6.
The value of TOTAL fixed assets is
- (A)
$12 000
- (B)
$14 600
- (C)
$15 350
- (D)
$19 650
Free CXC Principles of Accounts Paper 1 May/June 2014 past paper from 2014. Includes a worked answer key. Open the PDF, take a timed test, and study with AI on Caribbean AI.
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CSEC Principles of Accounts Paper 1 May/June 2014 - Free CXC Past Paper with Answers
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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
The term 'Accounting' refers to the
use of information in making business decisions
use of special ways of recording business information
journalizing, posting and balancing of accounts in special books
recording, analyzing and interpreting of business information
Which of the following accounts are nominal?
Wages and Rent
Stock and Debtors
Machinery and Plant
Creditors and Fixtures
Amalgamated Components was a private company until it admitted additional shareholders by selling shares on the Stock Exchange. Amalgamated Components can now be described as a
Partnership
Statutory Corporation
Public Limited Company
Private Limited Company
The purchase of equipment on credit will affect a firm's balance sheet by
increasing assets and increasing liabilities
decreasing assets and increasing liabilities
increasing assets and decreasing liabilities
decreasing assets and decreasing liabilities
The value of TOTAL fixed assets is
$12 000
$14 600
$15 350
$19 650
What was the capital of Foster and Scott Limited at 06 March 2012?
$ 40 000
$ 90 000
$150 000
$190 000
A business which owns goods valued at $500, has a van valued at $1 000 and owes $50 for goods. If it sells out at these prices the owner's closing capital will be
$1 550
$1 500
$1 450
$1 050
Mr. Harry, a grocer, bought a computer on credit from Tan Company. Which of the following journal entries will be made for this transaction in Mr. Harry's books?
Dr Purchases Account Cr Tan Account
Dr Computer Account Cr Cash
Dr Tan Account Cr Purchases Account
Dr Computer Account Cr Tan Company
In order to avoid writing numerous cheques for small amounts, a firm may set up a
general ledger
general journal
petty cash fund
standing order with a bank
Kim Smith purchases goods on credit valued at $500. She pays off her bill within the grace period and so receives a 10% cash discount. How much does she pay for the goods?
$ 50
$450
$490
$550
From the information above, what is the correct closing total for the Sales Account?
$47 000
$49 000
$55 000
$59 000
Which of the following would NOT appear in a cash book?
Payment for goods $100
Goods sold on credit $100
Goods sold for cheque $100
Goods bought for cash $100
On 01 May, a petty cashier received an imprest of $150. During the month, petty cash expenditures amounted to $77, and $2 was received from a member of staff who made a personal telephone call. How much cash is needed to restore the imprest on 31 May?
$73
$75
$77
$150
When a proprietor withdraws cash or other assets from a business, what effect does it have on drawings or capital?
Capital is decreased.
Capital is increased.
Drawings are decreased.
Neither drawings nor capital is affected.
Mr Ram, a shoemaker, bought a motor van for $11 000 cash. In recording this transaction he should
Dr Cash; Cr Motor Van Account
Dr Cash; Cr Purchases Account
Cr Cash; Dr Purchases Account
Cr Cash; Dr Motor Van account
K. Khan, a debtor of A and B Enterprises, settles her debt of $120 less discount, by cheque. The double entry in the books of A and B Enterprises should be
Dr K. Khan $117 Dr Discount Received $ 3 Cr Bank $120
Dr K. Khan $117 Dr Discount Allowed $ 3 Cr Bank $120
Dr Bank $117 Dr Discount Allowed $ 3 Cr K. Khan $120
Dr Bank $117 Cr Discount Received $ 3 Cr K. Khan $120
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.
I and II only
I and III only
II and III only
I, II and III
Which of the following is NOT a nominal account?
Furniture
Commission
Carriage Inwards
Discount Allowed
Which of the following accounts are usually transferred to the Trading and Profit and Loss Account?
Rent, Premises, Drawings
Drawings, Rent, Purchases
Commission Received, Rent, Purchases
Purchases, Furniture, Commission Received
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
the bank puts money into Mr Chin's personal account
Mr Chin withdraws money from the bank for use in the business
Mr Chin uses money from his business' bank account for his personal use
Item 22 refers to the balances below which were extracted from Mrs Martin's ledger.
Opening stock Purchases Sales Sundry expenses Closing stock $ 7 000 4 000 11 000 1 100 3 400
What was the cost of goods sold by Mrs Martin?
$2 400
$2 600
$6 400
$7 600
Item 23 refers to the following balances at the end of a financial period. These were from the books of J. Sammy, a sole trader.
Land Building Stock Debtors Bank overdraft Creditors Cash Capital (at start) Drawings Net Profit $ 7 000 5 000 1 100 500 400 700 200 10 000 300 3 000
The current ratio of the business (rounded to 2 decimal places) is
1.45 : 1
1.64 : 1
2.57 : 1
3.14 : 1
The formula for working capital is
current assets less current liabilities
fixed assets less current liabilities
fixed assets less current assets
total assets less total liabilities
Item 25 refers to the following information.
A calculation to determine gross profit percentage is as follows:
$185 530 / $529 800 × 100 / 1 = 35.02%
What does the amount $529 800 represent?
Total sales
Gross profit
Cost of sales
Total purchases
Items 26-27 refer to the following information supplied by a sole trader.
