2024 Edexcel IGCSE Accounting 模擬試題連答案詳解

First, calculate the residual profit available for sharing after partnership adjustments: Profit for the year = $45,000. Deduct: Interest on Capital (X) of $3,000, Interest on Capital (Y) of $2,000, and Salary to X of $5,000. Residual profit = \(45,000 - 3,000 - 2,000 - 5,000 = 35,000\). Partner Y's share is \(2/5\) of the residual profit: \(35,000 \times 0.4 = 14,000\).

1 mark for the correct option (A). No partial marks.

Cost of sales = Opening inventory + Purchases - Closing inventory = \(6,000 + 32,000 - 8,000 = 30,000\). Since markup is 25% on cost: Gross profit = \(30,000 \times 25\% = 7,500\). Revenue = Cost of sales + Gross profit = \(30,000 + 7,500 = 37,500\).

1 mark for correct calculation of revenue (B).

An unequal trial balance occurs when a transaction is entered with a debit and credit of different values. In option C, the payment was credited as $250 and debited as $520, which results in a discrepancy of $270. All other options represent balanced double entries (errors of principle, omission, and original entry).

1 mark for identifying the error causing unequal totals (C).

The bank charge and direct debit must be subtracted from the cash book balance because they represent payments not yet recorded. Updated cash book balance = \(1,850 \text{ (Dr)} - 45 - 120 = 1,685 \text{ (Dr)}\).

1 mark for correct option (A).

The error is an error of principle. To correct it, we must remove the debit of $150 from the Motor Vehicles account by crediting it, and correctly debit the Motor Vehicle Repairs account with $150.

1 mark for identifying the correct correcting journal entry (B).

Closing trade receivables = Opening trade receivables + Credit sales - Cash received - Discounts allowed - Irrecoverable debts = \(12,400 + 48,600 - 43,200 - 1,100 - 800 = 15,900\).

1 mark for the correct calculation of closing balance (A).

Rent expense for the period = Cash paid + Opening prepayment + Closing accrual = \(14,400 + 1,200 + 800 = 16,400\).

1 mark for correct calculation of rent expense (D).

Capital expenditure includes costs that result in the acquisition of non-current assets or improve their earning capacity. The purchase price and painting of the business logo are both capital expenditure because they are necessary to bring the asset into its intended condition for use. Road tax and insurance are recurring operating costs and are revenue expenditure.

1 mark for identifying the correct items as capital expenditure (A).

Option D is correct. A payment of \( \$600 \) to K. Patel was recorded as a credit of \( \$600 \) in the bank account but debited as \( \$60 \) in K. Patel's account. This unequal entry (debit of \( \$60 \) and credit of \( \$600 \)) results in a difference of \( \$540 \) in the trial balance totals, which requires a suspense account to balance.

Options A, B and C represent errors that do not affect the agreement of the trial balance totals because equal debit and credit entries were still made: Option A is an error of principle, Option B is an error of omission, and Option C is an error of original entry.

Award 1 mark for identifying the correct option D.
Award 0 marks for any other option selected.

Option C is correct. The materiality concept states that insignificant items do not need to be treated in a strictly theoretical way (such as depreciating a minor asset over its useful life) if the cost and effort of doing so outweigh the benefits. Writing off a \( \$12 \) wastepaper bin directly to the profit or loss account is a practical application of materiality.

Option A refers to consistency (applying the same accounting policies from year to year). Option B refers to going concern (assuming the business will continue in operational existence for the foreseeable future). Option D refers to prudence (exercising caution when making accounting estimates).

Award 1 mark for identifying the correct option C.
Award 0 marks for any other option selected.

1. Bank charges deducted by the bank must be entered in the Cash Book because the business was not aware of them until the bank statement arrived. 2. Unpresented cheques are already in the Cash Book but not yet cleared by the bank, so they go into the Bank Reconciliation Statement. 3. Direct debit payments must be updated in the Cash Book upon receipt of the bank statement. 4. Outstanding lodgements (deposits in transit) have already been debited in the Cash Book but not yet processed by the bank, so they are placed in the Bank Reconciliation Statement. 5. A dishonoured cheque must be reversed out of the Cash Book by crediting the bank account to correct the balance.

Award 1 mark for each correct classification. (1 mark x 5 = 5 marks). Total: 5 marks.

