IGCSE Accounting SB Answers
UNIT 1CHAPTER 1Getting StartedIf a business chooses the correct type of business organisation it will be easier to carry outits work. If the owner wants to be independent, it is better to conduct the business as a soletrader. It will give the owner independence if they want to be their own boss. If they chooseto conduct the business as a partnership, they will have someone to work with and shareideas or will make it easier for them to raise capital (money) to survive and grow.In Chapter QuestionsCase Study: Partnerships1 So he can become a more successful business owner and increase his profitability.2 Shared skills and knowledge, more capital to invest in the business, cover in case ofillness, shared responsibility in case of business losses.3 Hanif and Mzuzi may have arguments over key decisions and having to share the profits.Each partner will be responsible for the debts of the other partner due to unlimited liabilityin a partnership.Case Study: Dyson Ltd123The advantages are that you can raise more capital and the owners will have limitedliability. Financial institutions are more likely to lend you money due to your limited status.The business was set up by an individual and not by the government.The shareholders.End of chapter questions1 This is where the owner and the business have the same legal identity and therefore theowner is responsible for the debts of the business.2 This is where the owner, normally a shareholder, is not involved in the day-to-day runningof the business.3 Plumber, window cleaner, car mechanic.4 Unlimited partnership and limited partnership.5 An auditor checks the accounts on behalf of the owners to see if they show a ‘true andfair’ reflection of the business.6 A public sector organisation is one that is run by the government.7 Owners – responsibility of running the business – profit or loss.Employees – work for the business – pay and working conditions.Customers – the quality and price of the products.Government – collecting the taxes from the business.Suppliers – selling goods or services to the business and assessing the creditworthinessof the business.8 More than one owner, a partnership could have limited liability. Pearson Education Ltd 2018. Copying permitted for purchasing institution only. This material is not copyright free.
9 To gain limited liability, to increase the amount of capital in the business so it is easier toexpand.Exam Practice1A, 2B, 3C, 4C, 5C, 6A, 7C, 8C, 9D, 10ACHAPTER 2Getting StartedInvestigate packages such as Microsoft Office, Quickbooks, Clearbooks and Xero.In Chapter QuestionsCase Study: Accounting SoftwareDocuments can be shared online, which will help him to update the accounts of all thebranches from one place.Accounting information from several branches can be merged, making decision-making easyand fast.End of Chapter Questions1 Anti-virus software, complicated passwords.2 Email, cloud.3 You can save your work, easy to send to other people, calculations and templates arealready there for you to use.4 Hacking, failure in technology – power cut, some software is expensive.Exam Practice1B, 2D, 3D, 4CCHAPTER 3Getting StartedDo research about the Enron and Arthur Andersen scandals. Pearson Education Ltd 2018. Copying permitted for purchasing institution only. This material is not copyright free.
In Chapter QuestionsCase Study: Satyam ScandalSo that investors trust the business and will be willing to lend money to that business.End of Chapter Questions1 Income statement, Statement of Financial Position, Statement of cash flows.2 Being unbiased when valuing the assets of a business.3 Not talking about the company’s financial information. Telling a competitor what pricesyou are going to charge.4 ‘In the public interest’ means that accountants must present accounts in a true and fairview.5 By following the codes of conduct and following the rules.6 Payroll, Book-keeping, Auditing the accounts.Exam Practice1C, 2A, 3C, 4B, 5AUNIT 2CHAPTER 4Getting StartedStudents’ own answersIn Chapter QuestionsCase Study: Source Documents12345Cash receiptBank statement, deposit slip counterfoil from the bankPurchase order, invoice received from the supplierBank statementCredit note receivedEnd of Chapter Questions123Statement of accountInvoiceWhen goods have been returned to them from another business. Pearson Education Ltd 2018. Copying permitted for purchasing institution only. This material is not copyright free.
