CSEC Principles of Accounts Paper 1 May/June 2009 - Free CXC Past Paper with Answers

The term 'book-keeping' can be defined as the recording of a business's

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

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

What is the TOTAL of the assets?

How would the purchase of equipment on credit affect a firm's balance sheet?

What was the capital of Foster and Scott Limited at March 6, 2009?

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?

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

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

A businessman offers a discount for prompt payment for goods purchased. Under which column in his Triple Column Cash Book would this be entered?

Mr. Harry, a grocer, bought a typewriter on credit from Tan Company. Which of the following journal entries will be made for this transaction in Mr. Harry’s books?

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

From which of the following are the balances obtained in preparing the trial balance?

Which of the following is NOT a nominal account?

When a proprietor withdraws cash or other assets from a business, what effect does it have on drawings or capital?

From the account above which of the following figures will be posted to the trial balance?

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?

A business receives a rent of $5 000 and deposits this sum into the business's bank account. How will this transaction be recorded?

K. Khan, a debtor of A and B Enterprises, settles his debt of $120, less 2½ % discount, by cheque. How should the double entry be recorded in the books of A and B Enterprises?

In calculating the Gross Profit Percentage, Gross Profit should be divided by

Calculate the business's current ratio (rounded to 2 decimal places).

Calculate the business's Acid Test Ratio (rounded to 2 decimal places).

Calculate the Return on Capital Employed (ROCE) to the nearest whole number.

increased by $3 000 in 2005 over 2004

If total prepaid expenses equal total accrued expenses, then in the Balance Sheet

I. current assets are unchanged II. current liabilities are unchanged III. working capital is unchanged IV. fixed assets are unchanged

Depreciation in accounting terms can be defined as

What is the TOTAL provision for bad debts for the year?

A company received $1 000 in advance for goods they are to supply to the customer two months from that date. The $1 000 will be shown in the balance sheet under

Machinery was purchased for $164000. Its useful life is 8 years and its disposal value is $16000. It is depreciated using the straight line method.

What is the Net Book value of the asset after 3 years?

Control accounts are kept in order to assist management in

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?

A bookkeeper, by mistake, posted $64.00 to the Sales Account instead of $54.40. Which of the following entries in the General Journal would correct the mistake?

I. Dr Sales A/C II. Cr Sales A/C III. Dr Suspense A/C IV. Cr Suspense A/C

At the start of the financial year, a trader has creditors of $3 200. He paid cash of $14900 to them during the year, and at the end of the year the balance of his debt was $2 800. What was the trader's total credit purchases for the year?

Mr. Smith does not keep proper records. He began business with $10000 in the business bank account. 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 $1500 for personal use and owed creditors n $2000.

What is the closing capital of the business?

What was the amount of his credit sales for the year?

What is Patel's net profit for the year?

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

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?

Interest on capital was agreed at 5% per annum. What is the TOTAL amount of interest on capital earned by the partners?

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

Profits of $2 400 have been shared in equal proportions between two partners, Debbie and Andrea. Andrea, however, should only have received 40%. What must be the correcting entries in the partnership books?

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

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

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?

A company declares a dividend of 15%. What is the value of the dividend warrant sent to the shareholder who owns 1 500 one dollar ordinary shares?

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

The MAIN objective of co-operatives is to

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

Charity-Is-We, a non-trading organization, hired an accountant to prepare a statement showing all its expenses and revenues. The statement to be prepared is called the

How much should be credited to the Club's Income and Expenditure Account as TOTAL subscription for the year?

What is the organization's accumulated fund at the end of the year?

From the above information, what is the cost of goods manufactured?

What is the cost of raw materials available for production?

What is the prime cost?

What is the cost of raw materials consumed?

A company pays $4 per hour for a 40-hour week and time and a half for overtime. An employee worked 45 hours for a week. What is his gross weekly wage?

P. Amos is employed by a construction company at a rate of $7 per hour. During the week of April 6, 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. What is his net pay?