ACCOUNTING 0985/22 Paper 2 Structured Written Paper with MARKING SCHEME October/November 2024
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Module
ACCOUNTING 0985 Paper 2
Institution
ACCOUNTING 0985 Paper 2
Dev owns a business selling furniture.
The following transactions took place during August 2020.
Transaction Date Details $
1 August 9 Sold goods on credit to Petra 675
2 14 Petra returned damaged goods to Dev 120
3 23 Banked cash sales 412
4 29 Petra settled her outstanding balan...
ACCOUNTING 0985/22
Paper 2 Structured Written Paper with MARKING SCHEME October/November 2024
1 hour 45 minutes
You must answer on the question paper.
No additional materials are needed.
INSTRUCTIONS
● Answer all questions.
● Use a black or dark blue pen. You may use an HB pencil for any diagrams or graphs.
● Write your name, centre number and candidate number in the boxes at the top of the page.
● Write your answer to each question in the space provided.
● Do not use an erasable pen or correction fluid.
● Do not write on any bar codes.
● You may use a calculator.
● International accounting terms and formats should be used as appropriate.
● You should show your workings.
INFORMATION
● The total mark for this paper is 100.
● The number of marks for each question or part question is shown in brackets [ ].
● Where you are asked to complete a layout, you may not need all the lines for your answer.
This document has 20 pages. Blank pages are indicated.
The following transactions took place during August 2020.
Transaction Date Details $
1 August 9 Sold goods on credit to Petra 675
2 14 Petra returned damaged goods to Dev 120
3 23 Banked cash sales 412
4 29 Petra settled her outstanding balance at 1 August by
credit transfer after taking a cash discount of 5%
On 1 August 2020, the balance on credit customer Petra’s sales ledger account was $940 debit.
REQUIRED
(a) Complete the table to name each business document and book of prime entry for the following
transactions in Dev’s accounting records.
Transaction Business document Book of prime entry
2
3
4
[6]
(b) Prepare the account of Petra for August 2020 as it would appear in Dev’s sales ledger.
Balance the account and bring down the balance on 1 September 2020.
Dev
Petra account
Date Date
2020 Details $ 2020 Details $
Dev is considering turning his business into a limited company.
REQUIRED
(e) Advise Dev whether or not he should form a limited company. Justify your answer with two
advantages and two disadvantages of forming a limited company.
2 BH Sports Club provides sporting facilities and a café for the use of its members and guests.
The club’s financial year ends on 31 July. The following information is available.
Assets and liabilities
At 1 August At 31 July
2019 2020
$ $
Bank 840 1270
Café inventory 520 770
Sports hall at book value 17 000 16 560
Insurance prepaid – sports hall and
sports equipment 400 440
Sports equipment at book value 3900 ?
Subscriptions in arrears 360 720
Subscriptions received in advance – 120
Wages accrued – café staff 60 80
Receipts and Payments Account for the year ended 31 July 2020
Details $ Details $
Balance b/d 840 Purchases of café supplies 8 190
Subscriptions received 9 960 Wages – café staff 2 750
Café takings 13 520 Wages – sports staff 5 220
Insurance – sports hall and
sports equipment 1 430
Sports equipment 2 100
Sports hall expenses 3 360
Balance c/d 1 270
24 320 24 320
Additional information
Sports equipment is depreciated at 10% per annum using the reducing balance method.
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