For Supervisor’s use only
90023
1
Level 1 Accounting, 2004
90023 Describe a method of processing
financial information and analyse transactions
Credits: Three
9.30 am Wednesday 17 November 2004
Check that the National Student Number (NSN) on your admission slip is the same as the number at the
top of this page.
You should answer ALL the questions in this booklet.
Show ALL working.
If you need more space for any answer, use the pages provided at the back of this booklet and clearly
number the question.
Check that this booklet has pages 2–9 in the correct order and that none of these pages is blank.
YOU MUST HAND THIS BOOKLET TO THE SUPERVISOR AT THE END OF THE EXAMINATION.
Achievement Criteria
Achievement
For Assessor’s use only
Achievement
with Merit
Achievement
with Excellence
Describe an accounting
data-processing system(s).
Describe an accounting
data-processing system(s).
Fully describe accounting
data-processing systems.
Describe and/or analyse
transactions correctly.
Describe and/or analyse a range
of transactions correctly.
Describe and/or analyse a wide
range of transactions correctly.
Prepare general journal entries
for straightforward balance-day
adjustment(s).
Prepare general journal entries
for straightforward and complex
balance-day adjustments.
Prepare general journal entries
for all or nearly all balance-day
adjustments.
Overall Level of Performance (all criteria within a column are met)
© New Zealand Qualifications Authority, 2004
All rights reserved. No part of this publication may be reproduced by any means without the prior permission of the New Zealand Qualifications Authority.
2
You are advised to spend 30 minutes answering the questions in this booklet.
QUESTION ONE: Accounting Data Processing
Jade Best is a Year 11 Accounting student learning about a manual system of data processing.
Jade has learned all the following terms during the year.
Filing
Cabinet
Issued
Receipt
Statement
of Financial
Performance
Statement of
Cash Flows
Ledger File
Cheque
Butt
(a)
Cash Sales
Docket
Refer to the selection of terms above. Complete the table below by inserting all the terms
under an appropriate heading. One of the terms has been entered for you.
Input
Issued Receipt
Storage
Output
Assessor’s
use only
3
(b)
Jade has heard that data processing on a computer is different from manual data processing
and is keen to find out about the differences. Complete the table below to describe to Jade
how a computer data-processing system works.
Summary Table for a Computer Data-processing System
State TWO methods of input.
(1)
(2)
Describe how accounting information is processed.
State TWO methods of output.
(1)
(2)
(c)
Jade has heard that a computer accounting system is much faster than a manual system
because she does not have to manually total journal entries and balance ledger accounts.
Fully describe ONE other advantage a computer system has over a manual system.
Assessor’s
use only
4
QUESTION TWO: The Accounting Equation
Assessor’s
use only
Part A: Analyse transactions
Ignore GST in this question.
Kenny Wairoa owns Trim Lawns, a business that provides a service mowing lawns and trimming
edges. Business assets include a vehicle with a trailer and various cutting tools. The following
transactions relate to Trim Lawns.
A
Received a $65 account for vehicle repairs.
B
Took out a bank loan of $2 000 for the business.
C
Purchased a new trailer for $1 500 cash.
D
Sold a used lawnmower, which had cost $250, for $50 on credit.
E
Sent an account to a client, charging $100 for lawnmowing services provided.
F
Received $160 from a debtor in full settlement of a $180 account.
Show the effects of the above transactions on the Trim Lawns accounting equation below. You
are not required to show totals. You must show the dollar amounts, increases with a plus sign (+)
and decreases with a minus sign (–). The first transaction has been completed for you.
Trim Lawns Accounting Equation
Bank
A
B
C
D
E
F
Accounts
Receivable
Vehicle
and Trailer
Mowing
Equipment
Accounts
Payable
+65
Loan
Owner’s
Equity
–65
5
PART B: Describe transactions
Assessor’s
use only
Ignore GST in this question.
The following expanded accounting equation shows transactions that relate to Trim Lawns a
month later.
Trim Lawns Accounting Equation
Bank
Accounts
Receivable
Mowing
Equipment
A
Expenses
+95
B
–200
C
+120
D
–100
F
–300
Loan
Owner’s
Equity
Revenue
+95
–200
+120
+250
E
Accounts
Payable
+250
–110
+60
+10
–240
Study the transactions shown in the accounting equation above and fully describe each one.
Ensure you use an appropriate example for asset, expense, and revenue accounts and state
dollar amounts in your answers. Transaction A has been described for you as an example.
A
B
C
D
E
F
Received a $95 account for vehicle repairs.
6
QUESTION THREE: General Journal Entries
Assessor’s
use only
You MUST account for GST in this question.
On 31 March 2004, Kenny Wairoa began preparing the financial statements for Trim Lawns.
Trial Balance (extract) for year ended 31 March 2004
Dr
Wages
Insurance
Mowing Equipment
20 000
800
2 400
Vehicle (cost)
16 000
Trailer (cost)
1 500
Lawnmowing Fees
Cr
60 000
The following adjustments are required before the Statement of Financial Performance and
Statement of Financial Position can be prepared.
Show the general journal entries Kenny will prepare for each of the adjustments in the spaces
provided below and on page 7.
Narrations are not required.
Do not abbreviate account names.
(a)
$300 is owing for wages.
31/03/04
(b)
Lawnmowing fees received in advance $400.
31/03/04
(c)
Insurance paid in advance $600.
31/03/04
7
HELPFUL HARDWARE
Assessor’s
use only
PO Box 234
Surrey Park
GST No. 12-567-345
To:
Date: 25 March 2004
Trim Lawns
PO Box 578
Clarkville
Item Code
123
(d)
TAX INVOICE
Description
Lawn Roller
Quantity
Unit Price
1
Total
320
320
Total Goods
GST
Total Due
320
40
360
The invoice above from Helpful Hardware for a lawn roller, purchased during March and
costing $360 including GST, has been received but not yet paid.
31/03/04
(e)
Depreciation on vehicle (cost $16 000) is 20% per annum on cost.
31/03/04
(f)
On 30 March, an invoice totalling $180 including GST was sent to a client for lawnmowing
fees. Payment has not yet been received.
31/03/04
8
Extra paper for continuation of answers if required.
Clearly number the question.
Question
Question
Number
number
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9
Extra paper for continuation of answers if required.
Clearly number the question.
Question
Question
Number
number
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10
Acknowledgements
Page 2
Illustration by Rogelio Carles-Rosas
Assessor’s
use only