Principles of Accounting
UNIVERSITY OF LONDON
279 0025 ZA
996 D025 ZA
BSc degrees and Diplomas for Graduates in Economics, Management, Finance and the Social Sciences, the Diploma in Economics and Access Route for Students in the
External Programme
Principles of Accounting
Wednesday, 5 May 2010 : 10.00am to 1.15pm
Candidates should answer FOUR of the following SEVEN questions: QUESTION 1 of
Section A, QUESTION 2 of Section B, ONE question from Section C and ONE further question from either Section B or C. All questions carry equal marks.
Workings should be submitted for all questions requiring calculations. Any necessary assumptions introduced in answering a question are to be stated.
Extracts from compound interest tables are given after the final question on this paper.
8-column accounting paper is provided at the end of this question paper. If used, it must be detached and fastened securely inside the answer book.
A calculator may be used when answering questions on this paper and it must comply in all respects with the specification given with your Admission Notice. The make and type of machine must be clearly stated on the front cover of the answer book.
© University of London 2010
UL10/0013
D01
PLEASE TURN OVER
Page 1 of 13
SECTION A
Answer question 1 from this section.
1.
(a)
Accounting standards are prepared by regulators in order to assist both preparers and users of financial statements.
REQUIRED: Explain the advantages and disadvantages of compulsory accounting standards. (6 marks)
(b)
Calando plc operates a perpetual inventory system. The following transactions relate to one line of goods for resale during the period from 1st January to 31st March 2010.
Units
1,000
5.00
3,750
2,500
1,500
6.30
6.50
13.00
4,500
2,600
Opening stock
1st January
Purchases
10th January
25th January
15th March
Sales
5th February
31st March
Price per unit
20.00
21.00
REQUIRED:
i.
Calculate the
279 0025 ZA
996 D025 ZA
BSc degrees and Diplomas for Graduates in Economics, Management, Finance and the Social Sciences, the Diploma in Economics and Access Route for Students in the
External Programme
Principles of Accounting
Wednesday, 5 May 2010 : 10.00am to 1.15pm
Candidates should answer FOUR of the following SEVEN questions: QUESTION 1 of
Section A, QUESTION 2 of Section B, ONE question from Section C and ONE further question from either Section B or C. All questions carry equal marks.
Workings should be submitted for all questions requiring calculations. Any necessary assumptions introduced in answering a question are to be stated.
Extracts from compound interest tables are given after the final question on this paper.
8-column accounting paper is provided at the end of this question paper. If used, it must be detached and fastened securely inside the answer book.
A calculator may be used when answering questions on this paper and it must comply in all respects with the specification given with your Admission Notice. The make and type of machine must be clearly stated on the front cover of the answer book.
© University of London 2010
UL10/0013
D01
PLEASE TURN OVER
Page 1 of 13
SECTION A
Answer question 1 from this section.
1.
(a)
Accounting standards are prepared by regulators in order to assist both preparers and users of financial statements.
REQUIRED: Explain the advantages and disadvantages of compulsory accounting standards. (6 marks)
(b)
Calando plc operates a perpetual inventory system. The following transactions relate to one line of goods for resale during the period from 1st January to 31st March 2010.
Units
1,000
5.00
3,750
2,500
1,500
6.30
6.50
13.00
4,500
2,600
Opening stock
1st January
Purchases
10th January
25th January
15th March
Sales
5th February
31st March
Price per unit
20.00
21.00
REQUIRED:
i.
Calculate the