Accounting Jan 2008 Mark Scheme
Accounting Jan 2008 Mark Scheme
Accounting Jan 2008 Mark Scheme
January 2008
GCE Level
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January 2008
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Answer
Mark
(20)
900
65000
120000
185000
II Tangible Assets
Buildings
Machinery
600000
215000
815000
1000000
C Current Assets
I Stocks
Stocks of Consumables
Work in progress
II Debtors
Trade debtors
Prepayments
Rent received
IV Cash at bank and in hand
Cash In Hand
O/F
6600
340000
6000
2700
1200
28000
O/F
384500
D Prepayments and Accrued Income
E Creditors: Amounts falling due within one year
Overdraft
Trade Creditors
Debenture interest
14000
57000
24000
289500
O/F
O/F
1290400
O/F
95000
F Net current assets (liabilities)
G Total assets less current liabilities
H Creditors: amounts falling due after more than one year
Debentures
400000
178000
490910
100000
170000
-48510
712400
11 x
Total
40 x =
O/F
O/F
29 x
20
marks
Question
Number
1(b)
Answer
Mark
FOR Importance
Auditors are independent scrutineers of the accounts.
who report that the accounts have been prepared
correctly in accordance with company law or
rather, give a True and Fair view. or do not .
Auditors are reporting on how Directors have used the
funds invested by shareholders. . The auditors duty is
to the shareholders.
Auditors may give tax authorities more confidence that
the tax computation is correct.
Professional supervisory bodies exist to give guidelines
to auditors , eg Auditing Practices Board. Auditors
should be professionally qualified eg Chartered
Accountants.
AGAINST Importance
Auditors may not be very independent, going along
with the wishes of clients, in order to keep their
custom. which may include non-audit work.
Auditors could be misled by the directors and provide
an inaccurate report.
Auditors do not guarantee that material fraud has not
occurred.
Maximum of 4 marks (8 x ) for argument on one side
CONCLUSION
Should relate to points made above.
Eg Auditors Report is important and of value.
(6)
Question
Number
2(a)(i)
Answer
Mark
(6)
Question
Number
2(a)(ii)
Answer
Mark
(6)
= (Actual Hours - Standard Hours) x Standard Rate
= (822 - 800) x 5.60
= 123.20 Adverse
Question
Number
2(b)
Answer
(3)
ACTUAL
15840
Sales
Materials
Labour
Fixed Costs
Total Production Cost
Profit
Question
Number
2(c)
Mark
4120
4674
1600
10394
5446
Total 6 x =
O/F C
3 marks
Answer
Mark
(5)
Per Unit
BUDGET
ACTUAL DEC
& JANUARY
Sales
4.95
Materials
Labour
Fixed Costs
Total Production Cost
1.05
1.40
0.50
2.95
1.29
1.46
0.50
3.25
O/F C
Profit
2.00
2.00
O/F
New Price
5.25
O/F C
Total 10 x =
5 marks
Question
Number
2(d)
Answer
Mark
(6)
Question
Number
3(a)
Answer
(6)
Examples
Formed by
Used for dividends ?
Question
Number
3(b)
Dec 1 Bank
Mark
Capital Reserves
Share Capital Revaluation
Capital Redemption Reserve etc
Eg Issue of shares, Capital redemption
No
Revenue Reserves
Profit + Loss A/c
General Reserve etc
From Profit + Loss Account
Yes
Answer
Mark
(3)
160 000
10 000
170 000
170 000
Answer
800 000
50 000
850 000
850 000
Question
Number
3(c)
125 000
125 000
Mark
(6)
= Net profit after Tax x 100
Capital Employed
125 000
65 000
190 000 o/f
190 000 o/f
Question
Number
3(d)
Answer
Mark
(6)
Question
Number
4(a)
Answer
Mark
(10)
CASH BUDGET
Month
1
Month
2
Income
Share Capital
Bank Loan
Sales - Cash
Sales - Credit
Total Income
50500
Expenditure
Shop Premium
Fixtures and Fittings
Purchases
Expenses
Directors Drawings
Total Expenditure
12500
13000
22000
4000
3200
54700
7000
4000
3200
14200
Monthly Balance
Opening Balance
Closing Balance
-4200
0
-4200
1900
-4200
-2300
Question
Number
4(b)
20000
20000
10500
12600
3500
16100
Month
3
Month
4
Per row
18144
5040
23184
8400
4000
3200
15600
10080
4000
3200
17280
3720
-2300
1420
5904
1420
7324
15120
4200
19320
o/f
o/f
o/f
Answer
Mark
(2)
DEBTORS BUDGET
Month 1
3500
Debtors
Question
Number
4(c)
Month 2
4200
Month 3
5040
Month 4
6048
Answer
o/f
Mark
(4)
Question
Number
5(a)
Answer
Mark
(12)
Dividend Cover
Share Price
= 12 x 11 = 1.32 pence
Price/Earnings Ratio
Dividend Yield
Question
Number
5(b)
Answer
Mark
FOR Grapefruit
Higher dividend yield by 2.36 % points
Higher dividend paid per share by 1.42 pence per share
(4)
Question
Number
6(a)
Answer
Mark
(6)
(a)
Sales Revenue
Al Quarat
4200000
Jenberouk
10500000
Sudamis
1400000
Total
16100000
Direct Labour
Direct Materials
Fixed Costs
1800000
600000
2880000
All costs
-1080000
2400000
900000
4200000
All costs
3000000
1000000
480000
240000
All costs
-320000
12 x = 6 marks
5200000
1980000
7320000
Profit (Loss)
Question
Number
6(b)
Answer
Mark
(6)
Per Barrel
Sales Revenue
Al Quarat
35
Jenberouk
35
Sudamis
35
Direct Labour
Direct Materials
Fixed Costs
Profit (Loss)
15
5
24
All costs
-9
8
3
14
All costs
10
25
12
6
All costs
-8
Contribution
15
24
-2
12 x = 6 marks
1600000
Question
Number
6(c)
Answer
(c )
Future
Mark
(4)
Al Quarat
Continue
Short Term
Plus Comment
Positive Contribution
Jenberouk
Continue
Long Term
Profitable
Positive Contribution
Sudamis
Close Now
Loss making
Negative Contribution
Running out of oil
Question
Number
7(a)
Answer
Mark
(9)
Question
Number
7(b)
Answer
27680
415
1200
810
-1500
20000
900
-728
509
80
-56
49310
o/f C
Mark
(3)
Analysis of changes in Cash and Bank Balances during year ended December 1st 2007
Change in
31-Dec-06
31-Dec-07 Year
Cash
765
987
222
Bank
-2853
(4096)
-1243
Total
-2088
(3109)
-1021
Need first
two
columns for
first tick
Other formats acceptable but only one
per number.
Question
Number
7(c)
Answer
Mark
(4)