ce. testcope 01239020 FORM TP 2012025 fas JANUARY 2012 CARIBBEAN EXAMINATIONS COUNCIL SECONDARY EDUCATION CERTIFICATE EXAMINATION PRINCIPLES OF ACCOUNTS Paper 02—General Proficiency 3 hours 06 JANUARY 2012 (a.m.) READ THE FOLLOWING INSTRUCTIONS CAREFULLY. 1, Answer ALL questions in Section I and TWO questions from Seetion II. 2. Begin EACH answer on a separate page. 3. Keep ALL parts of EACH answer together. 4. You may use a silent, non-programmable calculator to answer questions. 5. Bach question is worth 20 marks. DO NOT TURN THIS PAGE UNTILYOU ARE TOLD TO DO sO. Copyright © 2011 Caribbean Examinations Council All rights reserved. 01239020/JANUARY/F 2012SECTION T Answer the THREE questions in this section. 1. The accountant of VIP Enterprises prepares the following trial balance as at 30 November 2011 _ bes Promises 105 520 _| Capital 200 000 Vehicles 75.000 | Equipment 72.190 | S-year bani loan Y 25 600 | Closing inventory 12500 Bank deposit (lixed for the next two years) 6 800 - Cash 9300 | | Debiors __ - 10 600 Creditors 23.000_| Prepaid insurance _ 390 Rent owing 4 1.080 Drawings 2900 123 620 Cost of sales _ _ | 45700 el |" Miscellaneous expenses 52.400 Capital introduced during the year 20 000 393 300 393 300 @ _ Prepare VIP Enterprises’ Income Statement for the year ended 30 November 2011, (marks) (b) Prepare the classified Balance Sheet for VIP Enterprises as at30 November 2011 in vertica style, identifying clearly the business’ working capital (12 marks} (©) 12010, ViPEntexprises recorded a closing inventory of $5 780. Using this information a wellas information fromthe trial balance, calculate the following ratios for VIP Enterprise (Show your working.) (i) Stock tumover (i) Return on opening capital employed (ROCE) GO ON TO THE NEXT PA (01239020/ANUARY/F 2012,BOVE LXGN BELL OL. NO 09 (oma zy none a Ao aL ot FoNBAR HocmgmonocmmmmtontalA SpgsMTPSEE REM (a)co » © = z Prenioe 10550 Cop a0 0 ‘aces 7500 Basie 0 Soyer se oO, Clsing iver as00 Denk depen (aed Tore est 0) 6300 ‘ca 9300 Dees 000 ‘Cedion oe, Pepa anes 3 Rest vig 80) Deng oe ‘See ee ‘Con often a0 Miscelnenu expen 200 Capit ineduced during te yor 30000, yam | 393300 Pp VP Eseries acome Semen forthe er coded 30 November 2011 Carts) regret lied Balance Show or VIP ters 30Neveber201 iva ye ening clerly the basin wring capt (aa) 1201, Vip Eseries recoded conn ventory of$5 700. Using is iaforatonss ‘ellenfrmation fom hal bane calc ie lowing iso VIPs: (Geew your werice) Sick wmover (Retr on pening cpt employed (ROCE) Cre) “Tete 20 mark (60 ON TO THE NEXT PAGE (001 ary 2012, Panera go ane wen basins tip. He pied Parner B with ‘ellowang froin ching reminder sbout he prertipapeemen. T ¥ capi: Parmer A eo PeanerD 0000 Tiere on xp per re Drawing: Parca 14000 Pasar R200 (wert on dings % ‘Staeofpef: Parser A 1% Pare 2% ‘Sas 170000, cos ofr 30000) Renal vee 70000 Taree expe 300 oo 300 Bena weapons years cad 3500 ‘Depreciation en fee ins 71300 Ofte ple 3100 ‘lice plea ck years nd [2000 Disoun allowed 90) (©) Kent THREE ea om the Eistsbove ta woul be found is Aad B's prtnentip epee, ‘Smart (©) Pepe he Income Sutonent for Panes A and B for he prod ended 31 Deer am Gens) (© Prparethe Apprpsiton Account forte period ended 31 Deceber 211 (ow och moe ct i ny, can Parr B with fom he basics witout wing ‘ny om sepa (Show your werkog) (Gan) Tou 20 mars (00 ON TO THE NEXT PAGE4 ® &) -4- (Define the term ‘depreciation’. (@ marks) Gi) Sdentify the double entry used to record depreciation. (marks) (iii) State THREE causes of depreciation. “Tamarind Company bought equipment costing $80 009 ‘and charged depreciation ata rate of 10% per annum using the reducing balance copy and complete the table for the (@ marks) (® __ Using the information above, first THREE, (1 marks) years of the equipment’s life. Cost or NetBook | Depreciation ‘Accumulated | Net Book Year | Value Before ‘Expense Depreciation | Value After Depreciation for the Year Depreciation 4 2 3 | Gi) Draw up the Balance Sheet (extrac!) for the equipment at the END of the third year of use. (@ marks) ‘Total 20 marks GO ON TO THE NEXT PAGE7 4. The Roseau Valley Farmers’ Cooperative was formed on 1 January 2011. There are 8 000 farmets, EACH of whom contributed $20 towards the purchase of ‘of operation, the cooperative realized a surplus of $268 500. ‘The Board of Management made the following decisions: @ ) © @ 01239020/JANUARY/F 2012 SECTION Answer any TWO questions in this section, jal shares. Atthe end of the first yehr A total of $80 000 is to be paid out in patronage refund. 20% of surplus is to be transferred to a Statutory Reserve Fund. 10% of surplus per year is to be reserved in an Education Fund. Dividends of 8% are to be paid on members’ shares. Outline TWO principles or essential features of a cooperative. (@ markt) Clete th svar on Svat: for in Rowe Valey Paros’ Cooperative fx the year ended 31 December 2011. @ markt) Prepare the Appropriation Account for the Roseau Valley Farmers’ Cooperative for hi ‘year ended 31 December 2011. (20 markd) ‘Show the capital section ONLY, of the Balance Sheet of the Cooperative as at #1 December 2011. (@ markt) Total 20 marks GO ON TO THE NEXT PAGE5 @) © © -6- ‘State TWO benefits of using computerized accounting processes. (@ marks) Identify the type of source document which would be generated in BACH situation (i-v) ‘outlined below: () —Accustomer paid his account in full. (ii) Accustomer retumed some of the goods previously bought on credit. (ii) The landlord was paid this month's rent by cheque. Gv) A supplier informs his customers of additional charges on goods already shipped. (¥) Goods were sold on credit to a customer. (marks) Famham Enterprises has an overdraft balance of $13 200 and cash in hand of $2 890 at the beginning of the month. On the Cash Book page provided, enter the following transactions, May 2011 Purchases of $2 450 paid by cheque. Cash sales $5 800. Paid XYZ Corporation for an amount owed of $4 000 by cheque, after deducting a 10% ‘cash discount, 1B XK. Clarkson paid his account of $1 900 by cash. Famham has allowed him a 5% cash discount, 18 Deposited $4 000 of cash on hand in the bank. au Benko’s Enterprises paid $3 610 by cheque AFTER taking a discount of 5%, 23 - Paid insurance of $910 by cheque. Paid wages of $4 700 by cheque. There were drawings of $3 500 in cash. (13 marks) Totat 20 marks GO ON TO THE NEXT PAGE (01239020/J ANUARY/F 2012