2011 GCE O’ Level Principles of Accounts (POA) Suggested Solutions!

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So guys, it’s a few more weeks before your O’s are finally over!

Yes, I know some of you have been waiting long for the suggested solutions.

Braving thunderstorm and huge downpour some slight drizzle, I’ve been able to receive both Paper 1 and Paper 2 of 2011 GCE O’ Level POA Paper yesterday afternoon, thanks to an equally brave student. 🙂

In response to a student’s question on my thoughts for this year’s paper:

———-

Summary:

Overall difficulty was similar to the last 2-3 years (prior comparison to that was meaningless since it was old syllabus). It’s the kind of paper I would set.

What worked

Questions like:

1. MV, Prov for Dep and Disposal, Margins,

2. ratios and analysis (liquidity and profitability) in both P1 and P2

3. Sales ledger (compared to 2010’s purchase ledger)

came out big time as predicted (to my students).

Amalgamation of businesses and effect of transactions on type of capital did not come out as predicted (phew!). It was a bet while we had to decide what was important for the crash course.

Surprises

Many were surprised with the Drawings and Capital accounts which were Sec 3 work and were of substantial weightage. Students who have strong foundation of debits/credits and ratios + commentary will cruise through these sections..

Current A/c and partnership didn’t come out – I think to compensate for the surprise in P1, I think… It’s a disappointment.

The repeat of Trial Balance and Errors not revealed by it was both a good news and bad news. Most of my students will do well because of the many practices we did throughout the year. Bad news for those who predicted it will not come out because it would have been a repeat of 2010. Even that, Trial Balance was a simple question – although (with much embarrassment) my first upload of P1 had some mistakes related to it.

For P2, except for additional information part 4 in Q1, not many questions can substantially differentiate the A1 and A2 student. Only difficulty I imagined is to get the full 5 marks when you comment on the liquidity position in Q3c.

Conclusion

Past questions can be repeated.

Spotting questions worked around 60% for us this year.

Always be prepared emotionally for surprises. Stay cool.

————

Suggested Solution

Tell me what you think. Here it is!

Right click and choose “Save As” to download:

4 Nov:

7092/02 GCE O’ Level Principles of Accounts 2011 Paper 2 Suggested Solutions

Solutions for Paper 1 cannot be uploaded due to copy right reasons.

Thanks guys!

Caleb

  • qh94

    hi just to ask for 3(a) should’n the entries for drawings be placed on the debit side instead of credit side ? as drawings have debit nature and since drawings increase, it should be debit for increase?

  • Lal

    I thought trial balance dont have to put closing stock?

  • Bianca

    yeah, it should be debit for increase . that’s what I did for that question. 

    And Caleb , do we received marks if we place in the wrong side? 

  • Joir89

    yeah your not suppose to add closing in trial balance isn’t it?

    normally a question would post closing stock to “trick” candidates?

  • Joir89

    yeah your not suppose to add closing in trial balance isn’t it?

    normally a question would post closing stock to “trick” candidates?

  • Joir89

    i transferred all my drawings to reduce capital, anyone did the same thing?

  • Jaslynt_1995

    Where is paper 1?

  • zs

    for paper 1 last part can put monetary concept?

  • TSN

    Where’s the answers for paper 1?

  • elite

    for P2 qn 4 for the machinery account and provision for dep account i only did for 1 machine only which is $24000 instead of $48000.would any marks be awarded?

  • POA student

    Do you mind explain question 1 additional information no.4?

  • Harmithsingh

    where is paper 1? (=

  • helloPOAdudes

     The drawings A/c killed me for paper 1. The rest of paper 1 was fine

  • helloPOAdudes

    where is the Ans for paper 1

  • DT

    Is there by any chance that you’d upload Paper 1? Thank you. 🙂

  • cool456

    where is paper 1

  • Anonymous

    thanks qh! overlooked that while rushing. new P1 solution has your input inside. 🙂

  • Anonymous

    hi Bianca,

    for drawings, it’s debit side. you guys got it right. 🙂
    see re-up P1 solutions!

  • Anonymous

    thanks Lal, thanks Joir89, yes, you are right. see re-up P1 solutions. 🙂

  • Anonymous

    thanks Lal, thanks Joir89, yes, you are right. see re-up P1 solutions. 🙂

  • Anonymous

    hi elite, 
    awarding marks for that error is unlikely, cos that’s required to show you understood prov for dep. 

  • Anonymous

    hi elite, 
    awarding marks for that error is unlikely, cos that’s required to show you understood prov for dep. 

  • Anonymous

    it’s here now!

  • Anonymous

    it’s here now!

  • Anonymous

    nah… the drawings account distinctly separates the owner from the business. it’s like a mom giving her son some money (say, $50) and borrowing from him $50 later. altho the money ($50) was from her, she still has to pay him back the $50. 

    understanding of this makes business/accounting entity concept the only ans for Q3c

  • Anonymous

    Calculate first the depreciation of the Motor Vehicle. 25% of this expense forms part of the direct expense related to make goods available for sale (adds to carriage inwards). 

    75% of the remaining depreciation expense stays in P&L as depreciation. 
    Hope this is clear. Quite a nasty additional info. Any other ideas, folks?

  • Joir89

    1/4 of the time, the motor vehicles were used for bringing in stock into the business. Therefore, when charging depreciation for the year, 1/4 of the depreciated cost should be added to carriage inwards, thus reducing the GP.
    3/4 of the time, the motor vehicles were used for delivering goods, carriage outwards, this is an expense in P & L.

