5.
From the information above, Mr Jones' capital amount is
- (A)
$405
- (B)
$450
- (C)
$850
- (D)
$975
Free CXC Principles of Accounts Paper 1 January 2020 past paper from 2020. 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 January 2020 - Free CXC Past Paper with Answers
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Which of the following financial statements shows the value of a business' assets?
Balance sheet
Trading account
Cash flow statement
Profit and loss account
The MAIN internal users of accounting information are
managers
competitors
local communities
government agencies
Which of the following features 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
Which of the following lists of activities shows 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, posting to ledger, trial balance
Journalizing, trial balance, posting to ledger
From the information above, Mr Jones' capital amount is
$405
$450
$850
$975
Partnerships are formed for the purpose of I. combining capital from different persons II. benefiting from different skills and specializations III. sharing ideas, experience and responsibilities
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
Item 8 refers to the following balances at the end of a financial period. $ Motor vehicles 2000 Payables 3 000 Receivables 2000 Capital 11 000 Building 10 000
What is the TOTAL amount for the assets?
$12 000
$13 000
$14 000
$15 000
Ram Singh purchased goods valued at $500 on credit. He paid off his bill within the grace period and so received a 10% cash discount. How much did he pay for the goods?
$ 50
$450
$490
$550
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 entries in a three- column cash book are contra entries?
Debit cash, Credit bank
Debit cash, Credit cash
Credit cash, Credit bank
Debit bank, Credit bank
Item 12 refers to the following balances taken from the books of Sherida's Ltd on 30 April 2019. BALANCES Rent owing $ 200 Cash $3 500 Payables $1 200 Prepaid insurance $ 300 Bank overdraft $ 400
What is the current ratio of Sherida's Ltd?
1:1
1.5:1
2.1: 1
3.1:1
Which of the following entries should be used to post sales returns?
Debit sales returns account Credit the receivable account
Debit sales returns account Credit sales account
Debit sales account Credit sales returns account
Debit the receivable account Credit sales returns account
Which of the following persons monitor a company's financial statements, to discover a desirable rate of return on capital?
Investors
Suppliers
Customers
Employees
Item 15 refers to the following information from the books of a company.
| $ | |
|---|---|
| Cash sales | 10 000 |
| Credit sales | 45 000 |
| Inventory on hand | 40 000 |
| Drawings | 8 000 |
| Cash purchases | 12 000 |
| Credit purchases | 20 200 |
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 entries 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
K. Khan, a debtor of A and B Enterprises, settles his debt of $120 less discount, by cheque. How should the double entry be recorded in the books of A and B Enterprises?
Debit K. Khan $117 Debit discount received $ 3 Credit bank $120
Debit K. Khan $117 Debit discount allowed $ 3 Credit bank $120
Debit bank $117 Debit discount allowed $ 3 Credit K. Khan $120
Debit bank $117 Credit discount received $ 3 Credit K. Khan $120
Mr A. Jones paid $250 in cash for repairs to machinery. This transaction was entered in the cash book and posted to the ledger. The double entry involved would be
Debit cash account Credit repairs account
Debit cash account Credit machinery account
Debit repairs account Credit cash account
Debit A. Jones account Credit cash account
In order to avoid writing numerous cheques for small amounts, a firm may set up a
bank draft
petty cash fund
general journal
bank standing order
Item 20 refers to the following information from the sales book of R. Lewis. 2019 $ 2 Jan H. Rick 30 @$1.50 45 Less 33\frac{1}{3}% Trade discount 15 30
How would R. Lewis record this information in his ledger?
Debit H. Rick's account Credit sales account $45 $45
Debit H. Rick's account Credit sales day book $30 $30
Debit H. Rick's account Credit sales account $45 $30
Debit H. Rick's account Credit sales account $30 $30
A businessman bought a new computer for $6000. Hepaid $4000 in cash and traded in his old computer. What is the entry to record this transaction?
