to debtors ia done afisr deducting provisions: for bad debts from the debtors’ figure, Le. $76 000 - $6 000 = $70.09, ‘Therefore provisions for discounts allowed 7,00 x $76.00 = 32.508. 4x) Depresiation on motor vane = je $120,000 BRA80, Depreciation on fixtures end Sings = $20,029, () Rates and rent = $22 160 - 54 200= $27,960, 3.) GaRswhee Dretine. ond ReoSitond Laas Aceesarts for the Yeo ded SL Destetane 2004 |S 3 ys Sales oo 4 sa5000 | { less Returns Inwards : | 000 | | ‘Tummover : i F 303000 Nts Cost of Sales - ot i | { Opening Stock i ase | i Bd Purchacs +. | 360000 { \ add Carriage inwards | ¥7700 . \ i paid Re-packaging wages ; 13810 | 4 1 Des | : eas rotams outwards | 9000 | i : net purchases \ Lo as2sio | . . ‘ ; 2BNO | i Jags Closing stock ' | BO | oo | Gross Profit 4 i 3759 | 24d Discount received i i 3100 ‘Decresse in Provision for bad debts { { | | é i 1 152790 legs expenses ; t } Ren and rates (22 160~ 4 200 yr9eo. | ' Interest on 07 - 2 4450 t Discount allowed cook, + $9000 ft : _ Sundry expenses } { 63@0- f t Provision for discounts allowed : i 32 | | Salaries and wages i ago | 4 Depreciation on: Motor vans : | s000 7 Fixtures and fitings 19.00 ‘ wiase + ‘Net Profit i AeNew) G. Rashes Balance Sheet as at 31 December 2004 ® Flaod Assets 1 Son Dapaies| s ‘ i t Motor vans 380900 | 36 ‘ Fioaures and {inings 120 an i 2 36.900 ‘Current Assets i \ Swek i 48900 Sat bm (76 000-6 906- 3 $00) : 1 66500 & Prepud rates \ 2200 Peny-cash » \ esse 4 136.450 | ‘Less Current Liabilities i ' Sundry creditors (57 800-8 700) 49 100 + Bank overdraft (25 200~ 87 00)!__37 96 | j | Financed by: i Capital wacom Bde Net Profit Vase | ‘ | 3ezaso less Drawings i “68.000 i i Question 2 (a) ” Bins end Workings @* Remember tha debtors normally carry debt: balances and the inns wales is a clear guide that T. ‘Thodhlanm is a debtor's account Gi) Wirting the whole question before writing the answer will not eam you mak just write the answers. Gi) Nurnbsring is very inmportant: therefore om such quesuons you aro encouraged 16 follow the order of numibsring on the question ‘Question 2 (b) Students shouid slovays remember tha the main resson for drawing up am expense accoure in the Aetiger is to calculate the correct expmnse fos tha item for thal financial year to be transferred 10 ‘he profit and loss accours. Failure 1a shew the correct tansfer to profit and loss account is 8 clear misimerprevation of the quesues. oy Paying specie’ aitention 1o dues means showing ihe year, the month and the day when each ‘ransaction took piace on both sides of the accoum but in this account, the year can be written 08 Dect j Dec29 k since all the transactions took place ir the same vear and'séroe month,10 Sivéanw aun show: the amount o% moto? doe! vanaf ed we fhe profit and Joss acenumt. ernemoeniny thin tr cloning. wnnefe 1 Mr9Fie and lous nesouny Hi nuough the credit aige and tha: ior ¢ gin u dane through the debit side 2) GT. Thodians owes N. Nluwane $2 7 w+ Discount abewed Cash book: Prompt pavtisns Depit noie/Inv (oily Returns tnwasds Sales Reterns Journal proper Journsi’General Jounal fix} Soles Ledyer’Debtors Leager (x) Current assets, D, Desert's Ledger seo ree 2x Oustions ‘Bits. @.. sap a ease oer vino ae TT @ yy ox oman ot mie cf in EDO WOR PST . ny sme pn ee oe p « ‘ roy eos eos ge nen co fe BONS credited in the rales ledge : - p Gu) A debtor whose, a ay pet lr awe ATS of debtors. " Cpe ntiay ta mio PTT ee nc ss coset eset STS@ Questions Bin @ Suman of ain wa31Doener 204 wil hp ou clon he ens HS in ‘boginning, @ Teva of inet oer 205 icp em as te mee Workinas @ ‘Drawings are 31 500 000 ($1 200 000 + $200 000). “ @ DS, on ox aqupmrat te al the xin of 20% per exam. on the redncing betance method, . ‘Therefore by December 2004 — hyo = $1 100-000 =. 