    Depreciation Calculation
    – Reducing Balance , 20% of (26000 – 9360) = 3328
    – 3328 should be split into 1/4(25%) for carriage inwards and 3/4(75%) as an expense for P & L.

    For Balance Sheet,
    Provision for depreciation would be 9360 (Accumulated from previous years) + 3328 (100% for the year 2011)

    Just a rough explanation as i was a candidate only

  • Joir89

    Hi calebho,

    Any personal view about this year’s paper as compared to previous ones

  • DT

    I didn’t explain my errors at all, do you think they will still give me marks for stating? I doubt so though.

  • DT

    I thought carriage outward was valued at (3867/25)X75 = $11601 – I divided carriage inward because its share is 25%. Hence, to find carriage outward, I multiple by 75.

    I don’t understand why is it an addition to the depreciation instead of carriage outward.

  • Anonymous

    Hi Joir89, 

    Will reply to you and add this to post:Summary:Overall difficulty was similar to the last 2-3 years (prior comparison to that was meaningless since it was old syllabus). It’s the kind of paper I would set.What worked:Questions like:1. MV, Prov for Dep and Disposal, Margins, 2. ratios and analysis (liquidity and profitability) in both P1 and P2 3. Sales ledger (compared to 2010’s purchase ledger)came out big time as predicted (to my students). Amalgamation of businesses and effect of transactions on type of capital did not come out as predicted (phew!). It was a bet while we had to decide what was important for the crash course.Surprises: Many were surprised with the Drawings and Capital accounts which were Sec 3 work and were of substantial weightage. Students who have strong foundation of debits/credits and ratios + commentary will cruise through these sections..Current A/c and partnership didn’t come out – I think to compensate for the surprise in P1, I think… It’s a disappointment. The repeat of Trial Balance and Errors not revealed by it was both a good news and bad news. Most of my students will do well because of the many practices we did throughout the year. Bad news for those who predicted it will not come out because it would have been a repeat of 2010. Even that, Trial Balance was a simple question – although (with much embarrassment) my first upload of P1 had some mistakes related to it.For P2, except for additional information part 4 in Q1, not many questions can substantially differentiate the A1 and A2 student. Only difficulty I imagined is to get the full 5 marks when you comment on the liquidity position in Q3c. Conclusion: Past questions can be repeated. Spotting questions worked around 60% for us this year. Always be prepared emotionally for surprises. Stay cool. 

  • Omfgitzedwinzzzz

    For the 3 errors not revealed by the trial balance , I wrote the examples of each errors , will i be marked correct ? And the trial balance , the balances supposed to add up to 251055 if i am not wrong , not 60355 ?

  • joey

    Can someone enlighten me on what does the bal b/d 49600 for the capital A/C refers to…

  • Joir89

    you started with $29850 on 1 Jan 2010 and ended up with $49600 on 31 December 2010 (End of one account period)

  • elite

    i checked my answers with yours and i gt only the disposal entries correct for  both the machinery and pro dep accounts. so hw many marks would i get?

  • qh94

    oh ok. and also just to ask what is the min mark required to get a b3?

  • Joir89

    capital is wrong too i suppose

  • Omfgitzedwinzzzz

    Yeah ! The capital should be 23055 or something if i am not wrong . I thought i’ve gotten the wrong answer instead , but luckily not . Anyone can answer to my question : What if i list the examples of the 3 errors not revealed by the trial balance , eg. Sue took out goods worth $300 for own use , this has not been recorded in the book (Error of omission) , Will i be marked correct or wrong ??

  • joey

    Thx a lot!…

    so correct me if i say that 49600 is the closing capital…

  • stella

    If i never put the $60655 for trial balance and i only put the capital amount . will the whole question be wrong ?

  • Mishibuzhaowo

    Hi, i think your anwser for paper 1 Q1(c),got something wrong.

  • John123

    hi for the disposal account, shouldn’t all dates be recorded as the last day before the account closes? in this case 31 dec?

  • John123

    hi you’ve miscalculated the answer for the totals of the trial balance in p1.

  • John123

    hi you’ve miscalculated the answer for the totals of the trial balance in p1.

  • Luke

    P2 question 3 for may2010 the working capital and quick ration should be to 2dp, which is 4.96:1 instead of 4.95:1 and quick ratio 2.29:1 instead of 2.28:1

  • Tanmeiqi123

    Hi , how do u get 60655 ? when the sales and purchases is already 100 over thousand ?

  • Omfgitzedwinzzzz

    Agree with luke . (:

  • Bianca

    Thanks for your reply caleb .
    Since a few other students are wanting to know.
    Ill appreciate it you could let us know how marks are being spread out.
    for example trading profit and loss and balance sheet, every mistake deducts one mark? Or getting the final answer give the whole question barely any marks? Or missing out on details, eg, wrong calculation for drawings(sellingprice part), major loss? Looking forward to your reply, thank you very much in advance! 🙂

  • Anonymous

    as an unauthorized fortune teller, this year’s bell curve is plus minus 68 marks for B3. 🙂

    but honestly, it’s a wild guess. no one besides the shivering examiners in Cambridge knows. 

  • Anonymous

    sorry this took me a while to reply, elite!
    probably 2 marks for the disposal entries.