2022_principlesOfAccounting_olevel_nov_paper2

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ZIMBABWE SCHOOL EXAMINATIONS COUNCIL

General Certificate of Education Ordinary Level

PRINCIPLES OF ACCOUNTING 4051/2
PAPER 2

NOVEMBER 2022 SESSION 2 hours 30 minutes

Additional materials:
Answer paper

Time: 2 hours 30 minutes

INSTRUCTIONS TO CANDIDATES

Write your name, centre number and candidate number on the answer paper provided.

Answer all questions.

Write your answers on the separate answer paper provided.

All calculations must be shown adjacent to the answer.

If you use more than one sheet of paper, fasten the sheets together.

Calculators may be used.

INFORMATION FOR CANDIDATES

The number of marks is given in brackets [ ] at the end of each question or part question.

Amounts used in this Question Paper are for calculation purposes only.
The businesses described in this paper are entirely fictitious.

This question paper consists of 6 printed pages and 2 blank pages.

Copyright: Zimbabwe School Examinations Council, N2022.
©ZIMSEC N2022 [Turn over

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Sales 150 000
Purchases of raw materials 17 250
Purchases of finished goods 10 000 .
Direct factory wages 14 500
Indirect factory wages 5 500
Factory general expenses 8 120
Factory fuel and power 19 100
Inventory (1 January 2017):

Raw materials 4 800

Work in progress 2 400

Finished goods 500 -
Administration expenses 2 080
Carriage inwards 935)
Factory rent 3 805
Depreciation: Factory machinery 880

Office machinery 1 000

Further information:

On 31 December 2017, unused fuel on hand was valued at $4 100 and $1 800 was
owing for factory rent.
Inventory at 31 December 2017:

$
Raw materials 2 550
Work in progress 1 000
Finished goods 1200-

Prepare:

(a) a Manufacturing account for year ended 31 December 2017, clearly showing

(i) cost of raw materials consumed, _ [4]
Gi) _ prime cost, [3]
(iii) _ cost of production. [6]
(b) —_a Trading account for year ended 31 December 2017. [3]

(©) a Balance Sheet extract to show current assets as at 31 December 2017. [4]

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Tendai Tapiwa
$ $
Capital (1 January 2017) 28 000 36 000
Current account (1 January 2017) 550 Cr 980 Dr
Drawings (31 December 2017) 9 000 4000
Partner's salary paid 3 800 -
Net Profit for the year $28 950

Their partnership agreement provides that:
Tendai is entitled to an annual salary of $4 000.
Interest on drawings is charged at 5% per annum.
Interest on capital is allowed at 8% per year.
Profits are shared in proportion to capital.

Prepare:

@ The partnership appropriation account for the year ending

31 December 2017. [8]
- (ii) ‘The partners’ current accounts for the year ended
31 December 2017 in columnar form. [9]

(b) Name any three accounting concepts applied in the compilation of
financial statements. [3]

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(b)

@
Gi)

@
(ii)

State three errors that are not revealed by a Trial balance. B]
C. Chandia's financial year ends on 31 March 2018. The totals
of the trial balance prepared on that date failed to agree. The
difference was entered in a Suspense Account.
The following errors were later discovered:
The Sales Day Book total was recorded as $7 650 instead of $6 750.
Interest received $300 had been debited to interest paid account.
Bad debts $100 written off had not been recorded in the books.
Wages paid by cash, $400 had been recorded in the cash account only.
Furniture account had been overcast by $110.

A purchases ledger credit balance of $200 was omitted in the Trial
Balance.

Prepare a suspense account to clear the difference. [7]
Distinguish between capital and revenue expenditure. [2]
Amanda bought a motor vehicle in South Africa.

Classify the following expenditure into Revenue and Capital
expenditure.

$
Cost of the motor vehicle 5 500
Import duty 4 000
Replacement of damaged head lamp 120
Car registration 160
New spare tyres for vehicle 200
Cost of insurance premium 30
Cost of buying and installing car radio 150
Petrol costs for motor vehicle 80

[8]

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(b)

On June 30, 2017, the bank account in Fama's cash book showed an overdrawn
balance of $2 011. Her bank statement of the same date had a debit balance of
$40.

On checking the Cash Book against the Bank Statement, the following
differences were revealed.

ile Cheques issued to trade payables of $2 900 had not been presented to the
bank for payment.

De Deposit of $3 150 made by a debtor had not been recorded in the Cash
Book.

Ss An amount of $1 890 paid into the bank on 29 June 2017 did not appear
on the bank statement.

4. The following items on the bank statement were not recorded in the cash

book.
$
- bank charges 90
- interest earned 85
- interest on overdraft 54
- direct debit for City Council 30

3 The bank had debited the business bank account with $2 100 in error.

() Update Fama's Cash Book. : [7]
(ii) Prepare a Bank Reconciliation Statement as at
30 June 2017. [7]
Name six accounting business ethics. [6]

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