CSEC Principles of Accounts Paper 2 May/June 2021 - Free CXC Past Paper with Answers

Use the information to prepare journal entries to record the transactions in Sundale Enterprise's books. Narratives are NOT required.

At the end of the financial year on 30 April 2021, Sundale Enterprise has trade receivables of $32 700 and a provision for doubtful debts of $1 170.

Edward estimates that 3% of these receivables will become uncollectible.

Calculate the amount required for adjusting the provision for doubtful debts account at the end of the financial year.

Record your answer from (b) (i) in the provision for doubtful debts account below, to show where the adjustment should be recorded.

< ![CDATA[Complete the following tables to show how EACH of the following transactions will affect Sundale Enterprise's financial statements for the year ended 30 April 2021, giving an explanation for EACH transaction.

Received an order from a customer for goods to be supplied in June 2021.

Edward used his personal savings to purchase a vehicle for his private use.

The purchases account was incorrectly added up and was overcast by $1 600 at year end.

Use the form provided below to prepare the purchases ledger control account for the month ended 30 June 2021. Balance the account and bring down the balance on 1 July 2021.

Purchases Ledger Control Account

State ONE use of control systems in the accounting process at Sundale Enterprise.

Use information from the trial balance above to calculate the working capital ratio for the current year, in the space provided below. Show all working clearly.

Working Capital (Current Ratio) Calculations For the Year Ended 31 May 2021

The working capital ratio at the end of May 2020 was 1.70 : 1.

Based on your calculated ratio in (a) (i), identify ONE significance of the change in ratios for the financial position of the business.

Results from calculations of the Receivables Collection Period are shown below for Eslight Wholesale, for the two financial years ended 31 May 2020 and 2021.

RECEIVABLES COLLECTION PERIOD Calculations

Interpret the significance of these two receivables collection period ratios for the business performance of Eslight Wholesale.

Calculate the total number of regular hours which Bevan worked for the month of May 2021.

Calculate the total number of overtime hours which Bevan worked for the month of May 2021.

Using the information provided in the table on page 16 and your answers from Parts (a) (i) and (ii), calculate Bevan’s net pay for the month of May 2021.

State ONE example of a statutory deduction.

State ONE example of a voluntary deduction.

John, the proprietor of Foot Soles, a business which trades in shoes, has supplied the cash projections data shown in the form on page 18.

Additional Information

Foot Soles forecasts that the bank balance will be $5 000 on 1 May 2020.

Prepare cash flow projections for Foot Soles for the six months ending October 2021, by calculating and completing the appropriate spaces in the form provided on page 18: (i) Include all appropriate headings and labels. (ii) Fill in necessary totals. (iii) Include any missing sections for the completion of a cash flow statement.

State TWO benefits of a partnership.

Using the information above for Avril and Bernice, prepare the appropriation account for the year ended 31 May 2021, using the form on page 20.

State what the opening balance on Avril's current account indicates.

State TWO reasons for the creation of a petty cash fund.

Reason 1 Reason 2

Avril and Bernice decided to keep the business' petty cash book on an imprest system.

(a) Write up Avril and Bernice's petty cash book for the month of June, using the form provided on page 22. (b) Balance and rule the petty cash book at month end. (c) Restore the petty cash fund at the end of the month.