Suggested Solutions for 2010 GCE ‘O’ Level Principles of Accounts

 

 

7092/01 GCE O’ Level Principles of Accounts 2010 Paper 1 Suggested Solutions

7092/02 GCE O’ Level Principles of Accounts 2010 Paper 2 Suggested Solutions

 

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The rough working for this afternoon’s GCE O’ Level Principles of Accounts Paper 2 Trading, Profit and Loss is out. Please click here download the pdf file.

Goodness, and you are almost all done for the exams! Freedom is Near. Hang On!

Crash Course students, look out for the remaining answers in Paper 1 and 2 your email soon. Will be uploading it to this website in 3 days!

  • Killerman83

    Hi , i would like to ask if a wrong amount of net profit and unbalanced TPL and Balance sheet would lead to a huge loss of mark or just a few?

  • calebho

    hello Killerman83,

    the answer is, it depends. an unbalanced TPL can be caused by one or more errors.

    As a gauge, one mistake takes away from you one mark.

    that said – figures which are brought down from previous mistakes (e.g NP figure wrong because GP figure was wrong) will not be marked down twice.

  • clinique<3

    Hi, when will the answers for the remaining questions be out?

  • calebho

    hi clinique<3,

    it'll be online on thursday. =)

  • GhostlicHeavens

    depends on ur number of entries correct…each entry wrong will deduct about 0.5 mark to 1 mark

  • calebho

    hi clinique <3,

    due to some delay, the solutions for paper 1 will be up next week.

  • I mixed up Carriage Inwards and outwards by switching their positions, but why can I get the correct Net Profit figures?

  • calebho

    Hi Lemuel,

    Both are delivery expenses and taken off from the income figures (sales figures in trading and gross profit + other income figures in Profit and Loss).

    Mathematically, the net profit figure will be the same because it just means minus-ing the expenses in a different order:

    E.g: 100,000 (sales) – 500 (Carriage Inwards) – 800 (Carriage Outwards)

    will yield the same result as:

    100,000 (sales) – 800 (Carriage Outwards) – 500 (Carriage Inwards)

    Therefore, your NP is still correct although your GP is wrong.

    Refer to the link below to see why Carriage Inwards is in Trading and carriage outwards is in Profit and Loss. =)

    http://principlesofaccounts.com.sg/what-is-the-difference-between-carriage-inwards-and-carriage-outwards/

  • Twinkle

    so what is the answer for the amalgation question ( qsn5)???

  • kenny

    hi admin, in my paper2, the trail balance, there.s 3 amendments and i did 2 correctly, the other 1 i misunderstood it as errors of ommision in one entry. so my trail balance figure is increased by 54 dollar…. how many marks will be deducted?

  • kenny

    its friday already, wheres the answer? gentle reminder.

  • calebho

    thanks kenny, as mentioned – due to some delay in getting the paper 1, the answers will be posted next week. please check back. appreciate your reminder. =)

  • Rin

    Hi,

    I would like to ask why the prepaid insurance has to be 2700 divide by 15 times 12? why can't I just use 2 over 15 times 12 as the prepaid insurance? Because my prepaid insurance is different from yours and my net profit is 6820. But I still manage to balance the balance sheet.

  • calebho

    hi kenny, regarding your trial balance, my opinion would be that the deduction is between 1.5 marks to 2 marks. it's a gauge.

  • calebho

    hi Rin, you could get right answer taking 3 over 15 times 12.
    the insurance cover starts from 1 June 2009.

    1 June 2009 to 31 May 2010 = 12 months.

    Your balance sheet will still balance because both your current asset (prepaid insurance) and net profit is understated by the same amount (i.e $180).

    Good question, Rin. thanks =)

  • calebho

    hi Twinkle,

    check back this site early next week. i just got the paper 1. will upload it together. =)

  • Hellokittyzy

    hi, can you calculate how many marks of theory question is there for both paper? thankyou !

  • calebho

    Hello Hellokittyzy,

    It's 20 marks for Paper 1.
    Base on recall, Paper 2's theory is between 16-22 marks
    (Just returned my student the Paper 2 today, so I cannot confirm).

    Paper 2 theory depends on whether you did question 4 or 5 .
    As a whole, the theory weightage to 36-42% this year, consistent with what I pointed out to students during the crash course. =)

  • Hellokitty

    thanks for your reply. for paper1, 3c, my tutor said that it was historical cost concept in any depreciation, may I know why it isn't? thanks !

  • calebho

    yes, historical concept as an answer is correct.
    the question asked for one, so i gave that. I should have included other options.

    thanks for the note!

  • Zelinn

    Hey,may I ask a question? for the 2010 O level paper 1's answer. 2(a) is 33.3% but not one over three, so how can the gross profit be 40000?

