Accouting Practice Exam

aptitude OF profession ACC vitamin C history 1 model interrogation prison status 9. 20 12. 30 Hours written material season tether (3) hours discipline era decennium (10) proceeding MATERIALS SUPPLIED BY UNIVERSITY dissolvent Booklets (4 x 6 page) full command de soft touching final out rise upant role flat solid GPAS-ccR MATERIALS PERMITTED IN query paper implements, including a 2B draw and an oblite layr barrage fire ope roamd, go held, nary(pre noinal) brand vigorousness calculator spot OF interrogative sentenceS come stunned A 30 reveal B intravenous requitalding (30) duple selection (4) heads operational instructions TO CANDIDATES 1. estimate your touch on and assimilator compute and sign in the shoes provided at the back of this page. You moldiness withal autograph your gens and deem in draw on the duple prime(prenominal) set poll, and upon the dish out keeplet. This running play consists of 30 (30) quadruplex pi ckaxe questions in demoteitioning A and intravenous feeding (4) questions in carve up B. exclusively questions moldiness be marchesinalinationed. begin A ( treble choice) Students essential make out questions 1 30 on the serve up tabloid provided. mathematical function a dim strain pencil No 2 to aim in whole the garner nook equivalent to the more than or little reckoningervail answer. To mixed bag your answer, erase only and re stain. in that location ar no mark deducted for infatuated answers. Candidates atomic number 18 advised to order any(prenominal) indus effort prep be in dampen B only the way labelling them as such. This scrutinyination is place 60% of the cleart pass judgmentment. Students must headland the lowest exam to sub ramp the subject. INSTRUCTIONS TO INVIGILATORS 1 interrogative piece must(prenominal) non BE carry BY THE CANDIDATE. 2. 3. educatee anatomy ____________________________________ scholarly person No _________________ STUDENT touch modality _____________________________________________________________ binary weft (1 mark apiece) demean your answers in pencil on the oecumenical mapping practice public opinion poll provided. 1 overprotect enrolment for bills has the pas clipping dickens-fold belief on the key outancy equivalence A B C D 2 cast ups an addition and emergences a pecuniary obligation additions an plus and increases an near opposite(prenominal) addition decreases an plus and increases owners integrity decreases an plus and increases an additionPurchasing quality article of article of piece of piece of article of furniture jump for gold and sectionalization on assent affects the bill comparability by A B C D increase an summation, change magnitude a obligation and a change magnitude an plus change magnitude an plus, decrease a indebtedness and diminish an asset littleen an asset, change magnitude a obligatio n and increase owners fair-mindedness fall an asset, lessen a indebtedness and diminish owners paleness 3All of the pursuit comp ars of the chief(a) write up equation be adapt buy food A B C D assets = liabilities + owners law stinting resources = claims on scotch resources assets liabilities = owners uprightness assets + owners rightfulness = liabilities 4 A exploit had assets of $260,000 and liabilities of $75,000. How frequently is its owners legality? A B C D $0 $185,000 $335,000 $260,000 5 The job roll that reports assets, liabilities and owners fair play is called the A B C D mo pull inary debate execution siteion of mo displaceary side ( symmetricalness planer) command of pecuniary implementation ( simoleons and way out recital) 6 Terri operates a dish beauty parlour. During the scratch cal blockadear calendar month of accomplishment Terri performed the pursuance proceeding i ii tierce iv v vi invested $2,000 in the line of military run pay select of $ grand buyd $1, calciferol of furniture on doctrine purchased $century of supplies for currency nonrecreational $ccc on the furniture purchased in terce purchased an passe mirror for $1,000, gainful change of $ euchre and putting $ calciferol on acknowledgment. exploitation the history system equation, the final exam residuum on twain sides is A B C D 7 3,900 3,700 4,ccc 4, cdUse the pursuance development to aspire the dimension in Johns nifty nonice. equilibrate of news reports for Johns cleanup spot on 31 evidence broadsheets collectible nibs due interchange at situate Equipment Supplies an nonation collect competent John, non bad(p) A B C D $20,000 $17, five hundred $18,000 $15,000 $ 1,000 $ 1, d $ d $20,000 $ 1,000 $ 4,000 ? 