BOOKKEEPING TEST ONE

TRIMESTER 2
ACCY001 BOOKKEEPING

Time allowed: 100 minutes Instructions: Answer ALL FIVE questions Question One Question Two Question Three Question Four Question Five TOTAL 20 marks 25 marks 20 marks 20 marks 15 marks 100 marks

Silent, non-programmable electronic calculators may be used. Calculators that have alphanumeric keyboards or can display anything other than standard numbers (1-9, 0) are not permitted Calculator comment Non-electronic foreign language dictionaries are permitted. These must not have added writing of any kind. Write neatly. Number your answers clearly. Start each question on a new page. Show all calculations.

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QUESTION 1: General Journal Entries/ General Ledger Nicole George is a self-employed gardener. Nicole has about fifteen clients whose gardens she visits on a regular basis. Nicole is registered for GST on an invoice basis. All amounts include GST and GST is applied at 15%. Her transactions for the first week of June were: June 1 June 2 June 3 June 4 June 7 June 7 Invoiced client $45. She was paid immediately in cash, which Nicole banked. Invoiced client $90. The client, Rose Bush, promised payment next week. Paid $50 (EFTPOS) for petrol. Took weekly drawings of $300 (cash withdrawal from money machine). Purchased new invoice booklet, $5, on credit. Paid May accounts payable for telephone $110.

Required: Note: (a) Include GST implications, narrations and dates for journal entries. Prepare general journal entries for all transactions (including GST, narrations and dates). (12 Marks) (b) The opening bank account as at June 1st is $5,000. Prepare a general ledger account for bank in three-column format. (8 Marks)

TOTAL OF [20 MARKS]

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QUESTION 2: Financial Statements Below is the Trial Balance of Godzilla Ltd as to 31 March 2012, the last day of the financial year: $ Accounts Payable Accounts Receivable Accrued Revenue Accumulated Depreciation - Equipment Bank Drawings Depreciation Equipment Funds Introduced Insurance Expense Inventory Office Expenses Owners Equity Prepayments Sales Wages and Salaries 3,000 20,000 Required: Use the figures in the trial balance to prepare Godzilla Ltds 2012 financial statements: (a) (b) (c) The Income Statement (8 Marks) The Statement of Changes in Equity (5 Marks) The Balance Sheet (12 Marks) TOTAL OF [25 MARKS] ACCY001 Page 3 of 6 20,000 350 7,500 900 4,200 800 6,500 500 750 5,000 900 3,000 1,500 2,000 1,500 $ 1,600

QUESTION 3: Balance Day Adjustments Imtiaz Islam, a self-employed photographer, with a 31 March 2012 balance date, provides you with the following information, in relation to his business: Note: (a) Include GST implications, narrations and dates for journal entries. Imtiaz has a contract to run a series of six teaching weekends. Total revenue will be $2,760 and will be paid at the end of the contract. At 31 March, Imtiaz had already held four of the weekends. Imtiaz subleases part of his business premises. His sub-tenant pays him rent fortnightly in arrears. Rent of $184 was received on 8 April, for the period 24 March to 7 April 2012. On 1 January 2012 Imtiaz paid an annual subscription of $920 to the New Zealand Professional Photographers Association. Imtiaz has a $10,000 six-month term deposit earning 5% p.a. interest. The term deposit was entered into on 1 February 2012. Interest is paid on maturity (note: interest is not subject to GST).

(b)

(c)

(d)

Required: Prepare the general journal entries required as at 31 March 2012. [20 MARKS]

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QUESTION 4: Inventory Game of Thrones (GOT) Ltd. is a retail toy shop. GOT has asked you to prepare general journal entries to record these transactions. Note: Ignore GST implications and include narrations for journal entries. Purchased for cash 40 dolls at a cost of $20 each Sold for cash 30 dolls for $25 each

April 1 April 5 Required: (a)

Using a perpetual inventory system: (i) (ii) Prepare the general journal entry to record the purchase of the items. Prepare the general journal entry/ies to record the sale of the items. (10 Marks)

(b)

Using a periodic inventory system: (i) Prepare the general journal entry to record the purchase of the items. (ii) Prepare the general journal entry/ies to record the sale of the items. (10 Marks)

TOTAL OF [20 MARKS]

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QUESTION 5: Straight-Line-Depreciation A Motor Vehicle costing $2,500 was purchased on 1 April 2009. It is expected to have a useful life of four years, and a residual value of $500. It will be depreciated on a straight-line basis.

Note:

Ignore GST implications and include narrations for journal entries.

Required: (a) Calculate the annual depreciation charge and the book value of the equipment as at 31 March 2010. (4 Marks) Prepare the journal entry for depreciation as at 31 March 2010. (2 Marks) (c) Calculate the accumulated depreciation at the end of the third year, i.e. 31 March 2012. (3 Marks) (d) Show the general ledger account for accumulated depreciation as at the end of the third year that includes the entries for each of the three years. (6 Marks)

(b)

TOTAL OF [15 MARKS]

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