Exam Practice1A, 2D, 3D, 4C5 Anakin – credit note, statement of account; Caleb – purchase order6 a Invoiceb Credit noteCHAPTER 5Getting StartedStudents’ own answersEnd of Chapter Questions1b, 2c, 3d, 4b, 5c6 Invoices7 Credit notes8 Record more uncommon transactions, e.g. purchase of non-current assets on credit,year-end adjustments, correction of errors9 Purchase returns account in the nominal ledger and the supplier’s accounts in thepurchases ledger.Exam Practice1C, 2D, 3B, 4B, 5C6JournalPurchasesCapitalFixtures and fittingsCapitalBankCapitalCashCapitalBankLoan (Brother)DrCr 5000 5000 8000 8000 3500 3500 100 100 5000 5000 Pearson Education Ltd 2018. Copying permitted for purchasing institution only. This material is not copyright free.
CHAPTER 6Getting StartedStudents’ own answersEnd of Chapter Questions1 abcdefNominalNominalNominalTrade payablesTrade receivablesNominal2 Error of transposition (error of original entry)3 aStationaryPurchasesDrawingsPurchasesMotor vehicle repairsMotor vehicles2020606060015 000P.J. Motors15 600b A narrative is used to explain why the transaction has taken place.c It helps explain to anyone checking the accounts and gives context on why it hashappened.4Capital01-Sep Bank2000Bank01-Sep Capital06-Sep Revenue20-Sep Revenue22-Jan I Wain2000955518003-Sep Purchases14-Sep D Smith24-Sep Purchase returnsRowcester27-Sep Machinery Co2001005550005-Sep Purchases150Purchases03-Sep Bank05-Sep D Smith200150D Smith07-Sep Purchases returns14-Sep Bank50100 Pearson Education Ltd 2018. Copying permitted for purchasing institution only. This material is not copyright free.
Revenue06-Sep Bank10-Sep I Wain20-Sep Bank9510555Purchasesreturns24-Sep07-Sep D Smith50I Wain10-Sep Revenue10517-Sep Revenue returns22-Sep Bank2518012-Sep Machinery500MachineryRowcester12-Sep Machinery Co500RowcesterMachinery Co27-Sep Bank500Revenuereturns17-Sep I Wain25Bank55Exam Practice1D, 2D, 3A, 4A, 5B, 6A, 7D, 8C, 9D, 10A, 11A, 12C, 13A & D, 14B15DrDateDetails30-Apr Balance c/dCr 2000EquityDateDetails01-Apr Cash 200001-May Balance b/d200002-Apr Bank30-Apr Balance c/d1750250200004-Apr VanBusiness12-Apr equipment17-Apr Johnson Brothers1000Cash01-Apr Equity2000200001May Balance b/d250Bank02-Apr Cash1750 Pearson Education Ltd 2018. Copying permitted for purchasing institution only. This material is not copyright free.250350
30-Apr Balance c/d150175030-Apr Balance c/d100030-Apr Balance c/d25006-Apr Typewriter25011-Apr Photocopier350175001May Balance b/d150Van04-Apr Bank01May Balance b/d10001000TypewriterBusiness06-Apr equipment01May Balance b/d250250Businessequipment12-Apr Bank250PhotocopierJohnson11-Apr Brothers350JohnsonBrothers17-Apr Bank35016DrDateDetails31-Jul Balance c/dCr 6000EquityDateDetails01-Jul Bank01Aug Balance b/d 20070020005540250566006000Bank01-Jul Equity06-Jul Cash6000600RentFittingsRefrigeratorsMotor vehiclesMotor insuranceVan licenceBalance c/d660001Aug Balance b/d2505Rent01-Jul Bank01Aug Balance b/d10031-Jul Balance c/d10031-Jul Balance c/d1200100Fittings01-Jul Bank1200 Pearson Education Ltd 2018. Copying permitted for purchasing institution only. This material is not copyright free.
