Free CXC Principles of Accounts Paper 1 May/June 2013 past paper from 2013. Includes a worked answer key. Open the PDF, take a timed test, and study with AI on Caribbean AI.
Answer keys are free on Caribbean AI. View the answers to every past-paper question at no cost - no payment needed - with step-by-step worked solutions and instant AI marking available on Premium.
CSEC Principles of Accounts Paper 1 May/June 2013 - Free CXC Past Paper with Answers
Free CXC Principles of Accounts Paper 1 May/June 2013 past paper from 2013. Includes a worked answer key. Open the PDF, take a timed test, and study with AI on Caribbean AI.
Opening the interactive papers…
Every question from this paper as text. See the answers and worked solutions. Questions are the property of the Caribbean Examinations Council; Caribbean AI is not affiliated with CXC.
The MAIN internal users of accounting information are
managers
competitors
governments
local communities
Which of the following states the correct order of the stages in the accounting cycle, before Final Accounts?
Journalizing, Posting to Ledger, Trial Balance
Posting to Ledger, Trial Balance, Journalizing
Posting to Ledger, Journalizing, Trial Balance
Journalizing, Trial Balance, Posting to Ledger
A non-trading organization is MAINLY concerned with
importing goods for resale
trading only with wholesalers
providing various services for its members
making maximum profit for the proprietor
Which of the following are benefits of using accounting software? I. Integrated analysis of information II. Almost immediate updating of records III. Programmable to recognize irregular entries
I and II only
I and III only
II and III only
I, II and III
The working capital of P. Young and Sons is $15 500, and current assets is $16 500. What is the TOTAL current liabilities?
$ 1 000
$15 500
$16 500
$32 000
Items 6-7 refer to the balance sheet below.
Balance Sheet of Boot's Sports Store as at 31 December, 2012 $ $ Capital 12 000 $ Add Net profit 4 000 Land & building 9 000 16 000 Motor van 5 000 500 Fixtures & fittings 600 Less Drawings 15 500 Stock 450 Creditors 2 100 Debtors 250 Bank 2 000 Cash 300 17 600 17 600
What is the amount of total fixed assets?
$9 000
$14 000
$14 600
$15 050
What is the amount for total current assets?
$2 550
$3 000
$3 600
$8 600
Which of the following listings of current assets is in order of permanency?
Debtors, bank, cash, stock
Cash, debtors, bank, stock
Bank, cash, debtors, stock
Stock, debtors, bank, cash
A trader received an invoice for $4 000 less 25% trade discount. Subsequently he returned one-eighth of the goods. What amount would be entered in his Returns Outwards Account?
$375
$400
$450
$500
Which of the following is usually used to complete a General Journal entry?
Narration
Description of assets
Description of liabilities
Name of book to which entry must be posted
A businessman offers a discount for prompt payment for goods purchased. Under which column in his Triple Column Cash Book, would this be entered?
Bank
Cash
Discount Allowed
Discount Received
Items 12-14 refer to the following information.
Trinbago Ltd Orange Street San Juan, Trinidad To: XYZ Co. Ltd Plum Road D'Abadie, Trinidad Invoice No.: A009 Date: 1 January 2012 Qty Item Unit Price ($) Total ($) 20 cases Guava Wine 70.00 1 400.00 40 60 cases Cherry Brandy cases Rum Punch 75.00 3 000.00 60.00 3 600.00 Less 20% trade discount Terms: net 30 days 2% % 15 days
The term 'net 30 days' 2½ % means that a credit period of 30 days is given, but 2½ %
interest is charged if the debt is paid within 15 days.
interest is charged if the debt is paid after 15 days.
discount is given if the debt is paid after 15 days.
discount is given if the debt is paid within 15 days.
What is the actual amount of the invoice?
$5-600
$6 400
$7 000
$8 000
If XYZ Co. Ltd paid for the goods on 12 January 2012, how much did they actually pay?
$5 460
$6 240
$6 825
$7 800
Which of the following BEST describes the 'double entry' system of accounting?
A ledger account must have two sides.
An account must be written twice in the ledger.
Each transaction must be written in two subsidiary books.
Each transaction must have a debit entry and a credit entry.
In Mr Chin's ledger, an entry on the debit side of the drawings account, followed by an entry on the credit side of the bank account means that Mr. Chin
puts money in the business' bank account
withdraws money from the bank for use in the business
uses money from his business' bank account for his personal use
withdraws money from his personal account for his personal use
A motor van was credited from A. G. Motors for use in the business. How should this be recorded?
