3
, Contents
Preface Iv
Pa rt 1 Business Accounting 1 1
Students And Examination Success 3
ANSWERS 6
Pa rt 2 Business Accounting 2 93
ANSWERS 95
Preface
This Solutions Manual Contains ANSWERS To All The Questions Not Already Answered In Business Accounting 1 And
Business Accounting 2. It Can Be Seen That There Are A Considerable Number Of Questions In Both Text- Books.
About One-Half Of These Have The ANSWERS At The Back Of The Relevant Textbook, While The Remainder Of The
ANSWERS Are Contained In This M anual.
The Result Of This Is To Give A High Degree Of Flexibility In The Use Of The Textbooks. To Illustrate The Contents Of
Each Chapter, The Questions Can Be Used Which Have ANSWERS In The Textbook. Any Students Who Are Absent Can
Be Told What They Have Missed And Can Look Up The ANSWERS Themselves. Students Who Arrive Late On The Course
Can Also Be Told What Work To Do And They Can Check Their Own Progress Against The ANSWERS As Given.
However, Quite Obviously Work Must Be Set, Either In Class Or For Homework, For Which ANSWERS Are Not
Available To Students. This Manual Can Therefore Be Used To Check Such Work.
Whilst Every Endeavour Has Been Made To Show Workings Quite Fully, It Must Be Appreciated That There Are Often
Different Ways Of Getting To The Same Answer. This Manual Would Be Unduly Lengthy And Complicated If Every
Version Of Arriving At The Answer Were To Be Shown. The Methods Chosen Are Therefore Those Judged To Be The
Best From A Teaching Point Of View.
Frank Wood And Alan Sangster
4
, PART 1 BUSINESS ACCOUNTING 1
Students And Examination Success
Experienced Teachers And Lecturers Know Just As Much As We Do About This Topic. There Will, However, Be Quite A
Lot Of People Reading This Who Are New To Teaching, And Who Have Little Experience In Understand- Ing How The
Examiner Views Things. If We Have Anything To Offer, It Is Simply That We Have, Between Us, Been Concerned With
Accounting Education For Many Years And Have Been Examiners For Several External Examining Bodies.
The Notes For Students At The Start Of Both Business Accounting 1 And Business Accounting 2 Deal With
Examination Techniques. Make Certain The Students Read These. Go Through These With Them. If We All Tell
Students That What These Say Is True, Then They Are More Likely To Believe Us.
H ow Students Lose Marks
1 Lack Of Knowledge (Obviously) But They Throw Away Marks Unnecessarily For All Of The Following Reasons:
(a) Untidy Work, Including Columns Of Figures Not Lined Up.
(b) Bad Handwriting. Do Not M ake It Difficult For The Examiner To Read And Mark.
(c) Lack Of Headings, Dates, Sub-Totals, Etc. In Accounting Statements.
(d) Not Submitting Proper Workings.
Y ou Can Only Get Them To Rectify Everything Under This Heading By Insisting On Them Correcting (A), (B),
( C) And (D) From Early On In The Course. Do Not Wait Until A Few Weeks Before The Examinat ion To Insist Upon
Properly Laid Out And Neatly Constructed Work.
2 Students Very Often Do Not Follow The Rubric On The Examination Paper. If It Asks For Two Questions Only From
Section A, Then It Means Just That. A Remarkably High Percentage Do Not Follow T he Instructions Per The Rubric.
3 Students Fail To Answer The Questions As Set. If, For Example, An Examiner Wants A List, Students Will Lose
Marks By Giving Explanations Instead. Students Must Tackle The Question In The Prescribed Way And Not Do It
Differently. The Percentage Of Students Passing Examinations Would Rise Dramatically If Only We Could Correct
This Failing. A Good Plan Is To Get Them To Highlight The Instruction That Shows How The Examiner Wants The
Question To Be Answered, E.G.
List The Ways By Which . . .
