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AQA A-LEVEL ACCOUNTING Paper 1 Financial Accounting MAY 2024 Merged QP and MS
A-level
ACCOUNTING
Paper 1 Financial Accounting
Thursday 23 May 2024 Afternoon Time allowed: 3 hours
Materials
For this paper you must have:
Instructions
- Use black ink or black ball-point pen.
- Fill in the boxes at the top of this page.
- Answer all questions.
- You must answer the questions in the spaces provided. Do not write outside the box around each page or on blank pages.
- If you need extra space for your answer(s), use the lined pages at the end of this book. Write the question number against your answer(s).
- Do all rough work in this answer book. Cross through any work you do not want to be marked.
Information
- The marks for each question are shown in brackets.
- The maximum mark for this paper is 120. For Examiner’s Use Section Mark A B C TOTAL
jun247127101 IB/M/Jun24/G4004/V6 7127/
Do not write outside the 03 A business owner records goods taken for their own use as drawings. Which accounting concept is being applied? [1 mark] box A Business entity B Consistency C Money measurement D Realisation What is the correct formula for the capital gearing ratio? A Non-current^ liabilities^ × 100 Issued share capital + current liabilities [1 mark] B Non-current^ liabilities^ × 100 Issued share capital + non-current liabilities C Non-current^ liabilities^ × 100 Issued share capital + reserves + current liabilities D Non-current^ liabilities^ × 100 Issued share capital + reserves + non-current liabilities Turn over for the next question Turn over ►
Do not write outside the 04 A sales ledger control account showed the following for January 2024. Details £ Balance on 1 January 2024 21 450 Contra with purchases ledger control account 190 Credit sales 38 692 Receipts from credit customers 27 955 What was the balance brought down on the sales ledger control account on 1 February 2024? [1 mark] box A £31 997 Credit B £31 997 Debit C £32 377 Credit D £32 377 Debit The purchase of a non-current asset has been recorded as administration expenditure. What is the effect on profit in the income statement? [1 mark] A Gross profit overstated B Gross profit understated C Profit for the year overstated D Profit for the year understated
Do not write outside the 06 Adam and Bea were in a partnership, sharing profits and losses equally. On 31 March 2024 Bea left the partnership and Cooper joined the partnership. On that date goodwill was valued at £60 000. box What is the journal entry to record the goodwill in the accounting records? [1 mark] Account Debit £ Credit £ A B C D
Capital – Adam 30 000 Capital – Bea 30 000 Goodwill 60 000 Current – Adam 30 000 Current – Bea 30 000 Goodwill 60 000 Goodwill 60 000 Capital – Adam 30 000 Capital – Bea 30 000 Goodwill 60 000 Current – Adam 30 000 Current – Bea 30 000
Do not write outside the The following information is available for a company: On 1 April 2023 £ Issued share capital of £2 shares (^65 ) Share premium 25 000 During the year ended 31 March 2024, £62 400 was received from a rights issue of 26 000 shares. What is the value of share capital and share premium in the statement of financial position at 31 March 2024? box A B C D Turn over for the next question [1 mark] Turn over ► 07
Share capital £ Share premium £ 91 000 35 400 91 000 61 400 117 000 35 400 117 000 61 400
Do not write outside the 09 Turn over for the next question DO NOT WRITE ON THIS PAGE ANSWER IN THE SPACES PROVIDED box Turn over ►
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. Prepare journal entries to correct the errors. Dates and narratives are not required. [6 marks] Account Debit £ Credit £
1 2 Dina’s draft trial balance at 30 April 2024 did not balance. She found the following errors:
- The purchases account had been undercast by £800.
- Goods returned to a credit supplier of £40 had been correctly entered in the payables ledger but had been omitted from the returns outwards account.
- Cash sales of £52 had been debited to the sales account and credited to the cash account.
- Goods taken by Dina for her own use of £390 had been debited to both the drawings account and the purchases account.
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- 12 * box Prepare the inventory account for the year ended 31 March 2024. Show clearly the amounts to be transferred to the income statement. Balance the account and bring the balance down on 1 April 2024. [6 marks] Dr Inventory Account Cr Date Details £ Date Details £ Working space
At 1 April 2023 a business had inventory of £18 150. At 31 March 2024 inventory was valued at a cost of £19 930. This included 95 damaged items valued at a cost price of £4.50 per unit. The damaged items can be sold for £7.10 per unit after repairs costing £3.80 per unit.
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- 13 * Turn over for Section B DO NOT WRITE ON THIS PAGE ANSWER IN THE SPACES PROVIDED box Turn over ►
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. 1 Prepare the statement of cash flows for the year ended 31 May 2024 to comply with IAS 7. The reconciliation of operating profit to the net cash flow from operating activities for the year ended 31 May 2024 should be shown. box C Ltd Statement of cash flows for the year ended 31 May 2024 [14 marks] Turn over ►
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Do not write outside the Steven is a sole trader who does not keep full accounting records. He is in the process of preparing his financial statements for the year ended 31 May 2024 and is able to provide the following information: As at 31 May 2024 2023 £ £ Motor vehicle – cost 48 000 21 000 Motor vehicle – accumulated depreciation To be calculated 15 000 Inventory To be calculated 8 500 Trade receivables 20 250 20 000 Bank (10 250) 14 400 Trade payables 6 600 8 000 Additional information:
- Steven was unable to carry out a stocktake on 31 May 2024. He was able to calculate his draft profit for the year by applying 50% mark-up on all his purchases.
- In order to calculate the value of the inventory at 31 May 2024 Steven provides the following information:
- the^ rate^ of inventory^ turnover^ is^12 times^ per^ annum
- sales^ revenue^ for^ the^ year^ ended^31 May^2024 was^ £162^ 000.
- Steven’s drawings for the year ended 31 May 2024 were £24 750.
- The draft profit for the year ended 31 May 2024 is £47 000. The draft profit was calculated before the following information had been provided:
- on^30 September^2023 Steven^ sold^ the^ motor^ vehicle, which^ had^ cost £21 000, for £3 750. On 1 October 2023 he purchased a new vehicle costing £48 000 which he paid in full by bank transfer
- the depreciation policy is to depreciate motor vehicles using the straight line method at a rate of 25% per annum. Depreciation is charged on a monthly basis
- on 5 June 2024 Steven was informed that one of his customers had gone into liquidation, owing him £2 000. Steven has been told that he will not receive any of the money he is owed and the debt is now irrecoverable. He is concerned about other customers not paying and has decided to create a provision for doubtful debts of 6% of trade receivables. box *1 *
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. 1 Prepare the statement of financial position at 31 May 2024. Steven Statement of financial position at 31 May 2024 [14 marks] box Turn over ►
