Free CXC Principles of Accounts Paper 2 May/June 2011 past paper from 2011. 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 2011 - Free CXC Past Paper with Answers
Free CXC Principles of Accounts Paper 2 May/June 2011 past paper from 2011. Includes a worked answer key. Open the PDF, take a timed test, and study with AI on Caribbean AI.
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Mikail Jack is a music artiste. On March 31, 2011, he provided the following information about his assets and liabilities:
Prepare a classified Statement of Financial Position (Balance Sheet) for Mikail Jack, as at March 31, 2011. (Use the order of permanence in classifying assets.)
[20 marks]
Chester and Norbert have been in partnership for several years. Their partnership agreement provides for the following:
The following information has been extracted from their books:
Partners’ Capital Accounts at January 1, 2010:
| $ | |
|---|---|
| Chester | 250 000 |
| Norbert | 150 000 |
Partners’ Current Accounts at January 1, 2010:
| $ | |
|---|---|
| Chester | 24 000 |
| Norbert | (1 500) |
On July 1, 2010, halfway through the year, Chester and Norbert admitted Telford to the partnership. Telford brought $40 000 in cash, a motor car valued at $35 000 and equipment valued at $25 000.
Between January 1, 2010 and December 31, 2010 the following activities occurred:
Partners’ Drawings:
| $ | |
|---|---|
| Chester | 6 400 |
| Norbert | 7 000 |
Net Income of $122 330 was earned evenly throughout the year.
The ONLY CHANGE in the partnership agreement provides for profit or loss to be shared among the partners in the ratio of Chester 3 : Norbert 2 : Telford 1. Note: all other provisions remain the same.
[20 marks]
Prepare the journal entry to record the admission of Telford into the partnership.
[3 marks]
Prepare an extract of the Partnership Appropriation Account up to the share of remaining profit for the year ended December 31, 2010.
[7 marks]
Complete the worksheet provided to arrive at the share of remaining income or profit earned by EACH partner.
[3 marks]
Prepare the Current Accounts of the partners as at December 31, 2010.
[7 marks]
Chris Luder and Sons maintains both a three-column Cash Book and a Petty Cash Book. The Petty Cash Account should start with $400 in hand every month. All payments for office supplies and cleaning expenses are recorded in the Petty Cash Book.
The balances at April 1, 2011 were as follows:
| $ | |
|---|---|
| Cash | 850 |
| Bank | 4 200 |
| Petty Cash | 75 |
During the month of April, the following transactions were recorded in the books, as indicated.
| April | |
|---|---|
| 1 | Restored imprest by cash to petty cash book. |
| 6 | Paid wages of $2 100 by cheque. |
| 7 | Received cash of $1 900 from P. Rice to settle amount of $2 000. |
| 9 | Purchased postage stamps at a cost of $50.10; mop and broom $34.60. |
| 11 | Bought copying paper at a cost of $40.80. |
| 15 | Bought cleaning supplies at a cost of $25.50; and staples for stapling machine at $31.20. |
| 16 | Deposited $1 200 (cash) into the bank. |
| 16 | S. John paid his debt of $1 000 by cheque, less 5% discount. |
| 18 | Chris Luder, owner, withdrew $500 in cash for private expenses. |
| 22 | Bought envelopes at a cost of $63.30. |
| 26 | Paid debt of $2 900 to K. Band Enterprises by cheque, less 2% discount. |
| 27 | Cleaner’s wages $128.30. |
| 30 | S. John’s cheque received on April 16 was returned marked “return to drawer”. |
[20 marks]
Draw up the three-column Cash Book for Chris Luder and Sons for the month of April 2011.
[9 marks]
Using the worksheet provided, draw up the Petty Cash Book for Chris Luder and Sons for the month of April 2011.
[8 marks]
Post the TOTALS of the office supplies and cleaning expenses columns in the appropriate ledger.
[3 marks]
B. C. Yen recorded the following Trial Balance after calculating gross profit.
Trial Balance as at December 31, 2010
| $ | $ | |
|---|---|---|
| Gross Profit | 163 000 | |
| General Expenses | 51 570 | |
| Advertising | 5 800 | |
| Bank interest | 1 520 | |
| Commissions earned | 2 200 | |
| Premises at cost | 196 000 | |
| Fixtures and fittings at cost | 110 000 | |
| Provision for depreciation: | ||
| Premises | 39 200 | |
| Fixtures and fittings | 33 600 | |
| Inventory at December 31, 2010 | 19 030 | |
| Accounts receivable | 20 500 | |
| Provision for doubtful debts | 2 300 | |
| Accounts payable | 16 500 | |
| Bank overdraft | 13 450 | |
| Cash | 2 700 | |
| Capital | 136 870 | |
| 407 120 | 407 120 |
Adjustments required at end of year:
[20 marks]
Complete the worksheet provided for the required adjustments numbered 2 to 7 above by (i) entering EACH item from B. C. Yen's Trial Balance which requires adjustment (ii) showing how EACH item is to be adjusted and the amount of the adjustment. The first one is done for you as an example.
[10 marks]
entering EACH item from B. C. Yen’s Trial Balance which requires adjustment
[5 marks]
showing how EACH item is to be adjusted and the amount of the adjustment. The first one is done for you as an example.