01Aug Balance b/d1200Refrigerators01-Jul Bank01Aug Balance b/d70031-Jul Balance c/d70031-Jul Balance c/d200031-Jul Balance c/d5531-Jul Balance c/d4003-Jul Purchases01Aug Balance b/d80031-Jul Balance c/d80005-Jul Cleaning06-Jul Bank31-Jul Balance c/d36004064304-Jul Cash01Aug Balance b/d64331-Jul Balance c/d3700Motorvehicles02-Jul Bank01Aug Balance b/d20002000Motorinsurance02-Jul Bank01Aug Balance b/d5555Van licence02-Jul Bank01Aug Balance b/d4040J Eulie31-Jul Balance c/d800800Purchases03-Jul J Eulie01Aug Balance b/d800800Cash04-Jul Revenue64364301Aug Balance b/d40Revenue31-Jul Balance c/d643643Cleaning05-Jul Cash01Aug Balance b/d33 Pearson Education Ltd 2018. Copying permitted for purchasing institution only. This material is not copyright free.
CHAPTER 7Getting StartedIT equipment, fixtures and fittings, motor vehicle. Some assets suffer from wear and tear orgo out-of-date more quickly than others.In Chapter QuestionsCase Study: Straight Line Method(22 000 – 500)/10 MOP2150Case Study: Reducing Balance Method2016: 20 000 40% 80002017: (20 000 8000) 40% 48002018: (20 000 12 800) 40% 2880End of Chapter Questions1 Depreciation is where a non-current asset loses its value over a period of time.2 Straight line has the same depreciation figure each year, whereas reducing method has adifferent figure each year.3 Prudence, consistency.4 How much the non-current asset is worth after depreciation has been taken off.5 Debit income statement, credit – provision for depreciationExam Practice1A, 2B, 3D, 4C, 5B, 6A, 7A, 8B, 9B10 a 2015 – 3300, 2016 – 3300, 2017 – 3300b 12 100c Journal entries2015Income statement3300Prov for depreciation33002016Income statement3300Prov for depreciation33002017Income statement3300Prov for depreciation330011 a (76 000 16 000) / 5 12 000b 20% Pearson Education Ltd 2018. Copying permitted for purchasing institution only. This material is not copyright free.
12 a Depreciation – salon chairs 160, air conditioner 1600b Non-current assetsCost Dep Carrying valueSalon chairs1000 360640Air conditioner8000 1600 6400UNIT 3CHAPTER 8Getting StartedDebit – Rent paid, insurance, wages, revenue returnsCredit – Purchases returnsIn Chapter QuestionsCase Study: Trial BalanceDrRevenueRentWagesElectricityDiscount receivedDiscount allowedTrade payablesTrade receivablesSuspense accountPurchasesCr52 000400012 00050005200230072008500260035 20067 00067 000End of Chapter Questions12345Debit side.Not all errors are revealed.It is an arithmetical check on the accuracy of the ledgers.Bought down and carried down.Suspense account.Exam Practice1D, 2D, 3C, 4A, 5A, 6A, 7B, 8C Pearson Education Ltd 2018. Copying permitted for purchasing institution only. This material is not copyright free.
9Dr24 200Non-current assetsProvision for depreciationInventoryBankRevenueRevenue returnsPurchasesCarriage outwardSalariesMarketingHeating and lightingEquityDrawingsCr74004500125072 34080038 15020050007200894012 500200092 24092 24010DraBankCapital sesSales revenueTrade payablesTradereceivablesSuspense435016 650900042 50016 50012 00084 000135 0001700700164 700b30-Apr Sales revenueCr7000164 700Suspenseaccount9000900030-Apr Drawings30-Apr Cash30-Apr Trial Balance500150070009000 Pearson Education Ltd 2018. Copying permitted for purchasing institution only. This material is not copyright free.
cDrBankCapital sesSales revenueTrade payablesTradereceivablesCashCr435016 650950042 50016 50012 00084 000144 00017007001500166 700166 70011DrEquityCash in handDiscount receivedDrawingsFixtures and fittingsGeneral expensesInventoryPurchasesRevenue returnsSales revenueTrade payablesTrade receivablesCr10 5001320963600217010502567460092853833803197CHAPTER 9Getting StartedDebit, expenses, assets and drawingsCredit, liabilities, income and capital Pearson Education Ltd 2018. Copying permitted for purchasing institution only. This material is not copyright free.
