Jamie provided the following information on 1 May 2012. Non-current assets at net book value $14000 Trade receivables $3012 Trade payables $1298 Prepayment of insurance $260 Accrual for rent $350 Bank overdraft $324 Capital ? REQUIRED

Mark scheme

Marking points from the official mark scheme (May/June 2013). The mark or mark type is shown in brackets.

1. [2] Capital $15300 (or correct figure based on assets - liabilities)
2. [1] Balancing total $17272 (Dr) and $17272 (Cr)
3. [1] Narrative: Assets and liabilities at 1 May 2012. To record capital at 1 May 2012.
4. [1] 2012 May 1 Balance b/d $260
5. [1] 2013 April 30 Bank/cash $840
6. [1] 2013 April 30 Income Statement $900 (1) of
7. [1] 2013 April 30 Balance c/d $200
8. [1] 2013 May 1 Balance b/d $200 (1) of debit only
9. [1] Year + all dates (1)
10. [1] 2013 April 30 Bank/cash $11350
11. [1] 2012 May 1 Balance b/d $350
12. [1] 2013 April 30 Income statement $12000 (1) of
13. [1] 2013 April 30 Balance c/d $1000
14. [1] 2013 May 1 Balance b/d $1000 (1)
15. [1] Year + all dates (1)
16. [2] Accural (matching) principle
17. [2] Capital receipts arise from selling non-current assets, (2) and revenue receipts arise from day-to-day business activities (2).
18. [2] Capital receipts arise from owners/lenders providing additional capital (2) and revenue receipts from the sale of goods (2).
19. [2] Capital receipts are recorded in the balance sheet (2) and revenue receipts are recorded in the income statement (2).
20. [max 4]
21. [1] Cash sales - Revenue receipt
22. [1] Loan from a bank - Capital receipt
23. [1] Discount received - Revenue receipt
24. [1] Commission received - Revenue receipt
25. [1] Sale of a motor vehicle - Capital receipt