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 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 : http://whg.awardspace.com/ (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.
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.
Page 2 Mark Scheme Syllabus Paper 1 (a) $ Gross sales 1 200 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 14 200 Effect of overstated sales (1200 810) (390 ) (2)/(1 of) Corrected profit 13 810 (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 $40 000 (1) Capital employed $64 600 (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 $4 300. (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]
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 18 700 1 Add Purchases 111 400 1 Carriage 31 200 1 161 300 Less Closing Stock (18 100 ) 1 Cost of materials consumed 1 143 200 1 Containers and packaging (34 100 1 + 176 200 1 33 800 1) 176 500 (3) Factory wages 103 400 1 PRIME COST 1 423 100 1 of Factory Overheads Salary Factory Supervisor 21 800 1 Depreciation Factory Plant 96 200 1 118 000 541 100 Add work in progress 100 1 541 200 for Less work in progress (200) figs Cost Production 1 541 000 1 [Total: 17]
Page 4 Mark Scheme Syllabus Paper 5 (a) Debtors Balance b/d 9 300 Bank 112 070 (1) Sales 113 000 (1) Balance c/d 10 230 (1) 122 300 122 300 [3] (b) Creditors Bank 95 400 (1) Balance b/d 8 700 Balance c/d 9 570 (1) Purchases 96 270 (1) 104 970 104 970 [3] (c) (i) Working capital calculation at 30 September 2007 Stock 14 300 Debtors 9 300 Cash at bank 6 400 30 000 (1) Creditors 8 700 (1) Working capital 21 300 (1) [3] (ii) Working capital calculation at 30 September 2007 Stock 15 730 (1 of) Debtors 10 230 (1 of) 25 960 Creditors 9 570 (1 of) Bank Overdraft 11 530 (1) 21 100 Working capital 4 860 (1 of) [5] (d) Working has decreased (1) by 16 440 (1 of) The bank balance has become an overdraft. (1) Liquidity has worsened. (1) Accept ratios to indicate decrease [max 3] [Total: 17]
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 10 300 (1) Sales 227 300 (1) Purchases 119 600 (1) + 1620 (1) 121 220 131 520 Closing stock 9 900 (1) Cost of goods sold 121 620 Gross profit c/d 105 680 227 300 227 300 Wages and salaries Gross profit b/d 105 680 (1) (34 380 (1) + 3530 (1)) 37 910 Rent, rates and insurance (17 660 (1) 1120 (1)) 16 540 General expenses 21 350 (1) Provision for depreciation fixtures and fittings (20% 21 500) 4 300 (1) Provision for doubtful debts (3% 18 500) 555 (2) Net profit c/d 25 025 105 680 105 680 Share of profit Net profit b/d 25 025 (1 of) Caster 15 015 (1 of) Wheel 10 010 (1 of) 25 025 25 025 25 025 Accept alternative layout [18]
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 33 000 (1) 22 000 (1) 55 000 Land and buildings 52 100 --- 52 100 (1) Current account Fixtures and Opening balance 14 300 12 600 fittings 21 500 17 200 (1) 4 300 (1 of) Share of profit 15 015 (1 of) 10 010 (1 of) 73 600 17 200 56 400 29 315 22 610 Drawings 17 130 (1) 16 240 (1) Current assets 12 185 (1 of) 6 370 (1 of) Stock 9 900 (1) 18 555 Debtors 18 500 Current liabilities 73 555 Prov n for Creditors 10 760 (1) doubtful debts 555 17 945 (1) Accrued wages Cash at bank 2 480 (1) and salaries 3 530 (1) Prepaid Insurance 1 120 (1) 31 445 14 290 87 845 87 845 Accept alternative layout [17] [Total: 35]
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: 0333-4374592 (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.