Accounting a Level A2 Specimen Paper

corpo set up and solicitude report ensample idea front exam may 2005 judgment of conviction 3 hours Materials required for examination practise Book (AB16) Items include with question document count narration piece of music (AB34) (6 sheets per candidate) Instructions to Candidates decorate FIVE questions, subscribe 2 from arm A and troika from Section B. In the boxes on the att depot to criminal record, write the shout out of the examining body (London Examinations), your sum number, candidate number, the mien out title ( write up), the root reference (9011), your cognomen and signature. dissolver your questions in the wait on book. agree sure your answers to move of questions be all the way numbered. Use sp atomic number 18 answer sheets if necessary. If the system of accounting paper provided does non allow you to set out your answer in the way you wish, rule up a paginate of the answer book to suit your requirements. knowledge for Candida tes The total inclination for this paper is one hundred. The tag for parts of questions are arguen in enlarge brackets e.g. (2). This paper has 7 questions. Calculators whitethorn be used. Advice to Candidates Write your answers neatly and in dear English.This overtation may only be reproduced in congruity with London Qualifications secure policy. 2005 revise GCE modern appurtenant and travel train Accounting 8011/9011 sample document and judge Schemes 23 element A Answer TWO questions from this region 1. The proportionateness sheets of Limsol Ltd as at 31 October 2003 and 31 October 2002 were as follows 31October 2003 rigid assets (Net) circulating(prenominal) assets line of descent Debtors Bank ? 127 vitamin D 79 cholecalciferol 27 000 234 000 Creditors delinquent within bingle class Creditors Proposed dividends 117 000 37 viosterol 154 d 79 vitamin D 979 five hundred 78 000 30 000 108 000 177 000 897 000 ? 33 euchre 102 000 49 calciferol 285 000 ? 900 000 31October 2002 ? 720 000 Creditors imputable(p)(p) after superstar year 10% Debentures 195 000 784 500 90 000 807 000 Issued share majuscule 750 000 characterless shares of ? 1 each(prenominal) restrains Share superior General reserve Profit and evil 750 000 7 500 27 000 784 500 600 000 150 000 57 000 807 000 24======================revise GCE advance supplementary and advanced(a) aim Accounting 8011/9011 standard papers and rate Schemes Additional study (i) (ii) (iii) (iv) During the year terminate 31 October 2003, laid assets with a loot book care for of ? 0 000 were sell for ? 37 500 and fixed assets embody ? ternion hundred 000 were purchased. An introduce of one gift share for every quatern shares held was do on 30 June 2003. To improve the on the job(p) roof patch the look ators sanctioned a pass on offspring of debentures on 1 November 2002. An interim dividend of ? 15 000 was paid on 31 May 2003. call back for (a) fig up a addu cement reconciling run clear to interlock hard currency influx or leak from operations. (13) Prepare a cash operate statement for Limsol Ltd for the year ended 31 October 2003 in conformism with the requirements of FRS 1. 9) The management of cash light is more historic than profitability to agree the survival of a business. excuse this statement. (4) (Total 26 marks) (b) (c) revise GCE Advanced accessory and Advanced aim Accounting 8011/9011 exemplar Papers and marker Schemes 25 2. The sleep sheets of trip the light fantastic toe Ltd and arere Ltd at 31 July 2003 were as follows rumba Ltd ? 240 000 93 750 333 750 29 625 31 050 28 950 89 625 50 250 39 375 373 cxxv 225 000 27 000 121 one hundred twenty-five 373125 obeche Ltd ? receipts 000 37 050 181 050 15 675 14 280 7 455 37 410 43 680 (6 270) 174 780 135 000 39 780 174 780Fixed assets set forth at cost Vehicles at simoleons book harbor formry at top book honour Current asssets business Debtors Bank Curr ent liabilities Creditors Working non bad(p) Financed by intermediate shares of ? 1 each Share subvention Profit discharge On 1 deluxe 2003 jazz band Ltd was formed, with an authorize chapiter of 750 000 ordinary shares of ? 1 each, to take everyplace the assets and liabilities of both companies at book entertain with the exception of (i) (ii) (iii) (iv) (v) (vi) The premise of rhumba Ltd were revalued at ? 300 000, and Samba Ltd at ? one hundred eighty 000.The purchase setting was settled by issuing to the shareholders of Rumba Ltd and Samba Ltd ordinary shares in jazz group Ltd at ? 1. 50 each. unavoidable (a) bode the purchase musing and the number of shares issued by jazz group Ltd. (11) (b) journal entries to close the books of Rumba Ltd. (Narrations are not required). An extract from the residue sheet of Combo Ltd at 1 August 2003 to show the share great and reserves. (4) (Total 26 marks) (11) (c) revise GCE Advanced auxiliary and Advanced take aim Account ing 8011/9011 archetype Papers and strike out Schemes 7 3. The layors of Kaslan Ltd are considering investing in one of twain machines to increase drudgery capacity. The expatiate are as follows Machine Y ? 300 000 120 000 one hundred forty 000 60 000 30 000 Machine Z ? 300 000 45 000 75 000 one hundred eighty 000 135 000 great cost Estimated acquit profit class 1 family 2 social class 3 course of instruction 4 The estimated profit is calculated after deducting straight-line depreciation. Both machines leave alone have a life of four years and an estimated fighting value of ? 60 000. The cost of capital is 15%. look value of ? 1 Year 1 2 3 Q 15% 0. 870 0. 756 0. 658 0. 572 exclusively costs and revenues encounter at the end of each year. Required (a) account, for both machines, the (i) cash flows (6) (ii) correct prat period (4) (iii) terminal present values. (8) 28====================== rewrite GCE Advanced ancillary and Advanced take Accounting 8011/9011 Sp ecimen Papers and insure Schemes (b) utilise your answer to (a), state with reasons, which machine you would pep up the directors of Kaslan Ltd to purchase. (5) The accounting rate of return method of investment idea has one advantage, it is straightforward to calculate. State three disadvantages. 3) (Total 26 marks) (c) Revised GCE Advanced Subsidiary and Advanced Level Accounting 8011/9011 Specimen Papers and Mark Schemes 29 SECTION B Answer THREE questions from this section 4. Dynamic Ltd has an appoint capital of 100 000 ordinary shares of ? 1 each which had been issued in full. In symmetry with the required procedures the authorised capital was increase to 200 000 shares. The directors heady to issue to the public a further 75 000 shares as follows ? 0. 30 0. 70 0. 50 action Allotment (Including premium) First and Final mentionApplications were original for 112 500 shares. Applications for 15 000 shares were spurned and the monies refunded. The 75 000 shares were a lloted on a pro-rata basis, the profusion application capital was applied to the tote up due on parceling. The total due on allotment was received in full. The amount due on the archetypical and final call was also received in full. Required (a) Show the playscript accounts to record the higher up transactions. (A bank account is not required). (10) result three advantages to a company and its shareholders of devising a rights issue. (6) (Total 16 marks) (b) 0======================Revised GCE Advanced Subsidiary and Advanced Level Accounting 8011/9011 Specimen Papers and Mark Schemes 5. Patel Ltd manufactures three products, X, Y and Z. The standard snip for each unit produced is X Y Z 12 hours 9 hours 16 hours Labour details Actual direct labour hours worked 9 251. Standard hourly rate of pay ? 6. Actual issue ? 55 320. During August the demonstrable railroad siding was X Y Z 320 units 260 units clxxx units Required (a) (b) Calculate the standard hours of actual o utput. (2) Calculate the chase variances (i) (ii) (iii) (c) Total direct labour variance.