Free CXC Principles of Accounts Paper 2 May/June 2023 past paper from 2023. 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 2023 - Free CXC Past Paper with Answers
Free CXC Principles of Accounts Paper 2 May/June 2023 past paper from 2023. Includes a worked answer key. Open the PDF, take a timed test, and study with AI on Caribbean AI.
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Identify ONE accounting software program that Yahim can use to help improve the business.
[1 mark]
Identify ONE skill a bookkeeper should possess.
[1 mark]
The following table shows transactions that were omitted from the books.
| Date | Transactions |
|---|---|
| 2022 | |
| 2 April | Bought goods on credit costing $400 from R. True. |
| 8 April | Sold goods valued at $600 on credit to U. Moon. |
| 12 April | U. Moon returned $50 worth of goods. |
| 18 April | Received an invoice from B. Vic for goods worth $4 000 less a trade discount of . |
| 19 April | Goods returned to L. Son. These goods had been invoiced at $120 less a trade discount of 20%. |
(i) Using the following general journal, record the transactions from the table on page 4. Narrations are NOT required.
| Date | Details | Folio | Debit $ | Credit $ |
|---|---|---|---|---|
(ii) Identify the source document that was issued for the transaction on 19 April 2022.
[6 marks]
Using the following general journal, record the transactions from the table on page 4. Narrations are NOT required.
| Date | Details | Folio | Debit $ | Credit $ |
|---|---|---|---|---|
[5 marks]
Identify the source document that was issued for the transaction on 19 April 2022.
[1 mark]
The following information is available for three of the employees of Yahim Printing Services.
Leila's annual salary was agreed at $84 000 for the year ended April 2023. Yahim has agreed to give her a 2% pay raise on her annual salary for the new financial year ending 30 April 2024.
(i) Calculate Leila's monthly gross earnings for the new financial year ending 30 April 2024.
Samson is paid $30 per hour. Yahim has contracted him to work 35 hours per week. For the week ended 30 April 2023, he worked 49 hours. Overtime is paid at time and a quarter.
(ii) Calculate Samson's gross wage for the week ended 30 April 2023.
Dolly earns a basic salary of $3 400 per month. In addition, she is paid a commission of 2% of the amount by which the revenue of the business exceeds $40 000 per month. For the month of April 2023, the company's revenue was $58 000.
(iii) Calculate Dolly's gross pay for the month of April 2023.
(iv) State TWO types of compulsory deductions that are normally deducted from employees' gross pay.
[12 marks]
Calculate Leila's monthly gross earnings for the new financial year ending 30 April 2024.
[3 marks]
Calculate Samson's gross wage for the week ended 30 April 2023.
[4 marks]
Calculate Dolly's gross pay for the month of April 2023.
[3 marks]
State TWO types of compulsory deductions that are normally deducted from employees' gross pay.
[2 marks]
Nyluc is a computer consultant. She provided the following information below about her cash book for the financial year ended 30 April 2023.
[20 marks]
State the meaning of EACH of the balances on 1 April 2023.
[2 marks]
Balance b/d in the cash column
[1 mark]
Balance b/d in the bank column
[1 mark]
State whether Nyluc Consultancy Services allowed or received a discount of $1 500 on 13 April 2023.
[1 mark]
State TWO reasons why the cheque from ADF Plc may have been dishonoured on 9 April 2023.
[2 marks]
State the reason for the two entries on 28 April 2023.
[1 mark]
Calculate the percentage discount on 12 April 2023.
[2 marks]
Suggest a reason why Nyluc Consultancy Services had to refund K. Lima on 29 April 2023.
[1 mark]
Calculate the yearly interest that Nyluc Consultancy Services would have to pay for the bank loan shown on 10 April 2023.
[2 marks]
Calculate the balances in the cash book for 1 May 2023. State whether they would be debit or credit balances.
Balance b/d in cash column on 1 May 2023 Type of balance (debit/credit) Balance b/d in bank column on 1 May 2023 Type of balance (debit/credit)
[4 marks]
Complete the following accounts in the books of Nyluc Consultancy Services for the month of April 2023, using the information in the cash book on page 8. Close EACH account at the end of the month. (i) K. Lima (ii) Discount Allowed
[5 marks]
K. Lima
| Date | Details | Folio | Debit $ | Date | Details | Folio | Credit$ |
|---|---|---|---|---|---|---|---|
| 2023 1 April | Balance b/d | 56 000 | |||||
[3 marks]
Discount Allowed
| Date | Details | Fo | Debit $ | Date | Details | Fo | Credit$ |
|---|---|---|---|---|---|---|---|
[2 marks]
The following information is available for Chevon Manufacturing Company.
| | $ | | :-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------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---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------1. The following information was extracted from the cash book of Nyluc Consultancy Services for April 2023.
| Date | Details | Folio | Cash $ | Bank $ | Date | Details | Folio | Cash $ | Bank $ |
|---|---|---|---|---|---|---|---|---|---|
| April 2023 | April 2023 | ||||||||
| 1 | Balance b/d | 1 200 | 12 000 | 1 | Balance b/d | 1 500 | |||
| 3 | Cash sales | 3 000 | 5 | Purchases | 2 500 | ||||
| 6 | K. Lima | 56 000 | 9 | ADF Plc | 1 800 | ||||
| 8 | Cash | 1 500 | 10 | Bank loan | 10 000 | ||||
| 12 | Sales | 12 000 | 15 | Nyluc Consultancy Services | 1 500 | ||||
| 18 | Cash sales | 2 500 | 20 | Wages | 3 000 |
[20 marks]
Identify TWO examples of direct costs used in the manufacturing of the product.