Describe The Ways By Which . . .
Write A Report To The Managing Director About The Ways By Which . . .
Discuss How The Ways By Which . . .
Explain How The Ways By Which . . .
Then, Get Them To Underline The Key Words In The Rest Of The Question.
They Need As Much Practice As Possible In Doing This, Especially For Essay-Type Questions.
Practice Is Even More Essential For Students For Whom English Is Not Their First Language.
At The End Of This Section Are 20 Essay Questions In Which We Have Already Highlighted The Instruction And
Underlined The Key Words. See If Your Students Can Do The Same.
4 Poor Technique With Essay Questions. Business Accounting 2, Notes For Students, The Section Headed ‘Answering
Essay Questions’ Covers This Point. Discuss This With Your Students Who Have To Tackle Essay Questions.
5 Not Tackling The Required Number Of Questions. I Have Always Found It Very Difficult To Convince Students To Get
5
, Hold Of The Idea That They Will Get More Marks For Five Uncom pleted Questions Than They Will For Four Completed
Questions, When The Examiner Has Asked For Five To Be Attempted. Time Planning Is Essential.
6 By Not Tackling The Easiest Questions First. Years Ago, We Did Quite A Lot Of Research Into The Results Of
Students Who Had Followed This Advice, Compared With Those Who Ignored It. Following The Advice Pro- Duced
Better Results.
7 By Simply Regurgitating The Contents Of A Textbook In Essay ANSWERS. For Instance, When An Examiner Set A
Question On, Say, Materiality. Most Of The ANSWERS Simply Gave Exactly The Same Examples, Word For Word
Som etimes, That We Have Given In Business Accounting 1.
Examiners Are Looking For Originality And Imagination. Students Will Get Excellent Marks If They Give Their
Own Examples. A Good Idea Is That, For Each Of The Concepts And Conventions, They Think Up Their Own
Examples Before The Examination. There Are Going To Be More And More Questions On These Things In The Years
Ahead.
6
, Contents
Preface Iv
Pa rt 1 Business Accounting 1 1
Students And Examination Success 3
ANSWERS 6
Pa rt 2 Business Accounting 2 93
ANSWERS 95
Preface
This Solutions Manual Contains ANSWERS To All The Questions Not Already Answered In Business Accounting 1 And
Business Accounting 2. It Can Be Seen That There Are A Considerable Number Of Questions In Both Text- Books.
About One-Half Of These Have The ANSWERS At The Back Of The Relevant Textbook, While The Remainder Of The
ANSWERS Are Contained In This M anual.
The Result Of This Is To Give A High Degree Of Flexibility In The Use Of The Textbooks. To Illustrate The Contents Of
Each Chapter, The Questions Can Be Used Which Have ANSWERS In The Textbook. Any Students Who Are Absent Can
Be Told What They Have Missed And Can Look Up The ANSWERS Themselves. Students Who Arrive Late On The Course
Can Also Be Told What Work To Do And They Can Check Their Own Progress Against The ANSWERS As Given.
However, Quite Obviously Work Must Be Set, Either In Class Or For Homework, For Which ANSWERS Are Not
Available To Students. This Manual Can Therefore Be Used To Check Such Work.
Whilst Every Endeavour Has Been Made To Show Workings Quite Fully, It Must Be Appreciated That There Are Often
Different Ways Of Getting To The Same Answer. This Manual Would Be Unduly Lengthy And Complicated If Every
Version Of Arriving At The Answer Were To Be Shown. The Methods Chosen Are Therefore Those Judged To Be The
Best From A Teaching Point Of View.
Frank Wood And Alan Sangster
4
, PART 1 BUSINESS ACCOUNTING 1
Students And Examination Success
Experienced Teachers And Lecturers Know Just As Much As We Do About This Topic. There Will, However, Be Quite A
Lot Of People Reading This Who Are New To Teaching, And Who Have Little Experience In Understand- Ing How The
Examiner Views Things. If We Have Anything To Offer, It Is Simply That We Have, Between Us, Been Concerned With
Accounting Education For Many Years And Have Been Examiners For Several External Examining Bodies.