In Chapter QuestionsCase Study: Tesco Loses 2 Billion in ValueOwned up to it straight away and adjusted their profits.Use a different auditor (change the heads in their finance department first).End of Chapter Questions1 The journal is used to record unusual transactions that are not recorded in the otherjournals, e.g. correction of errors, year-end adjustments etc.2 The suspense account is used when the trial balance doesn’t balance.3 When an entry is entered into the wrong personal account.4 When an error has been made while totalling the account, and the totalled figure is morethan the correct amount.5 Increase profit.6 Credit side.7b, 8b, 9a, 10b, 11d, 12b, 13b, 14d, 15b, 16b, 17dExam Practice1 a Complete reversal.b Bill would have less revenue and therefore his profit would be lower.2 The trial balance would still balance, so you would just use the journal to correct theanswer.3 a To help look for errors in the accounts. A business needs to prepare their finalaccounts and a balanced Statement of Financial Position. If the errors are not locatedby the time of preparing the draft final accounts then the suspense account is includedin the financials until the errors are located and the suspense balance is eliminated.bRent paidSuspenseL KongK LongSuspense3873878638631726Fixtures & fittings7500Purchases7500Cash400Tamara400Purchases returns850Sales returns680Suspense15303 c 22 500 7500 680 – 387 – 850 29 443 Pearson Education Ltd 2018. Copying permitted for purchasing institution only. This material is not copyright free.
4 aSuspense accountLoan 02301200120080080014001400bSuspenseaccountLoan accountTrial balance difference230570800Purchases800800CHAPTER 10Getting StartedTrade payables, trade receivables, nominal ledger.To make it easier to locate the errors when the trial balance fails to balance. These controlswill act as mini trial balances.In Chapter QuestionsCase Study: Trade Receivables AccountTradereceivablesCredit sales8678Sales returnsBankBalance b/d867816898405762Discount allowed342Irrecoverable debtBalance c/d4516898678 Pearson Education Ltd 2018. Copying permitted for purchasing institution only. This material is not copyright free.
End of Chapter QuestionsTo act as another check on the trade payables and trade receivables ledgers.A set-off between two entries in both control accounts.It would depend on the business, but normally monthly.Trade receivables ledger control account.Nominal, trade payables and trade receivables.They should balance. The totals of all the balances of the trade receivables ledger shouldbe the same as the balance in the control account7 Make sure you pay your suppliers on time and don’t get a bad reputation. Locate errorsand avoid fraud.123456Exam Practice1A, 2A, 3C, 4D, 5A6Trade receivables ledger control account01-Apr Balance b/d1 028 94430-Apr Sales day book43 123Bank1262Dario Feng1001 072 06701May Balance b/d30-Apr30-Apr30-Apr30-Apr30-Apr30-AprDiscount allowedBankReturns inwardIrrecoverable debtSet-off / ContraBalance c/d79554 75423451828991 014 4541 072 0671 014 454CHAPTER 11Getting StartedN/A Pearson Education Ltd 2018. Copying permitted for purchasing institution only. This material is not copyright free.
In Chapter QuestionsCase Study: Bank Reconciliation StatementCashbook01-Feb Balance b/dJ Sahif6951801-Feb Correct balance b/d713513Balance as per cashbookAdd unpresented chequesBalance as per bankstatementT GramsonBalance c/d2005137135133841231020End of Chapter Questions1 a30-Apr Balance b/dInterestBank transfer AishaBalance b/dbBalance as per cashbookAdd unpresented chequesLess lodgementsBalance as per bankstatementCashbook62020130Bank chargesInsurance DD1540DishonouredBalance c/d65650770650770650250310590c Incorrect adding up in the cashbook, incorrect entry in the cashbook. Pearson Education Ltd 2018. Copying permitted for purchasing institution only. This material is not copyright free.