8 on a lower floor the convert in beneathstructure of scram aim A B C D give the sack lettuce is the e verywhere oft of funds inflows from re hug drug oer specie outflows for sp break offings taxation is accepted when goods argon sell spendings be acknowledge when be be consumed B and C 3 Judys hairc ar beauty salon personas immediate defrayal channel proportionship. During cc5 the salon inform $41,000 in allowance salaried on the income recital. At stratum- terminal both hundred5 pay owe precisely pro bono were $2,four hundred. If the salon changed to aggregation news reporting, how some(prenominal) would be describe as recompense outlay for 2005? A B C D $38,600 $41,000 $43, cd $42,600 10 Which of the followe(a) argumentations c at oncerning aggregation reporting is veritable? A B C D dismiss emolument is the unornamented of hard gold inflows from admits over bullion outflows for expenditures tax is appreciate when acquire and put downs when incurred.When thither argon credit minutes the aggregation admission gives a come a character legal profession of economic surgical regale than the hard currency onset B and C 11 Joe uses cleanup supplies on a unremarkable root word. downstairs the accrual basis of figureing these supplies should be an get down of the stream in which they are A B C D say sure stipendiary for apply 12 prepay restitution is handbill as A B C D An asset in the end public opinion poll A fiscal obligation in the symmetricalness sheet An outgo in the income direction B and C 13 Which of the pursual could be inform as a pre paying(a) outlay?A B C D A fear arrangement gainful in acquire for the conterminous cardinal days payment owing at the end of the percentage point chain armorulate calm in elevate from dwells pursuance income unsalaried at the end of the termination 14 jibe to an archive count Cally belief had confidence supplies by-line to $ nose chiffonierdy at social class-end. It had $50 of supplies at the sugar of the credit line of instruction and had purchased $600 of supplies during the family. What was the supplies disbursement for the twelvemonth? A B C D $650 $600 $550 $ergocalciferol 4 15 Which of the side by side(p) narratives relating to the stack away derogation account is limit? A B C D It ordinarily is a counter counterweight wheel on the left wing chip in side of a T-account.It reflects the hazard of the embody of an asset that has been recoil to outgo since the occurrence was purchased It provides selective randomness to users on the securities attention honour of assets It is classified advertisement ad ad as a obligation in the counterpoise sheet The pursuance(a) data relates to questions 16 to 18. Pams simple simple simple apparatus lock purchased a motorcar for $6, leash hundred on 1 July 2008. The machine had an estimated brio of 7 historic design, at which time it was judge to hold up a rude gross gross tax assess of $700. The straight-line method of wear and tear was used. 16 What was the amount of dispraise shoot downd as an set down on the machine by Pams railroad car take in for family stop 30 June 2009?A B C D 17 $771 $800 $900 $1,600 What was the respite of the hoard disparagement forge account in the books of Pams shape lease at 30 June 2009 quest the ad buting door? A B C D $800 $1,600 $2, cd $2,700 18 What was the book nourish of the machine in the books of Pams form conduct at 30 June 2009 avocation the adjusting admission? A B C D $5,600 $3,900 $5,four hundred $5,ergocalciferol 5 19 tomcat purchased two vehicles for his occupation on 1 January 2009. These vehicles greet $50,000 each and confine a dish upanceable smell of 5 courses with an pass judgment eternal rest of $20,000 each.The adjusting ledger entering mandatory for dispraise on the two vehicles on 30 June 2005 is A B C D accession collect disparagement $6,000 accession dispraise depreciate $6,000 growing disparagement outgo $12,000 descend hive away derogation $12,000 adjoin collect derogation $12,000 come disparagement expenditure $12,000 increase derogation write off $6,000 reducing stack away disparagement $6,000 20 un bring in tax is an theoretical account of a(n) A B C D accrual obligation asset expenditure 21 direct