Debit old computer $2 000 Debit cash $4 000 Creditnew computer $6 000
Debit new computer $4 000 Debit cash $2 000 Credit old computer $6 000
Debit old computer $6 000 Debit cash $4 000 Credit new computer $2000
Debit new computer $6 000 Credit old computer $2 000 Credit cash $4 000
When a proprietor withdraws cash or other assets fiom 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.
Items 23-25 refer to the following Statement of Financial Position (Balance Sheet). $ $ $ $ Leasehold premises 10 000 Furniture, fittings and equipment 4 500 Capital at start Less loss for year 24 000 2 200 14 500 21 800 Less drawings 1 800 Inventory 2 500 20 000 Receivables 3 700 Bank current a/c 2 100 Creditors 2 100 Cash in hand 500 Accrued expenses 1 200 8 800 23 300 3 300 23 300
What is the total value of the fixed assets?
$11 200
$14 500
$20 000
$23 300
The closing capital is
$20 000
$20 700
$21 800
$22 800
The working capital is
$2 600
$5 500
$6 200
$6 800
In calculating the gross profit percentage, gross profit should be divided by
cost of goods sold
net purchases
net profit
net sales
Item 27 refers to the following information. Debit Insurance A/c Credit 2017 $ 2017 $ 2 January Balance b/d 700 31 December Profit & Loss A/c 8 100 15 January Bank 8 000 8 700 31 December Balance c/d 600 8 700
What is the amount of insurance prepaid at the end of the year?
$ 600
$ 700
$8 000
$8 100
Which of the following financial documents shows the net earnings of a business?
Income Statement
Appropriation Account
Statement of Financial Position
Receipts and Payments Account
Item 29 refers to the following table. Amount of Accounts Period of Debt Provision for Bad Debts Receivable 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 doubtful debts?
$180
$340
$400
$500
An asset purchased for $1 000 is depreciated 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
An increase in the provision for doubtful debts will be
added to sales in the trading account
subtracted from sales in the trading account
included as revenue in the profit and loss account
included as an expense in tho profit and loss account
Item 32 refers to the following table which shows the summarized position of Foster and Scott Limited at 6 March 2019.
| $ | |
|---|---|
| Current liabilities | 60 000 |
| Current assets | 100 000 |
| Non-current assets | 200 000 |
| Non-current liabilities | 150 000 |
What was the capital of Foster and Scott Limited at 6 March 2018?
$ 40 000
$ 90 000
$150 000
$190 000
Item 33 refers to the following information.
On 1 January 2019, $10 000 was paid towards an advertising campaign. Of this amount, $7 000 was used by 31 December 2019.
What was the amount of advertising prepaid at year's end?
$ 3 000
$ 7000
$10 000
$17 000
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.
Item 35 refers to the following information provided by a business.
| $ | |
|---|---|
| Total unpresented cheques | 120 |
| Lodgement not entered on bank statement | 150 |
| Balance per cash book | 560 |
What is the balance per bank statement?
$120
$150
$340
$530
Item 36 refers to the following information. $ Inventoryat 1 January 2019 1 500 Purchasesduringthemonth 1 200 Cost of goods sold 1 400
What is the inventory attbeend of January?
$ 300
$ 500
$ 700
$1 300
Mrs Allen invested $20000 and Mrs Brown and Mr Cable invested $5 000 each into the same business, The loss sustained during the yearwas $1000. 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 Allen, Brown and Cable respectively. How much of the loss must be borne by Mr Cable?
$140
$200
$300
$400
MrGreen and Mrs Black agreed to establish a partnership, Green and Black Co. and each of them deposited $5 000 into a bank account. How should this be recorded in the books of the partnership?
Credit cash $10 000 Debit capital $10 000
Debit Green and Black Co.$10 000 Credit bank $10 000 each
Debit partnership bank account $10 000 Credit partners' current accounts $5 000 cach
Debit partnership bank account $10 000 Credit partners' capital accounts $5 000 each
A trader had an opening capital of $3 900. If his drawings were $900 and his closing capital was $4860, what was the net profit?