8 . December 2005 = "ise x G61 100 000 - ee ~ sure oen ‘S. Zinha : Suatoment of Affairs at 31 Deesmiber 20047 Stateenint of Affair as ot 31 December 2005 oa @ ‘The above journal entries are a guide ss to what shouls be debited end credited to he suspense, se tnt maorhow some ofthe above accounts should be corrected when ro-walting the trial . = Same =e is of} therefore-do not affect the agreement of the balence .oo Extent ams cnt tt le eSpace overcast, 540 000. You simply transfer the $40 000 from Purchases Acooumt to Delivery ‘Scooter Aocount. 6 @® . 7004 Mann 31 | Seles (pb) -B. Teoma ; Trial Batance as at 31 March 200¢ ‘pant cnyprr ‘Delivery vebicles (114.000+40000) ~~ 154.000 + Stock at 1. April 2003 35 150 “Debtors (3 750 +2,480+ 180) 36410 . (27320 ee. 21 600 : ‘Purchasse (153 250 ~ 40 000) 111250 : . ‘Sales (204 250+ 15 200) orn nl Slacoreet aloes asm. | Rates (14 000-2710 uso |. ‘Capital 1 April 2003 . +} 166.000 + Daewine whee "30000 |, ‘Sundry expenses 32500 (© _ Errors of commission | 406771 | aneTD °_ 2, Errors of Principle, compensating errors ‘Exrors of original entry . . Errors of omission . . _” Commplets reyersal of extries . - : 7 @ «Tae main objective of a ng account ia 10 establish the cost of goods produced of cost oC finished goods in @ given particular trading period. Therefore the total cost of al the ‘anufichuring Components must be inchided in this account and added together. The’ ‘menfrenaring account is an equation made up of the following components: ‘= Raw muterias, 1a. cost of raw material consumed is the production of goods PLUS ‘Direst Costs PLUS overhead expences, Le. all the INDIRECT mamutnetusing expenses————see PLUS opaninig stéck of work-in-progress MINUS closing stock of work-in-progre: EQUALS 10121 cos: of manufactured goods Gg)" Note that work-in-progress, ie. adjustrisents for the uncompleted goods which have bean’ paruarly manufacuired, the aisurption is that opening stock of work-in-progress will be completed 1n the cusrem year chat ts w> iv miuat be added and the partierly: completed goods at the ead will be compicizd im the followine year thavis why'itis deducted. (Gi, Nove-than the patent fees ere a diredk cost witioh is 9 component ef the prime cost. . fix). Carrisge outwards is 2 sellicg expease which must be included in the profit and loss account, TAR ‘Momuftsrurins Account of Y_ Hasan fr the wear ended 31 Deoesaer. 2004 ‘Opening Stock of raw imaterials > 50600 Add Purchases of yaw materials: “805.000 : Soh. 558 000 ‘ass Closing st0ci of raw materials 8.008 Cort of raw materials consmed * 24d Direct wages. Patent fee: Prime Con e addi “Factory overheads add Wortin progress 1 Jan 2008) eS Workin prossess (31 Deosmber2009), ‘Total Cost of Production cht” {@)) | “Trading Account of 1: Hassan for the year ended 31 December 2004 a re terete t . $ 3 Sales of finished woods» 3 seeisiec ‘Less Cost of salt: gers Opening iach of finished goods 4 » Aad Cost of Production ern Closing stock: af finished epogs > insides ES ae Yost |. Expentes ‘ © t ‘Selling and administration’, © " & Carriage quvards : Na pou {40.090} j©ZIMSEC 2012 All rights reserved in port af td pibicatoniaip be reprodied, nored a enterce sca ‘or transmitted in ay form or by anja, cero, ncaa recording of other ‘without prior permission of the copyright oviner.