Student Number __________________________ Family Name __________________________ Other Names __________________________

Section Possible Mark

A

20

B

20

C

60

TOTAL

100

Accounting

Sample 1

Final Examination

Time Allowed : 2 hours

UNSW Foundation StudiesUNSW Global Pty Limited UNSW Sydney NSW 2052 Copyright 2014 All rights reserved. Except under the conditions described in the Copyright Act 1968 of Australia and subsequent amendments, this publication may not be reproduced, in part or whole, without the permission of the copyright owner.

Directions to Candidates

Accounting Final Examination

Time Allowed: 2 hours

Write your Student Number and Name on the cover of this Question Booklet and the Answer Booklet. 1. Section A. Multiple Choice. 20 Questions.

(1 mark each) Attempt all Questions. Use the Multiple Choice Answer Sheet provided.

2. Section B. 2 Questions. (5 marks for Question 21)

(15 marks for Question 22) Attempt all Questions. Answer Questions 21 and 22 in the spaces provided in this Question Booklet. 3. Section C. 3 Questions. (10 marks for Question 23) (20 marks for Question 24) (30 marks for Question 25) Attempt all Questions.

Answer Questions 23, 24 and 25 in the spaces provided in the Answer Booklet.

4. Place the Multiple Choice Answer Sheet inside this Question Booklet and hand up all work as one together with the Answer Booklet.

UNSW Foundation Studies 1 Final Sample 1

BLANK PAGE

UNSW Foundation Studies 2 Final Sample 1

Section A: Answer all Questions. Use the Multiple Choice Answer Sheet provided. 1 From the accounting equation, owner’s equity is : A Assets - Liabilities – (Revenue – Expenses) B Assets + Liabilities + (Revenue – Expenses) C Revenue + Expenses - Drawings D Revenue + Expenses + Drawings

2 The balance date refers to the final date of : A lodging a tax return B payment to creditors C registration of the business D the accounting period 3 The entries to record ‘Bought motor vehicle on credit’ are : A debit Purchases and credit Motor Vehicle B debit Motor Vehicle and credit Accounts Payable C debit Motor Vehicle and credit Cash at Bank D debit Purchases and credit Cash at Bank 4 A Sales Invoice does not contain the following information : A delivery instructions B customer’s order number C name of customer D reasons for goods returned 5 A telephone expense of $120 was wrongly debited to the Maintenance Expense

account. The correction entry for this error should be :

A dr Telephone Expense and cr Cash at Bank B dr Telephone Expense and cr Maintenance Expense C dr Maintenance Expense and cr Cash at Bank D dr Maintenance Expense and cr Telephone Expense

UNSW Foundation Studies 3 Final Sample 1

6 ‘Sold motor vehicle for cash’. What is the effect of this transaction on the accounting equation ?

A no change in total assets B change in liabilities C increase in assets but decrease in liabilities D increase in liabilities but decrease in assets 7 The Profit and Loss Statement is a : A general ledger B general journal C voucher D report 8 Which of the following is not found in the balance sheet ? A drawings B overdrafts C bad debts D vehicle 9 P. Trader’s records show Opening inventory at $20,000, Purchases $105,000,

Purchases Returns $2,000, Freight Costs $3,000 and the Closing inventory at $28,000. What is the Cost of Goods Sold ?

A $98,000 B $79,000 C $56,000 D $85,000 10 The Discount Allowed Account is debited because : A revenues decrease B liabilities increase C expenses increase D assets decrease

UNSW Foundation Studies 4 Final Sample 1

11 According to the double entry rule, the receipt of cash from a debtor will be recorded as :

A debit Cash at Bank as assets increase and credit Accounts Receivable as assets

decrease B debit Accounts Payable as liabilities increase and credit Cash at Bank as assets

increase C debit Accounts Payable as liabilities decrease and credit Cash at bank as assets

decrease D debit Cash at Bank as assets increase and credit Purchases as expenses decrease 12 Purchased goods for cash is recorded in the : A cash receipts journal B cash payments journal C sales returns journal D purchases journal 13 Debts owing by P. Johnson are written off as bad debts and debited to : A Accounts receivable B Purchases account C Accounts payable D Bad debts account 14 Which of the following is not an equivalent of inventory ? A stock B goods C merchandise D drawings 15 Clinton, a debtor of Kozwinski Trading, has paid $109 for an outstanding account of

