Exam ID 322
Qualifications:
Level 3 Certificate in Bookkeeping QCF (Accreditation number: 500/8479/3)
Level 3 Certificate in Manual Bookkeeping QCF (Accreditation number: 500/9260/1)
Level 3 Certificate in Applied Bookkeeping QCF (Accreditation number: 500/9262/5)
Examination: June 2012
Units:
Prepare financial statements for a partnership – Y601/0742
Prepare financial statements for a sole trader – A601/0734
PAPER 2
MODEL ANSWERS
Suite 5, 20 Churchill Square, Kings Hill, West Malling, Kent, ME19 4YU
Tel: 0844 330 3527, Fax: 0844 330 3514, Email: [email protected]
IAB L3 Cert (QCF)/ June 2012 Mod Ans (P2)
Page
1
SECTION A
QUESTION ONE
Ryan and Vera Trading in Partnership
Trading and Profit and Loss Account – Answer Task A
Ryan and Vera
Trading and Profit and Loss Account for the Year Ended 31 May 2012
£ £ £
Sales 1/2 812,540
Less Cost of Goods Sold
Opening stock 1/2 65,280
Add Purchases 1/2 626,130
Add Carriage inwards 1/2 2,800
694,210
Less Closing stock 1/2 64,200
Cost of Sales 1 630,010
Gross profit 1 182,530
Less Expenses
Heat and light (£3,240 + £1,020) 1 4,260
Wages 1/2 66,220
Vehicle expenses 1/2 7,450
Insurances 1/2 1,400
Rates (£25,200 - £11,000) 1/2 14,200
Operating expenses (£16,400 +£1,600 - £1,200) 1 16,800
Depreciation(£500 + £9,600) 1 10,100
120,430
Net profit 1 62,100
10½ Marks
IAB L3 Cert (QCF)/ June 2012 Mod Ans (P2)
Page
2
Ryan and Vera Trading in Partnership
Profit and Loss Appropriation Account – Answer Task B
Ryan and Vera
Profit and Loss Appropriation Account for the Year Ended 31 May 2012
£ £
Net profit 1/2 62,100
Add Interest on drawings: Ryan 1/2 1,000
Vera 1/2 600
1,600
63,700
Less Interest on capital: Ryan 1 8,000
Vera 1 6,000
14,000
49,700
Less Share of profits: Ryan 1 29,820
Vera 1 19,880
49,700
-
5½ Marks
IAB L3 Cert (QCF)/ June 2012 Mod Ans (P2)
Page
3
Ryan and Vera Trading in Partnership
Current Accounts – Answer Task C
DR Current Accounts CR
2012 Details Ryan £
Vera £
2012 Details Ryan £
Vera £
31 May Balance b/f ¼ 1,250 31 May Balance b/f ¼ 1,600
31 May Interest on drawings
¼ 1,000 ¼ 600 31 May Interest on capital
¼ 8,000 ¼ 6,000
31 May Drawings ¼ 32,000 ¼ 24,000 31 May Share of profit ¼ 29,820 ¼ 19,880
31 May Balance c/d ½ 3,570 ½ 2,880
37,820 27,480 37,820 27,480
31 May Balance b/d ¼ 3,570 ¼ 2,880
4 Marks
IAB L3 Cert (QCF)/ June 2012 Mod Ans (P2)
Page
4
Ryan and Vera Trading in Partnership
Balance Sheet - Answer Task D
Ryan and Vera Balance Sheet as at 31 May 2012
£ £ £
Fixed Assets Cost Less Dep’n to
Date
NBV
Premises ¼ 250,000 - ¼ 250,000
Fixtures and fittings ¼ 5,000 ½ 2,000 ¼ 3,000
Vehicles ¼ 75,000 ½ 36,600 ¼ 38,400
330,000 38,600 ½ 291,400
Current Assets
Stock ½ 64,200
Trade debtors ½ 82,800
Prepaid expenses (£11,000 + £1,200) ½ 12,200
Bank ½ 8,200
167,400
Less Current Liabilities
Trade creditors ½ 99,730
Accrued expenses (£1,020 +£1,600) ½ 2,620
102,350
Working capital ½ 65,050
