CSEC Principles of Accounts Paper 1 May/June 2021 - Free CXC Past Paper with Answers

Ms Hoyte, a grocer, bought a computer on credit from Tan Company. In Ms Hoyte's books, which of the following journal entries would be made for this transaction?

During the year, a company bought stationery for $220 and used $120 worth of it. What figure would be posted to the profit and loss account to represent the expenditure for stationery?

The acid test ratio indicates

Which of the following items are examples of current liabilities? I. Mortgages II. Accounts payable III. Accrued wages

The current ratio of the business (rounded to 2 decimal places) is

Merill Industries operates on a 40-hour work shift per week. Overtime is paid at time and a half. Employees are paid $50 an hour. What is the gross pay of an employee who worked for 49 hours for the week?

Which of the following accounts are usually transferred to the income statement?

Which of the following items is/are a capital expenditure?

What amount would be recorded in the provision for doubtful debts account at year end?

K. Khan, a debtor of A and B Enterprises, settles his debt of $120 less 2½% discount, by cheque. How should the double entry be recorded in the books of A and B Enterprises?

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

Control accounts are kept in order to assist management in

What sum of money is represented by I?

Which of the following accounts is represented by II?

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?

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?

Which of the following accounts are nominal?

Which of the following features is associated with private limited companies?

In calculating the gross profit percentage, gross profit should be divided by

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?

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

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?

Which of the following will result when opening inventories of raw materials are added to net purchases of raw materials?

The TOTAL income tax to be deducted from Tarisha Ali's salary is

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

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

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

Which of the following entries in a three-column cash book are contra entries?

What is the balance per bank statement?

The amount of the club's accumulated fund was

Which of the following are a long-term liability?

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

What is the inventory at the end of January?

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?

A photocopying machine valued at $5 000 is depreciated at 10% using the straight line method. What is its book value after TWO years?

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?

Which of the following is a book of prime entry?

Which of the following financial documents shows the net earnings of a business?

A sole trader uses his trading account to determine

In order to avoid writing numerous cheques for small amounts, a firm may set up a

Which of the following states the correct order of the stages in the accounting cycle, before final accounts?

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 the books of a partnership, the salaries of the partners should be

What was the capital of Foster and Scott Limited at 6 March 2020?

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

The net profit of a firm was shown as $1 600. It was later discovered that discounts received were undercast by $10 and purchases were understated by $36. What is the correct net profit?

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?

What was the capital at 1 January 2021?

Mr Green 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?

Using the FIFO method, what is the value of ending inventory?

Using the AVCO method, what is the value of ending inventory?

To which account should depreciation of office machines be transferred?

Which of the following accounting entries should be made if goods are sold on credit?

Which of the following may be used to calculate the cost of production?

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?

What is the net profit percentage (to the nearest whole number)?

When a company declares a dividend of 15%, the dividend warrant of a shareholder owning 1 500 one-dollar ordinary shares is

Prime cost is $79 110, office expenses $3 000 and factory overheads $4 720. How much is the cost of production?