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VCE Accounting 2013–2016Written examination
Examination specifications
Overall conditionsThe examination will be sat at a time and date to be set annually by the Victorian Curriculum and Assessment Authority. VCAA examination rules will apply. Details of these rules are published annually in the VCE and VCAL Administrative Handbook.There will be 15 minutes reading time and 2 hours writing time.The examination will be marked by a panel appointed by the VCAA.The examination will contribute 50 per cent to the Study Score.
ContentThe VCE Accounting Study Design 2013–2016 is the document for the development of the examination. The study design includes the Characteristics of the Study (pages 12–16). Questions will be based on the key knowledge and key skills that underpin the outcomes in Units 3 and 4. Students will be required to apply the knowledge and skills of the accounting processes undertaken in Units 3 and 4.Students will not be required to use information and communications technology (ICT) in the examination.Students will not be required to undertake calculations relating to financial indicators in the examination; however, the underpinning knowledge, interpretation and analysis associated with these indicators are examinable.Students will not be required to prepare graphical representations in the examination; however, the explanation and interpretation of graphical representations are examinable.
FormatThe examination will consist of a series of short answer and extended response questions. These may include a variety of item types, including scenarios, questions with multiple parts, short answer questions and extended response questions. All questions in the examination will be compulsory.The total marks for the examination will be 100.The examination will be in the form of a question book and an answer book.
Approved materials and equipment• normal stationery requirements (pens, pencils, highlighters, erasers, sharpeners and rulers)• one scientific calculator
AdviceDuring the 2013–2016 accreditation period for the VCE Accounting Study Design, examinations will be prepared according to the examination specifications above. The examination will assess a representative sample of the key knowledge and key skills from Unit 3 and Unit 4.
© VICTORIAN CURRICULUM AND ASSESSMENT AUTHORITY 2012
July 2012
The accreditation period for VCE Accounting has been extended to 31 December 2018.
VCE Acounting (Specifications and sample) – July 2012 2
The following sample examination is intended to demonstrate the format and type of questions that teachers and students can expect on the end-of-year Accounting examination. Teachers and students should be aware of the Characteristics of the Study, including accounting principles and qualitative characteristics, as described on pages 12–16 of the study design.The VCAA does not publish answers for sample examinations.The following documents should be referred to in relation to the VCE Accounting examination.• VCE Accounting Study Design 2013–2016• VCE Accounting Assessment Handbook 2013–2016• VCAA Bulletin VCE, VCAL and VETIt is recommended that students write in pencil when answering questions that involve calculations.
S A M P L E
ACCOUNTINGWritten examination
Day Date Reading time: *.** ** to *.** ** (15 minutes) Writing time: *.** ** to *.** ** (2 hours)
QUESTION BOOK
Structure of bookNumber of questions
Number of questions to be answered
Number of marks
11 11 100
• Studentsarepermittedtobringintotheexaminationroom:pens,pencils,highlighters,erasers,sharpeners,rulersandonescientificcalculator.
• StudentsareNOTpermittedtobringintotheexaminationroom:blanksheetsofpaperand/orwhiteoutliquid/tape.
Materials supplied• Questionbookof10pages.• Answerbookof17pages.
Instructions• Writeyourstudent numberinthespaceprovidedonthefrontpageoftheanswerbook.• Answerallquestionsintheanswerbook.
• AllwrittenresponsesmustbeinEnglish.
At the end of the examination• Youmaykeepthisquestionbook.
Students are NOT permitted to bring mobile phones and/or any other unauthorised electronic devices into the examination room.
©VICTORIANCURRICULUMANDASSESSMENTAUTHORITY2012
July2012
Victorian Certificate of Education Year
ACCNTEXAMQB(SAMPLE) 2 July2012
Question 3–continued
Question 1 (2 marks)Define theterm ‘doubleentryaccountingsystem’.
Question 2 (11 marks)MarkBrownownsandoperatesMark’sMegaMovers.HehasprovidedhisaccountantwiththefollowinggraphdisplayingdetailsofhisNon-CurrentAssets.Hepurchasedthemallon1July2009.