The Notes For Students At The Start Of Both Business Accounting 1 And Business Accounting 2 Deal With
Examination Techniques. Make Certain The Students Read These. Go Through These With Them. If We All Tell
Students That What These Say Is True, Then They Are More Likely To Believe Us.
H ow Students Lose Marks
1 Lack Of Knowledge (Obviously) But They Throw Away Marks Unnecessarily For All Of The Following Reasons:
(a) Untidy Work, Including Columns Of Figures Not Lined Up.
(b) Bad Handwriting. Do Not M ake It Difficult For The Examiner To Read And Mark.
(c) Lack Of Headings, Dates, Sub-Totals, Etc. In Accounting Statements.
(d) Not Submitting Proper Workings.
Y ou Can Only Get Them To Rectify Everything Under This Heading By Insisting On Them Correcting (A), (B),
( C) And (D) From Early On In The Course. Do Not Wait Until A Few Weeks Before The Examinat ion To Insist Upon
Properly Laid Out And Neatly Constructed Work.
2 Students Very Often Do Not Follow The Rubric On The Examination Paper. If It Asks For Two Questions Only From
Section A, Then It Means Just That. A Remarkably High Percentage Do Not Follow T he Instructions Per The Rubric.
3 Students Fail To Answer The Questions As Set. If, For Example, An Examiner Wants A List, Students Will Lose
Marks By Giving Explanations Instead. Students Must Tackle The Question In The Prescribed Way And Not Do It
Differently. The Percentage Of Students Passing Examinations Would Rise Dramatically If Only We Could Correct
This Failing. A Good Plan Is To Get Them To Highlight The Instruction That Shows How The Examiner Wants The
Question To Be Answered, E.G.
List The Ways By Which . . .
Describe The Ways By Which . . .
Write A Report To The Managing Director About The Ways By Which . . .
Discuss How The Ways By Which . . .
Explain How The Ways By Which . . .
Then, Get Them To Underline The Key Words In The Rest Of The Question.
They Need As Much Practice As Possible In Doing This, Especially For Essay-Type Questions.
Practice Is Even More Essential For Students For Whom English Is Not Their First Language.
At The End Of This Section Are 20 Essay Questions In Which We Have Already Highlighted The Instruction And
Underlined The Key Words. See If Your Students Can Do The Same.
4 Poor Technique With Essay Questions. Business Accounting 2, Notes For Students, The Section Headed ‘Answering
Essay Questions’ Covers This Point. Discuss This With Your Students Who Have To Tackle Essay Questions.
5 Not Tackling The Required Number Of Questions. I Have Always Found It Very Difficult To Convince Students To Get
5
, Hold Of The Idea That They Will Get More Marks For Five Uncom pleted Questions Than They Will For Four Completed
Questions, When The Examiner Has Asked For Five To Be Attempted. Time Planning Is Essential.
6 By Not Tackling The Easiest Questions First. Years Ago, We Did Quite A Lot Of Research Into The Results Of
Students Who Had Followed This Advice, Compared With Those Who Ignored It. Following The Advice Pro- Duced
Better Results.
7 By Simply Regurgitating The Contents Of A Textbook In Essay ANSWERS. For Instance, When An Examiner Set A
Question On, Say, Materiality. Most Of The ANSWERS Simply Gave Exactly The Same Examples, Word For Word
Som etimes, That We Have Given In Business Accounting 1.
Examiners Are Looking For Originality And Imagination. Students Will Get Excellent Marks If They Give Their
Own Examples. A Good Idea Is That, For Each Of The Concepts And Conventions, They Think Up Their Own
Examples Before The Examination. There Are Going To Be More And More Questions On These Things In The Years
Ahead.
6
