NCEA Level 3 Accounting (90501) 2012 – page 6 of 6

Assessment Schedule – 2012

Accounting: Process financial information for partnerships and companies (90501)

Evidence Statement

Note: No figures are marked correct if they are in the wrong Dr or Cr column. Entries made in any ledger
account Dr or Cr column must show the correct treatment in the balance column.

An incomplete journal entry is awarded no grade.

Question / Evidence / Code
ONE
(a) / Trust Us Medical Services Limited
General Journal
01 / 4 / 11 / Bank / 10 000
Contributed equity / 10 000
(Initial issue of 1 000 shares at a fair
value of $10 per share)
Judgement
V correct stem and figure for both lines
S for the correct figure – award only if V given / V
AND
S
(b) / Trust Us Medical Services Limited
General Ledger
Interim Dividend (2012)
15 / 10 / 11 / Bank / 3 840 / 3 840 / Dr
31 / 3 / 12 / Retained earnings / 3 840 / NIL
Judgement
V for correct stem and a figure with a debit balance
C for correct figure – award only if V given
Vf for closing entry (stem and figure) and must have a zero balance
Vd for correct dates / V
AND
C
Vf
Vd
(c) / Directors must ensure that TUMSL can:
·  pay its debts as and when they fall due in the normal course of business after the dividend has been paid
·  ensure that the value of the company’s assets is greater than the value of its liabilities including contingent liabilities after the dividend is paid.
Judgement
S for either component of the solvency test correct including reference to after
the dividend is paid
C for both components of the solvency test correct including reference to after
the dividend is paid / S
OR
C
Question / Evidence / Code
ONE
(d) / Trust Us Medical Services Limited
General Ledger
Contributed Equity
30 / 9 / 11 / Balance / 160 000 / Cr
30 / 10 / 11 / Bank / 324 000 / 484 000 / Cr
Judgement
V for correct stem and a figure
C for the correct figure – award only if V given / V
AND
C
(e) / Trust Us Medical Services Limited
General Journal
31 / 3 / 12 / (Income)Taxation (Expense) / Income Summary / 360 000
Taxation Payable / 360 000
(To record taxation expense for the year)
31 / 3 / 12 / Income Summary / 840 000
Retained Earnings / 840 000
(Profit for the year transferred to retained earnings – closing journal entry)
Judgement
V for correct stem and a figure
S for the correct figure – award only if both V’s given / V
V
V
V
AND
S
Question / Evidence / Code
ONE
(f) / Trust Us Medical Services Limited
General Ledger
Retained Earnings
31 / 3 / 12 / Income Summary / 840 000 / 840 000 / Cr
Interim Dividend (2012) / 3 840 / 836 160 / Cr
Judgement
V correct stem and a figure
Vf follow-through from (b) or (e) / Vf
Vf
(g) / The final dividend is recorded / accounted for / processed when the payment is made / when it is paid on 15 May 2012 which is in the next accounting period / after the year ended 31 March 2012.
Judgement
S for identifying that the final dividend is paid in the next accounting period. / S

Judgement Statement – Question One

Achievement / Achievement with Merit / Achievement with Excellence
9 V OR S OR C / 12 grades
including 4 S OR C / 15 grades
Must include 2 C
AND 3 more S OR C
including AT LEAST
1 S OR C from (c) OR (g)
Question / Evidence / Code
TWO
(a) / Processing for Partnerships
·  Accounts Receivable are taken through to the partnership at their historical cost of $25 000 (S) … as the partnership has a legal right to this amount OR the partnership has not identified the specific bad debts to write off (C)
·  An allowance for doubtful debts is created of $3 000 to reach / report an agreed value of
$22 000 (S) so as to report accounts receivable at the expected (probable) / amount to be received (C)
Judgement
One S for both part (S)
One C for both part (S) and one part (C). / S
AND
C
(b) / Bunny Brothers Vets
General Journal
31 / 3 / 12 / Profit Distribution / Interest on Capital (– Peter) / 5 000
Current account – Peter / 5 000
(To account for Peter’s interest on capital at 5% of
closing balance)
31 / 3 / 12 / Current account – Roger / 90 000
Drawings – Roger / 90 000
(To close Roger’s drawings to his Current
account)
Judgement
V for correct stem and a figure
S for correct figure – only award if both V’s given / V
V
AND
S
V
V
TWO
(c) / Bunny Brothers Vets
Current account – Peter
31 / 3 / 12 / Balance / 1 500 / Dr
Drawings / 50 000 / 51 500 / Dr
Interest on Capital / 5 000 / 46 500 / Dr
Share of profit / 24 000 / 22 500 / Dr
Interest on Current account / 150 / 22 650 / Dr
Interest on drawings / 1 500 / 24 150 / Dr
Judgement
V awarded only for appropriate stem and correct figure and treatment
V OR S award V for appropriate stem and a figure correctly treated; award S for appropriate stem and correct figure and treatment
C # awarded only if 5 Vs or Ss have been awarded in the current account / V
V OR S
V OR S
V OR S
V OR C
C #
(d) / To discourage partners from taking excessive / too much / large amounts / above the agreed amount of drawings from the partnership
OR
to encourage partners to retain some profit in the partnership
Judgement
S for any one of the above reasons / S

Judgement Statement – Question Two

Achievement / Achievement with Merit / Achievement with Excellence
7 V OR S OR C / 10 grades total,
including 5 S OR C / 12 grades
Must have 2 C AND 6 more S OR C

Judgement Statement – Overall

Achievement

/

Achievement with Merit

/

Achievement with Excellence

2 A
OR
M in Companies AND
5 V OR S OR C in Partnerships
OR
M in Partnerships AND
7 V OR S OR C in Companies / 2 M / 2 E