Capital expenditure includes costs that result in the acquisition or improvement of non-current assets. This covers the purchase price (1), carriage inwards (2) because it is a direct cost of bringing the asset to its working location, and installation/testing costs (4) because they are necessary to bring the asset into its working condition. Revenue expenditure includes day-to-day running costs, such as annual insurance (3) and routine maintenance spare parts (5) which maintain rather than improve the asset.

Award 1 mark for each correct classification. (1 mark x 5 = 5 marks). Total: 5 marks.

1. Going concern assumes the business will continue in operational existence for the foreseeable future, justifying the valuation of assets at cost less depreciation rather than liquidation value. 2. Accruals (matching) concept dictates that revenues and expenses are matched to the period they relate to, meaning prepaid amounts are carried forward as assets. 3. Consistency ensures that the same accounting policies and methods are applied from one period to the next to allow comparison. 4. Business entity concept states that a business is treated as being completely separate from its owner. 5. Prudence ensures that profits and assets are not overstated, and liabilities and losses are not understated, by valuing inventory at the lower of cost and net realisable value.

Award 1 mark for each correct accounting concept identified. (1 mark x 5 = 5 marks). Total: 5 marks.

**(a) Rohan - Cash Book (Bank columns only) for the month of April 2023**

$$
\begin{array}{lr|lr}
\hline
\textbf{Debit} & \boldsymbol{\$} & \textbf{Credit} & \boldsymbol{\$}\\
\hline
\text{Balance b/d} & 3,450 & \text{Bank charges} & 85 \\
\text{J. Smith (Credit transfer)} & 300 & \text{Electricity (Direct debit)} & 150 \\
& & \text{G. Patel (Dishonoured cheque)} & 180 \\
& & \text{Balance c/d} & 3,335 \\
\hline
& \mathbf{3,750} & & \mathbf{3,750} \\
\hline
\text{Balance b/d} & 3,335 & &
\end{array}
$$

**(b) Rohan - Bank Reconciliation Statement at 30 April 2023**

$$
\begin{array}{lrr}
\hline
& \boldsymbol{\$} & \boldsymbol{\$}\\
\hline
\text{Updated cash book balance} & & 3,335 \\
\text{Add: Unpresented cheques (Patel)} & & 420 \\
\hline
& & 3,755 \\
\text{Less: Outstanding lodgements (Deposits)} & & (980) \\
\hline
\textbf{Balance as per Bank Statement} & & \mathbf{2,775} \\
\hline
\end{array}
$$

*(Alternatively, starting with Balance as per Bank statement:)*
$$
\begin{array}{lrr}
\hline
\text{Balance as per Bank Statement} & & 2,775 \\
\text{Add: Outstanding lodgements (Deposits)} & & 980 \\
\hline
& & 3,755 \\
\text{Less: Unpresented cheques (Patel)} & & (420) \\
\hline
\textbf{Updated cash book balance} & & \mathbf{3,335} \\
\hline
\end{array}
$$

**(a) Cash Book (Bank Columns): 8 Marks**
- Opening Balance $3,450 on Debit: (1) mark
- J. Smith $300 on Debit: (1) mark
- Bank charges $85 on Credit: (1) mark
- Electricity $150 on Credit: (1) mark
- Dishonoured cheque (G. Patel) $180 on Credit: (1) mark
- Correct balancing process: (1) mark
- Balance c/d $3,335 on Credit: (1) mark
- Balance b/d $3,335 on Debit: (1) mark

**(b) Bank Reconciliation Statement: 7 Marks**
- Heading with name and correct date: (1) mark
- Correct updated cash book balance of $3,335: (1) mark (of) if based on (a)
- Add Unpresented cheques of $420: (2) marks (1 for title, 1 for value)
- Less Outstanding lodgements of $980: (2) marks (1 for title, 1 for value)
- Final correct balance as per bank statement of $2,775: (1) mark

**(a) Miriam - Sales Ledger Control Account for the month of May 2023**

$$
\begin{array}{lr|lr}
\hline
\textbf{Debit} & \boldsymbol{\$} & \textbf{Credit} & \boldsymbol{\$}\\
\hline
\text{1 May Balance b/d} & 14,200 & \text{1 May Balance b/d} & 350 \\
\text{31 May Sales (credit)} & 38,500 & \text{31 May Bank (receipts)} & 35,100 \\
\text{31 May Interest charged} & 80 & \text{31 May Sales returns} & 1,250 \\
\text{31 May Balance c/d (credit)} & 180 & \text{31 May Discount allowed} & 650 \\
& & \text{31 May Irrecoverable debts} & 400 \\
& & \text{31 May Contra / Set-off} & 800 \\
& & \text{31 May Balance c/d (debit)} & 14,410 \\
\hline
& \mathbf{52,960} & & \mathbf{52,960} \\
\hline
\text{1 Jun Balance b/d} & 14,410 & \text{1 Jun Balance b/d} & 180 \\
\end{array}
$$