Historical Cost
Depreciation – 2009–10
Depreciation – 2010–11
Depreciation – 2011–12
Depreciation – 2012–13
Accumulated Depreciation – 30 June 2013
Construction Equipment
ComputerEquipment
Tools and Equipment
Fixtures andFittings
45 000
40 000
35 000
30 000
25 000
20 000
15 000
10 000
5 000
0
a. Usingthegraph,identifyandjustifytheselectionofthedepreciationmethodusedforthe• ConstructionEquipment• FixturesandFittings.
4marks
b. GiventhattheConstructionEquipmentwasdepreciatedusingarateof30%perannum,calculateandshowhowtheConstructionEquipmentwouldbereportedintheBalanceSheetasat30June2013.
3marks
c. Markstated‘wecanchangemethodsofdepreciationnextyearifwewantto’.Usinganaccountingprincipleandaqualitativecharacteristic,explainwhetherthiswouldbeadvisable.
4marks
Question 3 (15 marks)CourtneyHaylesistheownerofHaylesHomeEntertainment,abusinessthatsellshomeentertainmentproducts.At1June2013thebusinesshadthefollowingdebtors.
$JSimon 880MAvis 2200 3080
July2012 3 ACCNTEXAMQB(SAMPLE)
TURN OVER
ExtractsoftheCashReceiptsJournalandSalesJournalforJune2013areprovidedbelow.
Cash Receipts Journal
Date 2013
Details Rec. No.
Bank Disc. Exp.
Debtors Control
Cost of Sales
Sales Sundries GST
1June Sales 234 1320 800 1200 120
3June JSimon 235 792 88 880
9June GSTClearing 236 3600 3600
14June Sales 237 1650 1 000 1500 150
16June SSlater 238 594 66 660
21June MAvis 239 1 000 1 000
28June Sales 240 1320 800 1200 120
Totals to date 10 276 154 2 540 2 600 3 900 3 600 390
Sales Journal
Date 2013
Debtor Invoice Number
Cost of Sales
Sales GST Debtors Control
4June SSlater 123 400 600 60 660
10June JSimon 124 600 900 90 990
19June SSlater 125 300 450 45 495
22June JSimon 126 200 300 30 330
Totals to date 1 500 2 250 225 2 475
Additional information• On30June,Courtneytransferred$10000fromherpersonalbankaccounttothebusinessbank
account(asnotedontheBankStatement).• On30June,thebusinesswasadvisedthattheamountoutstandingforDebtor–MAvis,shouldbe
writtenoff(Memo5).• On30June,JSimonreturnedthegoodshehadpurchasedon22June,becausetheywerefaulty
(CN538).
a. Recordtheadditionalinformationintheappropriatejournals.Totalthejournalswhereappropriate. Narrationsarenotrequired.
5marks
b. CompletetheDebtorsSubsidiaryLedgerforDebtor–JSimonasitwouldappearafteralljournalshavebeenpostedforJune2013.
Youarerequiredtobalancetheaccount.4marks
c. Manybusinessesusecontrolaccountsandsubsidiaryledgersintheiraccountingsystems. Discussthebenefitsandlimitationsofusingcontrolaccountsandsubsidiaryledgers.
6marks
ACCNTEXAMQB(SAMPLE) 4 July2012
Question 4 –continued
Question 4 (19 marks)ChrisLaurenceownsandoperatesChrisso’sFitnessWarehouse,asmallbusinesssellingavarietyoffitnessequipment.Featuresofthebusiness’saccountingsystemincludethefollowing.• Thebusinesssellstocustomersonbothacashandcreditbasis.Creditisofferedtoreliablecustomersat
credittermsof5/14,n/30.TheperpetualmethodofstockrecordingandtheFIFOcostassignmentmethodareused.
• Stockismarkedupatarateof50%.• Thebusinesspreparesfinancialreportsattheendofeachmonth.Chrishasrecordedalltransactionsintotherelevantjournals.Asummaryoftheseisprovided.