[5 marks]
Prepare the Fixed and Current Assets sections of B. C. Yen’s Balance Sheet as at December 31, 2010 showing clearly any changes taken into account.
[10 marks]
Martha’s Cakes & Confectionery is a manufacturer producing a variety of baked goods for sale to supermarkets. At December 31, 2010, the following information became available:
| $ | |
|---|---|
| Cost of raw materials used | 56 400 |
| Closing stock of raw materials | 3 905 |
| Kitchen equipment | 16 000 |
| Provision for depreciation on kitchen equipment | 3 200 |
| Office equipment | 10 000 |
| Provision for depreciation on office equipment | 1 000 |
| Purchases: Office supplies & stationery | 600 |
| Boxes (for kitchen storage) | 1 200 |
| Small kitchen appliances | 900 |
| Salaries - Office staff | 5 800 |
| Wages - bakers & cake decorators | 15 800 |
| Wages - delivery driver | 8 000 |
| Other delivery costs | 2 900 |
| Administrative costs | 1 950 |
| Advertising | 400 |
| Electricity | 10 500 |
Notes:
[20 marks]
Prepare the Manufacturing Account for Martha’s Cakes & Confectionery, showing clearly: (i) Prime cost (ii) Factory overheads (iii) Total cost of production
[10 marks]
Prime cost
[3 marks]
Factory overheads
[3 marks]
Total cost of production
[4 marks]
Prepare the Income Statement for Martha’s Cakes & Confectionery for the year ended December 31, 2010, classifying costs appropriately.
[8 marks]
Martha reports an average unit cost of $10 per baked item. Compute the number of baked items produced for the year ended December 31, 2010. (Show all working clearly.)
[2 marks]
Fifty housewives in the Goodlands community started a buying cooperative. On May 1, 2009, they each paid a $6.00 registration fee, and agreed that each member would buy 25 shares at $10.00 each.
At the end of the second year of operation, total share capital was $25 000. The following figures were extracted from the books as at April 30, 2011:
| $ | |
|---|---|
| Surplus | 108 900 |
| Undistributed profit | 48 600 |
The Board of Management has proposed the following:
[20 marks]
Prepare the journal entries to record the monies collected for:
[6 marks]
Prepare the Appropriation Account for the Goodlands Housewives Cooperative for the year ended April 30, 2011.
[8 marks]
Mrs Susan Cunningham, a co-operative member who now owns 42 shares, has receipts totalling $3 845 in respect of her purchases from the Goodlands Housewives Cooperative during the last year. (i) Calculate the amount of the patronage refund due to Mrs Cunningham. (Show all working clearly.) (ii) Calculate the TOTAL amount that should be paid to her, by the cooperative, out of this year's surplus. (Show all working clearly.)
[5 marks]
Calculate the amount of the patronage refund due to Mrs Cunningham. (Show all working clearly.)
[2 marks]
Calculate the TOTAL amount that should be paid to her, by the cooperative, out of this year's surplus. (Show all working clearly.)
[3 marks]
State ONE benefit, to the housewives, of joining the Goodlands Housewives Cooperative Society.
[1 mark]
Cartel Vee sells leather sandals. His transactions for the month ended July 31, 2010 were as follows:
| Transactions | Units | Unit Cost Price ($) |
|---|---|---|
| Beginning stock | 110 | 55 |
| Stock purchases | 490 | 70 |
| Sales @ $100 each | 520 |
Show workings for ALL calculations.
[20 marks]
Show workings for ALL calculations. (i) Calculate the amount of units held as unsold stock at year end. (ii) Calculate the value of closing stock using the a) FIFO method. b) LIFO method. (iii) Calculate the Gross Profit for Cartel Vee using the LIFO value for closing stock. (iv) State the MAIN reason why it is necessary to know the stock valuation method being used by a firm. (v) Calculate the cost price that would be used for the AVCO method in valuing closing stock. (vi) What ratio can be calculated to measure how quickly Cartel Vee sells his stock?
[14 marks]
Calculate the amount of units held as unsold stock at year end.
[3 marks]
Calculate the value of closing stock using the a) FIFO method. b) LIFO method.
[5 marks]
Calculate the Gross Profit for Cartel Vee using the LIFO value for closing stock.
[2 marks]
State the MAIN reason why it is necessary to know the stock valuation method being used by a firm.
[1 mark]
Calculate the cost price that would be used for the AVCO method in valuing closing stock.
[4 marks]
What ratio can be calculated to measure how quickly Cartel Vee sells his stock?
[1 mark]
At the end of Cartel Vee's first year of operation, his accountant presents the following ratios comparing the performance of Cartel Vee with a competitor:
| Ratios | Cartel Vee | Competitor |
|---|---|---|
| Current ratio | 12.5:1 | 9:1 |
| Expense to sales ratio | 28% | 33% |
(i) Which of the ratios above measures control of costs? (ii) Which of the ratios above measures a firm's ability to meet its short-term debts? (iii) Prepare a short report, using both ratios, comparing Cartel Vee's performance with that of his competitor.
[6 marks]
Which of the ratios above measures control of costs?
[1 mark]
Which of the ratios above measures a firm's ability to meet its short-term debts?
[1 mark]
Prepare a short report, using both ratios, comparing Cartel Vee's performance with that of his competitor.
[2 marks]