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 October/November 2007 question paper 7110 PRINCIPLES OF ACCOUNTS 7110/02 Paper 2 (Structured), maximum raw mark 100 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. All Examiners are instructed that alternative correct answers and unexpected approaches in candidates scripts must be given marks that fairly reflect the relevant knowledge and skills demonstrated. 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 October/November 2007 question papers for most IGCSE, GCE Advanced Level and Advanced Subsidiary Level syllabuses and some Ordinary Level syllabuses.

3 Page 2 Mark Scheme Syllabus Paper 1 (a) $ Gross sales Trade discount (300 ) (1) 900 Cash discount (90 ) (1) Net sales 810 (1) [3] (b) (i) 1 Overstated sales have overstated net profit. (1) 2 Office equipment is capital expenditure and will not affect profit until the asset is owned for a full year. (1) OR No effect, depreciation has not been charged. (1) 3 Prepaid insurance has no effect on profit. (1) [3] (ii) $ Profit before adjustment Effect of overstated sales ( ) (390 ) (2)/(1 of) Corrected profit (1 of) (if no aliens) [3] (c) The bank balance is not affected. (1) Fixed assets (office equipment) have been overstated. (1) [2] [Total: 11] 2 (a) (i) Capital $ (1) Capital employed $ (1) [2] (ii) Capital is the amount invested by the shareholders/owners of the business. (1) Capital employed is the amount of money used in the business represented by shares plus profit and loss account (1) or net assets. (1) Accept other definitions of capital employed. [max 2] (b) Net assets reduced by $ (1) As share capital is unchanged, the profit and loss balance has reduced (1) The company has made a loss for the year. (1) The company may have made a profit but distributed a high proportion of dividends. (2) [max 3] (c) Increase/sell shares. (1) Increase profits/make a profit (1) Reduce appropriations/dividends. (1) Obtain long term loans issue depentures/bonds [3] [Total: 10]

4 Page 3 Mark Scheme Syllabus Paper 3 (a) Cost historical/invoice price (1) Net realisable value amount stock would sell for at date of valuation. (1) OR market value less expenses (1) (N.B. Do not accept market price.) [2] (b) Gross profit would increase by $200. (1) Net profit would increase by $200. (1) [2] (c) Stock turnover has worsened. (1) Some stock may be obsolete (1) and remains in stores. (1) Sales activity may be slower (1) because of competition. (1) Changed circumstances may mean closing stock figures are higher in latest year affecting ratio. (2) Falling demand Changes in fashion Sale price is too high [max 4] (d) Reduce prices to sell goods more quickly. (1) Only replace stock when needed. (1) Advertise/Sales promotions Dispose of obsolete stock Offer discounts to promote sales [max 2] [Total: 10] 4 CookSmart Ltd Manufacturing Account for the year ended 30 September 2007 RAW MATERIALS Opening Stock Add Purchases Carriage Less Closing Stock ( ) 1 Cost of materials consumed Containers and packaging ( ) (3) Factory wages PRIME COST of Factory Overheads Salary Factory Supervisor Depreciation Factory Plant Add work in progress for Less work in progress (200) figs Cost Production [Total: 17]

5 Page 4 Mark Scheme Syllabus Paper 5 (a) Debtors Balance b/d Bank (1) Sales (1) Balance c/d (1) [3] (b) Creditors Bank (1) Balance b/d Balance c/d (1) Purchases (1) [3] (c) (i) Working capital calculation at 30 September 2007 Stock Debtors Cash at bank (1) Creditors (1) Working capital (1) [3] (ii) Working capital calculation at 30 September 2007 Stock (1 of) Debtors (1 of) Creditors (1 of) Bank Overdraft (1) Working capital (1 of) [5] (d) Working has decreased (1) by (1 of) The bank balance has become an overdraft. (1) Liquidity has worsened. (1) Accept ratios to indicate decrease [max 3] [Total: 17]

6 Page 5 Mark Scheme Syllabus Paper 6 (a) Caster and Wheel Trading, Profit and Loss and Appropriation Account for the year ended 30 September 2007 (1) Opening stock (1) Sales (1) Purchases (1) (1) Closing stock (1) Cost of goods sold Gross profit c/d Wages and salaries Gross profit b/d (1) ( (1) (1)) Rent, rates and insurance ( (1) 1120 (1)) General expenses (1) Provision for depreciation fixtures and fittings (20% ) (1) Provision for doubtful debts (3% ) 555 (2) Net profit c/d Share of profit Net profit b/d (1 of) Caster (1 of) Wheel (1 of) Accept alternative layout [18]

7 Page 6 Mark Scheme Syllabus Paper (b) Caster and Wheel Balance Sheet as at 30 September 2007 Cost Depr n NBV Caster Wheel Fixed assets Capital (1) (1) Land and buildings (1) Current account Fixtures and Opening balance fittings (1) (1 of) Share of profit (1 of) (1 of) Drawings (1) (1) Current assets (1 of) (1 of) Stock (1) Debtors Current liabilities Prov n for Creditors (1) doubtful debts (1) Accrued wages Cash at bank (1) and salaries (1) Prepaid Insurance (1) Accept alternative layout [17] [Total: 35]

8 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