O & A Level Accounting Online Lectures By Waseem Hassan Gul

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1 O & A Level Accounting Online Lectures By Waseem Hassan Gul whg4gul@gmail.com : (For E. Mail & Text Chat) whg4gul : (Skype: Voice Call) : (Voice Call) : (For Notes & Formats) This page is created to help O & A Level Accounting students and solve their problems. Our mission is to provide O & A Level Accounting Help to student who face problems in accounting, don't find an accurate solution or can't access some professional. You can mail me your problems or you can have text chat with me to discuss. In more interactive way, you can call me through Skype or on my Cell, Of Course help is totally free. For notes visit : (HELP OFFERED HERE IS TOTALLY FREE) You will find these helping notes on my website. 1. O-Level Handouts 2. O-Level Accounting Formats 3. O-Level Comprehensive Accounting Notes 4. A-Level Cash Flow Statement 5. A-Level Standard Costing and Variance Analysis JOIN US ON FACEBOOK by liking our page.

2 UNIVERSITY OF CAMBRIDGE INTERNATIONAL EXAMINATIONS GCE Ordinary Level MARK SCHEME for the May/June 2010 question paper for the guidance of teachers 7110 PRINCIPLES OF ACCOUNTS 7110/22 Paper 22 (Structured), maximum raw mark 120 This mark scheme is published as an aid to teachers and candidates, to indicate the requirements of the examination. It shows the basis on which Examiners were instructed to award marks. It does not indicate the details of the discussions that took place at an Examiners meeting before marking began, which would have considered the acceptability of alternative answers. Mark schemes must be read in conjunction with the question papers and the report on the examination. CIE will not enter into discussions or correspondence in connection with these mark schemes. CIE is publishing the mark schemes for the May/June 2010 question papers for most IGCSE, GCE Advanced Level and Advanced Subsidiary Level syllabuses and some Ordinary Level syllabuses.

3 Page 2 Mark Scheme: Teachers version Syllabus Paper 1 (a) Owner s capital $3 000 (1) Capital employed $6 500 (1) [2] (b) Item Book of prime entry Effects on current assets Effect on current liabilities Effect on capital (i) Cash book $200 No effect $200 (ii) Purchases day book (1) +$1 500 (1) +$1 500 (1) No effect (1) (iii) Sales day book (1) +$800 (1) No effect (1) +$800 (1) (iv) Cash book (1) $4 000 (1) No effect (1) No effect (1) (v) Cash book (1) $1 440 (1) $1 500 (1) +$60 (1) [16] (c) Trial balance of Leung as at 31 May 2010 Dr Cr Gross profit (1) Inventory (stock) (1) Bank loan (1) Trade receivables (debtors) (1) Trade payables (creditors) (1) Office equipment (1) Cash (bank) (1) Discount received 150 (1) Rent and expenses (1) Capital (1) Marks awarded for description and figure. [10] [Total: 28]

4 Page 3 Mark Scheme: Teachers version Syllabus Paper 2 (a) Purchase Ledger Control Account Bank/cash (1) Balance b/d (1) Discount received 300 (1) Purchases (1) Balance c/d (1) [5] (b) (i) Net pay of Susan $ Salary 950 (1) Tax and social security (1)of [2] (ii) Cost of employing Susan $ 160 $5 = $7.5 = 150 Salary 950 (1)of Social security (1)of [2] (c) Journal Dr Cr Wages and expenses (1)of Bank 785 (1)of Tax authorities 255 (1)of [3] (d) Tsang Income statement (Trading and Profit and Loss Account) for the month ended 31 March 2010 Revenue (sales) Opening inventory (stock) Purchases (1) Closing inventory (stock) Cost of sales Gross profit Discount received 300 (1) (2)1of Wages & expenses (1) Profit for the year (net profit) (1)of Alternatives formats accepted [6] [Total: 18]

5 Page 4 Mark Scheme: Teachers version Syllabus Paper 3 (a) Goodwill is the value of a business over and above the value of its recorded assets. (1) Examples would include reputation, quality of service, brand names, location, existing workforce, regular customers (1). [2] OR Goodwill is the difference between the value of the separate net assets of a business and the total value of the business. (b) Money measurement [2] Prudence [2] (c) Calculation: (i) Chan (ii) David Capital 31 August Less share of goodwill (1) (1) Capital 1 September (1) (1) [4] (d) Newstart Balance Sheet at 1 April 2009 Non-current (fixed) assets (1) Current assets Inventory (stock) Trade receivables (debtors) (1) Current liabilities Trade payables (creditors) (1) Bank overdraft (1) Net current assets Financed by: Capital Chan (1)of David (1)of [6]

