CSEC Principles of Accounts Paper 1 May/June 2007 - Free CXC Past Paper with Answers

You can determine the true bank balance of a business when the Cash Book balance differs from the balance on the bank statement by preparing a

Control accounts are kept to assist management in

No record was made of $503 for goods sold to L. Stoke. This is

What is the gross profit?

At the beginning of the year, the capital of a business was $28000. At the end of the year the capital was $33000. During the year the owner withdrew $2000 for personal use. What is his net profit for the year?

Which of the following accounts shows how profits and losses are shared among partners?

Cost of raw materials used plus other direct costs will result in

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 new owner's closing capital will be

The working capital of A. Young and Sons is $15500, and Current Assets is $16500. What is the TOTAL current liabilities?

To which account should depreciation of office machines be transferred?

S. Thomas purchased a machine for $3 250 from Grell and Co. Ltd, paying $1250 in cash and the balance in 10 days. Which is the CORRECT procedure for recording this transaction?

P. Amos is employed by a construction company at a rate of $7 per hour. During the week of April 6, 2001, he worked his basic week of 40 hours. The income tax due on his pay is $20, and he is also liable to pay social security contributions of 5% of his gross pay. His net pay is

What is the TOTAL value of the assets?

The MAIN reason why a sole proprietor may consider joining with ONE or MORE other persons to form a partnership is that

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

A machine costs $6 200. It will be kept for FIVE years and then sold at a scrap value of $200. The depreciation for EACH year using the straight line method will be

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

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. The goodwill is therefore

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

Brown lends Williams $5 000 at an interest of 10% per annum. To which of the following accounts would the interest be credited in Brown's ledger?

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

A discount which a businessman offers for prompt payment for goods purchased will be entered in his triple-column cash book under the

Which of the following statements indicate the 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

In a co-operative society, the daily affairs are administered by

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

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 for himself amounting to $500. Which of the following figures represents the balance in Mr Kane's Sales Account?

W, X, Y and Z are partners sharing profits and losses in proportion to their capital. The capital of each is shown in the table above. What is Z's share of a profit of $7 200?

The cost of goods sold is

The gross profit is

The balance as per Bank Statement on Dec. 29 was a

What does the Bank Statement balance represent?

Mr Smith does not keep proper records. He began business with $10 000 in the business bank a/c. He uses his vehicle and building, worth $6 000 and $15 000 respectively, as part of his business. Customers owe him $4 000. He withdrew $1 500 for personal use and owed creditors $2 000.

What is the closing capital of the business?

A trader bought goods worth $800 less 10% trade discount. How much did he pay for the goods?

If a new partner pays $3000 for a $\frac{1}{6}$ share of profits, then the TOTAL goodwill value is

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 conclusions could be drawn from the above Appropriation Account? I. The company is not doing very well. II. The company has recently come into existence. III. The company is engaged in profitable enterprise. IV. More dividends can be paid to the ordinary share holders. (A) I and IV only (B) III and IV only (C) I, II and IV only (D) II, III and IV only

What is Mohammed Patel's net profit for the year? (A) $1300 (B) $1500 (C) $ 1600 (D) $1800

From the Sales Ledger Control Account above, the value of sales for the month of April is

A company is allowed by law to sell 100 000 shares at $1.00 each. Half of these shares were bought by the public. What is the authorized capital?

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

The MAIN parts of the accounting cycle are I. collecting source documents II. entering transactions in the books of original entry III. posting to ledgers and extracting trial balance IV. preparing trading and profit and loss accounts and drawing up the balance sheet The order in which all transcations are recorded in a double entry set of books in each accounting periodis

The Cash Book is BEST used for recording

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 is NOT an accounting transaction?

On January 2, 2005, 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?

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

A trader paid his client $500 by cheque. What will be the correct credit entry?

K. Khan, a debtor of A and B Enterprises, settles his debt of$120 less22% discount, by cheque. The double entry in the books of A and B Enterprises should be

Which of the following BEST describes (I) and (II) shown in the table?

Which of the following BEST describes (III) above?

What is the CORRECT figure for (IV) above?

Goodwill can be defined as the difference between the purchase price of the business and the

What is Mrs Jones' gross pay?

Apart from the Cash Account, which of the following accounts are used to record subscriptions received from applicants for shares in a company?

I. Share Capital Account II. Subscriptions Received Account III. Application and Allotment Account IV. Profit and Loss Account

On January 15, Johnson, a wholesaler sold goods valued at $200 to Slim, a retailer, and made the following entries in his books:

The entries show

Using the expenses given in the above table, what is the factory overhead cost of goods manufactured?