2Balance as per cash bookAdd unpresented chequesLess lodgementsBalance as per bank statement(1780)270800(2310)3Cash bookBalance b/d2073Balance b/d20731298Bank reconciliation statementBalance as per cash bookAdd unpresented chequesLess lodgementsAdd bank errorBalance as per bank statementError correctionInsuranceDishonoured chequeBank chargesBalance c/d90360314111298207312983905001188621250Exam Practice1D, 2D, 3D, 4B, 5C, 6C, 7C, 8B9 The check for fraud and to correct any errors that may have occurred in the cash book orby the bank.10 Monthly.11 Someone who is paying money.12 Standing order is the same amount each month, a direct debit can differ each month.13 Overdrawn – negative bank balance.14 A receipt not yet entered in the bank statement.UNIT 4CHAPTER 12Getting StartedShop fittings, land, building, equipment – tillHeating, lighting, wages Pearson Education Ltd 2018. Copying permitted for purchasing institution only. This material is not copyright free.
In Chapter QuestionsCase Study: Capital Expenditure and Revenue ExpenditureMagazines and books: Revenue expenditureShop fittings: Capital expenditureCash register: Capital expenditureStationery: Revenue expenditureRefrigerator: Capital expenditureCase Study: Expenditure, Profit and Assetsa Profit: 10 800 200 10 600b Non-current assets: 72 345 3000 500 300 76 145End of Chapter Questions12345Purchase of motor vehicle, buildings and fixtures and fittings.Rent, wages, electricity.Cash sales.Sale of motor vehicle.Revenue expenditure goes in the income statement and capital expenditure goes in theStatement of Financial Position. If the two expenditures are not correctly classified, yourprofit and non current asset figures could be distorted (either both will be overstated orunderstated).Exam Practice1B, 2A, 3B, 4A, 5D, 6B, 7C, 8BCHAPTER 13Getting StartedStudents’ own answersIn Chapter QuestionsCase Study: Accounting ConceptsBusiness entity – owner and business transaction should be kept separate. Profit shouldincrease by 13 000 rupees.Prudence and accruals – you should not anticipate profits. Profit should fall by 1 000 000rupees.Prudence – inventory should be recorded at the lowest value. Profit should fall by 15 000rupees. Pearson Education Ltd 2018. Copying permitted for purchasing institution only. This material is not copyright free.
End of Chapter Questions1 They ensure that the accounts give a true and fair view of the business. Comparison ofdifferent businesses’ accounts can be done.2 It states that you may record only transactions and activities that could be measured inmonetary terms3 You can compare your figures from year-to-year easily.4 Prudence.5 Inventory should always be recorded at its lowest value. Prudency concept.Exam Practice1B, 2C, 3D, 4C, 5B, 6D, 7A8 When the owner does not charge petrol for personal use to the business expenses butshows it separately under drawings.9 Your profits may be overstated and you may think you have more money than you do,and you may be eligible to pay more tax.10 ConsistencyCHAPTER 14In Chapter QuestionsCase Study: Trial Balance Part 1 Sales revenueSales returnsNet revenueCost of salesOpeninginventoriesPurchasesCarriage inpurchase returnsNet purchasesClosinginventoriesCost of goodssoldGross profitLess expensesRentWages 150 0006000144 00012 00045 000500600051 500(8000)43 500100 50030 00025 000 Pearson Education Ltd 2018. Copying permitted for purchasing institution only. This material is not copyright free.
