EXAM

MINATIONQU
UESTIO NBOO
OKLET
Studenttname:

Campuss:

Asso
ociateD
DegreeofAcco
ountingg
Subjectt number: ACACC101
1A

Subjectt name: Acccounting Foundatio

ons I

Final Exxamination Semestter 2, 20133

Time allowed: 3 hours pluss 10 minutees readingg time

Generral instructions Ma
arks
Writeeyouranswersusingbllackorblueepen Tottalmarks:1
100
Writeeyournameeandcampu
usatthetoopof Secction1:80MMarks
thispage 4xxPracticalQ
Questions
Answerallquestionsintheanswerboooklet Secction2:20M
Marks
provid
ded. 4xxTheoryQuestions
Allquestionsaretobeattem
mpted

ThisissaCLOSEDbookexamination

Mobillephonesaretobeturrnedoffandd
removvedfromyo ourperson. Youcanno t
accesssamobilep
phonedurin
ngthis
examination

Examin
nation aids permitted
p as
a indicated
d

Standaard Biilingual Technica l Proggrammable Non Electronic

diction
naries diictionaries dictionarries calcu
ulators programm mable Devices
D
calculatoors

Yes Yes No No Yees No

Other eexamination
n aids perm
mitted

Nootherexamin
nationaidsaarepermitteed.

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 EXAM
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Student name:

SECTIO
ON 1
Practiccal Questio
ons

QUESTIION 1 Ban nk Reconciliiations

Usingin
nformationprovidedfo orMColah:

a) Setuptheledgerbankkaccountanndpostthe eunadjusteddcashjournnaltotalsto
othe
account.R
Recordthennecessaryaddjustmentsuptothe3 31Mayandbalancethe
account.

b) Prepareab bankreconcciliationstattementat3
31May2013toreconcciletheadju usted
ledgercashhatbankbaalancewith thebanksttatementba
alance.

Note: A
Assume ban
nk statemen
nt contains correct figu
ures.

MColah
Baankreconcilliationasatt30April20
013

$
Credditbalanceassperbanksttatement 13877.23
Addoutstandingdeposit 5511.89

19399.12
Less:Unpresenteedcheques:
Cheqquenumber: $
4213352 647.59
4213357 486.53 11344.12

Debiitbalanceasperbankleddgeraccountt 8055.00

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Student name:

M Colah M Colah

Cash receipts jou

urnal Cash payyments journnal
22013 $ 20133 Cheque number $
Maay10 Receipt 500.20 May33 4221358 641.80
15 Receipt 272.79 3
3 4221359 835.37
20 Receipt 486.53 133 4221360 58.25
25 Receipt 688.29 133 4221361 459.53
31 Receipt 765.52 233 4221362 721.39
233 4221363 146.76
288 4221364 161.59
300 4221365 108.63
300 4221366 41.86

Co mmunityBank
StatementtofaccounttMColah

D
Date Detaails Dr Cr Balannce Dr/CCr
22013
M
May1 Balaanceb/fwd 1387.223 Cr
Depposit 551.899 1939.112 Cr
5 Cheequeno:421358 641.80 1297.332 Cr
7 Cheequeno:421359 835.37 461.995 Cr
8 Cheequeno:421360 58.25 403.770 Cr
9 Cheequeno:421352 647.59 243.889 Drr
11 Depposit 500.200 256.331 Cr
14 Cheequeno:421361 459.43 203.112 Drr
16 Depposit 272.799 69.667 Cr
20 Depposit 486.533 556.220 Cr
20 Cheequeno:421363 146.76 409.444 Cr
25 Depposit 688.299 1097.773 Cr
30 Cheequeno:421365 108.63 989.110 Cr
31 Cheequeno:421364 161.59 827.551 Cr
BannkCharges 5.00 822.551 Cr
Inteerest 8.000 830.551 Cr

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Student name:

QUESTIION 2 Acccounting sysstems

TheiSnapCompan
nypresentsthefollowinnginformattion:

