CSEC Principles of Accounts Paper 1 May/June 2006 - Free CXC Past Paper with Answers

A trader draws up a trial balance to

What is the total of the assets?

What is the stock at the end of January?

Which of the following would NOT be considered part of the prime cost of manufactured goods?

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

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

The purpose of an appropriation account is to

What was the capital of Foster and Scott Limited at March 6, 2006?

Which of the following is NOT a nominal account?

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

Which of the following groups contains current assets only?

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

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 Lagoon's working capital?

What is Lagoon's total fixed assets?

What is Lagoon's total current assets?

A business which owns goods valued at $500, also has a van valued at $1 000; it owes $50 for goods. If it sells out at these prices the owner's closing capital will be

Which of the following formulae is used to calculate "take home pay"?

A proprietor wins a motor van valued $10000 and decides to put it into the business. Which of the following is the correct entry?

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

In which journal are the invoices customers entered?

If a buyer's invoice has been overstated; the seller should send him a

Which of the following transactions should be entered in the Petty Cash Book?

If the value of fixed assets is subtracted from total assets and the remainder is reduced by the value of current liabilities, the result obtained is referred to as

The amount of the accumulated fund was

The issue was fully subscribed. How much capital did the company raise?

The net profit of a firm was shown as $1600 and it was later discovered that discounts received were undercast by $10 and purchases were understated by $36. The corrected net profit was

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?

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

The amount of money given to the petty cashier at the start of a period is known as the

A businessman incurred the following expenses:

Factory repairs | $6000 Machinery repairs | $2000 New machine | $3000 New vehicle | $7000

What is the total capital expenditure?

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 $42000. The goodwill is therefore

The main reason why a sole proprietor may consider joining with one or more persons to form a partnership is that

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

On 1st May, R. Brown's opening capital was $3000; on 7th May he withdrew $400 and on 31st May his closing capital was $5000. What was his net profit?

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

S. Thomas purchased a machine for $3 250 from Grell & Co. Ltd., paying $1 250 in cash and the balance in 10 days. Which is the correct procedure for recording this transaction?

What was the amount Mr Arthur received as Trade Discount?

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

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

Mrs Allen invested $20 000, Mrs Brown invested $5 000 and Mr Cable invested $5 000 in the same business. The loss sustained during the year was $1000. The Partnership Agreement is silent on the item of losses, although profits are to be split in the ratio, 2, 2, 1 in favour of Allen, Brown and 5 5 5 Cable respectively. How much of the loss must be borne by Mr Cable?

A business controlled by two or more persons, with a view to sharing profits is called a

What would be the effect of purchasing equipment on credit, on the Balance Sheet of a business?

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

What was the cost of goods sold by Mr Martin?

Credit notes issued for goods returned by customers will be entered first in the

What is the working capital of Sherida's Ltd?

What is the current ratio of Sherida's Ltd?

What is the amount of Insurance Prepaid at the start of the period?

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

If the closing stock is undervalued, which of the following will result?

In an effort to raise capital, a company offered for subscription two hundred 5% debentures of $100 each. What is the significance of the 5%?

A Sales Invoice shows 10 items at $210 each, trade discount 20% and cash discount 5%. How much should the customer pay if he pays within the credit period?

The assets of a business total $3,200 and the liabilities total $820. What is its capital?

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 $1 000 to be shared between Dennis and Tony. How much is Patrick's capital?

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

The above information was provided by a trader. How much were his credit sales for the year?

A firm's Cash Book showed a bank balance of $1750. The bank statement showed bank charges of $33, and $77 interest received, which were not entered in the Cash Book. What was the bank statement balance?