Free CXC Principles of Accounts Paper 2 May/June 2018 past paper from 2018. 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 2018 - Free CXC Past Paper with Answers
Free CXC Principles of Accounts Paper 2 May/June 2018 past paper from 2018. Includes a worked answer key. Open the PDF, take a timed test, and study with AI on Caribbean AI.
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On 1 March 2018 Sanjeev, who is a sole proprietor, had $600 cash on hand and an overdraft of $400 at the bank. Sanjeev reported the following transactions for the month of March 2018.
| Date | Source Document | Details |
|---|---|---|
| 2018 Mar 1 | Cash receipt | For sale of old surveillance equipment, $1 800. |
| 5 | Invoice | Received from DD Ltd an invoice showing the value of goods bought for resale at $7 500 less 25% trade discount. |
| 9 | Cash voucher | Sanjeev withdrew $200 for his private use. |
| 13 | Invoice | Sent an invoice to Layby Stores for goods for resale, $2 250 less 20% trade discount. |
| 14 | Credit note | Received a credit note from DD Ltd for good which were delivered, but not according to the requirements of the order, and which showed a value of $800 less 25% trade discount. |
| 16 | Cash register totals report | End of day cash sales report totalled $3 680. |
| 19 | Credit note | Sent a credit note to Layby Stores for goods damaged in transit, $200 less 20% trade discount. |
| 23 | Paying in slip counterfoil | Banked $5 000 of the cash on hand. |
| 26 |
| Cheque stub |
| For payment to Jeff's Air-Con Inc. in settlement of an account of $7 500, less a 5% cash discount. |
| 30 | Paying in slip counterfoil | For cheque received from Layby Stores in settlement of their account to date, less a cash discount of $150. |
[20 marks]
Using the form provided on page 5, record the transactions relevant to a three column Cash Book. Total and balance the Cash Book as at 31 March 2018.
NOTE: Dis All'd means Discount Allowed Dis Rec'd means Discount Received
[14 marks]
What is the significance of the balance brought down in the bank account at 31 March 2018?
[1 mark]
Based on the relevant transactions data for the month of March, prepare DD Ltd's account, and show clearly any balance outstanding at the end of March 2018.
DD'S LTD ACCOUNT – CREDITOR
| $ | $ | |
|---|---|---|
[5 marks]
Sabrina Weeks, a retailer, had her financial statements for the years 2016 and 2017 analysed and the following two ratios were produced for her business.
| Ratio | For the Year Ended | |:--------------------------|:-----|:-----| | | 2016 | 2017 | | Gross profit margin | 20% | 24% | | Operating expenses/sales revenue | 9% | 11% |
[10 marks]
For EACH of the two ratios given above,
Gross profit margin:
[5 marks]
Using any ONE of your analyses of the ratios, make ONE recommendation to Sabrina Weeks for improving her business performance.
[2 marks]
Using the figure provided for sales in the table below and the ratios given on page 7, calculate the named amounts for the year 2017. (Show all working clearly.)
| Items | 2017 |
|---|---|
| Sales | $995 000 |
| Gross profit | |
| Cost of sales |
Working Area
[3 marks]
The following information is also available for Sabrina Weeks' business for the year ended 31 December 2017:
| Inventory at 1 January 2017 | $25 000 |
| Inventory at 31 December 2017 | $40 000 |
[5 marks]
The following information is also available for Sabrina Weeks' business for the year ended 31 December 2017:
| Inventory at 1 January 2017 | $25 000 |
| Inventory at 31 December 2017 | $40 000 |
State the formula used to calculate the rate of inventory turnover.
[1 mark]
The following information is also available for Sabrina Weeks' business for the year ended 31 December 2017:
| Inventory at 1 January 2017 | $25 000 |
| Inventory at 31 December 2017 | $40 000 |
Calculate Sabrina Weeks' rate of inventory turnover for the year ended 31 December 2017.
[4 marks]
On 31 October 2017, Zidan extracted the following balances from his books of accounts.
Balances at 1 October 2017: Sales ledger debit balances total $42 680 Sales ledger credit balances total $950 Purchases ledger debit balances total $620 Purchases ledger credit balances total $28 360
Sales day book total for October 2017 $102 900 Purchases day book total for October 2017 $65 950
Returns inwards day book total for October 2017 $4 120 Returns outwards day book total for October 2017 $5 390
Cash book totals for October 2017: Receipts from credit customers $92 400 Payments to credit suppliers $75 000 Refunds to debtors who had overpaid their accounts $300 Dishonoured cheques received from debtors $1 200 Discounts allowed $2 800 Discounts received $4 200
General journal totals for October 2017: Bad debts written off $860 Interest charged on customers' overdue accounts $160 Interest charged by suppliers on overdue accounts $240
Balances at 31 October 2017: Sales ledger debit balances total ? Sales ledger credit balances total $590 Purchases ledger debit balances total $700 Purchases ledger credit balances total ?
Using the ledger control accounts provided on page 11, prepare the following accounts for Zidan for the month of October 2017: (a) Sales ledger control account (b) Purchases ledger control account
Balance the accounts as at 31 October 2017.
[20 marks]
Using the ledger control accounts provided on page 11, prepare the following accounts for Zidan for the month of October 2017: Sales ledger control account
Balance the accounts as at 31 October 2017.
[11 marks]
Using the ledger control accounts provided on page 11, prepare the following accounts for Zidan for the month of October 2017: Purchases ledger control account
Balance the accounts as at 31 October 2017.
[9 marks]
Benji and Nicka are in a partnership sharing profits and losses in the ratio of 3:2. At the close of business on 31 December 2017 the following information was taken from their books of accounts.
| Fixed Capital | Current Accounts 1 January 2017 | Drawings for the Year ended 31 December 2017 | |
|---|---|---|---|
| Benji | $160 000 | $1 300 Dr | $6 000 |
| Nicka | $140 000 | $8 200 Cr | $4 300 |
Nicka should receive an annual salary of $5 000 Interest on fixed capital is to be awarded at 10% Interest on drawings is to be charged at 5% Net income calculated at 31 December 2017 was $56 200
[20 marks]
Using the form provided on page 13, prepare the appropriation account for Benji and Nicka for the year ended 31 December 2017.
[8 marks]
Prepare the current accounts of the partners, in columnar format, for the year ended 31 December 2017.
[7 marks]
Calculate the partnership's return on investment for the financial year ended 31 December 2017.
[5 marks]
Kaycee Garments makes uniforms and provided the following information for the year ended 31 December 2017.
\$
Factory wages 50 400
Factory salaries 125 000
Factory rent and rates 35 600
Electricity 162 400
Insurance 12 200
Machinery at cost 300 000
Purchases of raw materials 118 500
Returns outwards 18 200
Carriage in on raw materials 12 000
Additional Information:
| Inventories at 1 January 2017 | Inventories at 31 December 2017 | |
|---|---|---|
| Raw materials | $37 000 | $29 600 |
| Work-in-progress | $31 200 | $36 500 |
Using the form provided on page 17, prepare the Manufacturing Account for Kaycee Garments for the year ended 31 December 2017. Label clearly the cost of raw materials consumed, prime cost and total cost of production.
[17 marks]
Kaycee Garments produced 40 000 uniforms for the year. What is the production cost per unit? (Show all working clearly.)
[3 marks]