The document provides answers and solutions to questions from an ACCA Certified Accounting Technician examination on maintaining financial records.
In Section A, the answers to 20 multiple choice questions are provided. Section B includes solutions to questions on trial balances, accounting policies, correcting accounting errors, preparing income statements, calculating depreciation of fixed assets, and reconciling a receivables control account.
The solutions show accounting entries, calculations of account balances, and narratives to fully explain the corrections or adjustments required by the questions. Overall, the document demonstrates how to correctly maintain accounting records and financial statements.
The document provides answers and solutions to questions from an ACCA Certified Accounting Technician examination on maintaining financial records.
In Section A, the answers to 20 multiple choice questions are provided. Section B includes solutions to questions on trial balances, accounting policies, correcting accounting errors, preparing income statements, calculating depreciation of fixed assets, and reconciling a receivables control account.
The solutions show accounting entries, calculations of account balances, and narratives to fully explain the corrections or adjustments required by the questions. Overall, the document demonstrates how to correctly maintain accounting records and financial statements.
The document provides answers and solutions to questions from an ACCA Certified Accounting Technician examination on maintaining financial records.
In Section A, the answers to 20 multiple choice questions are provided. Section B includes solutions to questions on trial balances, accounting policies, correcting accounting errors, preparing income statements, calculating depreciation of fixed assets, and reconciling a receivables control account.
The solutions show accounting entries, calculations of account balances, and narratives to fully explain the corrections or adjustments required by the questions. Overall, the document demonstrates how to correctly maintain accounting records and financial statements.
The document provides answers and solutions to questions from an ACCA Certified Accounting Technician examination on maintaining financial records.
In Section A, the answers to 20 multiple choice questions are provided. Section B includes solutions to questions on trial balances, accounting policies, correcting accounting errors, preparing income statements, calculating depreciation of fixed assets, and reconciling a receivables control account.
The solutions show accounting entries, calculations of account balances, and narratives to fully explain the corrections or adjustments required by the questions. Overall, the document demonstrates how to correctly maintain accounting records and financial statements.
ACCA Certified Accounting Technician Examination Paper T3(INT)
Maintaining Financial Records (International Stream)
December 2004 Answers
and Marking Scheme
Section A 1 2 3 4 5
D B A B C
6 7 8 9 10
C B A B B
Workings 9 Ledger balance Standing order Invoice Corrected totals
11 12 13 14 15
C B D B C
16 17 18 19 20
A D B B A
$76,961 ($1,606)
Total listing
$75,355
12 Cost of inventory Cost of damaged goods Selling price Repairs
$38,750 $3,660 $1,500 ($450)
Net realisable value
$1,050
Write down
$2,610
$36,140
Inventory value
18 Profit Salary Residual profit
20
$16,000 ($8,000)
$8,000
Albert 3/5
Receivables
Opening balance b.f. Sales
$81,649 ($1,606) ($4,688) $75,355
$ 16,528 29,197
45,725
Cash Closing balance
$ 29,860 15,865
45,725
11
$4,800
Section B 1
(a)
(b)
Marks The main purpose of a trial balance is to provide a basic check on the accuracy of postings. The trial balance checks the accuracy of postings by confirming whether the total value of the debit balances equals the total value of the credit balances.
A bad debt is an amount which evidence shows cannot be collected.
It is therefore written off by a debit entry (charge) to the income statement and a credit entry to the receivables account. A doubtful debt is a debt which evidence suggests may not be collected. While the potential cost is recognised by a debit entry in the income statement, the debt remains in the customers account. Therefore the credit entry is made in the allowance for doubtful debts account.
1 1
2 1 1 1 1
(c)
Accounting policies are the basic rules which are used to reflect transactions in the final accounts.
(d)
Both a debit and credit entry are used to reflect the dual aspect of each transaction. This means that the firm is affected in two equal but opposite ways by each transaction. For example, if goods for resale are bought for cash, the firm has been affected as follows:
2 1 1
Purchases have increased therefore a debit entry is required
Cash has reduced therefore a credit entry is required 4 (e)
The
asset register and the physical presence of assets may be different due to: the purchase of an asset not yet recorded in the register an asset sold, but not removed from the register an asset stolen an error in the entries in the register
1 mark per valid point, to a MAXIMUM of
(a)
The following corrections must be made, with the resulting balances as shown: (i)
Debit Carriage inwards
Credit Returns inwards
(ii)
Debit Sales Credit Receivables
(iii) Debit Telephone
Credit Payables and accruals
$264 $264
Revised balance $1,238 Dr $111 Dr
$90 $90
$90,470 Cr $12,790 Dr
$297 $297
$1,150 Dr $6,858 Cr
Three errors: for each account correctly identified: 2 1/2 = 1
for each balance correctly calculated: 2 1/2 = 1 = 3 errors 2 marks
12
(b)
(i)
$ 90,470 111
Sales from (a) above
Sales less Returns inward
Cost of Sales Opening inventory
Cost of Sales Purchases Cost of Sales Carriage inwards
Telephone Wages Rent Stationery Travel General Expenses
1,150 4,684 3,200 382 749 753
Net Profit
(ii)
Closing balance
(a)
1/ 2
1/ 2
1/ 2 1/ 2 1/ 2 1/ 2 1/ 2 1/ 2
10,918
4,844
1/ 2
1/ 2 1/ 2 1/ 2 1/ 2
Machine traded in Cost Depreciation to date (W1) NBV Proceeds Loss W1 Cost $35,000