— . ZIMBABWE SCHOOL EXAMINATIONS COUNCHL ‘General Certificate of Education Ordinary Level PRINCIPLES OF ACCOUNTS . TULA PAPER I JUNE 2086 SESSION BS hours: ‘Aaitional marine: ‘Answer paper : ‘Multhcoturen accounting paper (8 sets) ‘ TIME 3 hours INSTRUCTIONS TO CANDIDATES ‘Write your same, Cente ritinter and candidate sumber in the spaces provided onthe ansiver ; ‘paper. ‘Answer all questions in Section A and any two questions from Section B. ‘Write your answers on the separate answer paper provided. ‘Start each question on a separate page. Tan answer extends beyond one sheet, all the sheets for that question must be kext togethes. ‘All calenlafions must be shown adjacent to the answer. : ‘Calenlators must not be used. If you use more than one sheet of paper, festen the sheets together. INFORMATION FOR CANDIDATES ‘The number of marks is given in brackets [ ] at the end.of cach question ora ueston This question paper consists of 6 printed pages. . Copyright: Zinbabwe Schoot Examinations Council, 52006. Lezines ec 12008 urn ov‘2 Section A ‘Answer all questions in this section. Rufaro Social Club had the following assets and liabilities on 1 January 2005: -$ Subseriptions paid in advance 8 000 Subscriptions due but unpaid 12000 Stock of stationery 2000 Clubhouse at cost 2.000 000 Furniture at east 150 000 Stock of refreshments 380 000 Creditors for refreshment supplics a0 vi Prepaid electriaity ‘The following information relates to the Club’s affairs for the year ended 31 December 2005; Receipts and Payments Accounts for the year ended 31 December 2005 RECEIPTS © . $s PAYMENTS s Balance, 1 January 2005 440.000 | Repainting of clubhouse 300 000 Subscriptions 304000 | Stationery 90 000 sales of refreshments 950000 |’ Purchase of refreshements 750 000 Rafiletickets “- | 200.000 | Secretary expenses 200 000 Donations 25000 } Bleotriviny 110 000 Purchase of second hand furniture (1 October 2003) 100 000 ‘Travelling expenses 210 000 Raffle expenses 70 000 Balance (31 December 2003) 649 000 2.479000 . 2.479 000 —— e206,(6) State the account to be debited nnd the one to be credited in each of the ‘above transactions (i) to (v). Munashe and Nkosi are equal partners. Their balance sheet was as follows: Balance Sheet‘as at 31 December 2005 : s s Capitals: Munashe 150 000 Furniture 40 000 ‘Nkosi 150 000 Machine 70 900 Loan: United Bank 50.000 Motor vans 190000: © Creditors ; _ 4500 Stock. 15-000 Acorued rent . 500 Debtors 10 000 Bank © 30.000 - 355 000 SR On 1 January 2006, they decided to admit Patel, their Finance Manager, asa partuer on the following conditions: - @ Pa singin tie etre vad a $6600 sd "$24 000 cash. Gi) Patel was'to be paid en annual sly of $50 000. Gil) Goodwill was valued at $30 000 and would remain in the books after admitting Patel. Gr) ‘Profits and Losses are to be shared amongst Munashe, Nkosi oof Patel in the ratio 2: 2: 1 respectively. (w) The assets were to-bo rovalued as follows: Le 3 : ‘Motor vans 200 000 _ Machine - 67000 5 . Stock 14.000 You are required to prepare: (2) Capital Accounts for the three partners. (b) An opening balance sheet for the new partnership nian s2006 ip as,at 1 January 2006. (t frF. Muleva is the propristor of a bookshop selling books, periodi : children’s games und toys. Her business is dividen into two depareneacs ee 5: Department A: sells books. periodicals and newspapers. Department B: sells games and wys. The following information was excracted from her books on 30 June 2006, Stocks on 1 January 2006: 200 books at $250 each 50 periodicals’ ai $100 each 50 newspapers at $50 cach 25 games at $1000 each 10 toys at £500 each. ? Purchases up to 30 June 2006: Books. periodicals and newspapers $155 000 Games and toys $250 000 Sales up 10 30 June 2006: Books. periodicals and newspaviers $360000 ° Games and toys $450 00. - Stocks on 30 June 2 Books, periodicals and newspapers S61 000 Games and toys $75 000 + The following additional information is availabie:. @ Carriage Inwards amounted to $30 000. This should be shaved