O-LevelAccountingVerification of accounting records7707/21 · May/June 2012 · Q321 Marks

The following balances were extracted from the books of Trinity Social Club on 30 April 2012: $ Fixtures and fittings 1600 Donations income for the year 150 Subscriptions 1980 Rent 1400 Sales of refreshments 2500 General expenses 780 Purchases of refreshments 1150 Bank overdraft 100 REQUIRED

(a)Complete the following trial balance at 30 April 2012 clearly showing the value of the accumulated fund. Trinity Social Club Trial Balance at 30 April 2012 Debit $ Credit $ Fixtures and fittings Donations income Subscriptions Rent Sales of refreshments General expenses Purchases of refreshments Bank overdraft Accumulated fund[5]
(b)(i)Additional information at 30 April 2012. 1 Subscriptions of $25 were paid in advance and $60 were in arrears. 2 An invoice for refreshment purchases, $75, had not been entered in the books. 3 Inventory of refreshments $430. 4 General expenses accrued $170. 5 Fixtures and fittings were valued at $1360. Prepare, for the year ended 30 April 2012: Subscriptions account. Balance the account on that date. Subscriptions account[4]
(b)(ii)Refreshments trading account. Refreshments Trading Account for year ended 30 April 2012[3]
(c)Prepare an income and expenditure account for the year ended 30 April 2012. Income and Expenditure Account for the year ended 30 April 2012[5]
(d)State two differences between a receipts and payments account and an income and expenditure account.[4]

Mark scheme

Marking points from the official mark scheme (May/June 2012). The mark or mark type is shown in brackets.

[1] Fixtures and fittings Dr 1600
[1] Donations received Cr 150
[1] Subscriptions Cr 1980
[1] Rent Dr 1400
[1] Sales of refreshments Cr 2500
[1] General expenses Dr 780
[1] Purchases of refreshments Dr 1150
[1] Bank overdraft Cr 100
[1] Accumulated fund Cr 200
[1] Apr 30 Income and expenditure Dr 2015
[1] Apr 30 Balance c/d (in advance) Dr 25
[1] Apr 30 Bank Cr 1980
[1] Apr 30 Balance c/d (in arrears) Cr 60
[1] May 1 Balance b/d (in arrears) Dr 60
[1] May 1 Balance b/d (in advance) Cr 25
[1] Sales of refreshments $2500
[1] Purchases of refreshments (1150 + 75) $1225
[1] Less Inventory of refreshments $430
[1] Cost of sales $795
[1] Profit on refreshments $1705
[1] Subscriptions $2015
[1] Profit on refreshments $1705
[1] Donations $150
[1] Rent $1400
[1] General expenses (780 + 170) $950
[1] Depreciation on fixtures and fittings $240
[1] Surplus $1280
[2] Receipts and payments: Has a balance of the account brought down from the previous year / Entries recorded throughout the year / Non-current assets recorded at cost / Cash payments recorded.
[2] Income and expenditure: Calculates a surplus or deficit / Entries made at end of the year / Depreciation on non-current assets only / Cash payments adjusted for prepaid/accrued.

On Oracle Prep you can write or photograph your own answer and have it marked by AI against this mark scheme, with feedback on what you missed.