*(Note: Cash sales of $4,200 are not recorded in the Sales Ledger Control Account as they do not affect credit customers.)*

**(b) Three reasons why Miriam prepares control accounts:**
1. It helps in checking the arithmetical accuracy of the ledgers.
2. It assists in detecting and preventing fraud or errors in the individual customer accounts.
3. It provides a quick total figure for trade receivables for use in preparing the trial balance and financial statements.

**(a) Sales Ledger Control Account: 12 Marks**
- Opening balances: Debit $14,200 (1) mark, Credit $350 (1) mark
- Credit sales $38,500 on Debit: (1) mark
- Interest charged $80 on Debit: (1) mark
- Balance c/d (credit balance) $180 on Debit: (1) mark
- Bank receipts $35,100 on Credit: (1) mark
- Sales returns $1,250 on Credit: (1) mark
- Discount allowed $650 on Credit: (1) mark
- Irrecoverable debts $400 on Credit: (1) mark
- Contra / Set-off $800 on Credit: (1) mark
- Correct balancing of account with totals $52,960: (1) mark
- Closing balances carried/brought down correctly (Debit $14,410 & Credit $180): (2) marks (or of based on calculation)
*(Note: Deduced 1 mark if cash sales were included.)*

**(b) Reasons for preparing control accounts: 3 Marks**
- Max 3 marks (1 mark for each valid reason stated, e.g., error detection, fraud prevention, fast preparation of final accounts, independent check).

**(a) Leo - Electricity Account for the year ended 31 December 2023**

$$
\begin{array}{lr|lr}
\hline
\textbf{Debit} & \boldsymbol{\$} & \textbf{Credit} & \boldsymbol{\$}\\
\hline
\text{2023} & & \text{2023} & \\
\text{31 Dec Bank} & 1,450 & \text{1 Jan Balance b/d (accrued)} & 180 \\
\text{31 Dec Balance c/d (accrued)} & 220 & \text{31 Dec Income Statement} & 1,490 \\
\hline
& \mathbf{1,670} & & \mathbf{1,670} \\
\hline
& & \text{1 Jan 2024 Balance b/d} & 220 \\
\end{array}
$$

**(b) Leo - Rent Receivable Account for the year ended 31 December 2023**

$$
\begin{array}{lr|lr}
\hline
\textbf{Debit} & \boldsymbol{\$} & \textbf{Credit} & \boldsymbol{\$}\\
\hline
\text{2023} & & \text{2023} & \\
\text{31 Dec Income Statement} & 5,400 & \text{1 Jan Balance b/d (prepaid)} & 400 \\
\text{31 Dec Balance c/d (prepaid)} & 600 & \text{31 Dec Bank} & 5,600 \\
\hline
& \mathbf{6,000} & & \mathbf{6,000} \\
\hline
\text{1 Jan 2024 Balance b/d} & 600 & & \\
\end{array}
$$

**(c) Accounting Concept:**
- **Accruals (or Matching) concept** (1 mark).
- **Explanation:** Revenue and expenses are recognized in the period they are earned or incurred, regardless of when cash is received or paid (1 mark).

**(a) Electricity Account: 7 Marks**
- Opening Balance $180 on Credit: (1) mark
- Bank payment $1,450 on Debit: (1) mark
- Closing balance c/d $220 on Debit: (1) mark
- Correct totals of $1,670: (1) mark
- Income Statement transfer $1,490 on Credit: (2) marks (1 for title, 1 for value)
- Balance b/d $220 on Credit for 2024: (1) mark

**(b) Rent Receivable Account: 6 Marks**
- Opening Balance $400 on Credit: (1) mark
- Bank receipt $5,600 on Credit: (1) mark
- Closing balance c/d $600 on Debit: (1) mark
- Income statement transfer $5,400 on Debit: (2) marks (1 for title, 1 for value)
- Balance b/d $600 on Credit for 2024: (1) mark

**(c) Accounting Concept: 2 Marks**
- Identify Accruals / Matching concept: (1) mark
- Explain matching revenues with expenses in the relevant period: (1) mark