eee departments A and B ir the ratio of 1:5 respectively. . a Warehouse rent inaurred for the six months to 30 June 2006 totalled $101 250, Apportion the rent to tar econ on, ya A FAO HE ‘You are required to, prepare the Departmental Trading ‘Avcount for the'twe d¢partments, A snd B.4a columnar form for the six months ending 30 Sune 2006, showing olearly the gross profit or loas for ench department. {20y (b} State two characteristics ofa preference share. ) P} W241 32008 * push ove!6 SECTION B Answer any two questions from this section 3rown Limited prepares its Balance Sheet on 31 December each year, : following information is available in its books: nors on 3} December § 2006 61 200 2601 67 800 +2002 63 600 on for bad Gebis is maintained at 5% of debtors. uired to: prepare the Provision for Bad Debis Account-for the years 2001 and 2002. 9) show the Balance Sheet (extracts) as at 31 December 2001 and 2002, ‘ PR} Pay special attention to dates and detail following transactions relate to the business of B. Banda, a stationery t : Stock of unused stationery "4000 I 2 Bought stationery by cheque 6000 5 Bought stationery on credit from T. Stationers 3.000 Bt Stock of unused stationery : 3900 we and bglance the Stationery Account, paying particular attention ‘esand detail. . 13]7 D, Dingani operates a business as a retailer. ‘During the year ended 31 March 2005, the business made a gross probit of 333%0n ‘a turnover of $930 000. ‘The vet profit wes 15% of turnover. Her rate of stock turnover was 10 times. The opening stook was $60,000. : Caloulate for the year (2) «the gross profit. 2 {b) cost of sales. a (©) __ the closing stock. By (a) ~ purchases. (21 ape eI (f)- the mark-up. By “The following is T. Tatenda’s Balance Sheet as at 31 March 2004 LIABLLITIES: . ASSETS s Ss Capital 50000 #0000 Long-term Joun 70 000 20600 (Creditors 10 000 15.000 Interest due on loan 5000 g0c0 . Prepaid rates 2.000 Bank " 10000 135 000 135 000 —_—_— . — (a), You are required to caleulote, showing clearly your working, Tatenda's working capital at 31 March 2004, (oy State the effect. if any, oF the working capital on each of the following: aamcactions. Write down inerease, decrease oF 20 ‘effect as your answer. (© New equipment was bousvt (i) Tetenda bought stack on oredit for SS 500, srw 73008 prom vy cheque for £16 000,Gil) @) ) wi) (wit (viii) (x ® Bad debts of $1 200 were written off. A further long-term Joan of $15 000 was obtained end the funds put into the bank account. ‘The loan interest in the Balanoe Sheet wus paid off. Stock at book value of $6 000 was sold for $9 000 cash. Trade ereditors were paid $3 500 by cheque. ‘Tatenda sold her private car and paid the proceeds of $12 500 into the business bank account, A former customer, whose debt of $1 500 had been written off in 2003, - unexpectedly pald the amount he owed. Equipment was depreciated by $2000. ti}Py ZIMBABWE SCHOOL EXAMI ¥ SCHOOL EXAMINATIONS COUNCIL POSSIBLE ANSWERS . JUNE 2006 _ 4 vee ; PRINCIPLES OF ACCOUNTS -FLL2/LPRINCIPLES OF ACCOUNTS yaazya TUNE 2000 Hints and Workinas ‘This question Is testing your knowledge on the preparation of Final Accounts for non- Profit making organizations. Remember that the principles applied on single entry to Geduce missing figures also apply on this topic. Therefore a lot of calculations must be done before answering the question, e.g. (wt) ‘Subscriptions Account § $ Subscriptions due b/d 12 000 | Subscriptions prepaid b/d 8.000 Income and expenditure - 824 000 | Bank 804 000 subscriptions prepaid c/d 16.000 | Subscriptions due c/d 49.000 2. 001 852.000 Subscriptions due b/d 40 000 | Subscriptions prepaid b/d 16 000 (w2) Creditors for refreshments Account $_ ~ . $ Bank 750 600 | Balance b/d : 200 000 Balance c/d 150.000 | Purchases * . 