$100. The Statement of Account sent to Clinton at the end of the month will show : A a credit balance of $9 B a debit balance of $9 C an opening balance of $109 D a closing balance of $109

UNSW Foundation Studies 5 Final Sample 1

Use the information below to answer Questions 16 and 17. Cheque Butt of Garden Supplies Pty Ltd. Garden Supplies Pty. Ltd.

Cheque No. 216 Date: 7 April 20XX

To: Mason Trading For: Invoice 00116 (Discount $10) Balance b/f Deposits Balance This Cheque $270 Balance c/f

16 For Garden Supplies Pty. Ltd., the statement that best describes the transaction

which has taken place is : A sales of trading goods by cash of $270 allowing a discount of $10 in the price for bulk

buying B payment of $270 received from a debtor and allowed $10 discount for prompt

payment C payment of $270 for account outstanding and received $10 discount for prompt payment D purchase of trading goods on credit of $270 receiving a discount of $10 in the price

for bulk buying 17 When Mason Trading receives cheque no. 216 from Garden Supplies Pty. Ltd., which

of the following entries must be made in the books of Mason Trading ? A dr Cash at Bank $270, cr Accounts Receivable $270 and dr Discounts Allowed $10,

cr Accounts Receivable $10 B dr Purchases $270, cr Cash at Bank $270 and dr Accounts Payable $10, cr

Discounts Received $10

C dr Cash at Bank $280, cr Sales $280 and dr Discounts Allowed $10, cr Accounts Receivable $10

D dr Accounts Receivable $280, cr Cash at Bank $270 and dr Discounts Allowed $10, cr Accounts Receivable $10

UNSW Foundation Studies 6 Final Sample 1

18 The accounting convention that ensures the equality of the accounting equation is the : A continuity convention B historical cost convention C monetary convention D double entry convention 19 One of the guidelines for achieving strong internal control is to draw up an

organisation plan to establish : A responsibility for every function B an account for every purchase C a cash book to record bad debts D a bank reconciliation to record cash 20 From one accounting period to the next, the accounting cycle does not involve which

of the following functions ? A recording transactions on source documents B recording of transactions into journals and ledgers C preparing a trial balance and financial reports D preparing a chart of accounts

20 marks

UNSW Foundation Studies 7 Final Sample 1

Question 21

5 marks

Section B: Answer Questions 21 and 22 in the spaces provided in this examination booklet. Question 21

Indicate whether each of the following statements is true or false by writing T or F in the spaces provided:

T/F

a. Handling of cash and the approval of cash payments should be done by the same person as a good internal control practice.

b. Increase in sales returns is debited because revenue is decreased.

c. The rate of return on owner’s equity is sometimes called the debt to equity ratio.

d. The Profit and Loss Statement is presented as at a given date.

e. Given total assets are $15,425 and total liabilities are $1,425. Owner’s equity is $17,000 when the proprietor makes an additional contribution of capital of $3,000 cash.

UNSW Foundation Studies 8 Final Sample 1

Question 22

15 marks

Question 22 a) Discuss the accounting period convention and the significance of the accounting

period convention in profit determination.

5 marks

UNSW Foundation Studies 9 Final Sample 1

b) Discuss at least five essential features of a good accounting report.

5 marks

UNSW Foundation Studies 10 Final Sample 1

c) What is a trial balance? Discuss at least four limitations of the trial balance.

5 marks

UNSW Foundation Studies 11 Final Sample 1

Question 23

10 marks

Section C: Answer Questions 23, 24 and 25 in the spaces provided in the Answer Booklet. Question 23 Allan Kennedy operates a camera shop. For the following transactions, prepare the transaction analysis chart for Kennedy Trading. June 20XX

3 Kennedy Trading bought a dozen cameras and tripods for $12,000 from Photographic Supplies on credit.

5 Kennedy Trading paid wages of $400 with cheque no. 665.

14 The owner, Allan Kennedy withdrew $150 cash for personal use.

17 Kennedy Trading received $300 from debtor J. Mason.

27 Kennedy Trading paid Photographic Supplies $12,000.

Complete your answer in the spaces provided in the Answer Booklet.