6 Page 5 Mark Scheme: Teachers version Syllabus Paper (e) Newstart Income statement (Profit and Loss Appropriation Account) for the year ended 31 March 2010 Profit for the year (net profit) Plus interest on drawings Chan 750 (1) David (1) Less salaries Chan David (1) for both salaries (15 000) (3 000) Share of losses Chan (2 000) (1)of if correct split David (1 000) (1)of if correct split (3 000) [5] [Total: 21] 4 (a) (i) Cost of sales $ Sales Less 40% Gross profit Cost of sales (3) [3] (ii) Raw materials (purchases) $ Opening stock Purchases (2)of Closing stock (1) Cost of sales (1)of [4] (iii) Expenses $ Gross profit 40% Expenses (3) Net profit 8% [3] (iv) Rate of inventory (stock) turnover Cost of goods sold Average inventory (stock) (of) = = 8.57 times (3)of (( )/2) [3] [Total: 13]

7 Page 6 Mark Scheme: Teachers version Syllabus Paper 5 (a) Wang Yee Manufacturing Account for the year ended 31 January 2010 Inventory (stock) of raw materials at 1 February (1) Purchases of raw materials (1) Less: Inventory (stock) of raw materials at 31 January (1) Cost of raw materials consumed (1) Direct factory wages ($ $1 120) (1) Prime cost (1) Rent (1) Factory managers salary (1) Provision for depreciation of plant and machinery (1) Add decrease in work in progress ($ $18 780) (1) Cost of production (1) [11] (b) Wang Yee Income statement (trading and profit and loss account) for the year ended 31 January 2010 Revenue (sales) (1) Less Revenue (sales) returns (1) Inventory (stock) of finished goods at 1 February (1) Cost of production (1)of Raw materials (purchases) of finished goods (1) Inventory (stock) of finished goods at 31 January (1) Cost of sales Gross profit Rent (1) Office salaries (1) Distribution costs (1) Sundry office expenses ($9 870 $630) (1) Finance costs (loan interest) ($ $800) (2) Provision for depreciation of Office equipment ($ %) $4 800 ($ % 4 12) (2) Increase in provision for doubtful debts 250 (1) Profit for the year (net profit) [15]

8 Page 7 Mark Scheme: Teachers version Syllabus Paper (c) Wang Yee Balance sheet as at 31 January 2010 Cost Depreciation NBV to date $ Non-current (fixed) assets Property (land and buildings) (1) Plant and machinery (1) Office equipment (1) Current assets Inventory (stock) Raw materials Work in progress Finished goods (1) Trade receivables (debtors) Less: provision for doubtful debt (2) Other receivables (prepaid expenses) 630 (1) Less: Current liabilities Trade payables (creditors) (1) Other payables (accrued expenses) ($ $800) (2) Loan repayable within 12 months (bank overdraft) (1) Net current assets (1) Non-current (long term) liabilities 8% loan repayable 31 December (1) Financed by: Capital Plus: Net profit Less: Drawings (1)of [14] [Total: 40]

9 O & A Level Accounting Home Tuition Services Name Subject Experience Name Subject Experience Syed Waqar Haider Math 15 years Mohamad Majid Math 13 Years Waseem Hassan Accounting 12 Years Mohammad Ayub ISL/P. St 13 Years Mohammad Sheraz Biz Studies 7 Years Mohammad English 12 Years Shahzad Mohammad Abrar Economics 12 Years Mohammd Physics 10 Years Nadeem Dr. Shahjahan Chemistry 8 Years Dr. Shahjahan Biology 8 Years Data till December 2012 Mohammad Ayub Urdu 13 Years Contact: (Lahore Only) Most of our teachers have over 10 years of teaching experience and are faculty members of famous Schools of Lahore. Some of us have international teaching experience like in U.K. & Canada. Names of Schools are not mentioned for privacy reasons. These days quality education which is also affordable is a very big issue. To solve this issue, we (professional teachers) have come forward. We are striving to provide quality education at doorstep for O and A Level. We are a group of professional teachers having experience of over one decade 10 years with excellent past results. Teaching is an art which not only focuses on solving the subject problem but it also includes making students learn the basics & improve their concepts. So in their exams, they don t only perform but perform well enough to get positions. If you want to hire services of our worthy and experienced teacher(s), please contact us. JOIN US ON FACEBOOK by liking our page.

O & A Level Accounting Online Lectures By Waseem Hassan Gul

O & A Level Accounting Online Lectures By Waseem Hassan Gul whg4gul@gmail.com : (For E. Mail & Text Chat) whg4gul : (Skype: Voice Call) 0092-333-4374592 : (Voice Call) http://whg.awardspace.com : (For