CSEC Principles of Accounts Paper 1 May/June 2004 - 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 $2000. What was his net profit for the year?

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

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

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. What was the corrected net profit?

The purchase of a motor van on credit from Things Caricom Motors Co. for use in the business should be recorded as

What is the TOTAL amount which should be deducted from the employee's gross salary of $1 800 per month?

The purpose of an appropriation account is to

What was the capital of Foster and Scott Limited at March 6, 1996?

Which of the following is NOT a nominal account?

Morris purchased $1 000 worth of furniture for office use and entered it in the Journal as purchases. How will this error affect his Balance Sheet?

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.

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

In the Trading Account, Returns Outwards is deducted from

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

The amount of the accumulated fund is

Which of the following assets is the MOST liquid?

How should the totals of the columns 'Discount Allowed' and 'Discount Received', be posted when the Cash Book is ruled off?

What is the gross profit?

A proprietor wins a motor van valued $10 000 and decides to put it into the business. Which of the following is the correct entry?

Herbert paid Smith and Co. $380 to settle an account of $400. What entries should be made in Herbert's books?

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?

Joanne Barnett is a dressmaker. She bought 100 metres of material from S. Wright for $100 cash. The correct double entry for this transaction in Barnett's ledger would be

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 $10 000, Loan outstanding $950, Creditors $4 000. What was the net profit that year?

Which of the following describes the rule for double-entry?

A businessman bought a new typewriter for $6000. He paid $4 000 in cash and traded in his old typewriter. What is the entry to record this transaction?

Which of the following would be prepared in order to reveal the net earnings of a business?

What is Z's share of a profit of $7 200?

What is the name of the document usually under a company's seal and which acknowledges a loan to the company at a fixed rate of interest?

According to the Partnership Act, if there is no Deed of Partnership, the amount of profit to be received by each partner would be

The trial balance is prepared by using balances from the

A businessman incurred the following expenses:

Factory repairs $6 000 Machinery repairs $2 000 New machine $3 000 New vehicle $7 000

What is the total capital expenditure?

Joyce and Keller are in partnership having capital of $14 000 and $18 000 respectively. Before admitting a new partner, Wong, with $10 000 into the business, they agreed that the partnership be valued at $42 000. What is the goodwill?

What is the working capital?

During the year a company bought station- ery for $220 and used $120 worth of it. How much of the stock of stationery would you find in the Balance Sheet?

A standing order of $25 for insurance appears in the debit column of the Bank Statement. This amount does not appear in the Cash Book. How is this item treated in order to up date the Cash Book?

A Suspense Account was opened for an error of $30 found in the Trial Balance. Later it was observed that sales were understated by $30. This item would be corrected in the journal by

A firm's Cash Book showed a bank bal- ance of $1750. The Bank Statement showed bank charges of $33, and $77 interest re- ceived. These were not entered in the Cash Book. What was the Bank Statement bal- ance?

What is the stock at the end of January?

The information above relates to a sole trader. What is his capital?

P. Hawk has a manufacturing business. His raw materials cost $1 900. Factory rates and rent total $2 000, and factory wages amount to $2 500.

The number of units produced is 640. What is the factory cost of ONE unit?

Mr Allen invested $20 000, Mr Brown invested $5 000 and Mr Cable invested $5 000 in the same business. The loss sustained during the year was $1 000. The Partnership agreement is silent on the item of losses, although profits are to be split $\frac{2}{5}$, $\frac{2}{5}$, $\frac{1}{5}$ in favour of Allen, Brown and Cable respectively. How much of the loss must be borne by Mr Cable?

A businessman will keep control accounts in order to

What is the working capital of Sherida's Ltd?

What is the 'Current Ratio' of Sherida's Ltd?

Which of the following states the correct order of the stages in the accounting cycle?

Which of the following is NOT a current liability?

Goods were sold on credit to John Brown. Which of the following is the correct dou- ble-entry to record this transaction?

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?

Given the following information for a firm, what is the difference between the opening and closing capital?

Old Capital $1 300, Loss $400. How much is the New Capital?

The gross profit of a firm is $3 600; bad debts $100; rent paid $120 which includes rent prepaid $20; general expenses $80; discount received $110. What is the net profit?

Which of the following is entered in the Purchases Account of a grocery?

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

Which of the following figures represents the balance of the above account?

The reward of profit received by a shareholder in a limited company is called

What is the balance per Bank Statement?

Brown sold a motor vehicle worth $2000 to Smith. Smith was allowed a 2% cash discount. How much would Smith have to pay Brown?

If the following lists of assets found on the Balance Sheet of a retail trader were to be arranged in order of liquidity, the sequence would be