Debit Motor Vehicle Account; Credit Bank Account
Debit Motor Van Expense Account; Credit Bank Account
Debit Purchases Account, Credit; A.G. Motors Account
Debit Motor Vehicle Account; Credit A.G. Motors Account
When a proprietor withdraws cash and other assets from a business, what effect does it have on drawings and capital?
Capital increases; Drawings decrease
Capital increases; drawings increase
Capital decreases; Drawings increase
Capital decreases; drawings decrease
A mechanic starts his business with $10 000 worth of tools. What entries should be made to record this transaction?
Dr. Capital A/c; Cr. Tools A/c
Dr. Tools A/c; Cr. Capital A/c
Dr. Bank A/c; Cr. Capital A/c
Dr. Capital A/c; Cr. Bank A/c
The trial balance is prepared by using balances from the
Ledger
Journal
Sales Book
Purchases Book
The ABC Company deposited a cheque for $300 received from Mr Murray. How should this transaction be recorded in ABC's books? I. Debit the Cash Account. II. Debit the Bank Account. III. Credit Murray’s Account. IV. Credit the Cash Book $300.
I and III only
I and IV only
II and III only
III and IV only
A sole trader uses his Trading Account to determine
surplus
net profit
gross profit
super profit
Which of the following lists of accounts is usually transferred to the Trading and Profit and Loss Account?
Rent, Premises, Drawings
Drawings, Rent, Purchases
Purchases, Furniture, Commission Received
Commission Received, Rent, Purchases
Item 24 refers to the data below which are taken from the records of a hardware store at the end of its fiscal year.
What is the gross profit of the hardware store?
$25 625
$31 645
$33 215
$34 023
Item 25 refers to the following information from a sole trader for the month of April.
Using the FIFO method, closing stock would be valued at
$1 800
$2 250
$2 400
$4 000
Item 26 refers to a Trader's Balance Sheet which shows the following balances.
What is this trader's acid test ratio?
1:2
2:1
1:2.6
2.6:1
In preparing its final accounts, a business omitted Returns Inwards. This omission will affect
I and II only
I and III only
II and IV only
III and IV only
On 1 January 2012, $10 000 was paid towards an advertising campaign. Of this amount, $7000 was used by 31 December 2012.
What was the amount of advertising prepaid at year's end?
$ 3 000
$ 7 000
$10 000
$17 000
Item 29 refers to the following information related to provision for bad debts at the end of 2012.
| Period of Debt | Amount of Bad Debt | Provision for Bad Debts |
|---|---|---|
| Over 3 years | $6 000 | 3% of Debtors |
| 1 to 2 yers | $4 000 | 2% of Debtors |
| Under 1 year | $8 000 | 1% of Debtors |
What is the TOTAL provision for bad debts for the year 2012?
$180
$340
$400
$500
A business' annual rent is $6 000. The business paid $5 000 during the present year and recorded $5 000 in its income statement. Which accounting concept was breached?
Accruals
Prudence
Consistency
Separate entity
To which account should depreciation of office machines be transferred?
Trading
Manufacturing
Profit and Loss
Appropriation
Control accounts are kept in order to assist management in
locating errors
increasing profits
limiting drawings
limiting expenditure
Item 33 refers to the following information. On 31 January, the cash book and a bank statement revealed the following:
Unpresented cheques Cash book balance on 31 Janu- ary Bank charges not yet entered in cash book Deposits not credited on Bank Statements for the period end- ing 31 January $ 350 680 25 210
The balance on the bank statement will be
$745
$795
$820
$845
The net profit of a firm was shown as $1 600 and it was later discovered that discounts received were undercast by $10 and purchases were understated by $36. What is the correct net profit?
$1 574
$1 610
$1 636
$1 646
Under which of the following conditions would a trial balance still balance? I. A debit entry was left out. II. A transaction was completely left out. III. Both a debit and a credit entry were overstated by the same amount. IV. Both a debit and a credit entry were understated by the same amount.
I, II and III only
I, II and IV only
I, III and IV only
II, III and IV only
Item 36 refers to the following information taken from the accounts of T. Morris.
Sales Gross Profit $9 000 45%
What is the gross profit?
$4 000
$4 050
$4 950
$9 000
A trader had an opening capital of $3 900. If his drawings were $900 and his closing capital was $4 860, what was his net profit?