$ 900
$ 960
$1 860
$3 000
Which of the following journal entries is correct?
Debit $10 000 Cash, Credit $10 000 Rose's capital
Debit $7 000 Rose's capital, Credit $7 000 Cash
Debit $7 000 Cash, Debit $3 000 Motor vehicle, Credit $10 000 Rose's capital
Debit $10 000 Rose's capital, Credit $3 000 Motor vehicle, Credit $7 000 Cash
In a cooperative society, the daily affairs are administered by
all members
a majority of shareholders
the chairman of the board only
persons elected or appointed to do so
The owner of a business paid a personal medical bill from the bank account of the business. The amount was debited to the miscellaneous expenses account. Which of the following concepts was violated?
Matching
Prudence
Consistency
Business entity
A photocopying machine valued at $5 000 is depreciated at 10% using the straight line method. What is its book value after TWO years?
$4 000
$4 050
$4 500
$4 980
According to the Partnership Act, if there is no Deed of Partnership, the amount of profit to be received by EACH partner would be
divided equally
calculated at 5% of net profit
calculated at 5% on capital invested
divided in proportion to capital invested
Which of the following items on a Statement of Financial Position would differ MOST in presentation when comparing the books of a company and the books of a sole trader?
Non-current assets
Current liabilities
Current assets
Capital
The reward of profit received by a shareholder in a limited company is called
interest
drawings
dividends
commission
How does an increase in bad debts affect a sole trader's financial statements?
Decreases the gross profit
Increases the gross profit
Decreases the net profit
Increases the net profit
Which of the following accounts are nominal?
Wages and Rent
Machinery and Plant
Payables and Fixtures
Inventory and Receivables
Which of the following terms BEST describes the final accounts of a non-profit organization?
I. Income Statement II. Receipts and Payments Account III. Statement of Financial Position
I and II only
I and III only
II and III only
I, II and III
An example of a capital expenditure is money spent for
paying rent
paying wages
purchasing goods
purchasing a new building
The purpose of an appropriation account is to
show how the net profit is distributed in a partnership or co-operative
change capital expenditure as agreed upon in the Articles of Association
enter all capital and revenue expenditure as stipulated in the Partnership Act
make appropriate changes related to net profit as agreed upon in the Articles of Association
If revenue expenditure is overstated, which of the following items will be affected?
Sales
Surplus
Inventory
Working capital
When writing up the books of a partnership, which account must EACH partner have?
Bank
Current
Savings
Fixed deposit
What is the cost of the raw materials consumed?
$800
$1 200
$3 900
$4 500
Item 55 refers to the following table which shows balances of the asset accounts of the Bayroe Club as at 30 June 2019. Assets $ Premises 5 400 Equipment 1 825 Furniture 960 Bank and cash 1 640 Inventory and refreshments 72
The amount of the club's accumulated fund was
$1 640
$4 497
$8 185
$9 897
Salaries paid to the administrative staff in a factory would be classified as which of the following types of cost?
Manufacturing
Indirect
Direct
Prime
When a company declares a dividend of 15% the dividend warrant of a shareholder owning 1500 one-dollar ordinary shares is
$100
$225
$1 500
$1 515
Prime cost is $79 110, office expenses $3 000 and factory overheads $4720. How much is the cost of production?
$4720
$74 390
$83 830
$86 830
Item 59 refers to the following list of balances.
| $ | |
|---|---|
| Work in progress 1 January | 1 600 |
| Work in progress 31 December | 1 700 |
| Cost of materials used | 3 000 |
| Indirect expenses | 3 200 |
| Factory wages | 5 000 |
Using the list of balances above, what is the cost of goods produced?
$ 8 000
$ 8 700
$ 11 100
$ 11 200
P. Amos is employed by a construction company at a rate of $7 per hour. During a week, he worked his basic week of 40 hours. The income tax due on his pay is $20, and he is also liable to pay national insurance contributions of 5% of his gross pay. What is his net pay?
$246
$260
$266
$280