The Accounting system

Worked examples (10)

• 1Double entry for capital introduced (2 marks)
• 2Double entry for a credit purchase (2 marks)
• 3Classify accounts as debit or credit balances (5 marks)
• 4Post a series of transactions to the bank account (5 marks)
• 5Identify both effects of transactions (6 marks)
• 6Explain the effect of a one-sided entry (5 marks)
• 7Owner takes goods for personal use (4 marks)
• 8Contra (set-off) between the ledgers (5 marks)
• 9Record a dishonoured cheque (5 marks)
• 10Post a full set of transactions and extract balances (8 marks)

Model answers (10)

• ✓Model answer — 9706 Paper 2 style
• ✓Model answer — 9706 Paper 2 style
• ✓Model answer — 9706 Paper 2 style
• ✓Model answer — 9706 Paper 2 style
• ✓Model answer — 9706 Paper 2 style
• ✓Model answer — 9706 Paper 2 style
• ✓Model answer — 9706 Paper 2 style
• ✓Model answer — 9706 Paper 2 style
• ✓Model answer — 9706 Paper 2 style
• ✓Model answer — 9706 Paper 2 style

Worked examples (10)

• 1Find the missing figure (3 marks)
• 2Effect of a transaction on the equation (4 marks)
• 3Calculate profit from the change in capital (5 marks)
• 4Profit from movement in net assets (5 marks)
• 5Reconstruct the equation after several transactions (6 marks)
• 6Explain why the SOFP must balance (4 marks)
• 7Profit when drawings include goods (6 marks)
• 8Profit with capital introduced as an asset (5 marks)
• 9Identify a loss from the capital movement (4 marks)
• 10Track the equation through a series of transactions (8 marks)

Model answers (10)

• ✓Model answer — 9706 Paper 2 style
• ✓Model answer — 9706 Paper 2 style
• ✓Model answer — 9706 Paper 2 incomplete-records style
• ✓Model answer — 9706 Paper 2 style
• ✓Model answer — 9706 Paper 2 style
• ✓Model answer — 9706 Paper 2 incomplete-records style
• ✓Model answer — 9706 Paper 2 style
• ✓Model answer — 9706 Paper 2 incomplete-records style
• ✓Model answer — 9706 Paper 2 style
• ✓Model answer — 9706 Paper 2 incomplete-records style

Worked examples (10)

• 1Debit or credit balance? (5 marks)
• 2Prepare a trial balance (6 marks)
• 3Identify the type of error (4 marks)
• 4Does the error affect the trial balance? (5 marks)
• 5Explain a limitation of the trial balance (4 marks)
• 6Trial balance difference to suspense (5 marks)
• 7Effect of each error on the trial balance totals (5 marks)
• 8Prepare a suspense account that clears (8 marks)
• 9Recalculate profit after correcting errors (7 marks)
• 10Redraft a trial balance with misplaced items (6 marks)

Model answers (10)

• ✓Model answer — 9706 Paper 2 style
• ✓Model answer — 9706 Paper 2 style
• ✓Model answer — 9706 Paper 2 style
• ✓Model answer — 9706 Paper 2 style
• ✓Model answer — 9706 Paper 2 style
• ✓Model answer — 9706 Paper 2 style
• ✓Model answer — 9706 Paper 2 style
• ✓Model answer — 9706 Paper 2 style
• ✓Model answer — 9706 Paper 2 style
• ✓Model answer — 9706 Paper 2 style

Worked examples (10)

• 1Identify the correct ledger (3 marks)
• 2Prepare and balance a customer account (5 marks)
• 3Prepare and balance a supplier account (5 marks)
• 4Reconstruct receivables to find credit sales (6 marks)
• 5Reconstruct cash to find drawings (6 marks)
• 6Explain the benefit of dividing the ledger (4 marks)
• 7Prepare a full sales ledger control account (8 marks)
• 8Expense account with prepayment and accrual (6 marks)
• 9Reconstruct the capital account to find drawings (5 marks)
• 10Rent receivable (income) account (6 marks)

Model answers (10)

