MINISTRY OF EDUCATION AND HUMAN RESOURCE DEVELOPMENT

SISC - BUSINESS

Marking Schedule 2015

National Examination and Assessment Division (NEAD)

Curriculum Bldg, Panatina Campus
P.O. Box G28
Honiara
 SECTION A: MULTIPLE CHOICE (30 MARKS)

1. D 11. B 21. FM

2. D 12. B 22. FM

3. B 13. FM 23. FM

4. D 14. FM 24. FM

5. A 15. FM 25. B

6. A 16. D 26. A

7. FM 17. FM 27. C

8. FM 18. D 28. A

9. D 19. D 29. FM

10. A 20. FM 30. FM

SECTION B: SHORT ANSWERS (35 MARKS)

31. 1. high production

2. quality production 2 marks
3. high income
4. employment opportunities
5. improved standards of living

(any two is correct)

32. Mixed Economy – combines the quality of market and command system into
one. Neither the government nor business entities can maintain or control the 2 marks
economy alone. (for any
correct
explanation)

33. Economy System - The way countries make decisions about production - what to
produce, how to produce and for whom produce? The answers are often decided FM
considering cost of producing something. 2 marks

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34. Sole trader – the business is operating on their own. The sole owner control, 3 marks
manage and own the business. The owner usually has no formal or legal (Sole Trader-
processes to set up the business. The owner is personally entitle to all the profit, 1.5m)
but personally liable for all business taxes and debts.
Public limited company – The type of business that offers and/or sells shares to (Public Ltd Com.
1.5m)
the general public and has limited liability.

35. Joint venture companies – An association of two or more individuals or

companies engaged in a solitary business enterprise for profit without actual 2 marks
partnership or incorporated or companies which are run jointly by locals and
foreigners.
36 i. Equilibrium price - $15 & Equilibrium quantity - 10 kg 2 marks

ii. There is an excess supply at the price level of $27.00. Supply is greater than 2 marks
demand.

iii. Total cost - $15 x 10 = $150 2 marks

37.  Respectably dressed and appear tidy and neat
 Talk clearly and answer questions well
4 marks
 Show to the panel that one is interested in the job and the organization
 Show the panel what one can do to do the well

38. i. market - A place or situation where buyers and sellers interact or meet and 1 mark
where exchange has taken place.

ii. Labour intensive – is were more labour or man power being used than
equipment/tools/technology in the production process. 1 mark

iii. Economic growth - refers to a positive rise of growth indicators such as GDP,
GDP per capita, Average life span etc. 1 mark

iv. Productivity - is the output per unit of input per unit of time. 1 mark

v. Planned economic system - Economic decisions were based on central

planning. Under the planned economic system, the government makes all the
decisions to answer the four basic economic questions in allocating the scarce 1 mark
resources and the government controls all economic activities

vi. Unlimited liability – refers to the legal obligation that generally the sole trader
or partners are liable for all business debts if the business can’t pay its liabilities. 1 mark

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39. TRUE OR FALSE 8 Marks

i. F
ii. F (1 mark
iii. FM each)
iv. F
v. F
vi. T
vii. F
viii. F

SECTION C: LONG ANSWERS (55 MARKS)

40.
Journal Entries (√ = 1 mark)
i
Cash receipt Journal Cash payment journal
Date Particulars rpt # Bank Date Particulars Chq # Bank
Jul 10 Sales 24 1000 Jul 3 Purchases 201 1500 √
√

Sales Journal Purchases Journal

Date Accounts Inv Amount Date Accounts Inv # Amount 7 marks
Receivable # $ Payable $
Jul 1 XJohn 202 2,000 √ Jul 6 XXX Ltd 501 4050 √
11 Tim 100 3,000 √

5,000 4,050

Date Particulars Dr Cr
Jul 18 Office Furniture 5000
Universal Trader √ 5000
√

Ledger A/c (√ = ½ mark)

Sales a/c
40 July 1 XJohn 2000√
Cash at Bank a/c
ii 31Jul Rec 1000 √ 31Jul Pay 1500 √
10 Cash 1000√
11 Tim 3000√
Bal 500 6000√
1500 1500
B/d 500 √

3
 Purchase a/c XJohn a/c
3 Cash 1500√ 1 Jul Sales 2000√
6 Jul XXX Ltd 4050√
8 marks
5550√

Tim a/c
XXX Ltd a/c
11 Jul Sales 3000√

6 Jul Purch 4050√

Office Furniture a/c Universal Traders a/c

18 Jul U/Trader 5000 √
18 Jul O/Furnture 2000√

4
40 Joe Trading Trial Balance as at 31 July 2014 (√ = ½ mark)
iii.
Purchases 5550√ Cash at Bank 500√ 10/2
XJohn 2000√ Sales 6000√
Tim 3000√ XXX Ltd 4050√
O/Furniture 5000√ Universal Traders 5000√ 5 marks
15550√ 15550√

41 Bank Reconciliation

i
Cash at Bank A/c
Balance b/d 2000√ CPJ 2980√
CRJ 2990√
4 marks
Bal 2010
4990
4990
B/d 2010√

M. Singe
41 Bank Reconciliation

ii. Balance as per Bank Statement 1970

FM
Add Deposit not yet credit 390
2360 6 marks

Less Unpresented Cheques 103 100

105 250
350

Debt balance as per bank account 2010

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 SSS Trading
42 Revenue Statement for the year ended 30th June 2014 (√ = ½ mark)

i
Sales…………………………………185,000√
Less sales Returns……………………10,500√ 174,500√ 25/2

LESS COST OF GOODS SOLD

Opening Stock……………………….23,000√
Purchases……………....85,000√
Less purchase Returns…..5,450√……..79,550√ 13
Cartage inward………………………..5,000√ marks

Goods available for sale……………107,550√

Less closing Stock………………….....8,000√……………. 99,550√

GROSS PROFIT………………………………………………… 74,950√

Add revenue
Commission revenue……………………………………………… 500√
75,450√

LESS ANY OTHER OPERATING EXPENSE

Selling and distribution
Advertisement……………………………2,000√
Cartage outward…………………………1,300 √ 1,300√

General admin expenses

Electricity…………………………………6,000√
Rent……………………………………… 3,500√
Depreciation………………………………9,000√
Wages… ………………………………… 7,500√
Communication………………………… 5,500 √ 31,500√
………………………………………………………………………….34,800√

NET PROFIT……………………………...…………………………$40,650√

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 SSS Trading
Balance Sheet as at 30th June 2014 (√ = ½ mark)

Proprietorship
Capital………………………………………………………….54,400√
Add Net Profit……………………………….40,650√ 23/2
Less Drawing…………………………………4,200√ 36,450√
…………………………………………………………………90,850 √

This is presented by:

Current Assets
Cash at Bank…………………………..……20,000√
Debtors……………………………………...10,650√
Closing Stock……………………………..….8,000√ 12
Prepaid rent……………………………..……2,500√ marks
Accrued commission revenue……………..…...500√
……………………………………….......................…. 41,650√

Less Current Liabilities

Creditors………………………………………9,500√
Accrued wages………………………………….300√
………………………………………………………....….. 9,800 √

Working Capital …………………………………………… 31,850√

Fixed Assets
Land………………………………………….38,000√
Vehicle………………………..…45,000√
Less provision for depreciation. …9,000√
……………………………………………….36,000√ 74,000√

105,850√

Less Long term Liabilities

Mortgage on building…………………………………………15,000√
…………………………………………………………………90,850√