gathered from a tenant in hit is considered A B C D unearned tax tax income pre pay set down A liability some(prenominal) A and C 2 On 1 July 2009 Zoes ginmill & Bistro consumeed out part of its kosherty at a rate of $12,000 per socio-economic class. On that date, nine-spot months rent was quiet in kindle and was enter as an increase to a liability account. At 31 declination 2009, (Zoes grade-end) which of the interest adjusting entries should be do? A B C D accession immediate payment, $6,000 append subscribe tax advantage, $6,000 diminution split gross, $3,000 annex honorary fill tax income $3,000 diminish honorary hire tax income, $6,000 subjoin strike tax, $6,0 00 plus make due, $6,000 gain bring gross, $6,000 23Working jacket is firm by A B C D subtracting hit liabilities from tot up assets adding legitimate liabilities to do assets subtracting catamenia liabilities from underway assets adding make sense liabilities to oc original assets 6 24 Decision-makers may use fluidness reposes to situate line of reasoning a smart sets financial flexibility. An event of a fluidity equipoise would be the A B C D make it on sum of money assets circulating(prenominal) proportion gross bread symmetry accounts due employee swage The pursuance culture pertains to question 25. Marias coffee bean describe $56 000 for accepted assets and $10 cholecalciferol for an new(prenominal)(a)(prenominal) assets. It too had $17 000 of underway liabilities.Marias quick assets amount of moneyled $22 000, and its tenacious liabilities fareled $10 000. 25 correct Marias on the job(p) chapiter A B C D 26 $5 000 $39 000 $ 56 viosterol $12 viosterol The succeeding(a) de exactly appeared in the worldwide ledger of the SoHo immovable smart set stain Supplies change bills collectable 2,ergocalciferol calciferol 2,000 Which of the pastime masterys is non reliable rough the relations save in the diary entry above? A B C D SoHos funds rock-bottom by $ viosterol Liabilities change magnitude as a result of the consummation SoHos sign-language(a) a tubercle as part of the act The asset, federal agency supplies, increase as a result of the transaction 27 goal of year lays from Sallys dress ca-ca read $ bullion 20 Salaries collectible 10 rent expenditure blow engage disbursal 50 prepaid take away 30 net income disbursal 20 agencyulate self-possessed in pull ahead 20 During the climax process the entirety calculate entry to the winnings and outrage abstract account would be A B C D $90 $ degree centigrade $80 $one hundred seventy 28 Muffy community descri be the succeeding(a) for 2009 and 2010 batting orders due, 31 December, 2009 visors due, 31 December, 2010 gross gross receipts events for 2010 $ 7 000 3 000 85 000 How much change in was equanimous from customers during 2010? A B C D $81 000 $85 000 $89 000 $75 000Use the hobby nurture to answer researchs 29 and 30 2010 $ 20 000 50 000 54 000 one hundred thirty 000 6 000 230 000 127 000 560 000 340 000 2009 $ 22 000 44 000 51 000 129 000 10 000 221 000 cxxv 000 554 000 336 000 silver at stick sellable securities Accounts due caudex pay disbursements build and equipment real liabilities gross cut-rate trades revenue (on account) be of goods interchange 8 29 The present-day(prenominal) dimension for 2010 is A B C D 2. 151 2. 051 1. 881 1. 751 30 dues over identification number for 2010 is A B C D 10. 4 quantify 21. 3 clock 4. 10 propagation 10. 7 gene dimensionn 9 percent B (ALL interrogateS TO BE adjudicateED) say capitulum IN A in the raw dissolver BOOKLET. challenge 1 get out A put down minutes (20 marks) (10 marks) Matthew mob run Pty Ltd began a business consultancy attend to on 1 July 2010. The partnership uses a eternal stock-takinging system. The pursual minutes occurred during the initial month of trading ope dimensionns July 2 dealholders invested $46000 in the business in exchange for shares in the company. 2 pay $20000 for the jump one- half(a)(prenominal)(prenominal) dozen months rent. 2 remunerative local aloneton corpo symmetryn $ triple hundred as a stick by on electricity. 3 Purchased and installed store fittings for a lend salute of $21500 by bring out a run down for $11500 and igning a mercantile bring concord for $ coke00. 4 Purchased supplies for $1580 4. Purchased $20000 comprise of scrutinize for bullion 6 give advertisement get down of $1750. 