700.000 ‘ 300 600 Balance b/d 150 000 (ws) Stationery Account $ $.- Balance b/d 2.000 | Income and expenditure 92.000 Bank 30.900 22.000 22.000 (wa) Fumiture 12 x 150000 - = $15.00 209 “+ 10 408 x "100008 «=x 3 =- $2500 - wz.NB. Take note of the following terms: 00¢Sumpius- Income ovenexpanditure.or excess expenditu f Inogme I Net Profit ot Net Loss. me nel nna ‘Accumulated Fund instead of Capital. (WS) Prof on revaluation of Club House 3 000 000 ~ 2,000"000 = 1,000 000° Question 2 (a) ~ Calculation of Accumulated Fund Assets $ Subscriptions due . 12.000 Stock of stationery : ~2000-, ‘Clubhouse Fumiture ‘Stock of refreshments 380 000 Prepaid electricity 10 000 Bank 2994000 Less: Liabilities sales Of Refreshments eat Gs Of Sees OF Reesherts Opening Ste Purchases 0 000 + 150000- 200000) * = Less: Closing Stock Gross Profit(a a, | . . t. : ' 224 000 | Subscription (Wp . 250 000 _ Refreshment Trading Proftt (b) 130 000 | ~ Raffle tickets (200 000 - 70 000) 85.000 j Beet 3389 000 : ‘Lese: Expenditure: | Bopainng of Cuibhause 390.000 {Se 92.000 j Becnsry a0 O04 30.000) ooo oe } ry Expences ge '00 5 Froveting Expenses 210 000 ' Depreciation: | Office Fuminure wa) arse gee j Excess Income Over Expenditure : SB9.290 | > Balenge Sheet as At 34 December 2005 i 2005 ‘ } Foed Assis * AtCest Less: Depreciation § Net Book Valu Gubhouse 3.000 600 . 3.006 00: 250.000 17.500 2250 3.259.000 42500 3 232 501 480 000, 40.000 $49 000 1169 001 4403 50 2.786 00 44950 1.990 90 4235 501 150 000 : 4.403 SOQuestion 2 Fitatone on copitel end ravenus axpanditure are very poowiar with examiners. Capital expenditure refers to expenditure on ‘capital ‘goods’ or ‘fixed assets’. Such assets are ‘used by the business for 2 period of more than one year. Revenue expenditure, on the se oy ds are Dusiness Tunning expenses, Le. they are recurrent in nature, 09. reged ond salanes, rent and rates, insurance, etc, Such expenses are included # the Trading 26 promt and Loss Account, umike capital tems oF fixed assets which appear 0 me Balance Sheet. With this background of these terms, you should be able to answer the question. Question 2(2) Capital expenditure Is spending money on the acquisition of fixed asset ct adding value to fixed assets wherees revenue expenditure is spending money on the day © day running expenses of the business. 2{b) @ Revenue i) Gepital Gi) Capirat (Ww) Revenue {v) Revenue 2ic) = . () Packaging materials Ndonga Limited @) Machinery Bank (it) Import duty on machinery Bank (iv) Carriage on purchases Cash (Motor expenses/fust Mpopama Motors Question 3 Hints and Workings: Hints Aton requires students to record goodwill on the admission of a new partner. Remember that goodwill of $30. 000 is only shared by the ‘old partners, Munashe and Rememibey {hel Pomtio of 3/2. Patel as 2 new partner Gkd nok connate anytning In Ne cil co wil not get e stiere. The sare applies to the prov on revaluation; it willl only be shared by Munashe end Nkosl.rrr | In the new balance sheet, take note of the following: «| Goodwill should he shown as one of the assets since it would remain in the books, assets révalued should be recorded at their new revalued figures. Balances brought down on 1 January 2006 represent the capital figures for the 3 partners, ixc., $468 000 for Munaehe and Nkosi, then $84 000 for Patel. + Fumiture increased by $60 000, brought in by Patel * Bank baiance also increased by $24 000 brought by Patel. © Capital accounts shoula be prepared In columnor farm. (w3) Revaluation Account ~ $ 3 Assets which decreased in value: \ Assets which increased in value: Machine 3.000 | Motor Vans 10.000 ‘Stock 1 000 | Profits on Revaluation: | ‘Munashe 3,000 | Nasi 3.000 | 20.000; (w2) ‘Share of goodwili: Munashe Ve of $30 000 15 Nkosi ¥2 of $30 000 te po] ‘Question 2 (a) Gapital Accounts : 7 Pt Monsshe ——Wkoai Panel ‘2005 | 00s s s $ Dec } Oe 31, Boorce cra sen.00 seno0e scene | Karen va 150000 150 000 pana } Proft'on Revaluation 3.000 je 2 am | Furniture {i 60.000 468.000 36R000 82000} Tames eco 258 000 [aot moncon SS SE weab) Equity and Liabilities $ $ Capital: Munashe 168 000 Nkos! 168 000 Patel * 24.000 420 000 Loan: United Bank "50.900 470 000 Current Liabilities Creditors 4500 Accrued rent . 500 5.000 475 200 Fixed Asssts Furniture (40 000 + 60 000) 100 000 Machinery 67 000 Motor Vans 200 000 ‘Goodwill 30.200 397 000 Current Assets Stock _ 14.000 Debtors 10 000 Bank (30 000 + 24 000) . 54.000 72.000 475 900 Question 4 Hints “This question Is designed to test your skills in preparing departmental trading accounts. In this question, remember is the departmental trading account only required. Notice that the warehouse rent Increases the value of goods to be soid since is it Incurred before the goods are sold, The objective is, Of course, to ascertain the gross proftt for ‘ech of the departments A and B, Remember to prepare the departmental account in ese $23 000,| Warehouse Rent = $101 250 = $45 000 = $56 250 | ||| Opening stocks: i Department A: 200 hooks at $350 each = $50,000 Hi 50 periodicals at $100 each = § 5000 | SO newspapers at $50each = == $2500 | me $57 500 Department B: 25 games at $1000 each = $25 000 10 toys at $500 each = £5000 $30,000 Opening Stack 57 500 Purchases 30 000 155 000 250 900 Carriage Inwerds 5.000 25.000 ‘Warehouse Rent 45.000 36.250 | 262500 361 250 losing Stock 1.000 20.000 - 201 500 291.250 Gross Profit 158 500 458 750 4(b) Preference Shares @ Preference share dividend must be paid whether the business has eamed a profit or not. (ii) Have a fixed rate of dividend. Gil) ‘The preference shareholders have no voting rights.“rs paley on provision for bad debts 16 5% of the book Sse "a al on en es wh nen eS TESS SETS$1 So ree $2006. 4000 {May 32. Profit and Loss Account = * 42000 6000 .) Balgnce cfa ~ - “3000 a = 33"/3 of $930 000 Oa? * or : Prom Mex3930000, xi ‘cm L L = 8930.00 - $310 000 . . f > 70° 2 i ‘ .Sc) Of Sat « (Opening Sock 7 Caahg SSS 2 : $620 000x2 ‘seca - w $1 240 G00 = Ace ony +6 $1 240 000 = $609 090 + 190¢5 $F Zap G0 $600.00 = ines eer 100. - 1ocs $64 000 = os , = Ghosing Stock Sta) . = $620 000 + $64 000 - $60 000 a. = $624 00 S{e) Expenses Mark-up Or Margin 3 Therefe-s Mark-up Gross Profit — Net Profit $310 000 ~ (15% of $930 000) $310 000 - $139 000 $120 500 x a9 Cost of Sales » x * 100 $620 000 soi () ‘ 4 Hints . Remember the definition of working capital, that is, current assets less current abllites. ‘This Question requires you to determine if each transaction affects a current asset or Current liability or both and whether working capital would increase or decrease as a result of the tansaction. Steps Z 9 For each transaction clacide the two accounts invalved. - il) Next, find out # the balance in each of the two accounts would increase or decrease as 3 result of the transaction, Gi). If the account represents a current asset, an Increase In balance is likely to increase working capital while a decrease in balance would reduce it. : Gv) _ Similarly, if an account is 8 current liability, an increase in balance means less working capital and vice versa. () Effect of both accounts, however, has to be worked out, e.g. “withdrew cash from bank or office use”. Cash balance increases while bank balance is reguced by the same amount. As both cash and bank are current assets, the net - effect is that there is no change