CAPE Accounting Unit 1 · 2015 · Paper 2

22 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)2 marksState the meaning of the historical cost concept.
2. 1(a)(ii)2 marksState the meaning of the prudence concept.
3. 1(b)2 marksWhat amount should B. Ross record for the motor car in the books of the business?
4. 1(c)4 marksIdentify and explain the concept which allows B. Ross to record the motor car invested in the business as a non-current asset.
5. 1(d)6 marksShow the journal entries required to record the formation of B. Ross' business on 1 June 2014.
6. 1(e)3 marksShow the closing entries to record the loss and the drawings for the period.
7. 1(f)6 marksOutline THREE controls that the management can implement to ensure the integrity of its accounting records.
8. 1(g)10 marksUsing Table 1 provided as an insert, show the effect of EACH of the transactions (i) to (v) in the Cash Book and Statement of Comprehensive Income of BisNess Ltd for the year ended 30 June 2014.
9. 2(a)11 marksPrepare the capital accounts of the partnership showing clearly the adjusted balances after the admission of the new partner.
10. 2(b)(i)2 marksDistinguish between 'corporations' and 'co-operatives' in terms of transferability of ownership interest.
11. 2(b)(ii)2 marksDistinguish between 'corporations' and 'co-operatives' in terms of voting rights.
12. 2(b)(iii)2 marksDistinguish between 'corporations' and 'co-operatives' in terms of purpose.
13. 2(b)(iv)2 marksDistinguish between 'corporations' and 'co-operatives' in terms of legislation.
14. 2(c)(i)11 marksPrepare a Statement of Comprehensive Income for Point Dex Ltd for the year ended 31 May 2014.
15. 2(c)(ii)a)3 marksIdentify the figures to be included in current assets which would appear in the Statement of Financial Position as at 31 May 2014.
16. 2(c)(ii)b)2 marksIdentify the figures to be included in current liabilities which would appear in the Statement of Financial Position as at 31 May 2014.
17. 3(a)14 marksPrepare common size statements for Siscco Ltd. From these, prepare a report to analyse the performance of the company, focusing on liquidity and profitability by using at least TWO ratios in EACH category. Calculate…
18. 3(b)3 marksList THREE limitations of ratio analysis.
19. 3(c)(i)4 marksOutline TWO examples of events that would be disclosed in the financial statements as required by Section 32.
20. 3(c)(ii)4 marksExplain the meaning of 'conditions that existed at the end of the reporting period' and give ONE example.
21. 3(d)(i)3 marksList THREE duties of the receiver in a bankruptcy situation.
22. 3(d)(ii)7 marksCopy Table 2 into your answer booklet. Complete the table to show how items a) to g) should be classified under Secured Claims, Partly Secured Claims, or Unsecured Claims.