MINISTRY OF EDUCATION

FIJI SCHOOL LEAVING CERTIFICATE

EXAMINATION

2011

ACCOUNTING

COPYRIGHT: MINISTRY OF EDUCATION, REPUBLIC OF THE FIJI ISLANDS

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MINISTRY OF EDUCATION

FIJI SCHOOL LEAVING CERTIFICATE EXAMINATION – 2011

EXAMINER’S REPORT

ACCOUNTING

QUESTION 1 MULTIPLE-CHOICE QUESTION (10 marks)

Overall, this question was fairly attempted by candidates. The comments on each question are given

below:

Q1. Excellent, well answered.

Q2. Fairly answered. Candidates need to be taught the difference between the form the P4-1 and

Form S.

Q3. Fairly answered. Some candidates have failed to recognize that the question encompassed Limited

Liability which is directed at Companies who are known by the use of the word “Limited” in their

names.

Q4. Not well done as there was a wide range of different given answers given by the candidates. This

showed the different level of understanding of the students which perhaps indicated that this topic

was not well covered by the teachers.

Q5. Well done.

Q6. Poorly done. Majority chose A when the answer was B.

Q7. Well done.

Q8. Fairly done. Some candidates chose B as their answer where they based their calculation on the

remaining life of 2 instead of the correct answer C because the remaining life should have been 3

by the end of the second year.

Q9. Well done.

Q10. Poorly done. Most candidates could not analyze the given figures correctly in order to arrive at the

correct answer.

3.

QUESTION 2 NATURE, PURPOSE, SCOPE AND ENVIRONMENT (4 marks)

OF ACCOUNTING

(a) Most candidates could not clearly outline the roles of the first three authorities; Fiji Institute of

Accountants, Institute of Auditors in Fiji and the Fiji Tax Agents Board.

(b) Accounting Entity was well defined but most candidates failed to outline the meaning of Legal

Entity. There seemed to be confusion in the meaning of the term with reference to the sole trader

and partnership.

Generally, on Concepts, the FSLC Accounting Prescription specifically outline that students

should be able to explain the concepts inherent in Accounting. However, there is evidence that

most teachers must have just given the definition only in class. This was evidenced from the

answers in that the expressions given were somehow limited.

Teachers are urged to clearly discuss the Accounting Concepts with the students and give a lot of

situational questions to enable them to understand and apply them effectively.

(c) Well done except a few who outlined the two “uses” rather that “users” of accounting information.

Teachers are urged to clarify this with the students.

QUESTION 3 PERSONAL ACCOUNTING (9 marks)

PART A PERSONAL BUDGET

Overall, this was a well attempted part. However, some candidates still could not classify the expenses

correctly into Fixed and Variable. A few did not classify the expenses at all although required in the

question. A number of candidates could not calculate the annual amounts correctly and some forgot to

account for the changes in the additional information. Teachers are urged to expose students to realistic

situations such as those given in the additional information.

PART B CHEQUES AND BANK RECONCILIATION STATEMENT

(a) Well attempted by candidates, except teachers need to be very particular with the expressions from

students particularly when these are Form 6 students. Even though English is a second language,

there is a need for a concerted effort in upgrading the English level of the students as we prepare

them for Form 7, tertiary education and the Labour Force in general.

(b) This question was well done as most candidates were able to identify the two reasons why banks

may dishonor a cheque.

(c) Poorly attempted. Most candidates were able to calculate the amounts of the errors correctly but

failed to correctly outline the Cash Journals in which the corrections were to be done.

4.

QUESTION 4 FINANCIAL ACCOUNTING (18 marks)

PART A ACCOUNTING EQUATION

Only a few candidates scored between 8 to 10 in this part of the question. Some candidates wrote down

the account type instead of the account names. Some even re- wrote the transactions. There was evidence

that most candidates could not handle transactions of service businesses well. This creates the need for the

teachers to expose students to different types of business ventures in order for the students to process the

transactions correctly in terms of identifying the correct accounts affected. Students are to be given a lot of

transactions that require analysis and calculations like those on the 4th

, 7th

and 10th

September.

PART B BUSINESS OWNERSHIP

(a) Well done. Most candidates were able to identify the form of business ownership correctly.

(b) Well done by most candidates.

(c) Well attempted. There is evidence that candidates are aware of the legal requirements for the

formation of a business as such.

(d) Not done well, only a few candidates managed to discuss the difference correctly. This signifies

the need for teachers to give explanations of the terms covered under each form of business

ownership.

(e) Well done except a few who failed to account for the negative value ($10 000) which is supposed

to be subtracted.

PART C DEPRECIATION

(a) Well done, except a few candidates who gave equivalent terms rather than defining it.

(b) Fairly done.

(c) The Straight Line formula was well identified by candidates but a few of them did not consider the

Capital expenditures, (Freight and Installation expenses) in arriving at the Historical cost of the

asset.

(d) Fairly done. Some managed to calculate the yearly depreciation correctly in part (c) but did not

calculate the Provision for Depreciation at the end of the second year correctly.

5.