Amaris One Stop Shop $ Net sales 30 000 Rent expense 3 000 Discount received 2 000 Gross profit 12 000 Discount allowed 4 000
What is the Gross Profit Percentage (to the nearest whole number)?
13%
20%
27%
40%
What is the Net Profit Percentage (to the nearest whole number)?
10%
17%
23%
37%
During the year, a company bought stationery for $220 and used $120 worth of it. What is the expenditure for stationery that would be posted to the Profit & Loss Account?
$100
$120
$220
$340
An asset purchased for $1 000 depreciates at the rate of 10% per annum using the reducing-balance method. What is the book value of the asset at the beginning of the third year?
$ 800
$ 810
$ 900
$1 190
B. Pascal, a sole trader, started the year owing $6 000. The business paid only $5000 for the year. The $5000 was recorded in the Trading and Profit and Loss Account. Which account concept was breached?
Accruals
Prudence
Consistency
Separate entity
Item 31 refers to the following table.
| Period of Debt | Amount of Accounts Receivable | Provision for Bad Debts |
|---|---|---|
| Over 3 years | $6 000 | 3% of Accounts Receivable |
| Over 2 years | $4 000 | 2% of Accounts Receivable |
| Over 1 year | $8 000 | 1% of Accounts Receivable |
What is the TOTAL provision for bad debts?
$180
$340
$400
$500
When a Trial Balance fails to agree, the difference is entered in the
Control Account
Provision Account
Reserve Account
Suspense Account
Control Accounts are kept in order to assist Management in
locating errors
increasing profits
limiting drawings
limiting expenditure
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 corrected net profit?
$1 574
$1 610
$1 636
$1 646
The inventory turnover ratio is 5 times. Average stock is $28 000. What is the cost of goods sold?
$ 5 600
$ 70 000
$140 000
$280 000
The capital at the start of a trading period was $20 000, and at the end of the period it was $22 500. The net profit for the period was $6 500. How much money was withdrawn for the period?
$2 500
$4 000
$6 000
$9 000
Mr Smith does not keep proper records. He began his business with $10 000 in its 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 $1 500 for personal use and owed creditors $2 000. What is the closing capital of the business?
$25 500
$28 500
$31 500
$33 000
In a partnership, which of the following transactions is compulsory?
Paying of salaries
Interest on capital
Interest on drawings
Sharing of profits or losses
What is the inventory at the end of January?
$ 300
$ 500
$ 700
$1 300
Tom, Percy and John formed a partnership and agreed that profits were to be shared in the ratio of 1:1:2 respectively. The net profit for the year was $18 900. What was John's share of the profit?
$ 4 725
$ 9 450
$14 175
$18 900
Which of the following items is NOT recorded in the Appropriation Account of a partnership?
Drawings
Salaries
Share of profits
Interest on capital
According to the terms of a partnership agreement, Partner A is to be credited with a salary of $5 000 per year. How will this be recorded in the books?
Dr Profit and Loss Account Cr Cash
Dr Appropriation Account Cr Partner's Current Account
Dr Partner's Current Account Cr Cash
Dr Partner's Current Account Cr Appropriation Account
Which of the following accounts shows how profits and losses are shared among partners?
Current
Appropriation
Profit and Loss
Income and Expenditure
According to the Partnership Act, if there is no Deed of Partnership, the amount of profit to be received by EACH partner would be
in equal shares
5% of net profit
5% on capital invested
in proportion to capital invested
The reward of profit received by a shareholder in a limited company is called
interest
drawings
dividend
commission
Which of the following features is associated with private limited companies?
Family owned
Shares not sold publicly
Financial statements published
Government agencies purchase shares
When a company declares a dividend of 15%, the dividend warrant sent to a shareholder who owns 1 500 ordinary $1 shares is
$ 100
$ 225
$1 500
$1 515
What is the TOTAL capital expenditure?
$ 6 000
$ 7 000
$ 8 000
$10 000
In a co-operative society, the daily affairs are administered by
the chairman of the board
a majority of shareholders
all members meeting together
persons elected or appointed to do so
What is the amount of Net Income or Loss for the period?
$ 7 000
$ 9 000
$11 000
$17 000
Which of the following accounts BEST describes the Final Accounts of a non-trading organization? I. Receipts and Payments II. Income and Expenditure III. Trading and Profit and Loss
I and II only
I and III only
II and III only
I, II and III
What is the cash balance at 31 March?
$ 180
$ 280
$ 320
$ 620
What is the bank balance in the Receipts and Payments Account for the year ended 31 July 2013?
$ 900
$1 600
$2 850
$3 550
The amount of the accumulated fund was
$1 640
$4 497
$8 185
$9 897
What is the Gross Profit?
$390 000
$500 000
$790 000
$800 000
What is the cost of goods produced?
$ 8 000
$ 8 700
$11 100
$11 200
What is the cost of the raw materials consumed?
$ 800
$1 200
$3 900
$4 500
How much should be credited to the Club's Income and Expenditure Account as TOTAL subscription for the year?
$1 500
$1 950
$2 500
$4 500
What is the gross pay for V. Jones?
$ 850
$ 950
$1 450
$1 550
Which of the following is NOT considered a source document for the payroll?
Clock card
Attendance register
Medical certificate
Electronic time card