NVQ/SVQ Level 3 in Accounting
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NVQ/SVQ in Accounting Diploma pathway Level 3 Advanced certificate Maintaining Financial Records Financial Accounting (FRA) and Preparing Accounts (FRA) 2003 Standards 2003 Standards
June 2008 Task 1.1
(a) Purchases ledger control account
£ £
Bank/payments 33,900 Balance b/f 5,100
Balance c/f 6,800 Purchases 35,600
40,700 40,700
(b) Sales ledger control account
£ £
Balance b/f 18,690 Bank/receipts 135,290
Sales 141,000 Balance c/f 24,400
159,690 159,690
Task 1.2
(a) £ £ Balance as at 31 March 2007 6,350 Balance as at 31 March 2008 (3,240) Difference = bank payments 3,110
(b) Bank account £ £
Receipts from debtors 135,290 Balance b/f 5,140
Loan payments 3,110
Payments to creditors 33,900
Wages 42,500
Administration expenses 5,200
Rent 8,000
Drawings - Adil 18,000
Drawings - Jan 20,000
Balance c/f 560
135,850 135,850
2 Task 1.3
(a) £ £ Furniture and equipment at cost 20,000 Furniture and equipment accumulated depreciation (7,200) Net book value 12,800 Depreciation at 20% 2,560
(b) £ £ Accumulated depreciation b/f 7,200 Depreciation for the year 2,560 Accumulated depreciation as at 31 March 2008 9,760
Task 1.4
£ £ Administration expenses - bank 5,200 Accrued interest expense 1,200 Accrued accountancy fees 580 Adjusted administration expenses 6,980
Task 1.5
(a)
Wages £ £
Bank 42,500 Wages for the year (P&L) 44,500
Drawings - Jan 2,000
44,500 44,500
(b)
Current accounts Adil £ Jan £ Adil £ Jan £
Drawings (bank) 18,000 20,000 Balance b/f 4,200 2,600
Wages 2,000
Balance c/f 13,800 15,400
18,000 20,000 18,000 20,000
3 Task 1.6
Bookends Trial balance as at 31 March 2008 Dr £ Cr £
Accrual - accountancy fee 580
Accrual - interest 1,200
Administration expenses (1.4) 6,980
Bank 560
Capital account - Adil 6,000
Capital account - Jan 6,000
Current account – Adil 13,800
Current account – Jan 15,400
Furniture and equipment - cost 20,000
Furniture and equipment - accumulated depreciation (1.3b) 9,760
Depreciation expense (1.3a) 2,560
Loan 3,240
Purchases 35,600
Purchases ledger control account 6,800
Rent 8,000
Sales 141,000
Sales ledger control account 24,400
Stock - closing - balance sheet 1,800
Stock - closing - profit and loss account 1,800
Stock - opening 3,900
Wages (1.5a) 44,500
Total 176,940 176,940
4 Task 1.7
(a) Goodwill is the difference between the value of a business as a whole and the aggregate fair values of its separate assets and liabilities.
(b) It is important to account for goodwill so that existing partners are fairly rewarded for their contribution to the value of the business as at the date of the change in the partnership.
(c)
Account name Dr Cr Goodwill Capital - Adil Capital - Jan
5 Section 2
Task 2.2
(a) £ £ Cost 1,700 Net book value (425) Accumulated depreciation 1,275
(b) £ £ Net book value 425 Part-exchange allowance (300) Loss on disposal 125
(c) £ £ Cash paid 1,000 Part exchange allowance given 300 Cost of new equipment 1,300
(d) £ £ Cost of new equipment 1,300 x 25% 325
6 Tasks 2.1 and 2.2 (e)
Nell Tan Extract from extended trial balance as at 31 March 2008
Ledger balances Adjustments Dr £ Cr £ Dr £ Cr £ Bank 6,555 2.2(c) 1,000
Capital 4,050
Cash 75
Consumables 1,200
Delivery expenses 2,000
Depreciation expense 200 2.2(d) 325
Drawings 13,200
Equipment at cost 2,700 2.2(c)(a) 1,300 1,700
Equipment accumulated depreciation 1,875 2.2(a),(d) 1,275 325
General expenses 950 2.1 115
Opening stock 900
Purchases 9,800
Purchases ledger control account 405
Rent 2,500 2.1 500
Sales 35,000
Sales ledger control account 1,250
Prepayments 2.1 500
Closing stock - balance sheet 2.1 750
Closing stock - profit and loss account 2.1 750
Interest received 2.1 115 1,275 Disposals 2.2 (a)(b) 1,700 300 Total 41,330 41,330 5,965 5,965
7 Task 2.3
Nell Tan Profit and loss account for the year ended 31 March 2008
Workings £ £
Sales 35,000
Opening stock 900
Purchases 9,800
Closing stock (750)
Cost of goods sold (9,950)
Gross profit 25,050
Add: Interest received 115
Less: Expenses
Consumables 1,200
Delivery expenses 2,000
200 + 325 Depreciation expense 525
950 + 115 General expenses 1,065
2,500 - 500 Rent 2,000 1,700 - 1,275 - Loss on disposal 125 300 (6,915)
Net profit 18,250
8 Task 2.4
Nell Tan Balance sheet as at 31 March 2008
Workings £ £
Fixed assets
2,700 + 1,300 - 1,700 Equipment 2,300
1,875 - 1,275 + 325 Accumulated depreciation (925)
1,375
Current assets
Stock 1CF 750
Debtors (sales ledger control) 1CF 1,250
Prepayments 500
6,555 - 1,000 Bank 5,555
Cash 75
8,130
Current liabilities
Trade creditors (purchases ledger control account) (405)
Net current assets 7,725
Net assets 9,100
Financed by:
Opening capital 4,050
Net profit 18,250
Drawings (13,200)
9,100
Task 2.5
(a) Capital expenditure is expenditure on the purchase, alteration or improvement of fixed assets. These are items which have a life of more than one year and are of significant value.
(b) Revenue expenditure is expenditure on the day to day running expenses of a business.
(c) It should be treated as capital expenditure because it will be of use to the business for more than one year and the cost is significant to Nell.
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