Trotter The blackball sinker ZIMBABWE SCHOOL EXAMINATIONS COUNCIL General Certificate of Edueation Ordinary Level PRINCIPLES OF ACCOUNTING 4051/2 PAPER2 NOVEMBER 2021 SESSION 2 hours 30 minutes Additional materials: Answer paper Time: 2 hours 30 minutes INSTRUCTIONS TO CANDIDATES Write your name, centre numer and candidate nurober on the answer paper provided, Answer all questions, \Write your answers on the separate answer paper provided. ‘All calculations must be shown adjacent to the answer. Ifyou use more than one shect of paper, fasten the sheets together. Calculators may be used, INFORMATION FOR CANDIDATES ‘The number of marks is piven in brackets] at the end of each question or part questian. ‘Amounts uscd in this Question Paper are for calculation purposes only. ‘The businesses described in this paper are entirely fictitious. This question paper consists of 9 printed pages and 3 blank pages. Copyright; Zimbabwe School Examinations Council, N2021. semmusec m202) Scanned with CamScannerCharles and Don are trading as partners ‘The fllowing information Was available from their books on 31 December 2017. $ Net profit for he year 35000 Land and buildings at cost oom Fixtures and fittings at cost 35000 Motor Van at valuation 12.000 Provision for depreciation: Fixtures and fittings, 01/01/2017 10.000 Trade receivables 14000 Trade payables 9000 Provision for doubtful debts 00 Inventory 7200 Cash at bank 2300 Prepaid Insurance 200 ‘Accrued wages 700 Capital accounts, 1 Jan 2017: Charles 33.000 Don 22.000 “The following current accounts were also given on 31 December 2017. Charles | Don Charles] Don s 2017 2017 Jan1 Balance b/d 700] Jan 1 Balance b/d 4200) Dee 31 Drawings 2.000 3.000] Dec 31 Interest on capital | 1 650| 1100 Interest on drawing} 40 60 Salary 8.000 Salary 5.000] Share of profits | 8610] 5740 Balance eld 12420 | 6.080) __ 14.460 14 840) 14.460) 14 840 ‘The partnership depreciates fixtures and fittings at 20% per annum on net book value. ‘The motor van was brought into the business by Charles on. 31 December 2017 as additional capital (a) Prepare the partnership appropriation account for the year ended 31 December 2017, (41 () Prepare a statement of financial position as at 31 December 2017. [13] 40312. 2m Scanned with CamScanner(©) Calculate the partnership's @ profit sharing ratio, a @) interest on drawings ratio, a Gil) interest on capital accounts ratio. a) Munyati’s business is divided into two departments, furniture and electrical. The following balances were extracted from his books on 30 June 2017. [Furniture — [Electrical $ $ linventory, 1 May 2016 35000 | #000 Inventory, 30 June 2017 16000 | $000 ‘urchases: Cash 100000 25 700 Credit 136 000 : ‘Sales 350000 | 40 625 [Returns inwards 10000 | - turns outwards 12.000 - arriage inwards 7000 | 3800 sriage outwards 2500 | 1000 stomas duty 5000 : [Discount received 4.600 400 (@) Prepare a Departmental Trading Account for the year ended 30 June 2017. (12) (®) — Foreach of the two departments, calculate @) Gross profit margin, (4) Gi) rate of inventory turnover. (4) ssi sama [Turn over Scanned with CamScanneri's business. The following subsidiary books belong to Nyon'§ ——— Cr Journal | $+ fa pore \ug 1 Receivables Bank an 5010 Capital 3 Bad debts 300 00 Mhuru S Dr cr lSales Day Book : ; bors ug 6 iJ. Rusva 2100 10 fT. Chenai 810 18 |S. Sithole 1.400 31___ [Sales 4310 [Purchases Day Book v . ors jAug 9 [P. Jongwe 720 12 IR Shonhiwa 120 31__ [Purchases 1.940 [Sales Retums Book x . 