$ 900
$ 960
$1 860
$3 000
Items 38-39 refer to the following Balance Sheet information provided for a firm as at 1 January 2012. 2012 Bank $ 3.000 $ 1 January Debtors (I) Stock 1 000 Creditors 500 (II) 5 500
What sum of money is represented by I?
$1 000
$2 000
$3 000
$6 000
Which of the following accounts is represented by II?
Loan
Cash
Capital
Liability
When writing up the books of a partnership, which account must EACH partner have?
Bank
Current
Savings
Fixed deposit
Martin is in a partnership. On 1 January, his current account showed a balance of $2 500. During the year he withdrew $4 000. At the end of the year, Martin received $2 000 as his share of profits from the partnership.
In the balance sheet, Martin's current account would reflect a
$ 500 debit
$ 500 credit
$8 500 debit
$8 500 credit
The total capital in a partnership is $30 000. Rose contributed $7 000 in cash and a vehicle worth $3 000. Rose's contribution to the partnership would be recorded in the journal as
Cash Rose's capital 10 000 10 000
Rose's capital Cash 7 000 7000
Cash Motor Van Rose's capital 7000 3 000 10 000
Rose's capital Motor van Cash 10 000 3 000 7000
The partners share profit and loss in the proportion of their capital. What is Z's share of the profit of $7 200?
$800
$1 200
$1 800
$2 400
R & H. Winsome have combined their interests into a partnership. If interest on capital was agreed at 5%, what is the total amount of interest on capital earned by the partners?
$1 500
$2 500
$3 000
$4 500
When a company declares a dividend of 15%, the dividend warrant sent to the shareholder who owns 1 500 one dollar ordinary shares is
$100
$225
$1 500
$1 515
In an effort to raise capital, a company offered 200 five per cent (5%) debentures at $100 each for subscription. Five per cent (5%) is an indication that the company will
increase its capital by 5%
receive 5% of $20 000 as capital
pay 5% of $20 000 in interest to the debenture holders
receive 5% of $20 000 in interest from the debenture holder
The issue was fully subscribed. How much capital did the company raise?
$30 000
$40 000
$50 000
$90 000
The reward of profit received by a shareholder in a limited company is called
interest
drawings
dividend
commission
A business receives $5 000 for rent and deposits this amount into its bank account. How will this transaction be recorded?
Dr. bank $5 000; Cr. rent $5 000
Dr. rent $5 000; Cr. bank $5 000
Dr. cash $5 000; Cr. rent $5 000
Dr. rent $5 000; Cr. expense $5 000
Payments made to the committee members in a co-operative are known as
salary
honorarium
commission
director's remuneration
Which of the following is an example of revenue expenditure for a Sports Club?
Rental of playing field
Coach's wages refunded
Payments by club members
Purchase of a van for transporting members
Charity-Is-We, a non-trading organization, hired an accountant to prepare a statement showing its expenses and revenues. The statement to be prepared is called the
profit and loss
revenue and capital
receipt and payment
income and expenditure
Item 53 refers to the following information provided by Kay and Friends.
What is the bank balance in the Receipts and Payments Account for the year ended 31 July 2012?
$ 900
$1 600
$2 850
$3 550
Item 54 refers to the table below which shows balances of the asset accounts of the Bayroe Club as at 30 June 2012.
The amount of its accumulated fund was
$1 640
$4 497
$8 185
$9 897
P. Hawk has a manufacturing business. The cost of his raw materials was $1900. Rates and rent total $2 000, and factory wages amounted to $2 500.
The number of units produced is 640. What was the cost of ONE unit?
$4
$6
$10
$13
From the above information, what is the cost of goods manufactured?
$ 7000
$ 8000
$ 9000
$11 000
In a manufacturing concern, production cost is equal to
administrative expenses + factory overhead expenses
total cost + selling and distribution expenses
prime cost + factory overhead expenses
prime cost + administrative expenses
S & B Limited's net income for the year was $89 000. Of this amount, $8 000 was transferred to general reserve, preference dividend paid was $2 400 and ordinary dividend proposed was $6 500. The value of the retained profits for the year was
$72 100
$80 100
$81 000
$89 000
Which of the following are considered to be statutory deductions, when preparing employees' earnings records?
I. Pension II. Income Tax III. National Insurance
I and II only
I and III only
II and III only
I, II and III
P. Amos is paid at the rate of $7 per hour for a basic 40 hour week. During the week of 6 April 2012, he worked a basic week of 40 hours. The income tax due on his pay is $20, and social security contribution is 5% of his gross pay. What is his net pay?
$246
$260
$266
$280