STUDENT EDUCATION NUMBER

GOVERNMENT OF SAMOA
MINISTRY OF EDUCATION, SPORTS AND CULTURE

Samoa School Certificate

ACCOUNTING
2020

QUESTION and ANSWER BOOKLET

Time allowed: 3 Hours & 10 minutes

INSTRUCTIONS
1. You have 10 minutes to read before you start the exam.
2. Write your Student Education Number (SEN) in the space provided on the top right hand corner of this
page.
3. Answer ALL QUESTIONS. Write your answers in the spaces provided in this booklet.
4. If you need more space, ask the Supervisor for extra paper. Write your SEN on all extra sheets used and
clearly number the questions. Attach the extra sheets at the appropriate places in this booklet.

CURRICULUM STRANDS Page Time (min) Weighting

STRAND 1: ACCOUNTING APPLICATION 2 36 20

STRAND 2: FINANCIAL ACCOUNTING 6 90 50

STRAND 3: THE ACCOUNTING PROCESS 16 54 30

TOTAL 180 100

Check that this booklet contains pages 2-22 in the correct order and that none of these pages are blank.
HAND THIS BOOKLET TO THE SUPERVISOR AT THE END OF THE EXAMINATION
STRAND 1: ACCOUNTING APPLICATION Weighting 20

1. State ONE purpose of accounting.

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2. Define the term auditing.

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3. Diana C.K. owns a retail store in Apia. She is not interested in keeping records for
her business operations because she says it’s just a small business with very little
revenue. You studied accounting in school and she has asked for your advice.

State the importance of accounting in a firm.

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4. Luana is considering a career in accounting and has recently asked for your help.
List TWO different areas of specialization in Accounting that she can consider for
her future career.

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2│SSC
5. Mikaele, your family friend struggles every year during the tax return period and
has asked for your help.

Suggest TWO ways to organize and store personal accounting documents that
will help him.

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6. Explain the importance of an EPC invoice as a source document used everyday

by families.

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3│SSC
7. Mose is currently thinking of starting a business in his village. He recently had a
discussion with another friend who said that “Non-financial information is also an
important area of research if setting up a business”.

Explain the importance of competition in the market, a non-financial information in

a business set up.

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8. Families in Samoa are consumers, producers or providers of goods and services

whilst some are owners of firms.

Explain any ONE user of accounting information in a firm.

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9. Discuss the importance of accounting to the Samoan society with specific

reference to organisations like the Samoan Victim Support Group.

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STRAND 2: FINANCIAL ACCOUNTING Weighting 50

10. Eliana, a trader in Upolu always uses the diminishing balance method of
depreciation for machinery.

Which accounting concept is being applied?

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11. Name the type of business ownership where you can keep your share of the
profits after tax, be responsible for paying your own tax and personally liable for
your business debts.

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12. Identify the following component that is included in the Owner’s Equity section of
the Statement of Financial Position for a business entity.

“the portion of a business’s profits that are not distributed as dividends to

shareholders but instead, reserved for reinvestment back into the business.”

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13. Depreciation expense is used in accounting to allocate the cost of a tangible

asset over its useful life. List any TWO types of depreciation methods used.

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6│SSC
14. Tasi and Samuelu are in partnership. Their partnership agreement provides for
Samuelu to receive a salary of $50,000 per annum.

Discuss TWO advantages of forming a partnership.

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15. Your uncle is an owner of a private limited liability business.

Name ONE characteristic of this type of business in relation to the liability of the
shareholders.

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16. State TWO accounting concepts that are relevant to the calculation of
depreciation.

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7│SSC
 Use the statement provided below to answer question 17.

J & K PRODUCER MARKET

Statement of Financial Position as at 1st January 2020
Owner’s Equity

Capital – Joe Nu’usila 25,000

Capital – Kiera Nu’usila 75,000

Retained earnings (reserves) 5,000

105,000

17. Explain the owner’s equity section shown in the above extract in relation to the
type of business entity in operation.

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8│SSC
18. Identify the accounting concept being used by accountants to prepare a financial
statement, where they prefer to understate rather than overstate profit and
assets.

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19. Explain the going concern concept.

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9│SSC
 Use the extract below to answer questions 20 – 22.

TOSUA CONSERVATION SOCIETY

Statement of ___________ as at 30th April 2020 (Extract)

Accumulated Fund:

Balance as at 1st May, 2019 75,000

Plus Excess Income over Expenditure 7,500

Balance as at 30th April, 2020 82,500

20. From the contents of the extract above, determine the financial statement been
prepared.

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21. Describe the term Accumulated Fund.

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10│SSC
22. The Vailele Cricket Club has 500 members and each member pays $20 as
monthly subscription. Five members paid advance subscription for the financial
year 2019-20 and 15 members failed to pay subscription for the same year. The
treasurer said that the club had excess income over Expenditure.

Explain the term “Excess Income over Expenditure”.

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23. Explain the advantages of a sole proprietorship.

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11│SSC
24. List the TWO accounting methods and presentations which are commonly used in
preparing financial statements on balance day.

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25. Identify the accounting concept being used when business and personal records
are kept separate.