Cash Payments Journal (summary)
Date 2013
Details Chq. No.
Bank Disc. Rev.
Creditors Control
Stock Control
Wages Sundries GST
30June Totalstodate 34200 1300 27000 4 000 3000 1 000 500
Sales Journal (summary)
Date 2013
Debtor Invoice Number
Cost of Sales
Sales GST Debtors Control
30June Totalstodate 30000 45000 4500 49500
Purchases Journal (summary)
Date 2013
Creditor Invoice Number
Stock Control
GST Creditors Control
30June Totalstodate 29000 2900 31900
Cash Receipts Journal (summary)
Date 2013
Details Rec. No.
Bank Disc. Exp.
Debtors Control
Cost of Sales
Sales Sundries GST
30June Totalstodate 39300 700 18000 12000 20000 – 2000
Attheendofthereportingperiod,Chrisrealisedthatthefollowingdocumentshadnotbeenrecorded.
CFWInvoice CFW234 Date: 19 June 2013
Charge to: Rob’s Gym
Sale: 2 ZX7 Treadmills
Amount GST Invoice
$4200 $420 $4620
Terms: 5/14, n/30
CFWMemo 9
Date: 27 June 2013
Instruction: 1 ZX7 Treadmill, at a cost of $1500, was used at a recent fitness expo and will now be used solely for advertising purposes.
CFWReceipt 105
Date: 28 June 2013
Details: Received payment in full from Rob’s Gym for invoice CFW234.
July2012 5 ACCNTEXAMQB(SAMPLE)
TURN OVER
a. ExplainwhatismeantbytheFIFOcostassignmentmethod.2marks
b. Update andtotaltherelevantjournalswiththeinformationcontainedintheabovedocuments. Narrationsarenotrequired.
5marks
c. ExplainwhythestockreferredtoinMemo9shouldbetreatedasanexpense.2marks
FollowingaphysicalcountoftheModelZX7Treadmillsat30June2013,Chrispreparedthefollowingmemo.
CFW
Memo 10
Date: 30 June 2013
Details: A physical stocktake showed 1 ZX7 Treadmill on hand.
ChrisprovidedthefollowingStockCardfortheZX7Treadmill.
Stock Item: ZX7 Treadmill Supplier: TreadiesLocation: E4 Cost Assignment Method: FIFO
Date 2013
Details IN OUT BALANCE
Qty Cost Total Qty Cost Total Qty Cost Total
1June Balance 8 1300 10 400
8June Inv.CFW230 4 1300 5200 4 1300 5200
12June Rec.103 3 1300 3900 1 1300 1300
18June Inv.ZX42 4 1500 6000 14
13001500
13006000
d. CompletetheStockCardforZX7Treadmillswithallrelevanttransactionsuptoandincluding 30June2013.
3marks
e. PreparetheGeneralJournalentrytorecordthenecessaryadjustingentryforstockat30June2013. Anarrationisrequired.
3marks
f. Calculate theAdjustedGrossProfitonthesaleofZX7TreadmillsforthemonthofJune2013.4marks
ACCNTEXAMQB(SAMPLE) 6 July2012
Question 5 (5 marks)a. Definenetrealisablevalue(NRV).
2marks
b. ExplaintheeffectsonthefinancialreportsifabusinessfailstorecogniseNRVwhenvaluingitsstock.3marks
Question 6 (18 marks)Timownsandoperatesatoolshop,Tim’sTools.Hehasprovidedyouwiththefollowingbudgetedinformationfromthecashjournalsfortheyear1July2013to30June2014.