UNSW Foundation Studies 12 Final Sample 1

Question 24

20 marks

Question 24 (a)

The following information was extracted from the books of a firm for the month of October 20XX:

Total debtors at 1 October 20XX $1400 Sales on credit $8640 Cash received from debtors $5000 Sales Returns $320 Discount allowed to debtors $360 Bad debts written off $480 Offset by contra from accounts payable $100

Required: Prepare the Debtors Control Account (or Accounts Receivable Control Account) in the General Ledger in the T format for October 20XX.

Question 24 (b)

For each of the items listed, write the appropriate source or journal from which the figure would be obtained.

a. Total debtors at 1 October 20XX

$1400

b. Sales $8640

c. Cash received from debtors

$5000

d. Sales Returns $320

e. Discount allowed to debtors

$360

f. Bad debts written off $480

g. Offset by contra from accounts payable

$100

Complete your answer in the spaces provided in the Answer Booklet.

UNSW Foundation Studies 13 Final Sample 1

Question 25

30 marks

Question 25 Given below are the transactions of K. Moss in the month of August 20XX. 20XX 1 Aug

K. Moss commenced business on 1 August 200X. K. Moss deposited $25,000 in a bank account. Other assets and liabilities introduced into the business were: stock $6,000, motor vehicle $5,000, accounts payable $1,530, loan from C. Nash $1,500, accounts receivable $600.

2 Purchased furniture for office use on credit from Funny Furniture Warehouse $1,200 (inv no. 206).

3 Purchased goods for resale from ABC Retailers $900 (inv no.693A).

4 Purchased office equipment for cash $600 (chq no. 69201).

6 Cash sales $200 (rec. no. 74).

7 Paid wages $500 (chq no.69202).

9

Sold used motor vehicle on credit to an employee, A. Jones, for $5,000.

10 Credit sales to S. Spencer $200 (inv no. 265).

11 Received commissions $50 (rec. no. 75).

12 Total amount owing by T. Tab was $300. T. Tab paid 50 cents in a dollar as a final settlement (rec. no. 76) and the balance was written off as bad debts.

15 Cash purchases $970 (chq. No. 69203).

16 Cash sales $80 (rec. no. 77).

17 Damaged goods returned by S. Spencer $25 (CN 15).

19 Returned goods to ABC Retailers $100 (CN A12).

20 Credit sales to Sims Pty. Ltd. $2,000 (inv no. 266).

21 Sold goods to P. Michael on credit $550 (inv no. 267).

22 K. Moss withdrew $25 to buy flowers for a sick relative (chq no. 69204)

24 Purchased trading goods from J. Downey on credit $655 (inv no. 901)

25 Paid advertising $60, stationery $20 and rates $90 (chq no. 69205, 69206 and 69207 respectively).

27 Cash sales $1,310 (rec. no. 78).

UNSW Foundation Studies 14 Final Sample 1

Required: Record the transactions into the appropriate journals. Prepare the General Journal, Cash Receipts Journal, Cash Payments Journal, Sales Journal, Purchases Journal, Sales Returns Journal and the Purchases Returns Journal of K. Moss. Show clearly the totals for each journal. Complete your answer in the spaces provided in the Answer Booklet.

UNSW Foundation Studies 15 Final Sample 1

End of Examination

Please:

• Check that you have answered the required number of questions, and followed all directions.

• Check that you have printed your name and student number on the Multiple Choice

Answer Sheet, the Answer Booklet and the Question Booklet.

• Hand in the Multiple Choice Answer Sheet, the Answer Booklet and the Question Booklet as directed at the conclusion of the examination.

Thank you.

UNSW Foundation Studies UNSW Foundation Studies UNSW Sydney NSW 2052 Australia

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