1 356,450
Financed By:
Capital – Ryan ½ 200,000
Add Current account ¼ 3,570
203,570
Capital – Vera ½ 150,000
Add Current account ¼ 2,880
152,880
1 356,450
10 Marks
Total This Question = 30 Marks
IAB L3 Cert (QCF)/ June 2012 Mod Ans (P2)
Page
5
QUESTION TWO
Ava and Boris Trading in Partnership
Capital Accounts – Answer Task A
DR Capital Accounts CR
2011 Details Ava £
Boris £
2011 Details Ava £
Boris £
1 June Goodwill adjm’t 3 4,000 31 May Balance b/f 1 60,000 1 130,000
1 June Balance c/d 1 64,000 1 126,000 1 June Goodwill adjm’t 3 4,000
¼ 64,000 ¼ 130,000 ¼ 64,000 ¼ 130,000
1 June Balance b/d ½ 64,000 ½ 126,000
12 Marks
Workings – Goodwill Adjustment
Partners Goodwill Creation
Goodwill Deletion
Net Adjustment
£ £ £
Ava 20,000 (CR) 16,000 (DR) 4,000 (CR)
Boris 20,000 (CR) 24,000 (DR) 4,000 (DR)
40,000 (CR) 40,000 (DR) -
IAB L3 Cert (QCF)/ June 2012 Mod Ans (P2)
Page
6
Ava and Boris Trading in Partnership
Profit and Loss Appropriation Account – Answer Task B
Ava and Boris
Profit and Loss Appropriation Account
for the Year Ended 31 May 2012
£ £
Net profit 1 54,800
Less Interest on capital: Ava 1 1,920
Boris 1 3,780
5,700
49,100
Less Salary: Boris 1 5,000
44,100
Less Share of profit: Ava 2 17,640
Boris 2 26,460
44,100
-
8 Marks
IAB L3 Cert (QCF)/ June 2012 Mod Ans (P2)
Page
7
Ava and Boris Trading in Partnership
Current Accounts - Answer Task C
DR Current Accounts CR
2012 Details Ava £
Boris £
2012 Details Ava £
Boris £
31 May Drawings ½ 18,000 ½ 32,000 31 May Balance b/f ½ 1,500 ½ 1,200
31 May Balance c/d 1½ 3,060 1½ 4,440 31 May Interest on capital
½ 1,920 ½ 3,780
31 May Salary ½ 5,000
31 May Share of profit ½ 17,640 ½ 26,460
½ 21,060 ½ 36,440 ½ 21,060 ½ 36,440
560 31 May Balance b/d ¼ 3,060 ¼ 4,440
10 Marks
Total This Question = 30 Marks
Total This Unit = 60 Marks
IAB L3 Cert (QCF)/ June 2012 Mod Ans (P2)
Page
8
SECTION B
QUESTION ONE
Catering Supplies
Trial Balance – Answer Task A
Catering Supplies Trial Balance as at 31 May 2012
DR £
CR £
Premises (cost) 1/4 100,000
Equipment (cost) 1/4 25,000
Vehicles (cost) 1/4 40,000
Capital 1/4 155,000
Drawings 1/4 22,000
Provision for depreciation - Equipment 1/4 5,000
- Vehicles 1/4 16,000
Stock 31 May 2011 1/4 16,240
Sales 1/4 530,360
Purchases 1/4 438,800
Wages and salaries 1/4 35,200
Rates 1/4 22,800
Vehicle expenses 1/4 6,100
Heat and light 1/4 1,820
Bad debts 1/4 600
General operating expenses 1/4 6,400
Trade debtors 1/4 21,260
Trade creditors 1/4 26,510
Bank 1/4 2,160
Value added tax (VAT) 1/4 2,290
Suspense 1/2 1,100
Totals 1 737,320 1 737,320
7½ Marks
IAB L3 Cert (QCF)/ June 2012 Mod Ans (P2)
Page
9
Catering Supplies
Suspense Account – Answer Tasks B and D
DR Suspense Account CR 2012 Details £ 2012 Details £
31 May 31 May
Difference in books 1/2 Purchases 1/2
1,100 900
31 May Drawings 1/2 2,000
2,000 2,000
1½ Marks
Journal – Answer Task C
Journal
2012 Details DR
£
CR
