O-LevelAccountingAccounting procedures7707/22 · May/June 2024 · Q120 Marks

Lottie is a trader. Her financial year end is 30 April. She keeps her petty cash book using the imprest system. The imprest amount is $150. The totals of the payments analysis columns in her petty cash book for April 2024 are as follows. Cleaning $21 Stationery $47 Sundry expenses $44 During April 2024, Lottie received a refund for damaged stationery, $15. This amount was received into petty cash. REQUIRED

(a)Calculate the amount required to restore the petty cash imprest on 1 May 2024.[3]
(b)(i)The petty cash book is one of the books of prime entry. REQUIRED (b) State (i) one other book of prime entry[1]
(b)(ii)(ii) two advantages of using books of prime entry[2]
(c)(i)On 30 April 2024, Lottie sold a motor vehicle for $6000 on credit to Y Limited. She had purchased the vehicle on 1 May 2021 for $12000. Lottie charges depreciation on vehicles at 25% using the reducing balance method. No depreciation is charged in the year of disposal. REQUIRED (c) (i) Calculate the accumulated depreciation on the vehicle at 30 April 2024.[2]
(c)(ii)(ii) Prepare the disposal of motor vehicles account. Lottie Disposal of motor vehicles account Date Details $ Date Details $[4]
(d)Lottie sells 3 different types of goods. Her inventory at 30 April 2024 is as follows. Type Number of units Purchase price per unit $ Net realisable value per unit $ Carriage inwards per unit $ A 60 14 20 1 B 85 17 24 0 C 30 21 22 2 REQUIRED (d) Calculate the value of Lottie's inventory at 30 April 2024.[4]
(e)Lottie pays $360 per annum for insurance. On 1 May 2023, insurance of $60 was prepaid. On 1 August Lottie paid $360 by bank transfer for the year 1 July 2023 to 30 June 2024. REQUIRED (e) Prepare the insurance account for the year ended 30 April 2024. Bring down the balance at 1 May 2024. Lottie Insurance account Date Details $ Date Details $[4]

Mark scheme

Marking points from the official mark scheme (May/June 2024). The mark or mark type is shown in brackets.

[3] ($21 +$47 + $44) (1) – $15(1) = $97 (1)OF
[1] cash book (1)
[1] sales journal (1)
[1] sales returns journal (1)
[1] purchases journal (1)
[1] purchases returns journal (1)
[1] journal / general journal (1)
[1] Max (1)
[2] Useful for preparing control accounts (1)
[2] Assist in collating and summarising accounting information (1)
[2] Remove detail from the ledgers (1)
[2] Bookkeeping can be divided among several people (1)
[2] Accept other valid points
[2] Max (2)
[2] Depreciation for the year ended 30 April 2022 12 000 × 25% 3000}
[2] Depreciation for the year ended 30 April 2023 (12000 – 3 000) 9 000 × 25% 2250}(1)
[2] Accumulated depreciation at 30 April 2024 5 250 (1)OF
[4] Lottie Disposal of motor vehicle account
[4] Apr 30 Motor vehicles (1) 12 000 Apr 30 Provision for depreciation (1)OF 5 250
[4] Y Limited (1) 6000
[4] Income statement (1)OF 750
[4] 12 000 12 000
[4] Ignore dates
[4] A (14 + 1 = ) 15 60 900 (1)
[4] B 17 85 1 445 (1)
[4] C 22 30 660 (1)
[4] 3 005 (1)OF
[4] May 1 Balance b/d } 60 Apr 30 Income statement (1) 360
[4] Aug 1 Bank } (1) 360 Balance c/d 60
[4] 420 420
[4] May 1 Balance b/d (1)OF 60
[4] (1) dates

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.