CSEC Principles of Accounts Paper 1 May/June 2016 - Free CXC Past Paper with Answers

Which of the following accounts are nominal?

How would you classify land and buildings in a Balance Sheet?

Which group of assets below is recorded in the 'Order of Liquidity'?

The value of TOTAL fixed assets is

What was the capital of Foster and Scott Limited at 6 March 2015?

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

From the information above, Mr Jones' capital amount is

A firm sold 50 items at $80 each. Of these, 9 items were returned. Which of the following will the firm issue in respect of the items returned?

A trade discount may be described as an allowance given

From the information above, what is the correct closing total for the Sales Account?

Which of the following would NOT appear in a cash book?

On 12 January 2015, a merchant purchased goods amounting to $120 on the following terms: 5% cash discount if paid within 30 days. He settled his debt on 28 February 2015. How much did he pay?

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

On 2 March 2015 L. Lan bought goods on credit worth $630. He received a 3% trade discount on this amount. The invoice also stated 2% 20 days, net 30 days. How much would L. Lan pay for the goods if he pays on 8 March 2015?

When money is taken from cash and paid into a bank account, the recording is referred to as

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.

Which of the following is NOT a nominal account?

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

A mechanic starts his business with $10 000 worth of tools. What entries should be made to record this transaction?

Goods were sold on credit to John Brown. Which of the following is the correct double entry to record this transaction?

M. K. Trucking company received a cheque from Mrs Henry. How must this transaction be recorded in M. K. Trucking's books? I. Credit the Cash Book. II. Credit Mrs Henry's Account. III. Debit the Bank Account. IV. Debit Mrs Henry's Account.

What is the value of the inventory (stock)?

An increase in drawings will result in

What is the working capital?

If $2 000 worth of stock is sold on credit at cost, what would be the new working capital?

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?

A trader started with capital of $20 000 in the bank. If $12 000 of it was used to purchase building and plant, the balance of $8 000 would be

The formula for working capital is

What is the gross profit?

When a Trial Balance fails to agree, the difference is entered in the

How does an increase in bad debt affect a sole trader's financial statements?

A debt is considered a ‘bad debt’ if the debtor

What is the amount of insurance prepaid at the end of the year?

M. Brown wishes to increase his provision for bad debts from 8% to 10%. Accounts Receivable at the end of the year totalled $10 000, whilst the balance in the provision for bad debts account is presently $800. Which of the following would be the correct entries to record the provision for the year?

What is the balance per Bank Statement?

In a partnership, which of the following transactions is compulsory?

The amount to be shown as a set-off in the Debtors Ledger Control Account is

Which of the following items can be used to adjust the Cash Book balance before preparing a Bank Reconciliation Statement?

On 1 June, P. Shark, a sole proprietor, owed creditors $4 300. During the month he paid $13 100 by cheque and at the end of the month his balance owing was $2 700. Cash purchases for the month are $3 500. What is P. Shark's total purchases for the month?

Mr Jones' business began the month with an overdraft of $1 200. During the month, total deposits were $2 000 and total payments were $600. What was the Cash Book Balance at the end of the month?

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?

At the end of the year the capital of a business was $33 000. At the beginning of the year the capital was $28 000. During the year the owner withdrew $2 000 for personal use. What is his net profit for the year?

What is the inventory at the end of January?

The main reason why a sole proprietor may consider joining with one or more persons to form a partnership is

Mrs Louis invested $20 000, Mrs Monroe invested $5 000 and Mr Nanton invested $5 000 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 2:2:1 in favour of Louis, Monroe and Nanton respectively. How much of the loss must be borne by Mr Nanton?

A businessman incurred the following expenses.

What is his TOTAL capital expenditure?

Which of the following ratios are used to analyse the financial position of a partnership company?

I. Current ratio II. Acid test ratio III. Return on capital employed

A business with more than one owner records the division of profit in which of the following accounts?

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

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

What is the bank balance in the Receipts and Payments Account for the year ended 31 July 2015?

A company earned a net profit of $60 000 for the year ending 30 September 2015. Proposed dividends were: ordinary shares $10 000 and preference shares $15 000. The company decided to transfer $8 000 to a general reserve. The retained earnings on 30 September 2015 was

The Trading and Profit and Loss Account is used when a cooperative is

A business receives $5 000 for Rent Revenue and deposits this amount into its Bank account. How will this transaction be recorded?

What is the year's cost of production of finished goods?

P. Hawk has a manufacturing business. The cost of his raw materials was $1 900. Rates and rent totalled $2 000, and factory wages amounted to $2 500.

The number of units produced was 640. What was the cost of ONE unit?

Q. Baine is employed by a construction company at a rate of $7 per hour. During the week of 6 April 2015, 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 Q. Baine's net pay?

What is the gross pay for V. Jones?