**(a) Tanya - General Journal Entries**

$$
\begin{array}{r|l|c|c}
\hline
\textbf{No.} & \textbf{Details} & \textbf{Debit (\$)} & \textbf{Credit (\$)} \\
\hline
1 & \text{V. Malik} & 90 & \\
& \quad \text{Suspense} & & 90 \\
\hline
2 & \text{Repairs} & 120 & \\
& \quad \text{Suspense} & & 120 \\
\hline
3 & \text{Rent Payable} & 350 & \\
& \quad \text{Rent Receivable} & & 350 \\
\hline
4 & \text{Discount Allowed} & 160 & \\
& \quad \text{Suspense} & & 160 \\
\hline
5 & \text{Purchases} & 100 & \\
& \quad \text{Suspense} & & 100 \\
\hline
\end{array}
$$

**(b) Tanya - Suspense Account**

$$
\begin{array}{lr|lr}
\hline
\textbf{Debit} & \boldsymbol{\$} & \textbf{Credit} & \boldsymbol{\$}\\
\hline
\text{Balance b/f (Difference on TB)} & 470 & \text{V. Malik} & 90 \\
& & \text{Repairs} & 120 \\
& & \text{Discount Allowed} & 160 \\
& & \text{Purchases} & 100 \\
\hline
& \mathbf{470} & & \mathbf{470} \\
\hline
\end{array}
$$

**(a) General Journal Entries: 10 Marks**
- Entry 1: Dr V. Malik $90, Cr Suspense $90 (2 marks)
- Entry 2: Dr Repairs $120, Cr Suspense $120 (2 marks)
- Entry 3: Dr Rent Payable $350, Cr Rent Receivable $350 (2 marks)
- Entry 4: Dr Discount Allowed $160, Cr Suspense $160 (2 marks)
- Entry 5: Dr Purchases $100, Cr Suspense $100 (2 marks)
*(Award 1 mark per correct account and 1 mark per correct direction/value for each journal entry)*

**(b) Suspense Account: 5 Marks**
- Opening balance (Difference on Trial Balance) $470 on Debit side: (1) mark
- Entry for V. Malik $90 on Credit side: (1) mark
- Entry for Repairs $120 on Credit side: (1) mark
- Entry for Discount Allowed $160 on Credit side: (1) mark
- Entry for Purchases $100 on Credit side: (1) mark
*(All entries must be correctly cross-referenced. Account must balance to nil without any carried down amount)*

**(a) Hina - Motor Vehicles Account**

$$
\begin{array}{lr|lr}
\hline
\textbf{Debit} & \boldsymbol{\$} & \textbf{Credit} & \boldsymbol{\$}\\
\hline
\text{2023} & & \text{2023} & \\
\text{1 Jan Balance b/d} & 48,000 & \text{1 Oct Disposal Account} & 10,000 \\
\text{1 Apr Bank (Purchase)} & 15,000 & \text{31 Dec Balance c/d} & 53,000 \\
\hline
& \mathbf{63,000} & & \mathbf{63,000} \\
\hline
\text{2024} & & & \\
\text{1 Jan Balance b/d} & 53,000 & & \\
\end{array}
$$

**(b) Hina - Provision for Depreciation on Motor Vehicles Account**

*Working for Depreciation of Disposed Vehicle (Cost $10,000):*
- Year 2020: \(20\% \times \$10,000 = \$2,000\)
- Year 2021: \(20\% \times (\$10,000 - \$2,000) = \$1,600\)
- Year 2022: \(20\% \times (\$10,000 - \$3,600) = \$1,280\)
- Year 2023: None (Year of disposal)
- Total Accumulated Depreciation to date of sale = \(\$2,000 + \$1,600 + \$1,280 = \$4,880\)