£
31 May Drawings 1/4 ½ 2,000
Suspense 1/4 ½ 2,000
Correction of error, drawings not posted to ledger account 1/4
31 May Suspense 1/4 ½ 900
Purchases 1/4 ½ 900
Correction of error, purchases account incorrectly balanced off 1/4
3½ Marks
IAB L3 Cert (QCF)/ June 2012 Mod Ans (P2)
Page
10
Catering Supplies
Extended Trial Balance – Answers Tasks E, F and G
Catering Supplies – EXTENDED TRIAL BALANCE AS AT 31 May 2012
Trial Balance Adjustments Profit & Loss Balance Sheet
Ledger Account DR £
CR £
DR £
CR £
DR £
CR £
DR £
CR £
Premises (cost) 100,000 ¼,100,000
Equipment (cost)l 25,000 ¼ 25,000
Vehicles (cost) 40,000 ¼ 40,000
Capital 155,000 ¼155,000
Drawings 1 24,000 ¼ 24,000
Prov’n dep’n - Equipment 5,000 ¼ 2,500 ½ 7,500
- Vehicles 16,000 ¼ 8,000 ½ 24,000
Stock 31 May 2011 16,240 ¼ 16,240
Sales 530,360 ¼ 530,360
Purchases 1 437,900 ¼ 437,900
Wages and salaries 35,200 ¼ 35,200
Rates 22,800 ¼12,000 ½ 10,800
Vehicle expenses 6,100 ¼ 6,100
Heat and light 1,820 ¼ 600 ½ 2,420
Bad debts 600 ¼ 760 ¼ 1,360
General operating exp’s 6,400 ¼ 6,400
Trade debtors 21,260 ¼ 760 ½ 20,500
Trade creditors 26,510 ¼ 26,510
Bank 2,160 ¼ 2,160
Value added tax (VAT) 2,290 ½ 2,290
Totals ½ 737,320 ½ 737,320 - - - - - -
Closing stock – Profit & loss
¼18,480 ¼ 18,480
Closing stock – Balance Sheet
¼18,480 ¼ 18,480
Prepayment adjustment ¼12,000 ¼ 12,000
Accruals adjustment ¼ 600 ¼ 600
Depreciation expense ¼10,500 ¼ 10,500
Net profit ½ 21,920 ½ 21,920
Totals ¼42,430 ¼42,430 ½ 548,840 ½ 548,840 ½ 239,980 ½ 239,980
17 Marks
IAB L3 Cert (QCF)/ June 2012 Mod Ans (P2)
Page
11
Catering Supplies
Trading and Profit and Loss Account – Answer Task H
Catering Supplies
Trading and Profit and Loss Account for the Year Ended 31 May 2012
£ £ £
Sales 1/4 530,360
Less Cost of Goods Sold
Opening stock 1/4 16,240
Add Purchases 1/4 437,900
454,140
Less Closing stock ¼ 18,480
Cost of Sales ½ 435,660
Gross Profit ½ 94,700
Less Expenses
Wages and salaries 1/4 35,200
Rates 1/4 10,800
Vehicle expenses 1/4 6,100
Heat and light 1/4 2,420
Bad debts 1/4 1,360
General operating expenses 1/4 6,400
Depreciation 1/2 10,500
72,780
Net profit 1 21,920
5 Marks
IAB L3 Cert (QCF)/ June 2012 Mod Ans (P2)
Page
12
Catering Supplies
Balance Sheet – Answer Task H
Catering Supplies Balance Sheet as at 31 May 2012
£ £ £
Fixed Assets Cost Less Dep’n to Date
NBV
Premises 100,000 - 1/4 100,000
Equipment 25,000 1/4 7,500 1/4 17,500
Vehicles 40,000 1/4 24,000 1/4 16,000
165,000 31,500 1/4 133,500
Current Assets
Stock 1/4 18,480
Trade debtors 1/2 20,500
Prepayments 1/4 12,000
50,980
Less Current Liabilities
Trade creditors 1/4 26,510
Accruals 1/4 600
Value added tax (VAT) 1/4 2,290
Bank 1/4 2,160
31,560
Working capital 1/4 19,420
½ 152,920
Financed By:
Capital 1/4 155,000
Add Net Profit 1/4 21,920
176,920
Less Drawings 1/4 24,000
½ 152,920
5½ Marks
Total This Question= 40 Marks
Total This Unit = 40 Marks