QUESTION 5 THE ACCOUNTING PROCESS (9 marks)

PART A BOOKS OF FIRST ENTRY

Very poorly done. There was evidence of candidates’ incompetency in classifying transactions into

journals as the Cash Receipt Journal transactions were not correctly identified. There were wrong entries

such as “Cash Sales” instead of “Sales” only for goods sold for cash. Candidates failed to total the Cash

Receipts Journal correctly in terms of the total name and the columns to add up.

There was also evidence of the ignorance of the candidates on the use of the “Detail” column of the Cash

Receipts Journal. Teachers are requested to spend more time on Books of First Entries rather than taking it

for granted that it was covered at the Form 4 level by the Form 4 teachers.

PART B LEDGER ACCOUNTS

Very poorly done. Most candidates could not analyze transactions correctly in term of the accounts

affected. Most demonstrated their inability to identify the two corresponding accounts affected and the

correct Double Entry Rule to apply. Teachers are urged to try cover this Strand well with the students.

QUESTION 6 MEASURING PERIODIC INCOME (18 marks)

PART A REVENUE STATEMENT

Fairly well done but there were areas of improvements that need to be taken into account.

There was wrong classification of expenses, where stationery and wages were classified as Selling and

Distribution Expenses. Majority failed to apply the Accounting Period and Matching Concept correctly

on Insurance where the Revenue Statement amount is suppose to be the Annual amount of $2400 ($200

per month x12 months) instead of $2000 as done by most candidates. There was wrong calculation of

Interest on Mortgage and Doubtful Debts. In addition, some candidates did not know as to which items

were to be involved in the calculations of Cost of Goods Sold hence arrived at the incorrect amount of

Gross Profit.

It was sad to note that some prepared the Balance Sheet instead of the Revenue Statement; some did not

classify the Expenses while quite a number of candidates did not attempt the question at all though

Revenue Statement is a common question tested in FSLC Accounting.

Teachers are to encourage their students to attempt all the questions whereby there is a possibility of

gaining a few marks rather than leaving a few questions not attempted at all and loosing a lot of marks.

6.

PART B NON TRADING CONCERN

(a) Well Done. Majority scored full mark on the part of the question. However, a few lost marks

when identifying the Deficit (excess of expenditure over income) as a “Surplus” and putting

Entrance Fees as a Current Asset.

(b) A number of candidates recorded only the Book Values of the Fixed Asset (Furniture and Fittings

as $4 600) and failed to apply the Disclosure Concept where the Cost and the Accumulated

Depreciation needed to be fully shown separately. Some candidates disappointingly left this

section blank.

(c) Only a few managed to state correctly and clearly the difference between the Receipts and

Payments Account and the Income and Expenditure Account of a club.

QUESTION 7 SYSTEMS FOR IMPLEMENTING (14 marks)

THE ACCOUNITNG PROCESS

PART A ACCOUNTING SYSTEM

(a) Poorly done. Teachers are encouraged to teach this topic thoroughly in class.

(b) Fairly done but some candidates showed a lack of understanding at all about the two differences.

PART B ACCOUNTING FOR INCOMPLETE RECORDS

Fairly done. Some candidates failed to prepare the account but used the Net Assets Accretion method

which was not required, hence lost marks. Quite a number of the candidates prepared the account but

posted the entries to the wrong side of the account again showing their confusion with the Double Entry

rule.

PART C PETTY CASH

Fairly done. However, there was evidence that this section was not covered by most teachers in class.

Majority of the candidates did not do the reimbursement correctly and wrote the transactions as entries.

Teachers are urged to cover this concept thoroughly in class when covering the Sub –System of Cash and

Banking.

PART D ACCOUNTING FOR INVENTORIES

(a) Well done.

(b) Well done. Most candidates managed to calculate the amounts correctly

(c) Fairly done, teachers still need to clarify the difference between Physical and Perpetual Inventory

System while teaching this concept.

7.

QUESTION 8 ANALYSIS AND INTERPRETATION OF PERIODIC (18 marks)

FINANCIAL STATEMENTS

PART A ANALYSIS OF FINANCIAL STATEMENTS

Only a handful of candidates scored full mark in this section of the question.

The common errors that needed to be improved upon included incorrect formula, giving percentages when

the ratio was expected; rounding off of the answers and to some this whole question was not attempted at

all.

Teachers are required to be innovative in identifying effective strategies that will maximize students’

learning of this theme. It deals with formulae which if understood could help students score marks since

there are provisions made for the correct formula in terms of allocation of marks.

PART B INTERPRETING FINANCIAL STATISTICS

(a) Fairly done. Some candidates did not know the purpose of inventory turnover thus failed to give

the correct reason for the fast selling of stock.

(b) Well done except a few unacceptable answers such as stopping credit sales and writing off bad

debts.

(c) Fairly done. Some candidates lost marks by just identifying the trend without an added

explanation as to what may have been the cause of such performance.

(d) Well done.

(e) Well done, However, a few candidates lost marks by just identifying the trend without further

explanation.

(f) Well done.

(g) Poorly done. Most answers addressed the limitation of Historical Cost rather than the limitation of

the traditional/ manual system as opposed to the modern / computerized system.

(h) Poorly done, though it was knowledge question, majority of the candidates either had it wrong or

left it blank.

THE END

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