Free CXC Principles of Accounts Paper 2 May/June 2008 past paper from 2008. 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 2 May/June 2008 - Free CXC Past Paper with Answers
Free CXC Principles of Accounts Paper 2 May/June 2008 past paper from 2008. Includes a worked answer key. Open the PDF, take a timed test, and study with AI on Caribbean AI.
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The following balances remained on the Trial Balance of Alvin Preston, a wholesaler, AFTER the preparation of the Trading Account on December 31, 2007:
| Debit $ | Credit $ | |
|---|---|---|
| Gross profit | 19 500 | |
| Accumulated depreciation on motor vehicles | 7 200 | |
| Capital (January 1, 2007) | 4 200 | |
| Creditors | 5 000 | |
| Cash at bank | 100 | |
| Debtors | 8 350 | |
| Drawings | 5 500 | |
| Office expenses | 6 300 | |
| Provision for bad debts | 300 | |
| Rates | 750 | |
| Closing inventory (Stock) | 3 000 | |
| Motor vehicles at cost | 12 500 | |
| 36 500 | 36 500 |
Additional notes:
[20 marks]
Prepare Alvin Preston's Profit and Loss Account for the year ended December 31, 2007.
[8 marks]
Prepare Alvin Preston's classified Balance Sheet in vertical style, as at December 31, 2007.
[12 marks]
The following cash transactions were made by A. Khan for the month of March:
| March 1 | Overdrawn balance at Bank $700. Cash balance $300. |
|---|---|
| March 2 | Cash sales amounted to $550. Paid T. Ali by cheque amount owing of $700 less 5% cash discount. |
| March 5 | Paid sundry expenses of $120 by cash. |
| March 8 | Received cheque for $1 800 from P. Shivers after he had deducted 3% cash discount to which he was entitled. Cashed cheque of $1 000 for office use. |
| March 12 | Received a cheque for $680 from S. Thompson in full settlement for goods sold valued at $700. |
| March 16 | Cash sales amounted to $400. Wages of $800 paid by cash. |
| March 20 | Cash of $1 000 paid into the bank. |
| March 27 | Cheque of $500 drawn for personal use. |
[20 marks]
Write up the Three Column Cash Book of A. Khan. Balance the cash book and bring down the balances.
[14 marks]
On April 2, 2007, A. Khan received a bank statement from his bank for the month of March which showed an overdrawn balance of $1 403. On careful examination, the following discrepancies were found:
[6 marks]
Update Khan's Cash Book, starting with the closing bank balance in his cash book from (a) above.
[4 marks]
Prepare Khan's Bank Reconciliation Statement as at March 31, 2008.
[2 marks]
Smith and Wheaton, separate sole traders, agreed to close their individual businesses and form a partnership. They named the business Smith & Wheaton Ltd. It was located on Wheaton's premises, using his assets.
Wheaton brought to the new business the following assets:
| $ | |
|---|---|
| Cash | 10 000 |
| Fixtures | 15 000 |
| Equipment | 25 000 |
| Land and buildings | 40 000 |
Smith sold his assets and brought to the new business cash of $100 000.
[20 marks]
Prepare opening journal entries to show the capitals of the partners on January 1, 2007.
[7 marks]
After a successful year of trading, the partnership made a net profit of $75 000. The partnership agreement provides for the following:
Wheaton withdrew $6 000 on March 1, 2007 and Smith withdrew $7 000 on September 1, 2007.
[13 marks]
Prepare the partners' Profit and Loss Appropriation Account for the year ended December 31, 2007.
[8 marks]
Prepare the partners' Current Accounts as at December 31, 2007.
[5 marks]
The financial year of L. McLeod ended March 31, 2008. The data below provides information on general expenses, insurance, rent revenue and commissions revenue.
Required:
[20 marks]
Use journal entries OR ledger accounts to record the information above showing clearly the amounts which will be transferred to the Profit and Loss Account (Income Statement). Narrations are not required for journal entries.
[19 marks]
Identify the Balance Sheet item under which commissions revenue owing at March 31, 2008 in (4) above, will appear.
[1 mark]
T. Terrelounge Manufacturing had the following balances as at April 30, 2008.
| $ | |
|---|---|
| Inventory (Stock) at May 1, 2007 | |
| Raw material | 36 520 |
| Work in progress | 45 920 |
| Finished goods | 36 200 |
| Purchases: Raw material | 130 700 |
| Finished goods | 50 600 |
| Carriage inwards: Raw material | 3 600 |
| Carriage outwards: Finished goods | 2 400 |
| Direct labour | 134 600 |
| Office salaries | 34 800 |
| Utilities | 15 000 |
| Depreciation – factory equipment | 15 800 |
| Depreciation – office equipment | 5 400 |
| Rent | 29 000 |
| Sales | 500 000 |
| Inventory (Stock) at April 30, 2008 | |
| Raw material | 39 000 |
| Work in progress | 33 800 |
| Finished goods | 47 000 |
Overheads are to be apportioned as follows:
[20 marks]
Prepare the Manufacturing, Trading and Profit and Loss Account of T. Terrelounge Manufacturing for the year ended April 30, 2008. Costs must be clearly identified.
[18 marks]
Calculate the unit cost of items produced, if 25 000 units were produced during the period. (Show workings).
[2 marks]