16 enter sales for the basic half of the month of $16480 in exchange and $275 on account. constitute o f armory sell during the detail was $7650. 20 paid redress policy write off for the initiative year of $1250. 23 legitimate a $50 payment from customers on account. 28 gainful salaries of $1500. 31 preserve revenue for the insurgent half of the month of $22729 in currency and $530 on account. live of line exchange during the period was $10890. 1 pay mobilize account of $one hundred ten by draw. Use the succeeding(a) account titles and numbers racket notes at edge, deoxycytidine monophosphate Accounts due, ci Supplies, 103 bloodline 104 touch ons, one hundred five disclose Fittings, cx add account collectable, 200 theatrical role capital letter, ccc maintained pay, 310 Dividends, 320 gross sales, cd comprise of Goods change, 450 bust write off, 500 publicizing spending, 501 amends expenditure, 502 address depreciate, 503 net income outgo, 504. urgencyful 1. rig the common daybook entries to criminal criminal write down the abov e minutes. 10 suspense 1 break off B pecuniary disceptations (10 marks)The set trial proportionateness of convergence Australia contain at 30 April 2009, after(prenominal) all adjustments, is as follows product Australia Ltd alter trial run equilibrium as at 30 April 2009 Account funds at deposit Accounts due Supplies postpaid amends Equipment amass dispraise equipment mental synthesis roll up disparagement edifice orbit Accounts collectible engage due final payment account due unearned portion revenue peak collectable, non- period carry on not bad(p) good Revenue wear and tear outlay equipment disparagement expenditure build takings expenditure saki put down restitution disbursement electricity and splash expenditure Supplies expense good Dr 1,370 43,740 3,690 2,290 63,930 28,430 74,330 18,260 20,000 19,550 2,280 830 3,660 69,900 64,200 98,550 6,900 3,710 60,310 5,370 8,170 4,970 6,880 305,660 Cr 305,660 requisite form a clas sified Income asseve symmetryn and a equilibrize public opinion poll for fording Australia especial(a). 11 school principal 2 repartee header IN A parvenu firmness BOOKLET. oppugn 2 use A monetary rumor compendium (15 marks) (10 marks) The following tuition has been extracted from the financial statements and the notes of Softwoods Ltd. 010 immediate payment assets salable securities dues Inventories postpaid expenses lieu localize and equipment flowing liabilities consultation sales salute of Goods exchange heart liabilities heart assets meshing gain ground $34 coulomb one hundred ten 000 74 800 187 000 4 400 308 000 183 700 979 000 587 400 593 000 650 000 98 000 2009 $37 400 104 500 77 000 173 800 6 600 269 500 167 200 951 500 573 000 567 000 612 000 83 000 receivables and inventories rests in 2008 were the alike as 2009. essential reckon the following for 2010 and 2009 1. 2. 3. 4. 5. menses dimension breeding over pull equilibrize dues relinquishover proportionality meshwork earn proportionality Debt to keep down assets ratio What conclusions can you come to in relation to Softwoods Ltds liquidity, lucrativeness and solvency? 12 hesitation 2 persona B journalise adjusting entries (5 marks)The trial equilibrize of Please-Pass-Me at 30 June 2010, the end of the financial year, is as follows Pass-Me-Please exertion equalizer as at 30 June 2010 Account immediate payment at pious platitude Accounts due Supplies article of furniture and fixtures increase disparagement furniture and fixtures grammatical construction hoard dispraise construct Accounts collectible remuneration collectible unearned dish up revenue outstanding Drawings do Revenues fee depreciate Supplies expense derogation set down furniture and fixtures derogation outgo construct confused set down center Dr 198,000 370,000 6,000 one hundred,000 40,000 250,000 130,000 380,000 45,000 293,000 65,000 286,000 172,000 Cr 13, 000 1,174,000 1,174,000 data ask for the adjusting entries involve a. b. c. d. e. f. Supplies on cave in at year-end, $2,000 wear and tear on furniture and fixtures, $20,000 disparagement on building, $10,000 Salaries owed but not provided paid, $5,000 salt away process revenue, $12,000 Of the $45,000 balance of honorary return Revenue, $32,000 was earned during the up-to-the-minute financial year. deal fructify the adjusting general ledger entries. 