*Working for Depreciation Charge for 2023 (Remaining Vehicles):*
- Remaining Original Vehicles Cost = \(\$48,000 - \$10,000 = \$38,000\)
- Remaining Original Vehicles Acc. Dep on 1 Jan 2023 = \(\$18,000 - \$4,880 = \$13,120\)
- Remaining Net Book Value = \(\$38,000 - \$13,120 = \$24,880\)
- Depreciation on Remaining Original Vehicles = \(20\% \times \$24,880 = \$4,976\)
- Depreciation on New Vehicle = \(20\% \times \$15,000 = \$3,000\)
- Total Depreciation Charge for 2023 = \(\$4,976 + \$3,000 = \$7,976\)

$$
\begin{array}{lr|lr}
\hline
\textbf{Debit} & \boldsymbol{\$} & \textbf{Credit} & \boldsymbol{\$}\\
\hline
\text{2023} & & \text{2023} & \\
\text{1 Oct Disposal Account} & 4,880 & \text{1 Jan Balance b/d} & 18,000 \\
\text{31 Dec Balance c/d} & 21,096 & \text{31 Dec Income Statement (depn)} & 7,976 \\
\hline
& \mathbf{25,976} & & \mathbf{25,976} \\
\hline
& & \text{2024} & \\
& & \text{1 Jan Balance b/d} & 21,096 \\
\end{array}
$$

**(c) Hina - Motor Vehicles Disposal Account**

$$
\begin{array}{lr|lr}
\hline
\textbf{Debit} & \boldsymbol{\$} & \textbf{Credit} & \boldsymbol{\$}\\
\hline
\text{2023} & & \text{2023} & \\
\text{1 Oct Motor Vehicles (Cost)} & 10,000 & \text{1 Oct Prov for Depn Account} & 4,880 \\
& & \text{1 Oct Cash (Proceeds)} & 3,200 \\
& & \text{31 Dec Income Statement (Loss)} & 1,920 \\
\hline
& \mathbf{10,000} & & \mathbf{10,000} \\
\hline
\end{array}
$$

**(a) Motor Vehicles Account: 3 Marks**
- Opening Balance $48,000 on Debit: (1) mark
- Bank purchase $15,000 on Debit & Disposal transfer $10,000 on Credit: (1) mark
- Correct balance c/d & b/d of $53,000: (1) mark

**(b) Provision for Depreciation Account: 6 Marks**
- Opening Balance $18,000 on Credit: (1) mark
- Debit entry to Disposal Account $4,880: (1) mark (from calculation)
- Correct calculation of remaining depreciation expense ($4,976 + $3,000 = $7,976): (2) marks (1 for method, 1 for accuracy)
- Credit entry for Income Statement $7,976: (1) mark
- Closing balance c/d & b/d of $21,096: (1) mark

**(c) Disposal Account: 6 Marks**
- Debit entry of cost $10,000: (1) mark
- Credit entry of accumulated depreciation $4,880: (1) mark (of)
- Credit entry of cash proceeds $3,200: (1) mark
- Balancing figure calculation (Loss on disposal of $1,920): (2) marks (1 for method, 1 for accuracy)
- Transfer to Income statement on Credit side: (1) mark

Part (a) Corrected profit for the year ended 31 March 2023: Profit before adjustments: $32 000. Less: Interest on loan from Amina ($15 000 * 6% * 6/12) = ($450). Less: Depreciation on equipment = ($3 000). Corrected Profit = $28 550. Part (b) Partnership Appropriation Account for the year ended 31 March 2023: Corrected Profit: $28 550. Add: Interest on drawings: Amina $400 + Ben $300 = $700. Total Profit: $29 250. Less: Interest on Capital: Amina (5% of $60 000) = $3 000; Ben (5% of $40 000) = $2 000. Total Interest on Capital: ($5 000). Less: Salary to Ben: ($8 000). Profit available for distribution: $16 250. Share of profit: Amina (3/5) = $9 750; Ben (2/5) = $6 500. Part (c) Current Accounts: Amina Current Account: Debit side: Drawings $12 000, Interest on Drawings $400, Balance c/d $5 000. Credit side: Balance b/d $4 200, Loan Interest $450, Interest on Capital $3 000, Share of Profit $9 750. Total both sides: $17 400. Ben Current Account: Debit side: Balance b/d $1 500, Drawings $10 000, Interest on Drawings $300, Balance c/d $4 700. Credit side: Interest on Capital $2 000, Salary $8 000, Share of Profit $6 500. Total both sides: $16 500. Part (d) Evaluation: Admitting Chloe will inject $30 000 capital, which can fund business expansion. Chloe may bring new skills and reduce the workload of Amina and Ben. However, their share of profit will be diluted (from 60% and 40% to a shared portion of the remaining 80%). The current partners will also lose full control over decision-making.