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26. Identify the component which is added to the Total accumulated Fund section of
the Statement of Financial Position of Clubs & Societies.

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12│SSC
27. Peniamina is an accountant for Stevenson’s Hotel. He advises the owner of the
hotel that the life of his hotel business is divided into equal time periods.

Identify the accounting concept being used, when accountants advise the
business owner’s to assume that the life of the business is divided into equal time
period.

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28. Name ONE characteristic of a sole proprietor type of business ownership.

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29. Discuss the source of finance for incorporated societies.

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30. “Limited liability is a good reason for forming a private company”.

Define the meaning of the term limited liability.

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31. The financial records for Niu Merchants have been prepared for the last four
years. In Year One and Year Three, a different depreciation method was used to
the one used in Year Two and Four.

Explain the accounting concept being violated in the scenario above.

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14│SSC
32. Karoline Tupa’i a sole trader, provided the following information for the year
ended 30 June 2020.

1st July 2019 30th June 2020

$ $

Stock 1,200 1,400

Debtors 4,500 8,700
Creditors 3,678 4,321

An analysis of her cash book revealed that Karoline had received payments of
$97,800 from her debtors and paid $36,890 to her creditors. The creditors had
allowed her cash discount of $1,667. All purchases and sales are on credit.

Calculate the sales for the year.

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33. Describe the matching concept of accounting.

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STRAND 3: ACCOUNTING PROCESS Weighting 30

34. Lanni Iosefa a sole trader, presented the following extracts from her books on 31 st
December, 2019. She also presented additional information that should be taken
into account; Business rates, $500, were accrued and insurance of $150, was
prepaid.

Prepare journal entries by providing which accounts to Debit and Credit, to record
the insurance.

General Journal
Date Particulars Debit Credit SL 1

35. At the year end of 30 June 2019, the trial balance of Vai, a sole trader, balanced.
During the following month some errors were discovered. A cheque received from
Panina Solo, a debtor, had been entered in the accounts as $165, instead of the
correct figure of $156.

What type of error is this?

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36. Describe the different stages of accounting process in the computerized system
for non-profit entities.

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16│SSC
 The Laumosooi Mountaineering Club had the following assets and liabilities on 1 st April
2019.

WST($)
Bank overdraft 841
Cash in hand 216
Climbing equipment at valuation 5,000
Clubhouse rent in advance 230
Stock of refreshments 1,560
Subscriptions in advance 240
Subscriptions in arrears 75

37. During the year ended 31 March 2020, the club received subscriptions totaling
$3,560. All subscriptions owing on 1 August 2014 were paid during the year. On
31 March 2020, subscriptions owing were $85. There were no subscriptions paid
in advance on that date.

Prepare the club’s Subscriptions account for the year ended 31 March 2020.
Balance the account on that date and bring the balance down on 1 April 2020.

Subscriptions Account

Date Particulars Amount Date Particulars Amount SL 3

($) ($)

17│SSC
38. Your aunty has recently received a receipt from her recent shopping spree at a
major store in the City. She was surprised to see that the invoice included a
VAGST component and was struggling to understand what VAGST was about.

Explain the different methods for accounting for and recording of VAGST.

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39. Complete the table below by placing a cross (X) to indicate whether the item
would be entered on the debit side or credit side of a cash book.

Debit Side Credit Side SL 2

Bank charges

Interest earned

40. Your friend Ernestina is starting a small business retailing various locally grown
food. She decides to employ two people to help with the cash sales. She has
asked for your input in setting up a good cash control system.

Provide a feature of internal control systems for cash receipts to help Ernestina in
her efforts.

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41. Discuss the importance of internal control system as a means for managing
resources of any organisation.

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Pelega Stowers, a sole trader, provides the following information from his
balance sheet as at 30th June 2020.

$
Cash at bank 3,600 (Dr)
Cash in hand 259
Creditors 41,200
Debtors 35,751
Expenses accrued 800
Expenses prepaid 990
Stock 35,000

42. Use the above data to calculate the working capital.

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43. Describe ONE method of accounting for depreciation.

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44. Discuss the nature and features of community organisations.

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20│SSC
 Use the Trial Balance extract below o answer questions 45 – 47.

Iosefo Felise General Store

Trial Balance as at 31st October 2020

Advertising 150
Creditors 1050
Debtors 1300
Discount allowed 42
Freight inwards 700
Insurance 520
Purchases 1080
Return outwards 57
Return inwards 25
Sales 5000
Salesperson wages 240
Shop license 200
Stock (1.10.2018) 2260

45. Name any ONE account from the trial balance above that would appear in a
Trading account.

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46. Name any ONE account from the trial balance above that would appear in a Profit
& Loss account.

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47. Name any ONE account from the trial balance above that would appear in a
Balance Sheet.

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21│SSC
 STUDENT EDUCATION NUMBER

ACCOUNTING

2020

(For Scorers only)

Double
CURRICULUM STRANDS Weighting Scores Check
Entry
Scorer
(AED)

STRAND 1: ACCOUNTING APPLICATIONS 20

STRAND 2: FINANCIAL ACCOUNTING 50

STRAND 3: THE ACCOUNTING PROCESS 30

TOTAL 100

22│SSC