This document provides a mark scheme and answers for an accounting exam. It includes sample answers and explanations for several exam questions on topics like the income statement, statement of financial position, concepts of prudence and accruals, and an appropriation account. The document provides guidance to examiners on marking schemes and awarding marks for the accounting exam questions.
This document provides a mark scheme and answers for an accounting exam. It includes sample answers and explanations for several exam questions on topics like the income statement, statement of financial position, concepts of prudence and accruals, and an appropriation account. The document provides guidance to examiners on marking schemes and awarding marks for the accounting exam questions.
This document provides a mark scheme and answers for an accounting exam. It includes sample answers and explanations for several exam questions on topics like the income statement, statement of financial position, concepts of prudence and accruals, and an appropriation account. The document provides guidance to examiners on marking schemes and awarding marks for the accounting exam questions.
This document provides a mark scheme and answers for an accounting exam. It includes sample answers and explanations for several exam questions on topics like the income statement, statement of financial position, concepts of prudence and accruals, and an appropriation account. The document provides guidance to examiners on marking schemes and awarding marks for the accounting exam questions.
In Accounting (4AC1) Paper 02 Financial statements Edexcel and BTEC Qualifications
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treatment. Examiners must mark the first candidate in exactly the same way as they mark the last. • Mark schemes should be applied positively. Candidates must be rewarded for what they have shown they can do rather than penalised for omissions. • Examiners should mark according to the mark scheme not according to their perception of where the grade boundaries may lie. • There is no ceiling on achievement. All marks on the mark scheme should be used appropriately. • All the marks on the mark scheme are designed to be awarded. Examiners should always award full marks if deserved, i.e. if the answer matches the mark scheme. Examiners should also be prepared to award zero marks if the candidate’s response is not worthy of credit according to the mark scheme. • Where some judgement is required, mark schemes will provide the principles by which marks will be awarded and exemplification may be limited. • Crossed out work should be marked UNLESS the candidate has replaced it with an alternative response. Question Answer Mark number 1(a) Award marks as indicat Sajjan Income statement for the year ended 30 April 2022 $ $ Revenue / Sales 216 900 165 200 (1) or 216 900 (2) (2) Cost of sales Purchases 146 700 104 200 (1) or 146 700 (2) (2) Closing inventory (36 000) (110 700)
Gross profit 106 200
(1of) Expenses Office expenses 18 975 Motor expenses 5 000 Rent and rates 13 200 (1) Wages and salaries 31 000 (1) Provision for irrecoverable debts 2 585 (1) Depreciation - motor vehicle 2 000 (1) (72 760)
Profit for the year 33 440
(1) (10) Question Answer Mark number 1(b) Award marks as indicated.
Sajjan Statement of financial position at 30 April 2022 Assets $ $ Non-current assets Motor vehicle 38 000 (1) Current assets Inventory 36 000 Trade receivables 51 700 Provision for irrecoverable debts 2 585 49 115 (1) Other receivables 1 400
86 515 (1) Total assets 124 515 (1of) Equity and liabilities Equity Capital introduced 75 000 Profit for the year 33 440 (1of) Drawings (31 750) (1) Total equity 76 690 (1of) Current liabilities Trade payables 42 500 Other payables 2 100
Bank overdraft 3 225
(1) 47 825 (1) Total equity and liabilities 124 515 (1of)
(10) Question Answer Mark number
1(c)(i) Award 1 mark for explaining the concept plus marks as
indicated for development.
Sample answer
Prudence concept states that profits and assets should not be
overstated and losses and liabilities should not be understated(1).
Maintaining a provision for irrecoverable debts ensures that
the profit for the year is not overstated (1) and trade receivables are not overstated (1). (3)
Question Answer Mark
number 1(c)(ii) Award 1 mark for explaining the concept plus marks as indicated for development.
Sample answer
Accruals concept states that revenue of the accounting period
should be matched against the costs of the same period whether paid or not (1).
Maintaining a provision for irrecoverable debts ensures that the
amount of sales which are unlikely to be paid are regarded as an (2) expense in the year of sale (1).
(Total for Question 1 = 25 marks)
Question Answer Mark number 2(a) Award marks as indicated. Carl and Ming Appropriation account for the year ended 31 March 2022 $ $ Draft profit for the year 42 140 Bank loan interest (250) (1) Depreciation charge (1 500) (1) Updated profit for the year 40 390 Interest on drawings Carl 2 160 (1) Ming 2 340 (1) 4 500 Interest on capital Carl (6 000) (1) Ming (4 000) (1) (10 000) Salary Ming (18 000) (1) Profit available for distribution 16 890 (8) Share of profit Carl 8 445 (1of fb) Ming 8 445 16 890 Question Answer Mark number
2(b)(i) Award marks for each correct date, detail and amount in combination as indicated. Current Account — Ming Date Details $ Date Details $ 31 Drawings 26 000 (1) 1 April Balance b/d 900 March 2021 (1) 2022
Appropriation/ 2 340 31 March Appropriation/ 4 000
Interest on (1of) 2022 Interest on (1of) drawings capital
The amount owed by the partnership to the partner (1).
Accept any other appropriate responses. (1)
Question Answer Mark
number 2(b)(iii) Award mark as indicated.
The partner may have taken more money than allowed (1).
Accept any other appropriate responses. (1)
Question Answer Mark number 2(c)(i) Award marks as indicated.
Ratio Formula
Current (working capital) Current assets
Current liabilities (1)
Liquid (acid test) (Current assets – inventory)
(2) Current liabilities (1)
Question Answer Mark
number 2(c)(ii) Award 1 mark for analysis of each ratio, 1 mark for development of each ratio and 1 mark for overall conclusion.
Sample answer
Although the current (working capital) ratio has deteriorated below the benchmark of 2:1(1) the business can still pay their current liabilities as was the case last year(1).
The liquid (acid test) ratio has improved above the benchmark of 1:1 (1) indicating that the business can meet short-term debts as they become due, without the need to sell inventory (1).
Therefore, the partners are correct that the liquidity of the business has improved (1). (5) Accept any other appropriate responses.
(Total for Question 2 = 25 marks)
TOTAL FOR PAPER = 50 MARKS
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