ACCOU
UNTSPAYAB BLEBALANC CESat1Noovember20
013.
$
S.SSign 1,000
M.Matise 4,200
I.IIndigo 500
H.Hamilton 6,400
$12,100
$

PURCH
HASES JOUR
RNAL
Date Inv Accountt Purchaases GSST Acccounts
Outlays Payyable
2013 $ $ $
Nov3 1442 Matise 1,,190 119 1,309
Nov4 12AA Sign 580 58 638
16019 Hamilton 2,,000 200 2,200
Nov7 1A57 Klause 110 11 121
Nov13 943 Matise 2,,230 223 2,453
Nov15 1760 Indigo 60 6 66
$6,,170 $617
$ $6,787

CASH PAAYMENTS JOURNAL

Date Che A
Account Accounts Purchase Other GST D
Disc GST T Bank
q Payable s Outla RRev Outla
No. ys ys
2013 $ $ $ $ $ $ $
Nov6 955 Purchases 430 43 4773
7 956 Siggn 1,000 30 3 9667
957 Inddigo 500 5000
9 958 Eleectricity 90 9 9
99
13 959 Waages 1,220 1,2220
960 Maatise 4,200 40 4 4,1556
19 961 Hamilton 6,400 6,4000
25 962 Purchases 180 18 1998
30 963 Staationery 750 75 8225
$12,100 $610 $2,060 $145 $70 $7
$ $14,8338

Additio
onal Informaation:

Goodsp purchasedffromSignonNov4Invvoice12AAw
weredamaged.These werereturnedto
Signforracredit.

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Student name:

QUESTIION 2. (Con ntd)

Requireed:
a) PreparetheeGeneralJo ournalEntryyforthePurchasesRetturns
b) Posttherellevantinforrmationfrom mthejournnalstotheg
generalledggeraccountss
payableconntrolaccount.Balanceetheaccoun nt.(Donotp
posttotheoothergenerral
ledgeracco
ounts).
c) Setupthea accountspaayablesubsiidiaryledgeeraccounts..Postfrom thejournallstothe
accountspaayablesubssidiaryledgeerandbalaancetheacccounts.
d) Reconcileth hesubsidiaryledgertootheaccoun ntspayable controlacccountbymeeansof
ascheduleofcreditorsbalancesaasat30No
ovember201 13.

QUESTIION 3 Acccounting forr Retailing

ThefollowingselecctedinformmationisavaailableforW
WaitwayWhholesaleLtddforMarch2013

Account
A $
Purchaases 84
4000
Sales 255
5000
FreighttInwards 1800
1
DiscouuntReceived d 1400
1
BeginnningInvento ory,1Marchh2013 60
0000
EndinggInventory,31march22013 36
6400
Purchaasesreturnssandallowaances 1200
1
SalesRReturnsanddAllowancees 3000
3
FreighttOutwards 620
RentExpense 1500
1
Salesssalariesexpe
ense 12
2800
DiscouuntAllowed 3200
3
Deprecciationexpe enseoffic eexpense 120
Officesssuppliesexpense 360
Officesalariesexppense 11
1600
Adverttisingexpen nse 2200
2
Insuran nceexpense 280

Requireed
a) Prepare the detailed income staatement forr Waitway Wholesale Ltd for thee month
ended31MMarch2013..
b) Calculate the
t ratio off gross profofit to net sales
s and express
e as a percentaage to 2
decimalplaaces.
c) Calculate the
t ratio of
f profit to nnet sales an
nd express as a percenntage to 2 decimal
places.
d) Whatmigh httheseratiiosindicate andwhato otherprofitaabilityratiooscouldbeu
usedto
analysethissbusiness?

