8.
What is the TOTAL amount for the assets?
- (A)
$12,000
- (B)
$13,000
- (C)
$14,000
- (D)
$15,000
Free CXC Principles of Accounts Paper 1 January 2022 past paper from 2022. Includes a worked answer key. Open the PDF, take a timed test, and study with AI on Caribbean AI.
Answer keys are free on Caribbean AI. View the answers to every past-paper question at no cost - no payment needed - with step-by-step worked solutions and instant AI marking available on Premium.
CSEC Principles of Accounts Paper 1 January 2022 - Free CXC Past Paper with Answers
Free CXC Principles of Accounts Paper 1 January 2022 past paper from 2022. Includes a worked answer key. Open the PDF, take a timed test, and study with AI on Caribbean AI.
Opening the interactive papers…
Every question from this paper as text. See the answers and worked solutions. Questions are the property of the Caribbean Examinations Council; Caribbean AI is not affiliated with CXC.
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
The MAIN internal users of accounting information are
managers
competitors
local communities
government agencies
Which of the following terms describes the exchange of goods and services?
Journal
Transaction
Trial balance
Statement of financial position
Which of the following list of activities shows the correct order of the stages in the accounting cycle, before final accounts?
Posting to ledger, trial balance, journalizing
Journalizing, trial balance, posting to ledger
Journalizing, posting to ledger, trial balance
Posting to ledger, journalizing, trial balance
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
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
Which of the following is usually used to complete a general journal entry?
Narration
Description of assets
Description of liabilities
Identity book to post entry
What is the TOTAL amount for the assets?
$12,000
$13,000
$14,000
$15,000
The cash book is BEST used for recording
inventory sold for cash
inventory returned for cash
inventory purchased for cash
cash receipts and cash payments
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
What is the cost of ONE unit?
$4
$6
$10
$13
The value of the non-current assets is
$9 000
$20 000
$42 000
$51 000
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 this have on drawings or capital?
Capital is increased.
Capital is decreased.
Drawings are decreased.
Neither drawings nor capital is affected
When a trial balance fails to agree, the difference is entered in the
control account
reserve account
suspense account
provision account
A motor van was credited from AG Motors for use in a business. How should this be recorded?
Debit motor vehicle Credit bank
Debit motor van expense Credit bank
Debit purchases Credit AG Motors
Debit motor vehicle Credit AG Motors
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 income statement?
$340
$220
$120
$100
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
the incorrect transactions were entered on the credit side
Accrued revenue is classified in the statement of financial position as
capital
current assets
current liabilities
non-current assets
A businessman bought a new computer for $6 000. He paid $4 000 in cash and traded in his old computer. What is the entry to record this transaction?
Item 22 refers to the following summary of receipts and payments for the month of March for an NGO
Which of the following amounts is the cash balance at 31 March?
$180
$280
$320
$520
Which of the following documents acknowledges a loan to a company at a fixed rate of interest?
Debenture
Licence
Flyer
Stock
A business receives $5 000 for rent revenue and deposits this amount into its bank account. How will this transaction be recorded?
Debit bank $5 000 Credit rent revenue $5 000
Debit rent revenue $5 000 Credit rent expense $5 000
Debit cash $5 000 Credit rent revenue $5 000
Debit rent $5 000 Credit bank $5 000
Which of the following accounts BEST describe the final accounts of a non-trading organization? I. Receipts and payments II. Income and expenditure III. Income statement
I and II only
I and III only
II and III only
I, II and III
In calculating the gross profit percentage, gross profit should be divided by
cost of goods sold
net purchases
net profit
net sales
Mahera Grocery used the 'order of permanence' method to prepare its statement of financial position. Which of the following lists is in the correct sequence, based on this method?
Land, building, machinery, motor vehicle
Building, machinery, motor vehicle, land
Building, motor vehicle, land, machinery
Land, building, motor vehicle, machinery
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 Period of Debt Accounts Receivable Provision for Bad Debts Over 3 vears $6.000 3º of accounts receivable Over 2 vears $4000 2° of accounts receivable Over 1 year $8000 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
S 810
$ 900
$1 190
A public limited company issued a prospectus offering the shares described in the following table for sale at par value. The issue was fully subscribed. How much capital did the company raise?
$ 40 000
$.45 000
$400 000
$450 000
Which of the following entries should be made to create an allowance for doubtful debts account?
Debit profit and loss Credit provision for doubtful debts
Debit provision for doubtful debts Credit profit and loss
Debit profit and loss Credit bad debts
Debit bad debts Credit provision for doubtful debts
What conclusion could be drawn from the appropriation account above? I. The company is engaged in profitable enterprise. II. The company is not doing too well. III. More dividends can be given to the ordinary shareholders.
I only
II only
I and III only
II and III only
The owner of a business does not keep proper accounting records but she knows her capital on 1 January was $40 000 and $85 000 on 31 December. She withdrew $1 000 in inventory during the year. What is her profit for the year?
$ 5 000
$ 46 000
$125 000
$126 000
What is the balance per bank statement?