  • kenny

    hi, i greatly appreciate your efficiency in uploading on the web, thank you.
    To me: in paper1 theres some errors in question 1a and 1c. question asked for difference between what is accounting and what is bookkeeping whereas ur answer is only the definition of bookkeeping. For 1c, invoice, u never stated clearly invoice is issued for which transaction method, your should include the word credit if not ur answer will be assumed as cash transaction as invoice is only issued for credit sales

  • Hellokitty

    will there be error carried forward if i misread the qn on q2c as i did not take in accounts of the yearl, i answered it as increase instead of decrease of the rate of stockturn.

    advantages of preparing creditor control account, can i include to detect fraud?

    and how many marks will be deducted if i adjust the credit sales(invoice) in q2a into cash a/c instead of supposingly to be in bank a/c?

    thanks ! 🙂

  • calebho

    Hi Hellokitty,
    Quick notes, in order of your questions:
    – it's an error, not error carried forward.
    – yes, fraud detection is acceptable.
    – can't give an opinion, since I do not have the official mark scheme. my guess is 0.5 – 1 mark. =)

  • calebho

    thanks for your kind words, kenny.

    the theory questions answered are in point form and you may appreciate that the suggested answers are not exhaustive.

    the way a student phrase an answer is also important and we cannot determine how rigid examiners are. marks may also be allocated in other key words which may not be the ones pointed out by you.

    from the looks of it, you seem to be doing well! =)

  • calebho

    hi Zelinn,

    thanks your note! what figure did you arrive at?
    would be happy to learn together with this community. 🙂

  • kenny

    It.s my pleasure to comment on it 😉
    I strongly understand your view and agreed to the fact you stated, because i believe you are sort of a POA professional.
    Thanks for you hope in me 🙂 i hope to achieve an a1 because i found out that i only lost 2 marks for the full paper.

  • calebho

    wow, Kenny! that sounds really good.
    very happy for you. hope your other subjects are doing the same, if not better.

    come back often. we appreciate thoughtful comments. =)

  • Thatloves

    my gross profit in paper 1 is 39660 ( i think so) the turnover i get is 8.02 times .

  • :)

    for the paper 2 qn 3 (d) can i say that if the business does not have enough working captial , it wont be able to buy bulk order to receive trade discount ?

  • calebho

    🙂 ,
    i get the gist of your answer, which is correct.
    better phrasing: without enough working capital, the firm might not be able to take advantage of getting trade discount by buying in bulk.

  • yuling

    My gp for paper 1 Q2a is also 39660 and for turnover i also get 8.02.. So, why isit so that your ans is diff frm mine?

  • calebho

    Hi yuling,

    do you remember how you got 39,660 and 8.02?

  • calebho

    And there was this discussion on Paper 1 Q2 on the GP as 39,660 (see below).

    One of our readers emailed me and suggested that this figure was derived from taking 33.3/100 x 120,000 = 39,660.

    Then the stockturnover would be 8.02, using the COGS figure derived from 39,660 as GP.

    Good job, guys.

    Give you guys a hint of how I derived my answer:
    I got 33.33% by typing 33 and 1/3 on the Microsoft excel spreadsheet.
    (it's an instinct of mine to read a .33 figure as a rounded up figure for one third in decimal)

    The rest of the numbers on the trading account was derived from the calculation function in the program. 40,000 as GP and 8 as turnover looks good as round figures to me. =)

    i'm happy that many of you can appreciate that the suggested solutions are not exhaustive or definitive. you will understand this more when you go through tertiary education – many questions can have more than 1 ans.

    =) keep your view coming. i love reading them!

  • Guest

    Hi,how much mark will I get if I present differently for qn 5?

    I did not use method 1 or 2 but receive the same answer for all the items

  • calebho

    hi Guest, this question is a bit tricky. i am not able to imagine what correct steps or mistakes you made. answer marks are usually just 1. the rest depends largely on the way you did the question.

  • Qiyuan

    For Q2a. $39660 for GP is it the correct ans??

  • calebho

    yes, see comment below =)

  • CHRISTINA

    i am having my O level POA this year, is it possible that i could have the 2010 POA
    exam question paper?

    thanks:)
    christina

  • Anonymous

    hi christina,

    unfortunately, distribution of exam questions will be a breach of copyrights as we are not an authorised distributor. you may purchase the paper directly from the publisher or from leading bookstores like Popular. it’s now available.

  • guest

    turnover was 120000 and the gp margin is 33.3 %, simply divide 120 000 by 100 and times it by 33.3. 120 000/100 X 33.3 = 39960?

  • guest

    for question 4a in paper 1 i doubt that there is a mistake in the balance c/d?

  • guest

    irrational numbers ah. quite tricky ha this qn.. so must divide 120 000 X 1/3.

  • ann

    oct nov 2012 p22 Q1 accounts answer pls for insurance

  • ann

    sorry may june 2013 p22 Q1 insurance