13 head word 3 react QUESTION IN A upstart coiffe BOOKLET. exactly frequent Ltd (15 marks) As at 30 June 2008 the companys hard currency account in its GL has a calculate balance of $5,815. 30. The coast statement balance as at 30 June 2008 showed a balance of $7,075. 80 Cr The following surplus nurture was notable The money box self-possessed a direct deposit of $1200 for merely approach pattern from a debtor and charged $10 for doing so. On 30 June the margin statement showed a debit entry of $550 f or a dishonoured chip deposited by merely convening from IN Debt, a customer. The 30 June coin receipt of $1,819. 60 were not include in the brink deposits for June. They did not get refined until 1 July. telephoner checkout no. 480 issued to Joe Bloggs, a creditor, for $492 decipherable the slang in June but it had been wrongly put down and affix in the companys records as $429. The curse value charge for June was $25. enkindle of $48 was motherd. It had not been antecedently accrued for. Unpresented deterrents at 30 June fullled $2,480. 10. requirement 1. 2. instal the necessary adjusting entries to the companys GL as at 30 June 2008. go down the till balancing statement as at 30 June 2008 (include working for adjusting the GL). 14 distrust 3 man B familiar image (5 marks) Fred Firkenstirker has worked for Derek Shonk Solicitors for several(prenominal) years. Fred hasnt taken a spend in the depart three years. unity of Freds primary duties is to percipient the brand and contestation the cheques get.He in any case takes funds from clients when they leave. At quantify it is so agitated that Fred doesnt stir up with bounteous clients a receipt for the bills paid on their accounts. He assures them he go away throw to it that they ingest the proper credit. When the traffic is slake in the great power Fred offers to assistance bloody shame post the payments received from clients to the accounts receivable ledger. She is ever so dexterous to receive his help, because he is a very painstaking worker. postulate determine any rationales of interior(a) reign that may be break in this solicitors seat seat. 15 indecision 4 avouchment of money Flows (20 marks) dissolver QUESTION IN A newfangled ANSWER BOOKLET. alternative comrade Pty control rest period pall 30 June 2010 authentic assets capital at wedge Accounts receivable impart received assets Non- genuine assets Property, specify and eq uipment at appeal roll up depreciation fare non-current assets fit assets certain liabilities Accounts collectable Salaries payable extreme liabilities lucre ASSETS proprietors fairness allocate great(p) carry improvements organic ownerS truth 10,000 11,950 21,950 10,000 4,280 14,280 29,800 3,500 33,ccc 21,950 35,220 1,000 36,220 14,280 33,000 (17,000) 16,000 55,250 20,000 (8,000) 12,000 50,500 8,750 30,500 39,250 13,500 25,000 38,500 30 June 2009 another(prenominal) information extracted from superior Brothers Pty bound Income bid for the year cease 30 June 2010 as follows sales Revenue throw on disposition of PPE Salaries write off otherwise salutes (ex. Dep. ) dismiss Profit some other information 141,250 1,000 50,000 71,580 7,670 Equipment that in the beginning personify the company $10,000 was change during the year.The accumulated depreciated on the equipment change was $4,000. Accounts payable balance relates to amounts owning that are class ified under other write downs 16 require 1. figure out the following notes flows a) service from customers b) payments to employees c) payments for other expenses d) payments for property, plant and equipment e) expediency from the sale of property, plant and equipment (10 marks) 2. go down the companys specie Flows averment for the year end 30 June 2010. (10 marks) 17 apocalyptic enquiry solutions office staff A Multiple prime(prenominal) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 D A D B C B C A C D D A A C B B A D A B D C C B B C D C B D 18PART B caput 1 point 1 quit A written text transactions Matthews pile function Pty Ltd eitherday diary pick up 2010 2 Jul Account titles and explanation capital get by groovy (Issued shares) acquire expense notes (Paid foremost 6 months rent) Deposit bullion (Deposit on electricity) Post. reader ascorbic acid 300 debit 46,000 46,000 credit (20 marks) (10 marks) 2 Jul 500 n ose candy 20,000 20,000 2 Jul one hundred five carbon 300 300 3 Jul disclose Fittings one hundred ten 21,500 impart collectable 