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Student name:

QUESTIION 4 Clossing entriess

DavidFrostoperattesadoctorrssurgeryi nthesuburrbs,andthe
etrialbalan ceshownb
below
summarisestheyeearsactivitiies:

DavvidFrost
UnadjustedTrialBala nce
Asat30
0June20133 Debits Crredits
CashatB
Bank 7000
7
Feesreveenue 7710000
AccountssReceivable e 51
1000
Equipment 300
0000
Accumulaateddeprecciationeqquipment 95000
SurgerySSuppliesInvventory 160
0000
OfficeSuppliesInven ntory 8000
8
DavidFroostCapital 1190000
DavidFroostDrawinngs 140
0000
AccountssPayable 20000
Wagesexxpensenu urse 100
0000
Rentexpense 50
0000
Officeexpenses 29
9000
Generaleexpenses 70
0000
Tottal 915
5 000 9915 000

Thefollowingadditionalinforrmationshoouldbeconssidered:

1. Inventoryoofsurgerysuppliesonhhandat30JJuneis$14000
2. $2000officcesuppliesareonhan dat30Junee
3. Depreciatioononequip pmentis$555,000
4. Rentof$4500hasbee enpaidinaadvanceand
dhasbeend
debitedtorrentexpensse
5. Wagesearn nedbythenursebutuunpaidwas$2500

Requireed:
a) Journalisettheadjustin
ngentries.
b) Journalisettheclosingeentries.

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 EXAM
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UESTIO NBOO
OKLET
Student name:

SECTIO
ON 2
Theoryy Question
ns

QUESTIION 5 Cassh Managem

ment and C ontrol

Cashistheassetm
mostsubjectttotheft,a nditistherreforeimpoortanttosettupagood
internalcontrolsysstemforhaandlingcashhandrecord dingcashtrransactions..Suchasystem
mustcoontainproceeduresforpprotectingccashonhan ndaswellassforhandli ngcashrecceipts
andpayyments.

Evaluattethethreeimportantprinciplesoofaninterna alcontrolsyystemforcaashanddisccuss
whytheeyarenecesssaryproceduresforsaafeguarding gcashwithiintheorgannisation.

QUESTIION 6 Acccounting forr retail

Accountingforinventoriesinvvolvesrecorrdingtheco ostofpurchhasedinven toryand

determiningwhich hpartofthe ecostofinvventoriescaanbeallocatedtocost ofsalesandtoan
assetreepresentinggendinginventoryonhhand.Twod distinctlydiffferentinveentorysyste
ems,
perpetu ualandperiiodic,canbeusedtod etermineth heamountssreportedfforending
inventooryandcosttofsales.

Indeterrminingwhichofthese etwosystem mstoadopttanorganissationmustttakeinto

consideerationthettypeofinve entoryheld andthesophistication nofthecom mputersystem
usedtookeeprecorrdsofinven ntoryonhannd.

Distinguuishbetweeenthetwottypesofinvventorysysteemsandreccommendtthemost
approprriateinventtorysystemforanorgaanisationth hatsellsala
argenumbeerofinvento ory
itemsw
withalowunitcost.e.g g.alargereetailbusinessslikeBigW
W,Woolworrths,Coles,M Myer,
DavisJoones.

QUESTIION 7 Deccision making and the role of Accounting

Decisionsshapeou urfutureso
oitisimporttantthatweemakedeccisionsafterrcareful
consideerationofin
nformationavailableattthetime.A Accountingastheproccessofidentifying,
recordingandcom mmunicatinggeconomic information,commun nicatesinforrmationonpast
econom miceventsbbuthasbeencriticised asbeingirrrelevantind
decisionmaakingbecau usethe
informaationitprovvidesrelatesonlytothhepast.

Isaccou
untingirreleevantindeccisionmakinngbecausetheinforma ationitprovvidesrelateesonly
tothep
past?Whatpartcanacccountingpllayinthedecisionmakkingprocesssesforan
organizzation?

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Student name:

QUESTIION 8 Reccording Tran nsactions

Asabusinessgrow wstheowne ersplaceinccreasedrelianceonoth herstomannageandco ontrol

operations.Asoph histicatedsyystemofintternalcontrrolsassistsa
anentitytoocontrolits
activitieesandproteectitsassetts.

Discusstheprincip plesinvolveddinestablisshingagood
dinternalcoontrolsysteemincluding gthe
limitatioonsofinterrnalcontrolsystems.

END
D OF QU
UESTION
N BOOKLET

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