2018 Aug 15 {T. Chenai 0 21 |S. Sithole 2 31__ Sales retums 26 aosv.na0n Scanned with CamScanner5 Cash Book Discount | Cash] Bank Discount | Cash | Bank allowed received ie ls s|s _s |[s |$ 2018 - — x18 Avg 1 Balance b/d 610 | 1600 | Aug 7 Rent 120 4 T. Chenaj 100 1700 21 R Jongwe 10 400 268.Sithole | co [900 | | 27 Purchases 6a (@) Prepare Nyoni's Sales Ledger Control Account for the month of August 2018. [8] (b) The following account appeared in the Sales Ledger of N. Nkomo. ‘T, Tavaziva Account, $ $ 2018 2018 | March 1 Balance b/d 4100| March 7 Returns Gi) 250 4 Sales ()) 7000 12 Bank (ii) | 3500 16 Interest (Iv) 180 19 Cash (w) | 3000 22. Bank (Dishonoured cheque) (¥i) 250 31 Balance e/d | _4780 -Iis30 11.530 entity the source documents used to record entries (f) to (vi). Ca) ssi e200, [Turn over Scanned with CamScanner© Given below are accounting concepts: Consistency Accrual Going concem Double entry Historical cost Prudence tin Match the above concepis to the descriptions given in the table below, [Description Concept] fEvery financial transaction involves two spects, the receiving and the giving of value. i) The accounts of a business are drawn up (i) fon the basis that the business will ontinue to operate for the forseeable future. Accountants should ensure that profits id assets are not overstated. |The revenue of the accounting period is matched against the costs of the same period, iv) (y) [All assets are recorded at their actual st, Once a business has selected a particular (vI)accounting approach or method, this hould not vary from one year to the Jother. 40512. N2021 (6) Scanned with CamScanner 4@ (b) Th ‘ Following data relates to trae receivables of K. Khumalo. [Period rade ivables | Bad debts [Provision for [Provision for fore writing debts fliscount allowed fF bad debis 2016 [Dec 31 sis 5% * boi 600 | $600 5% [Dec 31 $24 350 $350 S% 2% Prepare (the Provision for Bad Debts Account for 2016 and 2017. (4) Gi) the Profit and Loss Account extract for the year ended 31 December 2017. BI Gil) Statement of financial position extract as at 31 December 2017. [3] ‘The following account appeared in the books of T. Jones. Electricity Account 2018 $_ pois S May 1 Balance b/d @} 900 [May 31 Income statement (iv)] 3 050 Cash 1300 14 Bank (ii) 500 22 Cash Gi) 150 31 Balancec/d | _200 3050 3.050 pois june 1 Balance b/d (¥) 200 Give information represented by items marked (|) to (v) above. [5] ssi Naat [Turn over Scanned with CamScanner(© Complete the Accounting cycle below: iy ae, SH w) (5) 5 (@) Chiyedza Sports Club's Receipts and Payments account for the year ended 30 June 2017 was as follows: [Receipts 3 Payments § 2016 17 liuly 1 Balance ba 340 lune 30 Purchase of refreshments 1 100 boi7 General expenses 1200 jun 30 Subscriptions {1 300 Stationery 140 30 Sale of refteshments|l 500 Equipment 490 ae Balance c/d 210 p.140 Additional information oie 017 july 1 {June 30 $ $ linventory of refreshments 180 230 {Equipment 1810 2200 [Subscriptions prepaid - 60 [Subscriptions accrued 20 - {Rent prepaid (Rent is included in general expenses) | 50 7: [Payables for refreshments - 10 linventory of stationery : 30 Prepare @ the Subscriptions Account 4 (i) the Refreshments Trading Account for the year ended 30 June 2017. 4) it) the Income and Expenditure Account for the year ended 30 June 2017, 6 sin Naat Scanned with CamScanner()) The financial Pi information (pa ache ‘Trading ends on 30 June. The following Inventory, 1 July 2017 : Inventory, 30 June 2018, smn The rate of tumover is 10 t The margin is20%, 0 Calculate Purchases, by m i yunt, for the year ended Stir 'y Means ofa trading account, 4) (© The following information relates to the business of M. Peters. ‘apital, 1 January 2017 pital, 31 December 2017 yrawings for the year pital introduced during the year edit sales for the year mnual rental fees a Calculate the profit or loss for the year. 4052 N202 [Turn over Scanned with CamScanner