• ✓Model answer — 9706 Paper 2 style
• ✓Model answer — 9706 Paper 2 style
• ✓Model answer — 9706 Paper 2 style
• ✓Model answer — 9706 Paper 2 incomplete-records style
• ✓Model answer — 9706 Paper 2 incomplete-records style
• ✓Model answer — 9706 Paper 2 style
• ✓Model answer — 9706 Paper 2 style
• ✓Model answer — 9706 Paper 2/3 style
• ✓Model answer — 9706 Paper 2/3 style
• ✓Model answer — 9706 Paper 2 style

Worked examples (10)

• 1Identify the book of prime entry u0026 source document (4 marks)
• 2Prepare a sales journal and post to the ledger (5 marks)
• 3Three-column cash book extract (5 marks)
• 4General journal: non-current asset on credit (4 marks)
• 5Opening journal entry (6 marks)
• 6Explain the benefit of books of prime entry (4 marks)
• 7Sales journal with trade discount (5 marks)
• 8Complete a three-column cash book (8 marks)
• 9Journal entries for year-end adjustments (6 marks)
• 10Correct errors through the general journal (6 marks)

Model answers (10)

• ✓Model answer — 9706 Paper 2 style
• ✓Model answer — 9706 Paper 2 style
• ✓Model answer — 9706 Paper 2 style
• ✓Model answer — 9706 Paper 2 style
• ✓Model answer — 9706 Paper 2 style
• ✓Model answer — 9706 Paper 2 style
• ✓Model answer — 9706 Paper 2 style
• ✓Model answer — 9706 Paper 2 style
• ✓Model answer — 9706 Paper 2/3 style
• ✓Model answer — 9706 Paper 2 style

Worked examples (10)

• 1Identify the concept (4 marks)
• 2Apply the matching concept to an accrual (4 marks)
• 3Concept behind a treatment (5 marks)
• 4Inventory valuation and prudence (5 marks)
• 5Going concern and asset values (6 marks)
• 6Consistency and comparability (5 marks)
• 7Apply the materiality concept (4 marks)
• 8Apply several concepts to one scenario (6 marks)
• 9Revenue recognition — deposit in advance (5 marks)
• 10Resolving an apparent concept conflict (6 marks)

Model answers (10)

• ✓Model answer — 9706 Paper 2 style
• ✓Model answer — 9706 Paper 2 style
• ✓Model answer — 9706 Paper 2 style (mirrors 9706/22 Feb-Mar 2024 Q2(e))
• ✓Model answer — 9706 Paper 2 style
• ✓Model answer — 9706 Paper 3 style
• ✓Model answer — 9706 Paper 3 style
• ✓Model answer — 9706 Paper 2 style
• ✓Model answer — 9706 Paper 2 style
• ✓Model answer — 9706 Paper 3 style
• ✓Model answer — 9706 Paper 3 style

Worked examples (10)

• 1State advantages of a computerised system (4 marks)
• 2State disadvantages (4 marks)
• 3Ways to keep data secure (5 marks)
• 4Explain a security measure and its risk (4 marks)
• 5Advise whether to computerise (7 marks)
• 6Explain what does NOT change (4 marks)
• 7Fraud risk: both ways (4 marks)
• 8Effect on internal control (6 marks)
• 9Ensuring accuracy when transferring to a new system (6 marks)
• 10Cost-benefit of computerising (6 marks)

Model answers (10)

• ✓Model answer — 9706 Paper 2 style (mirrors 9706/22 Feb-Mar 2024 Q3(c))
• ✓Model answer — 9706 Paper 2 style
• ✓Model answer — 9706 Paper 2 style (mirrors 9706/22 Feb-Mar 2024 Q3(d))
• ✓Model answer — 9706 Paper 2 style
• ✓Model answer — 9706 Paper 2 evaluation style
• ✓Model answer — 9706 Paper 2 style
• ✓Model answer — 9706 Paper 2 style
• ✓Model answer — 9706 Paper 2 style (links to 3.4)
• ✓Model answer — 9706 Paper 2 style
• ✓Model answer — 9706 Paper 2 evaluation style