AS 91405 annotated exemplars

This annotated exemplar is intended for teacher use only. Annotated exemplars are extracts of student evidence, with commentary, that explain key parts of a standard. These help teachers make assessment judgements at the grade boundaries.

Download all exemplars and commentary [PDF, 430 KB]

TKI Accounting assessment resources (external link)

For Excellence, the student needs to demonstrate comprehensive understanding of accounting for partnerships.

This involves justifying the application of partnership accounting elements to enable the partnership to continue operations.

This student has correctly prepared formation entries and the profit distribution statement for Mighty Mini Golf (1). Ledger entries are mainly correct, with closing balances accurately transferred to the statement of financial position note (2). The processing shows a comprehensive understanding of accounting for partnerships.

Some profit sharing clauses have been justified (3). Reference has been made as to how clauses contribute to future operations of the entity (4).

For a more secure Excellence, the student could correct the error in Sam’s current account and complete the equity extract of the statement of financial position.

Partnership elements could be justified with further elaboration. For example, the student could explain why partners’ capital investments are good for the business, or what the consequences would be of partners withdrawing lump sums from their capital accounts. The student could justify the profit sharing ratio of 3:2 in terms of each partner’s contribution to the entity.

For Merit, the student needs to demonstrate in-depth understanding of accounting for partnerships.

This involves explaining the application of partnership accounting elements to enable the partnership to continue operations.

This student has processed transactions for Mighty Mini Golf at an in-depth level. ‘Follow through’ has been employed in appropriately transferring figures to the profit distribution statement, partners’ current accounts and the statement of financial position (1).

Partnership elements have been explained (2), and the student has recognised the link between partnership agreement clauses and the ongoing viability of the entity (3).

To reach Excellence, the student could accurately complete the profit distribution statement. Justifications of elements would be provided. For example, the student could explain why it is appropriate that Sam gets a higher profit share and why Alex’s salary is higher.

For Merit, the student needs to demonstrate in-depth understanding of accounting for partnerships.

This involves explaining the application of partnership accounting elements to enable the partnership to continue operations.

This student has demonstrated, for Mighty Mini Golf, an in-depth understanding of formation entries, partners’ capital and current accounts, profit distribution statement and the statement of financial position extract and note (1). ‘Follow through’ has been employed in assessing processing.

The student’s explanations of some of Mighty Mini Golf’s partnership elements show an in-depth understanding of their purpose (2) and how they can assist the partnership to continue operations (3).

For a more secure Merit, the student could explain interest on capital accounts as capital investments have a significant impact on the viability of a partnership, use closing current account balances in the equity section of the statement of financial position.

For Achieved, the student needs to demonstrate understanding of accounting for partnerships.

This involves applying partnership accounting elements to enable the partnership to continue operations.

This student has correctly processed formation entries, capital accounts and the statement of financial position and note (1). Partnership elements have been applied to Mighty Mini Golf (2). There is some recognition of how agreement clauses contribute to the partnership’s ability to continue operations (3).

To reach Merit, the student could demonstrate greater understanding of current accounts and the profit distribution statement by processing transactions with greater accuracy. Explanations of partnership agreement clauses could be more detailed.

For Achieved, the student needs to demonstrate understanding of accounting for partnerships.

This involves applying partnership accounting elements to enable the partnership to continue operations.

This student has accurately processed the partners’ capital accounts and the profit distribution statement is mostly correct (1). Some understanding of the purpose of Mighty Mini Golf’s partnership clauses has been demonstrated (2).

For a more secure Achieved, Alex’s formation entry would be recorded, allowance for doubtful debts calculated, and the statement of financial position extract and note would be completed.

Partnership elements would be more closely applied to Mighty Mini Golf.

For Achieved, the student needs to demonstrate understanding of accounting for partnerships.

This involves applying partnership accounting elements to enable the partnership to continue operations.

This student has accurately processed formation entries and capital accounts (1). Some generic understanding of partnership elements has been demonstrated (2), with minimal application to Mighty Mini Golf (3).

To reach Achieved, the student could accurately process more profit-sharing transactions in current accounts, enter salaries in the profit distribution statement and complete the statement of financial position extract and note.

Partnership elements could be applied in context and linked to the ongoing operations of the entity.