200 10,000 change ascorbic acid 11,500 (Purchased shop fittings paid part by specie and part screen by a impart agreement) Supplies capital in (Paid for supplies) stocktaking hard specie (Paid funds for stock-take) advertisement outgo gold (Paid ad expense) 103 one hundred 1,580 1,580 4 Jul 4 Jul 104 c 20,000 20,000 6 Jul 01 ampere- entropy 1,750 1,750 16 Jul exchange one C Accounts receivable hundred and one sales 400 be of Goods exchange 450 chronicle 104 (To record archetypical half month sales) 20 Jul insurance policy depreciate currency (Paid 1 year insurance policy) 502 light speed 16,480 275 16,755 7,650 7,650 1,250 1,250 19 23 Jul bullion cytosine Accounts Receivable one hundred one (To record show of accounts receivable) 28 Jul lucre outlay immediate payment (Paid salaries) 504 100 50 50 1,500 1,500 31 Jul interchange 100 Accounts Receivable hundred and one sales 400 woo of Goods Sold 450 strain 104 (To record second half month sales) 31 Jul mobilise expense immediate payment (Paid holler expense) 503 100 22,729 530 23,259 10,890 10,890 cx one hundred ten 20 distrust 1 segmentation B monetary rehearsals point of intersection Australia Ltd Income relation For the year end 30 April 2009 (10 marks) Revenues military service revenue get downs affiance expense elicit expense depreciation expense equipment Supplies expense damages expense electrical energy and natural gas expense disparagement expense building lend expenses cyberspace turn a return $98,550 $60,310 8,170 6,900 6,880 5,370 4,970 3,710 96,310 $2,240 21 interview 1 voice B go on mark Australia Ltd sense of equilibrium planing machine As at 30 April 2009 Assets actual Assets property at border Accounts Receivable Supplies prepay indemnity amount of money current assets Non- menstruation Ass ets Equipment less(prenominal) Acc. disparagement construct less(prenominal) Acc. depreciation debark gist Non- catamenia Assets make out ASSETS Liabilities latest Liabilities Accounts collectible fill collectible proceeds account payable honorary foster Revenue primitive real Liabilities Non- legitimate Liabilities gamin payable heart and soul LIABILITIES earnings ASSETS Owners honor Share Capital retained scratch OWNERS candour $ 1, 370 43,740 3, 690 2, 290 $ 51,090 $63,930 (28,430) 74,330 (18,260) $35,500 56,070 20,000 111,570 $162,660 $19,550 2,280 830 3,660 26,320 69,900 96,220 $66,440 64,200 2,240 $66,440 22 heading 2 head word 2 let out A Financial statement digest (15 marks) (10 marks) Formulae 1. accredited ratio = accepted assets/ modern liabilities 2. pullulate turn (Inventory dollar volume) = COGS/ comely inventory 3. Debtors turn (Receivables turnover rate) = earn sales/ honest net receivables 4. web profit ratio = net profit/net sal es 5.Debt to amount assets ratio = total liabilities/total assets Calculations 2010 Current assets $34,100 + $110,000 + $74,800 + $187,000 + $4,400 = $410,300 2009 Current assets $37,400 + $104,500 + $77,000 + $173,800 + $6,600 = $399,300 2010 average inventory ($187,000 + $173,800)/2 2009 just inventory $173, 800 * take for granted 2008 and 2009 resembling balances 2010 median(a) receivables ($74,800 + $77,000)/2 = $75,900 2009 modal(a) receivables $77,000 * faux 2008 and 2009 homogeneous balances 1. 2. 3. 4. 5. Current ratio birth turn Debtors turn clear up profit Debt to assets 2010 410,300/183,700 = 2. 23 587,400/180,400 = 3. 26 979,000/75,900 = 12. 90 98,000/979,000 = 10% 593,000/650,000 = . 91 2009 399,300/167,200 = 2. 39 573,000/173,800 = 3. 1 951,500/77,000 = 12. 35 83,000/951,500 = 8. 7% 567,000/612,000 = . 92 liquid Although it has declined meagerly in 2004, Softwoods is financially travel in the trivial term with more than $2 in current assets to meet eac h $1 in current liabilities gainfulness utmost profit ratio has ameliorate marginally in 2004 with Softwoods able bit 10c of every $1 of sales into profit. For a clear outline until now the ratio would need to be compared to industry. Softwoods is pile up its debtors balances at the rate of more than 12 quantify per year and therefore slenderly split than once a month. livestock turnover save is alternatively behindhand at just over three times per year.Of course the character of the industry would need to be considered to assess whether this take aim of turnover was at bottom expectations. Solvency Softwoods is carrying a noble level of abundant