ElectricityAdministrationFuelInsurance700010 00050006000Profit for the year83 00017 500Case Study: Trial Balance Part 2Non current assetsBuildings100 000Motor vehicles30 000130 000Current assetsInventories8000Trade receivables3000Cash25 00036 000166 000Net assetsEquityOpening equityAdd profit for the yearLess drawingsClosing equity100 00017 50012 000105 500Non current liabilitiesBank loan29 500Current liabilitiesTrade payablesBank18 00013 000166 000End of Chapter Questions12345All the income and expenses of the business and how much profit is made.All the assets, liabilities of the business and the value of the business.An asset that is owned by the business for more than one year.The cost of the items used for resale.Money invested in the business by the owner or owners.Exam Practice1B, 2
Accounting information from several branches can be merged, making decision-making easy and fast. End of Chapter Questions 1 Anti-virus software, complicated passwords. 2 Email, cloud. 3 You can save your work, easy to send to other people, calculations and templates are already there for you to use. 4 Hacking, failure in technology – power cut, some software is expensive. Exam Practice 1B .
IGCSE First Language English 12 IGCSE World Literature 13 IGCSE English as a Second Language 14 . IGCSE Business Studies 19 IGCSE Global Perspectives 21 IGCSE Geography 22 IGCSE History 23 IGCSE Sciences 24 IGCSE Cambridge Mathematics Extended & Core 26 . At BISP, Year 12 and 13 (Key Stage Five) students study the IB Diploma Programme (IBDP .
IGCSE ARABIC for Native Arabic Speakers - Edexcel 11 GCSE ART & DESIGN - Edexcel 13 IGCSE BUSINESS STUDIES - Cambridge 15 IGCSE ECONOMICS - Cambridge 17 IGCSE COMPUTER SCIENCE - Cambridge 19 GCSE DRAMA - Edexcel 20 IGCSE ENGLISH LANGUAGE - Cambridge 22 IGCSE ENGLISH LITERATURE - Edexcel 22 IGCSE GEOGRAPHY - Edexcel 25
University of Cambridge International Examinations London GCE AS/A-Level / IGCSE / GCSE Edexcel International. 6 Examination Date in 2011 Cambridge IGCSE Oct/Nov X 9 Cambridge GCE / May/Jun 9 9 London GCE London GCSE May/Jun 9 X Chinese London IGCSE Jan X 9 Cambridge IGCSE / May/Jun 9 9 London IGCSE London GCE Jan 9 9 Cambridge GCE Oct/Nov X 9 Private Candidates School Candidates Exam Date. 7 .
FINANCIAL ACCOUNTING : MEANING, NATURE AND ROLE OF ACCOUNTING STRUCTURE 1.0 Objective 1.1 Introduction 1.2 Origin and Growth of Accounting 1.3 Meaning of Accounting 1.4 Distinction between Book-Keeping and Accounting 1.5 Distinction between Accounting and Accountancy 1.6 Nature of Accounting 1.7 Objectives of Accounting 1.8 Users of Accounting Information 1.9 Branches of Accounting 1.10 Role .
answers, realidades 2 capitulo 2a answers, realidades 2 capitulo 3b answers, realidades 1 capitulo 3a answers, realidades 1 capitulo 5a answers, realidades 1 capitulo 2b answers, realidades 2 capitulo 5a answers, realidades capitulo 2a answers, . Examen Del Capitulo 6B Answers Realidades 2 Realidades 2 5a Test Answers Ebook - SPANISH .
Upcoming Cambridge IGCSE training in Rome 05-06 April 2017 Introductory Cambridge IGCSE English as a Second Language (0510) Introductory Cambridge IGCSE International Mathematics (0607) Introductory Cambridge IGCSE Art and Design (0400) Extension Cambridge IGCSE Geography (0460) 07-08 April 2017
IGCSE English Literature and IGCSE First Language English Students begin a two-year course, covering two IGCSE subjects: 1) English Literature, and 2) First Language English. The study culminates in the examinations of the IGCSE papers set by the Cambridge International Examinat
Mathematics for Cambridge IGCSE Complete Science for Cambridge IGCSE Complete Business Studies for Cambridge IGCSE & O Level Trusted by teachers and students around the world, our popular Core and Extended Mathematics books have been fully updated for the latest Cambridge IGCSE syllabus