Cash Receipts Journal• Bank 311200• DiscountExpense 1700• DebtorsControl 180900• CostofSales 60000• Sales 120000• GST 12000
Cash Payments Journal• Bank 159500• DiscountRevenue 1500• CreditorsControl 45000• StockControl 24000• Wages 53000• Sundries Drawings 6000 Expenses 15000 FixturesandFittings 3000 CustomsDuties 2000 PrepaidRentExpense 8000 AccruedWages 2000• GST 3000
Additional information (expected for year)• Bankbalanceat1July2013was$26800• CreditSales50%greaterthanCashSales• Stockmarkedupby100%• StockLosstobe3%oftotalsales• SalesReturnstobe5%oftotalsales• Accruedinterestof$200relatingtoatermdeposit• Wagesowing30June2014estimatedtobe$3100• BalanceinPrepaidRentexpensewillbe$1000asat30June2014
a. PrepareaBudgetedIncomeStatementfortheyearending30June2014.9marks
b. PrepareaBudgetedCashFlowStatementfortheyearending30June2014.6marks
Timispleasedwiththelevelofexpectedprofitandcashindicatedbythebudgets;however,heisconcernedthattheseresultswillnotbeachievedin12monthstime.c. ExplainhowTimcouldusethesebudgetstomonitorhisprogress.
3marks
July2012 7 ACCNTEXAMQB(SAMPLE)
TURN OVER
Question 7 (4 marks)Abusinessownerhasstated,‘IamnotsureIwanttomakeaprofitthisyear.LastyearImadealossbutmybankbalanceincreasedby$8900despitehavingnonewloansorcapitalcontributions’.Explain,givingtwoexamples,howthiscouldoccur.
Question 8 (8 marks)On1October2013,GenDomesticstradedinitsolddeliveryvanforanewdeliveryvanfromClubMotors.Theolddeliveryvanwaspurchasedatthebeginningof2007for$28000andhadacarryingvalueat 1October2013of$3500.Detailsofthepurchaseandtrade-inforthenewdeliveryvanaredocumentedintheinvoicebelow.
Club MotorsDate 1October2013Invoice no. 79Sold to GenDomesticsDESCRIPTION $
DeliveryVan 42000plusGST 4200 46200Lesstrade-in 2000
TOTAL PRICE 44200Terms: Net 30 days
a. ShowhowthefollowingaccountswillappearintheGeneralLedgerafterallentrieshavebeenposted.• DeliveryVan• AccumulatedDepreciation–DeliveryVan• DisposalofDeliveryVan
Youarenotrequiredtobalancetheaccounts.6marks
b. Explain,usingtheinformationfromGenDomestics,whytheprofitorlossondisposalofthevanoccurred.
2marks
ACCNTEXAMQB(SAMPLE) 8 July2012
Question 9 (6 marks)Abusinessownerisconcernedthatherbusiness’scashflowandliquidityaredeteriorating,soheraccountanthasprovidedsomeinformationregardingthebusiness’sshort-termfinancialposition.
Indicator 2010 2011 2012
WorkingCapitalRatio 2.15:1 2.25:1 2.79:1
QuickAssetRatio 1.42:1 1.05:1 0.79:1
CreditorsTurnover 17days 16days 15days
StockTurnover 58days 79days 98days
DebtorsTurnover 47days 44days 42days
Thebusiness’scredittermshavebeen2/14,n/30since2009.Suppliers’credittermsarealln/30.a. ExplainhowitispossiblethattheWorkingCapitalRatiotrendisfavourablewhiletheQuickAsset
Ratiotrendisunfavourable.2marks
b. Suggesttwotypesofinformation,otherthanfinancialindicators,thatcouldbeusefultothebusinessownerinanalysingtheperformanceofherbusiness.
2marks
c. Statetwostrategies,excludingadditionaladvertising,thatthebusinessownercouldimplementtoimprovetheStockTurnover(thatis,reduceStockTurnoverdays)withoutaffectingtheGrossProfitmargin.
2marks
July2012 9 ACCNTEXAMQB(SAMPLE)
TURN OVER
Question 10 (8 marks)BelindaBrowncommencedbusinesson1January2013underthenameofBubbleBaths.HeraccountantprovidedthefollowingPre-adjustmentTrialBalanceat30June2013.
