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    xaminers use only

    Team eaders use only

    urname nitials)

    ignature

    Centre

    No.

    Candidate

    No.

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    TotalThis publication may be reproduced only in accordance with

    earson ducation td copyright policy.213 earson ducation td.

    rinters og. No.

    42221A85/61/5757 1/1/1/1/1/e2

    *P42221A0136*

    aper eferences)

    6001/01London Examinations GCEAccounting (Modular Syllabus)

    Advanced Subsidiary

    nit 1: The Accounting ystem and

    Costing

    Tuesday 8 anuary 213 Afternoon

    Time: 3 hours

    Materials required for examination Items included with question papers

    Nil ource booklet

    Instructions to Candidates

    n the boxes above, write your centre number, candidate number, your surname, initials) and signature.Check that you have the correct question paper.Answer questions, choosing T from ection A and T from ection B.ndicate which question you are answering by marking the box ).f you change your mind, put a line through the box ) and then indicate your new question with across ).All calculations must be shown.rite your answers in the spaces provided in this question paper.o not return the insert with the question paper.

    Information for Candidates

    The marks for individual questions and the parts of questions are shown in round brackets: e.g. (2).There are 7 questions in this question paper. The total mark for this paper is 2.There are 36 pages in this question paper. Any blank pages are indicated.Calculators may be used.The source material for use with questions 1 to 7 is in the enclosed source booklet.

    Advice to Candidates

    rite your answers neatly and in good nglish.

    aper eference

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    *P42221A0236*

    SECTION A

    Answer TWO questions from this section.

    If you answer question 1, put a cross in this box ( ).

    Source material for question 1 is on pages 2 and 3 of the source booklet.

    1. a) repare the:

    i) ournal entries to record the purchase of the shop premises in 5. above. Narratives

    are not required

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    *P42221A0336* Turn over

    ii) epartmental Trading Account of rganic arm hop showing the profit/loss of

    each department for the year ended 31 ecember 212

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    *P42221A0436*

    iii) tatement of Comprehensive ncome for the business as a whole for the year ended

    31 ecember 212

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    *P42221A0536* Turn over

    iv) tatement of inancial osition at 31 ecember 212.

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    *P42221A0636*

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    *P42221A0736* Turn over

    b) valuate the owners decision to purchase the shop premises as an alternative to

    renting.

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    (8) Q1

    (Total 52 marks)

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    *P42221A0836*

    If you answer question 2, put a cross in this box ( ).

    Source material for question 2 is on pages 4 and 5 of the source booklet.

    2. a) xplain the meaning of the debit balance on the ent receivable account on

    1 anuary 212.

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    *P42221A0936* Turn over

    b) repare the following accounts for the year ended 31 ecember 212, including the

    appropriate transfer to the financial statements:

    i) undry expenses account

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    *P42221A01036*

    ii) remises repairs account

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    iii) ent receivable account.

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    *P42221A01136* Turn over

    c) tate one accounting concept which:

    i) supports the change of depreciation method proposed by Arpan

    ii) does not support the change of depreciation method proposed by Arpan.

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    *P42221A01236*

    d) istinguish between capital expenditure and revenue expenditure.

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    *P42221A01336* Turn over

    e) tate, giving your reasons, whether each of the following is capital expenditure or

    revenue expenditure:

    0DFKLQHLQVWDOODWLRQ

    $QQXDOPDFKLQHLQVXUDQFH

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    *P42221A01436*

    f) Calculate, showing clearly all workings, the:

    i) adjustment required to the provision for depreciation on the machines to

    31 ecember 211 to account for the change in depreciation method

    ii) depreciation charge on all the machines for the year ended 31 ecember 212.

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    *P42221A01536* Turn over

    g) repare, for the year ended 31 ecember 212, the:

    L 0DFKLQHU\DFFRXQW

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    LL 0DFKLQHU\SURYLVLRQIRUGHSUHFLDWLRQDFFRXQW

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    *P42221A01636*

    h) valuate Arpans decision to change the basis of charging depreciation on machines

    from the straight line method to reducing balance method.

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    (8) Q2

    (Total 52 marks)

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    *P42221A01736* Turn over

    If you answer question 3, put a cross in this box ( ).

    Source material for question 3 is on pages 6 and 7 of the source booklet.

    3. a) xplain the following accounting concepts. or each concept give one example from

    the draft tatement of Comprehensive ncome prepared by evena and from theadditional information given, where the concept has not been correctly applied:

    i) ealisation

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    (3)

    ii) Accrual matching)

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    iii) oing concern.

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    *P42221A01836*

    b) edraft the corrected tatement of Comprehensive ncome after taking into account

    the additional information given for the year ended 31 ecember 212.

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    *P42221A01936* Turn over

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    c) repare the urchases edger Control Account, calculating the trade payables balance at

    31 ecember 212.

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    *P42221A02036*

    d) repare the tatement of inancial osition at 31 ecember 212.

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    *P42221A02136* Turn over

    e) valuate the use of accounting concepts when preparing financial statements.

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    TOTAL FOR SECTION A: 104 MARKS

    Q3

    (Total 52 marks)

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    *P42221A02236*

    SECTION B

    Answer THREE questions from this section.

    If you answer question 4, put a cross in this box ( ).

    Source material for question 4 is on page 8 of the source booklet.

    4. a) xplain the term profitability.

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    *P42221A02336* Turn over

    b) repare the tatement of Comprehensive ncome for the year ended 31 ecember

    212, showing clearly the:

    i) value of the inventory at 31 ecember 212

    ii) profit for the year.

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    c) Calculate the percentage return on capital employed for the year.

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    *P42221A02436*

    d) repare the tatement of inancial osition at 31 ecember 212.

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    *P42221A02536* Turn over

    e) Calculate the:

    i) current ratio

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    ii) liquid acid test) ratio.

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    *P42221A02636*

    I (YDOXDWHWKHVXFFHVVRI0RODUDLQDFKLHYLQJKHUILQDQFLDOREMHFWLYHVIRUWKH\HDU

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    (Total 32 marks)

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    *P42221A02736* Turn over

    If you answer question 5, put a cross in this box ( ).

    Source material for question 5 is on pages 9 and 10 of the source booklet.

    5. D &DOFXODWHIRU0DFKLQHIRUWKH\HDUHQGHG'HFHPEHUWKH

    i) total overhead cost

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    LL RYHUKHDGFRVWSHUKRXURIRSHUDWLQJ0DFKLQH

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    *P42221A02836*

    b) xplain the term labour productivity.

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    c) Calculate, the labour cost per unit, for the following three payment options:

    i) Current daywork payment

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    (


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