Part (a): 4 Marks total. 1 mark for identifying loan interest calculation ($450), 1 mark for subtracting loan interest, 1 mark for subtracting depreciation ($3 000), 1 mark for correct final profit ($28 550). Part (b): 8 Marks total. 1 mark for profit figure, 1 mark for interest on drawings (both correct), 1 mark for total profit ($29 250), 2 marks for interest on capital (1 each), 1 mark for Ben's salary, 2 marks for share of profits (1 each). Part (c): 8 Marks total. Amina: 1 mark for opening balance + loan interest, 1 mark for interest on capital + share of profit, 1 mark for drawings + interest, 1 mark for correct balance c/d ($5 000 Cr). Ben: 1 mark for opening balance (Dr), 1 mark for interest on capital + salary + share of profit, 1 mark for drawings + interest, 1 mark for correct balance c/d ($4 700 Cr). Part (d): 5 Marks total. Maximum 2 marks for benefits (e.g. capital injection, skills), maximum 2 marks for drawbacks (e.g. profit dilution, loss of control), 1 mark for a justified conclusion.

Part (a) Control Accounts: Credit Sales: Opening Trade Receivables ($4 500) + Credit Sales = Receipts ($34 000) + Closing Trade Receivables ($5 100). Credit Sales = $34 000 + $5 100 - $4 500 = $34 600. Credit Purchases: Opening Trade Payables ($3 100) + Credit Purchases = Payments ($22 500) + Closing Trade Payables ($2 800). Credit Purchases = $22 500 + $2 800 - $3 100 = $22 200. Part (b) Income Statement: Revenue: Cash Sales ($12 000) + Credit Sales ($34 600) = $46 600. Cost of Sales: Opening Inventory $6 200 + Purchases $22 200 - Closing Inventory $7 400 = $21 000. Gross Profit = $46 600 - $21 000 = $25 600. Expenses: Rent ($2 800 paid - $400 opening accrual) = $2 400. Insurance ($1 500 paid - $300 closing prepayment) = $1 200. Depreciation on Equipment (10% of $20 000) = $2 000. Total Expenses = $5 600. Profit for the Year = $25 600 - $5 600 = $20 000. Part (c) Statement of Financial Position: Non-Current Assets: Equipment (Cost $20 000 - Acc. Dep. $6 000) = $14 000. Current Assets: Inventory $7 400, Trade Receivables $5 100, Prepaid Insurance $300, Bank Balance ($2 400 + $12 000 + $34 000 - $22 500 - $2 800 - $1 500 - $8 000) = $13 600. Total Current Assets = $26 400. Total Assets = $40 400. Equity and Liabilities: Opening Capital ($16 000 equipment + $6 200 inventory + $4 500 receivables + $2 400 bank - $3 100 payables - $400 accrual) = $25 600. Add Profit: $20 000. Less Drawings: ($8 000). Closing Capital = $37 600. Current Liabilities: Trade Payables = $2 800. Total Capital and Liabilities = $40 400. Part (d) Evaluation: Transitioning to double-entry will ensure accuracy, create trial balances to check for arithmetic errors, and reduce the risk of fraud. It provides detailed records for external parties like banks and tax authorities. However, it will require more time, effort, and possibly the expense of hiring an accountant or purchasing software. Overall, it is highly recommended as the business grows.

Part (a): 6 Marks total. 3 marks for credit sales calculation (1 mark for opening balance, 1 mark for closing/receipts, 1 mark for correct total of $34 600). 3 marks for credit purchases calculation (1 mark for opening balance, 1 mark for closing/payments, 1 mark for correct total of $22 200). Part (b): 10 Marks total. Revenue: 2 marks (1 for cash/credit separation, 1 for total of $46 600). Cost of Sales: 2 marks (1 for formula, 1 for final COS of $21 000). Gross Profit: 1 mark ($25 600). Expenses: 3 marks (1 mark for rent $2 400, 1 mark for insurance $1 200, 1 mark for depreciation $2 000). Profit for the year: 2 marks (1 for correct subtraction of total expenses, 1 for correct net profit of $20 000). Part (c): 5 Marks total. 1 mark for Non-Current Assets net book value ($14 000). 1 mark for Bank Balance calculation ($13 600). 1 mark for total current assets ($26 400). 1 mark for Opening Capital calculation ($25 600) and Closing Capital ($37 600). 1 mark for matching Statement of Financial Position total of $40 400. Part (d): 4 Marks total. 1 mark for benefits (e.g. error detection, reliable statements), 1 mark for drawbacks (e.g. cost, bookkeeping skills needed), 1-2 marks for a reasoned conclusion based on the business's situation.