$120
$150
$340
$530
The working capital of A. Young and Sons is $15 500 and current assets is $16 500. What is the total current liabilities?
$1 000
$15 500
$16 500
$32 000
Mrs Allen invested $20 000 and Mrs Brown and Mr Cable invested $5 000 each into 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 Allen, Brown and Cable respectively. How much of the loss must be borne by Mr Cable?
$140
$200
$300
$400
Item 38 refers to the following information.
<table border="1"> <tr> <td></td> <td>\$</td> </tr> <tr> <td>Inventory at 1 January 2020</td> <td>1 500</td> </tr> <tr> <td>Purchases during the month</td> <td>1 200</td> </tr> <tr> <td>Cost of goods sold</td> <td>1 400</td> </tr> </table>What is the inventory at the end of January?
$ 300
$ 500
$ 700
$1 300
A company declares a dividend of 15%. What is the value of the dividend warrant sent to the shareholder who owns 1500 $1 ordinary shares?
$ 100
$ 225
$1 500
$1 515
Rose contributed $7 000 in cash and a motor vehicle worth $3 000 to a partnership. Rose's contribution to the partnership would be recorded in the journal as
On 2 March 2017, L Lan bought goods worth $630.00 on credit. 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 2017?
$595.00
$598.88
$611.10
$630.00
Item 42 refers to the following balances extracted from Mrs Martin's ledger S Opening inventory 7 000 Purchases 4 000 Sales 10 000 Sundry expenses 1 100 Closing inventory 3 400
What was the cost of goods sold by Mrs Martin?
$2 400
$2 600
$6 400
$7 600
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
In preparing its final accounts, a business omitted to include returns inwards. Which of the following items will be affected by this omission? I Net sales II Net purchases III Gross profit loss
I and II only
I and III only
II and III only
I, II and III
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?
Capital
Current assets
Current liabilities
Non-current assets
An article is subject to a 20% trade discount. Its list price is $600. What is its sale price?
$120
$480
$580
$720
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
Andy Williams is a petty cashier If he has a float of $200 and spends $180, how much should he be reimbursed at the end of the period?
$20
$180
$200
$380
Item 49 refers to the following list of balances.
| Account | $ |
|---|---|
| Cash at bank and in hand | 5 000 |
| Trade receivables | 2 400 |
| Inventory in hand | 4 600 |
| Accrued expenses | 700 |
| Trade payables | 4 800 |
From the information above, the working capital amount is
$5000
$6500
$7200
$11300
Item 50 refers to the information for Jessie Ltd
| Account | $ |
|---|---|
| Prime costs | 20 000 |
| Factory overheads | 15 000 |
| Opening work in progress | 5 000 |
| Closing work in progress | 3 000 |
| Opening stock of finished goods | 1 000 |
| Closing stock of finished goods | 2 000 |
What is the cost of production for Jessie Ltd?
$33 000
$36 000
$37 000
$38 000
Item 51 refers to the following information.
Bank Account Balance b/d 20000 Purchases 15 000 Sales 2000 Balance c/d ?
What is the closing balance of the bank account?
$2 000
$3 000
$5 000
$7 000
If revenue expenditure is overstated, which of the following items will be affected?
Sales
Surplus
Inventory
Working capital
The total of the return outwards journal is transferred to the
debit side of the purchases account
credit side of the purchases account
debit side of the return outwards account
credit side of the return outwards account
Item 54 refers to the following information J. Baynes Manufacturing Account for the Period Ended 31 December 2017 S S Inventory of raw materials 1 January 2017 800 Purchases of raw materials during year 4500 Balance carried forward 6 800 5 300 Less closing inventory of raw materials 31 December 2017 1400 3900 Productive wages 1300 Fuel and power 900 Lubricants Rent and rates Insurance 100 400 200 6800 6 800
What is the cost of the raw materials consumed?
$800
$1 200
$3 900
$4 500
Item 55 refers to the following information for KD Ltd. Opening capital $3.000 Drawings $ 500 Net loss $1 500
What is the closing capital of KD Ltd?
$1 000
$2000
$4.000
$5.000
A. Portap bought inventory for $500 on credit. In which book of prime entry will this be recorded?
Cash book
Sales journal
General journal
Purchases journal
Karen and Garth, partners in a business. share profits and losses in the ratio 2.1. What is their respective share if the business makes a net profit of $3 600?
Karen $2 400 Garth $1 200
Karen $1 800: Garth $1 800
Karen $1 200: Garth $2 400
Karen $1 200: Garth $1 200
What is the charity's closing bank balance at the end of the year?
$9000
$11000
$12000
$13.000
Using the list of balances above, what is the cost of goods produced?
$ 8000
$ 8700
$ 11 100
$11 200
Inventory was purchased from M. Smith on credit for $2400 but posted to N. Smith's account. The item would be corrected in the journal as follows:
Debit M. Smith $2 400 Credit Purchases $2 400
Debit M Smith $2 400 Credit N. Smith $2 400
Debit Purchases $2 400 Credit M. Smith $2400
Debit N. Smith $2 400 Credit M. Smith $2 400