CSEC Principles of Accounts Paper 1 May/June 2008 - Free CXC Past Paper with Answers

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

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

A business which owns goods valued at $500, also has a van valued at $1000; it owes $50 for goods. If it 'sells out' at these prices the owner's closing capital will be

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

The working capital of A. Young and Sons is $15 500 and current assets is $16 500. What is the value of TOTAL current liabilities?

What is the TOTAL value of the assets?

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

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

Which of the following is NOT a nominal account?

Which of the following would NOT appear in a Cash Book?

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

When the Cash Book balance differs from the balance on the bank statement, the true bank balance can be determined by preparing

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

During the year a company bought stationery for $220 and used $120 worth of it. How much of the stock of stationery should appear in the 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 a credit entry were overstated by the same amount. III. A debit entry was left out. IV. Both a debit and a credit entry were understated by the same amount.

What is the working capital of Sherida's Ltd?

What is the Current Ratio of Sherida's Ltd?

An asset purchased for $1000 is depreciated at the rate of 10 percent per annum using the reducing balance method. The book value of the asset at the beginning of the third year is

What is the TOTAL capital expenditure?

The formula for working capital is

What is the value of stock at April 9 based on the LIFO method?

What is the value of stock at April 9 based on the FIFO method?

The MAIN purpose of preparing financial statements is to

What is the journal entry for recording a debit closing balance in the Rent Expense Account?

The value of closing stock is

M Harry and Sons created a provision for Doubtful Debts for the first time. Which accounting principle did the business follow?

B. Pascal, a sole trader, started the year owing $6000. The business only paid $5000 for the year. The $5000 was recorded in the Trading and Profit and Loss Account. Which accounting concept was breached?

A company's rent expense account had an opening debit balance of $2000. During the year $6000 was paid for rent. At the end of the year there was a closing debit balance of $1500 in the account. What was the rent expense recorded for the year?

A sole trader paid $12 000 for the rental of a building. The opening prepayment was $2 000 and closing prepayment was $1 000. What is the journal entry to record the amount to be transferred to the Profit and Loss account?

What was the capital of Foster and Scott Limited at March 6, 2008?

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 update the Cash Book?

What is Mr. Jones' gross pay?

Single-entry bookkeeping refers to a situation where

Control accounts are kept so as to assist management in

The amount of the accumulated fund is

Mr. Smith does not keep proper records. He began business with $10000 in the business bank account. He uses his vehicle and building worth $6000 and $15000 respectively as part of his business. Customers owe him $4000. He withdrew $1500 for personal use and owes creditors $2000.

What is the capital of the business?

Mr. Harris does not keep full accounting records. However he has provided the following information.

Cash purchases for the year $ 3900 Cash paid for goods supplied on credit $27850 Creditors at 01 January $ 970 Creditors at 31 December $ 720

What figure will appear as purchases in Mr. Harris' Trading Account?

A trader keeps incomplete records. At the beginning of the year, fixed assets are valued at $32000. A van worth $28000 is purchased during the year along with stock worth $5000. The value of fixed assets at the end of the year was

What is Ramdial's TOTAL sales for the month of January?

Mrs Allen invested $20 000, Mrs Brown invested $5000 and Mr Cable invested $5000 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 in the ratio, $\frac{2}{5}$, $\frac{2}{5}$, $\frac{1}{5}$ in favour of Allen, Brown and Cable respectively. How much of the loss must be borne by Mr Cable?

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

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

What is the cash balance at the end of the month?

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

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

When a company declares a dividend of 15%, the dividend warrant sent to the shareholder owning 1500 $1 ordinary shares is

A public limited company issued a prospectus offering the shares described in the table above for sale at par value.

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

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

Which of the following is the method by which a co-operative can raise capital?

Payne and Quarless decided to admit Rose as a new partner. The total capital after the admission of Rose will be $30000, of which Rose is to contribute $10000 for interest in the capital. If Rose were to bring in cash and a motor van valued at $3000, his admission would be recorded in the journal as

Which of the following entries should be inserted at (I) and (II) in the table?

Which of the following terms should be inserted at (III) in the table?

Which of the following is a prime cost in manufacturing accounts?

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

From the above information, the cost of goods manufactured is

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

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

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?