Free CXC Principles of Accounts Paper 1 May/June 2019 past paper from 2019. 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 2019 - Free CXC Past Paper with Answers
Free CXC Principles of Accounts Paper 1 May/June 2019 past paper from 2019. Includes a worked answer key. Open the PDF, take a timed test, and study with AI on Caribbean AI.
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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
A company's rent expense account had an opening debit balance of $2 000. During the year $6 000 was paid for rent. At the end of the year there was a closing debit balance of $1 500 in the account.
What was the rent expense recorded for the year?
$6 000
$6 500
$7 500
$9 500
In a partnership, which of the following transactions is compulsory?
Paying of salaries
Interest on capital
Interest on drawings
Sharing of profits or losses
Which of the following terms describes the exchange of goods and services?
Journal
Transaction
Balance Sheet
Trial Balance
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.
Which of the following items are examples of current liabilities?
I. Mortgages II. Accounts payable III. Accrued wages
I and II only
I and III only
II and III only
I, II and III
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
The purpose of electronic clock cards is to record
employees' skills
employees' attendance
jobs done by employees
deductions from employees' wages
The cash book is BEST used for recording
goods sold for cash
goods returned for cash
goods purchased for cash
cash receipts and cash payments
Item 10 refers to the following data which pertain to Tarisha Ali, an employee of a bank. Monthly salary $3 500 Overtime $ 800 Income Tax Rate: 25% on every dollar above $2000 of monthly salary 30% on overtime earned
The TOTAL income tax to be deducted from Tarisha Ali is
$ 615
$ 740
$ 875
$1 075
A businessman offers a discount for prompt payment for goods purchased. Under which column in his three-column cash book would this discount be entered?
Bank
Cash
Discount allowed
Discount received
Item 12 refers to the following information which relates to Jim's salary. S Net pay 1900 Tax 150 Overtime pay 400 Union dues 125 Pension plan 25
What is the sum of money Jim receives as his gross salary?
$2 000
$2 200
$2 300
$2 400
P. Hawk has a manufacturing business. The cost of his raw materials is $1 900. Rates and rent total $2 000, and factory wages amount to $2 500. The number of units produced is 640. What is the cost of ONE unit?
$4
$6
$10
$13
Control accounts are kept in order to assist management in
locating errors
increasing profits
limiting drawings
limiting expenditure
The balance of an accounts payable account is entered in the Balance Sheet under the heading
capital
fixed assets
current assets
current liabilities
How does an increase in bad debts affect a sole trader's financial statements?
Increases the net profit
Decreases the net profit
Increases the gross profit
Decreases the gross profit
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
Mr Abel and Mrs Blue purchased goods on credit valued at $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 total in Mr Kane's Sales Account?
$ 125
$ 425
$ 675
$1 175
Which of the following accounts are nominal?
Wages and Rent
Stock and Debtors
Machinery and Plant
Creditors and Fixtures
When a proprietor withdraws cash or other assets from a business, what effect does it have on drawings or capital?
Capital is increased.
Capital is decreased.
Drawings are decreased.
Neither drawings nor capital is affected.
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?
Credit the bank account with $25.
Debit the bank account with $25.
Add $25 to the bank statement balance.
Subtract $25 from the bank statement balance.
The Trial Balance is prepared by using balances from the
Ledger
Journal
Sales Book
Purchases Book
What does the $529 800 represent?
Total purchases
Cost of sales
Total sales
Gross profit
Mrs Smith does not keep proper records. She began her business with $10 000 in its bank account. She uses her vehicle and building worth $6 000 and $15 000 respectively as part of her business. Customers owe her $4 000. She 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
The working capital of A. Young and Sons is $15 500. The total amount of current assets is $16 500. What is the total amount of current liabilities?
$ 1 000
$15 500
$16 500
$32 000
Items 26-27 refer to the following table which shows a trader's operation at the end of the trading period.
| $83 868 | Inventory at start | $ 9 850 | |
|---|---|---|---|
| Sales | $ 1 570 | Inventory at close | $11 075 |
| Sales returns | $ 911 | Purchases | $52 640 |
| Discounts allowed | Purchases returns | $ 762 |
What is the cost of goods sold?