in working capital, Question 7 (a) Calculation of working capital. Current assets s Stock 15 000 Debtors 5000 Bank 10000 Prepaid rates =2.000 35.000 Less: Current Liabilities Creditors 10 000 . - fr Interest due $.000__15 900 Working Capital@ Gail) ) @) wi) (vii) (vit) oe &) Decrease No effect Decrease Increase No effect Increase No effect Increase Increase No effectZIMBABWE SCHOOL EXAMINATIONS COUNCIL General Certificate of Education Ordinary Level _ [| PRINCIPLES OF ACCOUNTS TAZA t PAPER 1 . \ NOVEMBER 2006 SESSION hours “er per i | i ' i \ i | Mot-column accounting paper (8 sheets) : u __/ TIME Shows | INSTRUCTIONS TO CANDIDATES ‘Answer al questions in Section A and any twa questions from Section B. ‘Write your answers on the separate answer paper provided. Start each question on a separate page, |. Tfan answer extends beyond one sheet, all the sheets for that question must be kept together. ) Allcatculetions must be shown adjacent to the answer. | Calculators must not be used. |, yous more than one sheet of paper, fasten the shots together. | INFORMATION FOR CANDIDATES ; | i 4 . - : P | Write your name, Centre number and candidate number in the spaces provided on the answer | t + | i { i | nei quemlan paper onbolais af? printed pager ohd T Blank Pager Copan: Rimbsbwa Rehicl Examinations Coanell, N2GO6, exon na008 [oaretavor ; i f | | i | The number of marks ie given in brackets [ ] at the end of each question or part question, | | i } |2 * Section A Answer all questions in this section, . F. Sithole is in business operating a grocéry shop. The following tial batence was » sted from her books on 31 December 2008. Debit > Credit $ 5 * § Purchases and sales vie oe 96 200 165.000 ‘Capital 119 420 Drawings 9200 . Carriage inwards _ 5.400 Stock at 1 January 2004 14300 Buildings at cost 320000 Office furniture at cost 23200 Provision for depreciation Office furniture on 1 January 2004 2320 Retum inwards and outwards 2600 3.000 Loan from East Bank . {payable on 31 December 2007) . 24 000 Provision for bad debts on i January 2004 . #0 Insurance, 900 Stationery * 1880 Debtors and creditors. . 13 600 9020 Wages . 20600 Electricity 6640 Discounts allowed and received 630 450 Cash at bank —hieo ier 228.210 25.519 Additional information: : a Stock on 31 December 2004 was valued at $12 600, e Soa ori $6 500 were taken by the owner for her own use, ‘No entry Rad a. ‘been made in the books. Gay Stock of stationery on 31 December 2004 was $880, Gv) __Trverest on the bankeloan is athe rate of 5 per cent per anaum @), “Insurance prepeid on 31 December 2004 was $180, + 7am vanes,(vi) wil) iti) 3 furniture ia to be ofan sh int te 0 ect ae "The provision’ for bad debts is to be increased to $960, ‘One quarter of the wages was for staff employed in meking extensions to the ‘You are required to prepare: @) ‘the ‘Trading and Prot and Loss Account for the year encod 31 December 2004, oe 03) () the Balance Sheet as at 31 December 2004. pay ‘The following information was extracted from the books of Chiedza Farmers Chub: 2003 2004 Sune 1 May 31 . 5 5 ‘Subscriptions in arrears 540° 4800 ‘Subscriptions in advance : 3.750 + 4250 Stocks of stationery ’ : : 120° 900 . - 1.100 Blectricity owing “The toilowing transactions Were underiaken during ths year ending 34 May 2004. (! Subscriptions pal by chaque amounted to $1 000. (, “Supsceiptions pofd in’ cask totalled $3 000. . Gi) Paid 86 000 for stationery by cheque Gv) Paid $3.400 for electricity in cash. ‘You are requised to prepare: (a) the Subscriptions Account. ia (b) © the Stationery Account. is - the Electricity Account. . _ © Pay special attention to dates and. detail. Baance the accounts ox 33 May 2004 nrean6 1 eran ever