QCF Specimen Question Papers

Please note that ABE will not be able to accept any queries about the individual questions in the
papers.
The specimen question papers are provided for information purposes only; they are intended to
give candidates an indication of the types of paper that will be used to assess the QCF units and
to provide a flavour of the sort of questions that might be asked. There may be minor differences
between the style of the specimen question paper and that of the actual examination paper.
It is essential that you look at the specimen question paper for each unit that you are taking. This
is because there are various types of question paper under QCF.

Key points for all QCF question papers:

All the Learning Outcomes will be assessedunder NQF only a selection of Learning
Outcomes was assessed.

Make sure that you read and understand the instructionsthe paper may be divided into
sections; in some sections all questions will be compulsory; in others you will be offered a
choice between questions.

Allocate your time carefullyyou may be required to answer more questions than you
would have answered under NQF. Make sure that you take account of the number of marks
available for each question when deciding how to allocate your time.

Level 4 Diploma
Introduction to Accounting
QCF Specimen Question Paper
1.

Time allowed: 3 hours.

2.

The number of questions you have to answer is marked clearly at the top of each section.
Read the instructions at the top of each section carefully. Do not answer more questions
than instructed.

3.

If you are offered a choice between two questions in a section you must NOT answer
both questions.

4.

The number of marks per question may vary. Marks for subdivisions of questions and the
total marks for each question are shown in brackets after the question.

5.

No books, dictionaries, notes or any other written materials are allowed in this
examination.

6.

Calculators, including scientific calculators, are allowed providing they are not
programmable and cannot store or recall information. Electronic dictionaries and
personal organisers are NOT allowed.

7.

Candidates who break ABE regulations, or commit any misconduct, will be disqualified from
the examinations.

8.

Question papers must not be removed from the Examination Hall.

ABE 2011

SECTION A
You must answer ALL SEVEN questions in Section A.
The questions in this section do not carry equal marks.
Section A is worth 90% of the total marks available for this paper.

Q1
Clive produced the following trial balance at 31 March 2011:

Sales
Purchases
Inventory 1 April 2010
Salaries and wages
Rent
General expenses
Vehicles at cost
Vehicle accumulated depreciation at 1 April 2010
Equipment at cost
Equipment accumulated depreciation at 1 April 2010
Trade receivables
Trade payables
Bank overdraft
Drawings
Capital at 1 April 2010

112,850

71,310
14,400
16,000
8,000
5,175
12,000
3,000
6,000
1,200
10,851
4,125
1,940
18,000
161,736

38,621
161,736

At 31 March 2011:
(i)
(ii)
(iii)

Inventory was valued at 16,600;

Rent was prepaid by 1,500;
Bank overdraft interest accrued but not paid was 185.

Depreciation for the year ended 31 March 2011 is to be provided as follows:

Vehicles 25% on cost using the straight line method;

Equipment 20% using the reducing balance method.

Required:
Prepare the Statement of Comprehensive Income (Profit and Loss Account) for the year ended
31 March 2011.
(20 marks)

Q2
(a)

Patricia records her bank and cash transactions in a 3-column cash book. On 31 May 2011,
she had a cash balance of 110 and a bank overdraft of 745.
The following transactions took place during June 2011:
June
8
Received cheque from Alan in full settlement of a debt of 100. Alan deducted 4%
settlement discount.
15
Withdrew 150 cash for personal use.
16
Paid William 180 by cheque, in full settlement of a debt of 190.
21
Made cash sales of 500 of which 400 was paid straight into bank and 100 into
the cash account.
26
Paid salaries and wages of 1,000 by cheque.

Required:
Write up the Cash Book of Patricia for the month of June 2011. Balance the Cash Book and bring
down the balances at 1 July 2011.
Note:
The columns on the debit side of the cash book are to be: Date, Details, Discount Allowed, Cash
and Bank. The columns on the credit side will be the same except that Discount Allowed will
become Discount Received.
(17 marks)

Q3
ABC Ltd has extracted the following figures from its books for the year ended 31 March 2011:
1 April 2010

Operating profit for the year

Depreciation charge for the year
Profit on sale of fixed assets
Inventory
Trade payables
Trade receivables

15,900
110,000
258,300

31 March 2011

158,782
10,200
800
22,200
90,600
240,250

Required:
Prepare for ABC Ltd the Reconciliation of Operating Profit to Net Cash Inflow / (Outflow) for the
year ended 31 March 2011.
(13 marks)

Q4
The following information has been supplied by James in respect of the year ended 30 June 2011:

Credit sales
Cash sales
Cost of sales
Total expenses
Trade receivables at 30 June 2011
Trade payables at 30 June 2011

156,000
48,000
76,000
84,350
16,700
9,250

Required:
(a)

Calculate the following ratios for the year ended 30 June 2011:
(i)
(ii)
(iii)
(iv)

Gross profit to sales (%)

Net profit to sales
(%)
Debtors payment days
Creditors payment days
(8 marks)

(b)

State the formula for the acid test ratio.

(2 marks)
(Total 10 marks)

Q5
(a)

Explain each of the following accounting terms:

(i)
(ii)

Direct cost
Indirect cost
(4 marks)

(b)

A company guarantees to pay its operators 10 per hour for a 40 hour, 5 day week which
begins on Monday. Saturday working is paid at 12.50 per hour and Sunday working at 15
per hour.
One operator, Peter, completed his weeks work in 39 hours. He worked a further 5 hours
on Saturday and a further 3 hours on Sunday.
Required:
Calculate how much Peter earned for that week.
(6 marks)
(Total 10 marks)

Q6
Gavin manufactures a single product which he sells for 80 a unit. The variable costs for each unit
are:
Raw material
Direct labour
Direct expenses

2 kilos at 4.00 per kilo

2 hours at 16 per hour
50% of the prime cost

The fixed costs of the company for the year ended 30 April 2011 were 175,000.
Required:
Calculate for Gavin, in respect of the year ended 30 April 2011:
(a)
(b)

The break-even point in the number of units sold;

The break-even point in sales value.
(10 marks)

Q7
Briefly explain each of the five steps to be followed when preparing a budget.
(10 marks)

END OF SECTION A
MAXIMUM MARKS FOR SECTION A: 90

Please turn over to SECTION B

SECTION B
You must answer ONE question from Section B. DO NOT answer BOTH questions from this
section.
Both questions carry 10 marks.
Section B is worth 10% of the total marks available for this paper.
EITHER:
Q8
Explain each of the following accounting concepts:
(a)
(b)
(c)

Going concern
Consistency
Prudence
(10 marks)

OR:
Q9
Explain why each of the following might require financial information from a company:
(a)
(b)
(c)

Inland Revenue
Creditors
Shareholders
(10 marks)
END OF SECTION B
MAXIMUM MARKS FOR SECTION B: 10

END OF EXAMINATION PAPER

TOTAL MAXIMUM MARKS: 100