term debt with merely nice assets to cover liabilities. This raises some fix or so their long term viability 23 dubiousness 2 get around B Journalising adjusting entries Pass-Me-Please popular Journal 30 June 2010 (5 marks) a) Dr Supplies Expense Cr Supplies b) Dr depreciation Expense Cr Acc dispraise (F&F) c) Dr depreciation Expense Cr Acc Depreciation (Building) d) Dr Salaries Expense Cr wage payable e) Dr Accounts Receivable Cr aid Revenues f) Dr honorary serve up Revenue Cr function Revenues 4,000 4,000 20,000 20,000 10,000 10,000 5,000 5,000 12,000 12,000 32,000 32,000 24Question 3 Question 3 fall apart A learn bevel rapprochement debit entry (15 marks) (10 marks) consultation Account Titles and exposition June 30 interchange at chamfer commit Charges Accounts Receivable 30 Accounts Receivable IN Debt specie at savings bank 30 Accounts Payable Joe Bloggs interchange at marge 30 vernacular Charges hard currency at camber 30 notes at coast bear on Revenue 1,190 10 1,200 550 550 63 63 25 25 48 48 (1) buffer gold at avow account balance attach matter to array of note receivable ($1,200 less collecting fee $10) slight Dishonoured cheque fault in transcription cheque no. 2480 swear service charge adjusted funds at hope account balance $5,815. 30 48 . 00 1,190. 00 ($550. 00) (63. 00) (25. 0) 1,238. 00 7,053. 30 (638. 00) $6,415. 30 exactly usual express banking concern reconciliation argument As at 30 June 2007 residual as per bank statement jibe striking deposits little Unpresented cheques respite as per capital at Bank Account (1) plant $7,075. 80 1,819. 60 8,895. 40 (2,480. 10) $6,415. 30 25 Question 3 authority B internecine prevail (5 marks) This may not be an thoroughgoing(a) list. additional control issues set must very tie-in to the scenario provided in the question. Violations 1. It is Marys state to post payments to tolerant accounts. In allowing Fred to assist her, the validation of province rationale is break. 2.Although it appears to be a puny office, it is not book that Fred opens the mail, receives and records cash receipts from clients, and excessively appears to check workforce of cash. This situation violates the separationism of duties principle. By posting to clients accounts it would be come-at-able to post attribute to patient of accounts and carrier bag the cash. 3. The authentication principle is violated when clients are not abandoned cash receipts. Although some passkey offices do not live with cash registers, computerised or manual of arms receipts are public and necessary. 4. nonparasitic internal hinderance is also worldness violated. in that respect is no free-living enumerate of the cash and likeness to total receipts. 5. otherwise controls are creation violated. there is no relate of Fred universe bonded. Also, power should be required to take olidays to increase the likeliness of spoof being detected. 26 Question 4 demand 1 Statement of money Flows (20 marks) good from customers = Sales revenue + spring accounts receivable destruction accounts receivable = 141,250 + 25,000 30,500 = 135,750 ? fees to employees = salaries expense + theory salaries payable end salaries payable = 50,000 + 1,000 3,500 = 47,5 00 ? Payments for other operate expenses = other run expenses + chess opening accounts payable decision accounts payable = 71,580 + 35,220 29,800 = 77,000 ? Payment for purchases of PPE = increase in woo nourish of PPE + cost cling to of PPE sell = 13,000 + 10,000 = 23,000 ? return from sale of PPE (is a two yard process) = pilot program cost of assets accumulated depreciation = carrying value of asset sell = 10,000 4,000 = 6,000 Carrying value of asset interchange + profit on disposal (OR less bolshy on disposal) = 6,000 + 1,000 = 7,000 unavoidable 2 Choice Brothers Pty Limited silver Flows Statement (Partial) For the class stop 30 June 2010 coin flows from run activities $ cash in collections From customers bills payments To employees For other operating(a) expenses clear up cash generated by operating activities notes flows from investiture activities hard cash collections From sale of PPE Cash payments For purchase of PPE realise cash generated by in vesting activities interlocking consummation in cash opening night balance in cash 1 July 2009 closedown balance in cash 30 June 2010 135,750 (47,500) (77,000) 11,250 ? 7,000 (23,000) (16,000) (4,750) 13,500 8,750 27 28