[2 marks]
Identify THREE examples of indirect costs used in the manufacturing of the product.
[3 marks]
Using the form on page 15, prepare the manufacturing account for the year ended 30 April 2023 for Chevon Manufacturing Company, showing clearly
[12 marks]
Calculate the net sales figure.
[1 mark]
Identify the accounting principle applied by the accountant in this transaction.
[1 mark]
Identify the accounting principle the accountant has applied.
[1 mark]
Brooklyn Sal is the owner of two businesses — Brooks Technologies and Brooky Computer Supplies Ltd.
Brooks Technologies manufactures components used in the production of computer monitors. The forecasts for sales of the components during each quarter of 2023 are presented in the following table.
| 2023 | Units |
|---|---|
| Quarter 1 January – March | 6 000 |
| Quarter 2 April – June | 8 000 |
| Quarter 3 July – September | 12 000 |
| Quarter 4 October – December | 16 000 |
Brooklyn’s policy is to maintain a closing inventory sufficient to cover 25% of the next quarter’s sales. The opening inventory for the components on 1 January 2023 will be 1 500 units.
(i) Prepare a production budget for EACH of the first TWO quarters of 2023 for the components. (ii) The selling price of one component is $65. The cost of producing one component is $50. Calculate the mark-up applied by Brooks Technologies for a component.
[8 marks]
Prepare a production budget for EACH of the first TWO quarters of 2023 for the components.
[6 marks]
The selling price of one component is $65. The cost of producing one component is $50. Calculate the mark-up applied by Brooks Technologies for a component.
[2 marks]
On 31 December 2022, Brooklyn discovered the following errors in the books of Brooky Computer Supplies Ltd.
(i) Complete the following table by putting ticks () in the correct columns to indicate the effect of the errors on the non-current assets and the profit for the year. An example has been provided for you.
| Error | Non-Current Assets at 31 December 2022 | Profit for the Year Ended 31 December 2022 | | :---- | :---------- | :----------- | :---------- | :----------- | :-------- | | | Overstated | Understated | Overstated | Understated | No effect | | A | | | | | | | B | | | | | | | C | | | | | |
(ii) Identify TWO payment methods that Brooklyn can use to pay suppliers of Brooks Technologies for tools purchased on credit.
[6 marks]
Complete the following table by putting ticks () in the correct columns to indicate the effect of the errors on the non-current assets and the profit for the year. An example has been provided for you.
| Error | Non-Current Assets at 31 December 2022 | Profit for the Year Ended 31 December 2022 | | :---- | :---------- | :----------- | :---------- | :----------- | :-------- | | | Overstated | Understated | Overstated | Understated | No effect | | A | | | | | | | B | | | | | | | C | | | | | |
[4 marks]
Identify TWO payment methods that Brooklyn can use to pay suppliers of Brooks Technologies for tools purchased on credit.
[2 marks]
Brooklyn maintains a full set of books of account. A purchases ledger control account and a sales ledger control account are prepared at the end of every month.
(i) State TWO uses of control accounts in the accounting process. (ii) The following balances were extracted from the books of Brooky Computer Supplies Ltd at 30 April 2023.
| $ | |
|---|---|
| Refunds to trade receivables | 1 400 |
| Contra items transferred to purchases ledger | 550 |
| Bad debts | 700 |
| Interest charged on overdue accounts | 2 600 |
Record the balances above as they would appear in the sales ledger/receivables control account.
| Debit Entry | Credit Entry | |
|---|---|---|
| Refunds to trade receivables | ||
| Contra items transferred to purchases ledger | ||
| Bad debts | ||
| Interest charged on overdue accounts |
[6 marks]
State TWO uses of control accounts in the accounting process.
[2 marks]
The following balances were extracted from the books of Brooky Computer Supplies Ltd at 30 April 2023.
| $ | |
|---|---|
| Refunds to trade receivables | 1 400 |
| Contra items transferred to purchases ledger | 550 |
| Bad debts | 700 |
| Interest charged on overdue accounts | 2 600 |
Record the balances above as they would appear in the sales ledger/receivables control account.
| Debit Entry | Credit Entry | |
|---|---|---|
| Refunds to trade receivables | ||
| Contra items transferred to purchases ledger | ||
| Bad debts | ||
| Interest charged on overdue accounts |
[4 marks]
The following is a list of some balances which were extracted from the books of the Caribbean Teachers’ Cooperative Credit Union for the year ended 30 April 2023.
| Debit $ | Credit $ | |
|---|---|---|
| Membership fees due | 15 000 | |
| Short-term loans to members | 301 900 | |
| Building at cost | 220 000 | |
| Investments | 83 400 | |
| Motor vehicles at cost | 140 000 | |
| Provision for depreciation on motor vehicles — as at 1 May 2022 | 20 000 | |
| Accruals | 4 400 | |
| Members’ deposits (repayable at short notice) | 20 000 | |
| Bank balance | 40 400 | |
| Education statutory reserve | 90 000 | |
| Share capital | 557 000 | |
| Undistributed surplus at 1 May 2022 | 33 400 | |
| Surplus for the year | 75 900 |
Additional notes The following adjustments had not been taken into consideration in arriving at the surplus for the year.
| 22 | Cash | 1 500 | 25 | Rent | 1 200 |
| 29 | K. Lima | 5 000 | 28 | Cash | 1 500 |
| 28 | Bank | 1 500 |
| 29 | Drawings | 2 000 |
| 30 | Balance c/d | 1 700 | 63 000 |
| 8 200 | 86 500 | 8 200 | 86 500 |