Bubble Baths Pre-adjustment Trial Balance as at 30 June 2013
Account Debit Credit
Capital 26800
CashatBank 12360
CostofSales 76000
CreditorsControl 63000
DebtorsControl 34000
DiscountExpense 480
DiscountRevenue 800
Drawings 32800
FreightInward 1 000
GSTClearing 20
InterestExpense 2400
Loan 42000
PrepaidAdvertisingExpense 1800
PrepaidSalesRevenue 1 000
Sales 152000
ShopFittings 2000
StockControl 77500
Vehicle 46000
WagesExpense 24000
297 980 297 980
Theaccountantnotedthefollowing.• ThePrepaidAdvertisingExpenserelatestosixadvertisements(onepermonthforsixmonths)in‘Beautiful
Bathrooms’magazine,commencingJune2013.• Wagesincurredforthesix-monthperiodare$25000.• PrepaidSalesRevenuerepresentsadepositonacustom-madebath,whichwasdeliveredtothecustomer
on30June2013.
a. PrepareGeneralJournalentriestorecordtheseadjustmentsat30June2013. Narrationsarenotrequired.
6marks
b. ExplaintherelationshipbetweentheGoingConcernprincipleandtheneedforbalancedayadjustments.2marks
ACCNTEXAMQB(SAMPLE) 10 July2012
Question 11 (4 marks)BucklesandBeltshasprovidedthefollowinginformation,whichwasextractedfromtheCashFlowStatementVarianceReportforthemonthended31October2013.
Budgeted Actual Variance Fav/Unfav
CashSaleofVehicle 6000 7500 1500 F
ReceiptsfromDebtors 95000 90000 5000 U
Loan (9000) (8000) 1 000 F
Interest 300 375 75 U
a. Referringtotheextractabove,statewhethertheinterestisacashinfloworcashoutflow. Explainyouranswer.
2marks
b. ExplainhowBucklesandBeltscouldusetheinformationcontainedintheextractfromtheCashFlowStatementVarianceReport.
2marks
END OF QUESTION BOOK
Instructions
• Aquestionbookisprovidedwiththisanswerbook.• Answerallquestionsinthespacesprovidedinthisbook.• Writeyourstudent numberinthespaceprovidedaboveonthispage.• RefertoInstructionsonthefrontcoverofthequestionbook.
Students are NOT permitted to bring mobile phones and/or any other unauthorised electronic devices into the examination room.
©VICTORIANCURRICULUMANDASSESSMENTAUTHORITY2012
July2012
ACCOUNTINGWritten examination
Day Date Reading time: *.** ** to *.** ** (15 minutes) Writing time: *.** ** to *.** ** (2 hours)
ANSWER BOOK
SUPERVISOR TO ATTACH PROCESSING LABEL HERE
Figures
Words
STUDENT NUMBER Letter
Victorian Certificate of Education Year
July2012 3 ACCNTEXAMAB(SAMPLE)
Question 2–continuedTURN OVER
Question 1 (2 marks)
Definition
Question 2 (11 marks)a. 4marks
Construction Equipment Method of depreciation
Fixtures and Fittings Method of depreciation
Justification
b. 3marks
Calculation
Mark’s Mega Movers Balance Sheet (extract) as at 30 June 2013
Non-Current Assets $ $
ACCNTEXAMAB(SAMPLE) 4 July2012
Question 3–continued
c. 4marks
Explanation
Question 3 (15 marks)a. 5marksCash Receipts Journal
Date 2013
Details Rec. No.
Bank Disc. Exp.
