CAPE Accounting Unit 1 · 2016 · Paper 2

24 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 marksUsing an appropriate example, explain the term 'Substance over form'.
2. 1(a)(ii)2 marksUsing an appropriate example, explain the term 'Relevance'.
3. 1(a)(iii)2 marksUsing an appropriate example, explain the term 'Reliability'.
4. 1(b)(i)5 marksList the FIVE elements of a full set of financial statements as required by IFRS for SMEs.
5. 1(b)(ii)4 marksState FOUR reasons why financial statements do not provide users with all the information they need.
6. 1(b)(iii)4 marksGive FOUR reasons why the role of the external auditor is important to users of financial statements.
7. 1(c)(i)4 marksState FOUR appropriate controls that may be used for Accounts receivable.
8. 1(c)(ii)4 marksState FOUR appropriate controls that may be used for Cash at bank.
9. 1(d)(i)2 marksPrepare the journal entry to record the issue of ordinary shares.
10. 1(d)(ii)2 marksPrepare the journal entry to record the issue of preference shares.
11. 1(d)(iii)2 marksPrepare the journal entry to record the distribution of preference dividends.
12. 1(d)(iv)2 marksPrepare the journal entry to record the transfer of profits to general reserve.
13. 2(a)(i)8 marksPrepare a partnership Statement of Comprehensive Income for the year ended 31 December 2015 including as much detail as possible.
14. 2(a)(ii)5 marksPrepare a partnership Statement of Changes in Owners' Equity for the year ended 31 December 2015.
15. 2(b)(i)3 marksList THREE possible reasons why a business partnership may be dissolved.
16. 2(b)(ii)4 marksExplain the difference between a judicial and a non-judicial dissolution of partnership.
17. 2(b)(iii)3 marksIdentify THREE steps required to dissolve a partnership.
18. 2(b)(iv)4 marksIdentify FOUR benefits of operating as a co-operative.
19. 2(b)(v)3 marksState TWO advantages and ONE disadvantage of a sole proprietorship.
20. 2(c)(i)2 marksCalculate how many shares will be issued if all the rights are taken up. (Show all working.)
21. 2(c)(ii)3 marksPrepare the journal entry (without narrative) to record the rights issue transaction.
22. 3(a)15 marksPrepare a Statement of Cash Flow for the year ended 31 December 2015.
23. 3(b)10 marksDiscuss the proper accounting treatment of EACH scenario, including required disclosures according to IFRS for SMEs Section 21, providing the rationale for your answers. (Scenario 1: 3 marks; Scenario 2: 7 marks)
24. 3(c)10 marksPrepare a partial balance sheet for Manning Corporation showing the proper presentation and classification (current vs. long-term) of the liabilities at 31 December 2015, including appropriate note disclosure.