CSEC Principles of Accounts Paper 1 May/June 2003 - Free CXC Past Paper with Answers

At the end of the year the capital of a business was $33 000. At the beginning of the year the capital was $28 000. During the year the owner withdrew for personal use $2 000. What was his net profit for the year?

Mr Abel and Mr Blue purchased goods on credit to the value of $50 and $75 respectively from Mr Kane. Another customer paid cash for goods amounting to $550. Mr Kane took goods at cost for himself amounting to $500. Which of the following figures represents the balance in Mr Kane's Sales Account?

The above table shows the amount of capital invested by R & H Winsome in a business. If interest on capital was agreed at 5 per cent, what is the combined total amount of interest on capital earned by them?

Which of the following books of original entry should be used to record bad debts?

What is the working capital?

What was the cost of goods sold by Mr Martin?

Morris purchased $1000 worth of furniture for office use and entered it in the Journal as purchases. How will this error affect his Balance Sheet?

Mr Harry, a grocer, bought a typewriter on credit from Tan Company. Which of the following journal entries will be made for this transaction in Mr Harry's books?

An article is subject to a 20% trade discount. Its list price is $600. What is its sale price?

What conclusions could be drawn from the above Appropriation Account? I. The company has recently come into existence. II. The company is engaged in profitable enterprise. III. The company is not doing too well. IV. More dividends can be given to the ordinary share holders.

Under which of the following conditions would a trial balance still balance? I. A transaction was completely left out. II. Both a debit and credit entry were overstated by the same amount. III. A debit entry was left out. IV. Both a debit and credit entry were understated by the same amount.

The purpose of an appropriation account is to

On January 1, a firm's capital is $4 600. On December 31, of the same year, the following information was provided: Drawings $850, Total assets $10000, Loan outstanding $950, Creditors $4000. What was the net profit that year?

A businessman incurred the following expenses:

What was the total capital expenditure?

The net profit of a firm was shown as $1 600 and it was later discovered that discounts received were undercast by $10 and purchases were understated by $36. The corrected net profit was

The Sales Return Journal is used to record goods.

Using the information above, what was Mr. Jones' gross pay?

What would be the effect on a firm's Balance Sheet of the purchase of equipment on credit?

What is the rate of turnover?

What was the cost of production of finished goods for the year?

In a factory raw materials used amounted to $4000, manufacturing wages $1200 and other direct expenses $400. What was the prime cost of articles produced?

What is the total amount which should be deducted from the employee's salary of $1800 per month?

What was the capital of Foster and Scott Limited at March 6, 2002?

The balance as per Bank Statement was a

What does this Bank Statement balance represent?

Single-entry accounting refers to a situation where

A business has total assets valued at $225 000 and total liabilities at $97 000. The owner values the business at $150 000.

What is the goodwill?

The total amount of $30.00 in the Discount Allowed column, was posted to the wrong side of the discount account. How should this error be corrected?

A and B had a partnership and shared profits and losses $\frac{2}{3}$ and $\frac{1}{3}$ respectively.

They admitted C to the partnership. In addition to capital, C had to pay $3 600 for goodwill. How much did A and B receive as their respective share of goodwill?

When a company declares a dividend of 15%, the dividend warrant sent to the shareholder owning 1 500 $1 ordinary shares is

The maximum capital a company can issue to the public is called

Which of the following MUST be stated when making up a complete journal entry?

I. Date II. Account to be debited III. Account to be credited IV. Narration

Which of the following BEST describes a trial balance?

I. A list of Balances of Accounts II. A Financial Statement III. An Account IV. A check on the accuracy of the double entry system

Goodwill is classified as

The account which discloses the gross profit or loss is called the

If a Goodwill account is to be maintained, what are the entries necessary to record its creation?

The trial balance is prepared by using balances from the

Because of an error in posting, the Purchases Account was understated by $100 in respect of goods purchased on credit. What are the journal entries necessary to correct this error?

Which of the following factory expenses is considered a direct expense?

Patrick is to join Dennis and Tony in partnership. Patrick brings to the partnership as capital, furniture valued at $3 000 and a motor van worth $5 000. In addition, he is to pay a premium of $1000 to be shared between Dennis and Tony. How much would be the amount of Patrick's capital?

In the Trading Account, Returns Outwards is deducted from

Which of the following entries in the three-column cash book are contra entries?

Which of the following is NOT a nominal account?

While posting to the Ledger, you noticed C. Huck entered on the debit side of the three-column Cash Book. Which of the following entries to the Ledger, would you make?

On January 2, 2002, J. Brown, a debtor, was declared bankrupt. He owed Elmer Browne Ltd $800 for goods purchased. What effect would this have on the balance sheet of Elmer Browne Ltd?

Ram Singh purchased goods valued at $500 on credit. He paid off his bill within the grace period and so received a 10% cash discount. How much did he pay the firm?

A Suspense Account shows a debit balance. Which of the following could give rise to such a balance?

The excess of current assets over current liabilities on the balance sheet determines

Closing stock at year end is incorrectly valued: Which of the following will be affected?

I. Cost of sales II. Gross profit III. Net purchases IV. Working capital

Tom, Percy and John formed a partnership and agreed that profits were to be shared in the ratio of 1:1:2 respectively. The net profit for the year was $18 900. What was John's share of the profit?

A businessman will keep control accounts in order to

When a trial balance does NOT agree, the difference is placed in a

Mrs Green is a dry goods merchant. Which of the following transactions would result in a debit to her Cash Account?

K. Khan, a debtor of A and B Enterprises settles his debt of $120 less 2½% discount, by cheque. The double entry in the books of A and B Enterprises should be

Which of the following assets is the MOST liquid?

A credit balance in the Bank column of the Cash Book denotes