Learning Aim B assessment

Mark Scheme

Grading

Q1

• Credit Note (1)

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• Its not a receipt!�A receipt is proof of purchase
• A credit note is proof of refund

Q2�3 marks

Q3 (6 marks)

Purchase order

Receipt

Statement of account

Q4�6 marks

£300

£200

£500

£50

£450

£454.99

Q5�2 marks

• 1 mark for any of the following:
• Cash
• Cheque
• Form of electronic payment (e.g. pay pal / apple pay)

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Q6�4 marks

• 1 mark – stating an advantage of a debit card
• 1 mark – explaining why the advantage shows a debit card is better than a credit card
• 1 mark – stating an advantage of a credit card
• 1 mark – explaining why the advantage shows a credit card is better than a debit card

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• E.g. A debit card is using their own money, no interest is added on (1), this is good because it means that overall it is cheaper to purchase from Franky’s (1).
• However, a credit card means that anything bought is insured (1), so if something were to go wrong such as if Franky’s went bust and Sandra didn’t receive the items, She would get her money back (1).

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Q7�2 marks

• Start-up costs such as shop decoration / ice cream van are costs incurred before the business opens (1). Running costs like rent, stock (e.g. vanilla, flakes) are costs that are paid daily / monthly whilst operating (1).

Q8�7 marks

Sales revenue

400,000

Cost of sales (ice cream and tubs)

102,500

297, 500

Wages and salaries

Lighting, heat and power

Telephone and internet

Promotion

Net profit

67, 300

5, 500

2, 200

2, 500

77, 500

220, 000

(1)

(1)

(1)

(1)

(1)

1. Mark – some headings are written correctly
2. Marks - all headings are written correctly

**OFR rule

Q9�7 marks

Machinery

Stock

Creditors

25, 000

9, 000

15, 000

45, 000

25, 000

20, 000

50, 000

**OFR rule

Q10�2 marks

• Profits are the total that is made at the end once all costs are deducted from revenue (1). Cash is the day to day available money a business has to spend to pay its running costs (1).

Q11

• GPM 2018: 50%
• GPM 2019:55%
• NPM 2018: 20%
• NPM 2019: 30%

1 MARK FOR EACH

Part A

Part B

GPM has got better over the two years (1) as the business is managing its cost of sales (variable costs) better (1).

NPM has also got better over the two years (1) as the business is managing all costs better in making more profit (1)

Q12

• Current ratio 2018: 1.5:1
• Current ratio 2019: 1:1
• Liquid ratio 2018: 1:1
• Liquid ratio 2019: 0.75:1

1 MARK FOR EACH

Part A

Part B

Current ratio has got worse over the two years (1) however they are still just about able to pay its debts using all its current assets (1)

Liquid ratio has got worse over the two years (1) as the business will struggle to pay debts if they cannot rely on stock (1)