CSEC Principles of Accounts Paper 3 May/June 2011 - Free CXC Past Paper with Answers

What is the closing date of the annual accounting period for this business?

Why are the documents above called source documents?

On the worksheet provided, complete the table by writing the correct journal folder to match the source document listed. The first one is done for you as an example.

The business started the new accounting period with the following assets and liabilities:

	$
Delivery truck	23 000
Inventory	12 500
Cash in hand	1 300
Bank overdraft	2 800
L. Sand, debtor	1 450
M. Rockfall, creditor	1 280

Draw up the opening entry for this business in Falmer Hardware's General Journal.

Using the straight line method of depreciation, calculate the net book value of the truck as at August 1, 2010. (Show all working clearly.)

During the month of August, Falmer Hardware carried out the following transactions:

Aug 1 The owner invested a further $2 000. This was deposited into the business' bank account.
Aug 2 Lester Village Credit Union loaned Falmer Hardware $10 000 by cheque at 6% per year interest over the next three years.
Aug 4 Purchased goods valued $9 000 from P. Lava paying by cheque.
Aug 6 Sold goods on credit to B. Sediment for $8 000 offering a 2% cash discount for payment before the end of the month.
Aug 12 Paid $700 in cash on the electricity bill which totalled $1 000.
Aug 15 Sold goods on credit to L. Sand for $4 000.
Aug 18 Withdrew $1 500 cash from bank for business use.
Aug 19 Purchased goods on credit for $3 000 from L. Silica.
Aug 20 Owner withdrew $600 from cash.
Aug 23 B. Sediment returned goods worth $400.
Aug 28 Cash sales of $11 200 deposited into the bank.
Aug 29 Received a cheque from B. Sediment in full settlement of account.
Aug 30 Paid M. Rockfall $1 200 by cheque in full settlement of his account.
Aug 30 Received cheque for $1 450 from L. Sand.
Aug 31 Paid one month's interest due on the loan in cash.
Aug 31 Paid $4 500 in rent for the next three months by cheque.
Aug 31 Paid monthly wages of $1 200 in cash.

Prepare the three-column Cash Book for Falmer Hardware for the month of August.

Draw up the Sales Account in the General Ledger of Falmer Hardware and balance the account at the end of the month.

Name the source document to be sent to B. Sediment for the return of the goods.

Draw up B. Sediment's Account in the Sales Ledger of Falmer Hardware and balance the account at the end of the month.

Give ONE example of EACH of the following types of accounts in Falmer Hardware's books: (a) A prepaid expense (b) An account affecting capital (c) A long-term liability (d) An accrued expense

The following were provided for Falmer Hardware for the month of September.

	$
Sales	34 700
Opening inventory	2 200
Closing inventory	3 800
Purchases	23 450
Returns outwards	340
Transportation-in	2 500

Calculate the following figures for Falmer Hardware for the month of September. (Show all working clearly.) (a) Cost of goods sold (b) Gross profit (c) Gross profit margin (on sales) (d) Stock turnover ratio

CSEC Principles of Accounts Paper 3 May/June 2011 Questions

Question 1 (1 marks)

Question 2 (1 marks)

Question 3 (3 marks)

Question 4 (5 marks)

Question 5 (2 marks)

Question 6 (11 marks)

Question 7 (3 marks)

Question 8 (1 marks)

Question 9 (3 marks)

Question 10 (2 marks)

Question 11 (8 marks)