CSEC Principles of Accounts Paper 1 May/June 2005 - Free CXC Past Paper with Answers

An employee works for 45 hours each week at $4 per hour for a 40-hour week and $6 per hour for overtime. What is his gross weekly wage?

Control accounts are kept to assist management in

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 gross profit?

At the end of the year the capital of a business was $33000. At the beginning of the year the capital was $28 000. During the year the owner withdrew for personal use $2 000. What is his net profit for the year?

A trader received an invoice for $4 000 less 25% trade discount. Subsequently he returned one-eighth $\left(\frac{1}{8}\right)$ of the goods. What amount would be entered in his Returns Outwards Account?

Credit notes issued for goods returned by a customer will be entered firstly in the

A business which owns goods valued at $500, also has a van valued at $1 000; it owes $50 for goods. What is the capital of the business?

The working capital of A. Young and Sons is $15 500, and Current Assets are $16 500. What are the total Current Liabilities?

What is the undistributed surplus to be carried to the next year?

What was the value of sales for the month of April?

What is Lagoon's working capital?

On December 31, 2002, the Balance Sheet of Mr J. W. Ward showed the following:

Fixed assets $80000 Current assets $35000 Liabilities $30750

What is Ward's capital?

The MAIN reason why a sole proprietor may consider joining with one or more other per- sons to form a partnership is

What does the closing Bank Statement balance represent?

Which of the following assets is the MOST liquid?

The items raw materials stock, work in progress stock, and finished goods stock, are MOST likely seen together on the balance sheet of a

A retailer purchases goods worth $3000. He receives 30% trade discount and 5% cash discount. What did he pay?

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?

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 very well. IV. More dividends can be given to the ordinary share holders.

A business operates its petty cash on the imprest system. At the beginning of the month, the petty cashier was given $200 out of which she spent $152. How much will she be reimbursed?

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

Which of the following statements BEST describes the 'double entry' system of bookkeeping?

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

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?

A photo-copying machine valued at $5000 is depreciated at 10% per annum using the 'straight-line method'. What is its book value after two years?

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 balance on a creditor's account is entered in the Balance Sheet under the heading

The purchase of a new delivery van for $65 000 was entered in the Purchases Day Book. What is this error called?

Which of the following statements indicate correct entry in ledger accounts?

I. All assets on the Debit side II. All liabilities on the Credit side III. All expenses on the Credit side IV. All gains on the Debit side

From the table above, what is the gross profit?

A trader sent Mr Jones an invoice charging him for 10 articles at $68 instead of $65. Which note should the trader subsequently send to Mr Jones to rectify the error?

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

Mr A. Jones paid $250.00 cash for repairs to machinery. This transaction was entered in the Cash Book and posted to the Ledger. The double entry involved would be

An invoice is a document made out when goods are

A company is allowed by law to sell 100000 shares at $1.00 each. Half of these shares were bought by the public. What is the authorized capital?

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?

What is his net profit for the year?

What is the amount of net income or loss for the period?

The excess of the income over the expenditure of a non-profit-making organization is called

What is the correct journal entry?

The Cash Book is BEST used for recording

On January 2, 1995, 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?

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.

What is the gross profit?

What is the closing capital of the business?

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

In a factory, raw materials used amounted to $4000, manufacturing wages $1 200 and other direct expenses $400. What was the prime cost of articles produced?

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

Joyce and Keller are in partnership having capital of $14000 and $18000 respectively. Before admitting a new partner, Wong, with $10000, into the business, they agreed that the partnership be valued at $42 000. The goodwill is therefore

A proprietor withdraws cash from his business for his own use. What will be the entries for this transaction?

A trader paid his client $500 by cheque. What will be the correct entry in the trader's Cash Book?

The balances of the asset accounts of the Bayroe Club as at June 30, 1994 were:

The amount of the accumulated fund was

K. Khan, a debtor of A and B Enterprises settles his debt of $120 less 22% discount, by cheque. The double entry in the books of A and B Enterprises should be

What is Mr Jones' gross pay?

How should the net profit of $18 000 (after all other appropriations) be shared amongst X, Y and Z?