CAPE Accounting Unit 1 · 2006 · Paper 2

15 questions and parts from this paper. Open one to see it in full, then practise it on Quelpr and get it marked against the mark scheme.

1. 1(a)(i)9 marksWrite short notes on the process involved in recording adjusting journal entries for any THREE of the five categories of items listed.
2. 1(a)(ii)7 marksExplain how the adjusting journal entries listed are related to the accruals and matching concepts.
3. 1(b)10 marksList and briefly describe FIVE internal control practices relating to cash, which would be carried out even in a small business having little opportunity for the separation of duties.
4. 1(c)(i)4.5 marksBriefly describe THREE ways in which accounting standards benefit those who prepare financial statements for publication.
5. 1(c)(ii)4.5 marksBriefly describe THREE ways in which accounting standards benefit the users of published financial statements.
6. 2(i)8 marksPrepare the income statement for B & R Distributors for the year ending December 31, 2005, including the appropriation of profits between the partners.
7. 2(ii)3 marksPrepare a statement of changes in the partners' capital for the current year.
8. 2(iii)8 marksCompute the bonus attributable to Bravo and Rampaul upon the admission of Zandolie to the partnership.
9. 2(iv)12 marksPrepare a balance sheet for the partnership immediately following the admission of Zandolie.
10. 2(v)4 marksBriefly discuss TWO advantages and TWO disadvantages that would accrue to B & R Distributors if they changed from a partnership to a public company.
11. 3(a)(i)10 marksPrepare a multi-step income statement for CARICOM Company for the year ended December 31, 2005 in a form suitable for publication according to IAS requirements.
12. 3(a)(ii)5 marksPrepare a statement showing the appropriation of the profits for the year ended December 31, 2005.
13. 3(a)(iii)10 marksPrepare the shareholders' equity section of CARICOM Company's balance sheet as at December 31, 2005.
14. 3(b)4 marksBriefly describe the purpose of the income statement and the balance sheet.
15. 3(c)6 marksBriefly discuss THREE limitations of financial statements as a source of information for assessing the financial condition and performance of a company.