Debtors Control
Cost of Sales
Sales Sundries GST
1June Sales 234 1320 800 1200 120
3June JSimon 235 792 88 880
9June GSTClearing 236 3600 3600
14June Sales 237 1650 1000 1500 150
16June SSlater 238 594 66 660
21June MAvis 239 1000 1000
28June Sales 240 1320 800 1200 120
Totals to date 10 276 154 2 540 2 600 3 900 3 600 390
July2012 5 ACCNTEXAMAB(SAMPLE)
Question 3–continuedTURN OVER
Sales Journal
Date 2013
Debtor Invoice Number
Cost of Sales
Sales GST Debtors Control
4June SSlater 123 400 600 60 660
10June JSimon 124 600 900 90 990
19June SSlater 125 300 450 45 495
22June JSimon 126 200 300 30 330
Totals to date 1 500 2 250 225 2 475
General Journal
Date 2013
Details General Ledger Subsidiary Ledger
Debit Credit Debit Credit
ACCNTEXAMAB(SAMPLE) 6 July2012
b. 4marksDebtor – J Simon
Date 2013
Cross-reference Amount Date 2013
Cross-reference Amount
c. 6marks
Discussion
July2012 7 ACCNTEXAMAB(SAMPLE)
Question 4–continuedTURN OVER
Question 4 (19 marks)a. 2marks
Explanation
b. 5marksCash Payments Journal (summary)
Date2013
Details Chq. No.
Bank Disc. Rev.
Creditors Control
Stock Control
Wages Sundries GST
30June Totalstodate 34200 1300 27000 4000 3000 1000 500
Sales Journal (summary)Date 2013
Debtor Invoice Number
Cost of Sales
Sales GST Debtors Control
30June Totalstodate 30000 45000 4500 49500
Purchases Journal (summary)Date 2013
Creditor Invoice Number
Stock Control
GST Creditors Control
30June Totalstodate 29000 2900 31900
ACCNTEXAMAB(SAMPLE) 8 July2012
Question 4–continued
Cash Receipts Journal (summary)Date 2013
Details Rec. No.
Bank Disc. Exp.
Debtors Control
Cost of Sales
Sales Sundries GST
30June Totalstodate 39300 700 18000 12000 20000 – 2000
General JournalDate2013
Details General Ledger Subsidiary LedgerDebit Credit Debit Credit
c. 2marks
Explanation
July2012 9 ACCNTEXAMAB(SAMPLE)
TURN OVER
d. 3marks
Stock Item: ZX7 Treadmill Supplier: TreadiesLocation: E4 Cost Assignment Method: FIFO
Date 2013
Details IN OUT BALANCE
Qty Cost Total Qty Cost Total Qty Cost Total
1June Balance 8 1300 10400
8June Inv.CFW230 4 1300 5200 4 1300 5200
12June Rec.103 3 1300 3900 1 1300 1300
18June Inv.ZX42 4 1500 6000 14
13001500
13006000
e. 3marksGeneral Journal
Date 2013
Details General Ledger Subsidiary Ledger
Debit Credit Debit Credit
f. 4marks
Calculation
Adjusted Gross Profit $
July2012 11 ACCNTEXAMAB(SAMPLE)
Question 6–continuedTURN OVER
Question 6 (18 marks)a. 9marks
Tim’s ToolsBudgeted Income Statement for the year ending 30 June 2014
$ $
ACCNTEXAMAB(SAMPLE) 12 July2012
b. 6marksTim’s Tools
Budgeted Cash Flow Statement for the year ending 30 June 2014
$ $
Question 6–continued
ACCNTEXAMAB(SAMPLE) 14 July2012
Question 8 (8 marks)a. 6marks
Delivery Van
Date 2013
Cross-reference Amount Date 2013
Cross-reference Amount
Accumulated Depreciation – Delivery Van
Date 2013
Cross-reference Amount Date 2013
Cross-reference Amount
Disposal of Delivery Van
Date 2013
Cross-reference Amount Date 2013
Cross-reference Amount
b. 2marks
Explanation
July2012 15 ACCNTEXAMAB(SAMPLE)
TURN OVER
Question 9 (6 marks)a. 2marks
Explanation
b. 2marks
Other information 1
Other information 2
c. 2marks
Strategy 1
Strategy 2
ACCNTEXAMAB(SAMPLE) 16 July2012
Question 10 (8 marks)a. 6marksGeneral Journal
Date 2013
Particulars General Ledger Subsidiary Ledger
Debit $
Credit $
Debit $
Credit $
b. 2marks
Explanation