$49 742
$50 653
$51 415
$53 103
What is the gross profit?
$31 645
$33 215
$34 023
$80 025
When a Trial Balance fails to agree, the difference is entered in the
Control account
Reserve account
Provision account
Suspense account
Which of the following items are NOT recorded in the Appropriation Account?
I. Interest on loans from partners II. Interest on capital III. Withdrawals by partners
I and II only
I and III only
II and III only
I, II and III
Which of the following accounts shows how profits and losses are shared among partners?
Current
Appropriation
Profit and Loss
Income and Expenditure
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 and Loss Account?
$340
$220
$120
$100
A motor van was credited from AG Motors for use in a 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 AG Motors Account
Debit Motor Vehicle Account; Credit AG Motors Account
Which of the following are a long-term liability?
Creditors
Debentures
Accrued wages
Bank overdrafts
Cash sales were not entered in any books of accounts. This is an error of
omission
principle
commission
complete reversal
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 total credit of the bank column of a three-column cash book is greater than the total debit. The MOST likely reason for this situation is that
there was an overdraft
transactions were omitted from the debit side
some figures were overstated on the credit side
incorrect transactions were entered on the credit side
What is the inventory at the end of January?
$ 300
$ 500
$ 700
$1 300
Andina Williams is a petty cashier. If she has a float of $200 and she spends $180, how much should she be reimbursed at the end of the period?
$ 20
$180
$200
$380
Which of the following is a book of prime entry?
Invoice
Balance Sheet
Sales Ledger
Sales Journal
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
A sole trader uses his Trading Account to determine
super profit
gross profit
net profit
surplus
What is the bank balance in the Receipts and Payments Account of Kay and Friends for the year ended 31 July 2018?
$ 900
$1 600
$2 850
$3 550
Which of the following states the correct order of the stages in the accounting cycle, before final Accounts?
Posting to ledger, journalizing, trial balance
Posting to ledger, trial balance, journalizing
Journalizing, trial balance, posting to ledger
Journalizing, posting to ledger, trial balance
Which of the following is the correct recording?
Cr Cash $10 000, Dr Capital $10 000
Dr Green & Brown Co. $10 000, Cr Bank $10 000 each
Dr Partnership Bank Account $10 000, Cr Partners' Current Accounts $5 000 each
Dr Partnership Bank Account $10 000, Cr Partners' Capital Accounts $5 000 each
What is the cash balance at 31 March?
$180
$280
$320
$620
S & B Limited's net income for the year was $89 000. Of this amount, $8 000 was transferred to the 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
A mechanic starts his business with $10000 worth of tools. What entries should he make to record this transaction?
Dr Bank Account, Cr Capital Account.
Dr Capital Account, Cr Bank Account.
Dr Tools Account, Cr Capital Account
Dr Capital Account, Cr Tools Account.
When writing up the books of a partnership, which account must EACH partner have?
Bank
Current
Savings
Fixed deposit
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
$1190
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
An example of a capital expenditure is money spent for
paying rent
paying wages
purchasing goods
purchasing a new building
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
Item 53 refers to the following information.
What is the cost of raw materials available for production?
$ 800
$4 100
$4 500
$5 300
To which account should depreciation of office machines be transferred?
Trading
Manufacturing
Profit and Loss
Appropriation
The reward of profit received by a shareholder in a limited company is called
interest
drawings
dividend
commission
Which of the following may be used to calculate the cost of production?
Prime cost + factory overheads - opening work in progress + closing work in progress
Prime cost - factory overheads - opening work in progress + closing work in progress
Prime cost + factory overheads - opening work in progress - closing work in progress
Prime cost + factory overheads + opening work in progress - closing work in progress
Fisk Company's accountant has not recorded rent owing for the period. Fisk's accountant has violated the concept or rule of
accrual
prudence
consistency
separate entity
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
Which of the following is NOT considered a source document for the payroll?
Electronic timecard
Medical certificate
Attendance register
Clock card
Mr Amos is employed by a construction company at a rate of $7 per hour. During the week of 6 April 2018, 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 Mr Amos' net pay?
$246
$260
$266
$280