Free CXC Principles of Accounts Paper 3 May/June 2014 past paper from 2014. 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 3 May/June 2014 - Free CXC Past Paper with Answers
Free CXC Principles of Accounts Paper 3 May/June 2014 past paper from 2014. Includes a worked answer key. Open the PDF, take a timed test, and study with AI on Caribbean AI.
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Every question from this paper as text. See the answers and worked solutions. Questions are the property of the Caribbean Examinations Council; Caribbean AI is not affiliated with CXC.
Name a source document that Felix Stamp would use to draw up his Petty Cash Book.
[1 mark]
Felix Stamp keeps a petty cash imprest of $200 for the business. The cashier reports that there was an unspent balance of $47.10 in the Petty Cash Book on 01 March 2014.
Calculate the amount needed to restore the imprest.
[1 mark]
The cashier produces the following list of small expenditures for the month of March 2014.
| March | Details | $ |
|---|---|---|
| 3 | Postage stamps | 12.75 |
| 6 | Messenger's taxi fare | 9.65 |
| 9 | Mop and broom | 25.60 |
| 13 | Envelopes | 14.00 |
| 17 | Cleaning supplies | 18.85 |
| 22 |
| Copy paper |
| 60.00 |
| 27 | Glue sticks | 7.50 |
| 30 | Messenger's taxi fare | 9.65 |
Using the Petty Cash Book form provided on page 3, draw up Felix Stamp's Petty Cash Book for the month of March 2014. Start with an opening balance of $200.00.
[6 marks]
Felix Stamp draws up the following list of accounts receivable as at 01 March 2014.
| Debtor | Amount due at 01 March ($) |
|---|---|
| P. Francis | 8 700 |
| V. Singh | 3 500 |
| W. Fisher | 4 800 |
Felix Stamp was contracted to supply goods to each debtor on credit. The contracts include an offer of 5% cash discount if the bill is paid within two weeks of the beginning of the month.
State ONE reason why Felix Stamp would offer a cash discount to debtors.
[1 mark]
The bank statement shows the following postings to Felix Stamp's bank account during March 2014.
| March | Dr ($) | Cr ($) | Balance |
|---|---|---|---|
| 1 | 6 450 | ||
| Available balance | |||
| 3 | 8 265 | ||
| Deposit – Cheque (P. Francis) | |||
| 9 | 14 730 | ||
| Deposit – Cash and cheques from sales | |||
| 12 | 250 | ||
| Standing order – Daily Press Ltd | |||
| 13 | 3 325 | ||
| Deposit – Cheque (V. Singh) | |||
| 18 | 1 190 | ||
| Credit transfer – Income from investments | |||
| 21 | 4 800 | ||
| Deposit – Cheque (W. Fisher) | |||
| 25 | 1 340 | ||
| Bank transfer – Insurance | |||
| 26 | 12 980 | ||
| Deposit – cash and cheques from sales | |||
| 28 | 4 500 | ||
| Wages | |||
| 30 | 2 000 | ||
| Drawings | |||
| 30 | 27 600 | ||
| Payment – Cheque (Detail Supplies) | |||
| 31 | 160 | ||
| Bank charges |
Using the data above and the information provided in Question 4, calculate the TOTAL amount of cash discount allowed for the month of March 2014. (Show working clearly.)
[2 marks]
Apart from the dollar amounts in the entries, state the difference between a standing order (12 March) and a bank transfer (25 March)?
[2 marks]
Felix Stamp discovers that W. Fisher has gone out of business and cannot pay.
Draw up a Bad Debts Account to reflect this event. Close the Bad Debts Account at the end of March.
[2 marks]
On 31 March 2014, the cheque from W. Fisher was returned by the bank.
Apart from W. Fisher going out of business, state ONE other reason why the cheque from W. Fisher may have been returned by the bank.
[1 mark]
On the Bank Account form provided on page 7, draw up Felix Stamp's Account for the month of March 2014 using the information provided in the Bank Statement and taking into account the returned cheque.
[8 marks]
Felix Stamp started the month of March 2014 with car parts valued at $3 450. By the end of March, the total value of unsold car parts was $2 310. Felix had returned $120 worth of car parts to his supplier and had collected one item worth $405 from a debtor. The item was returned due to a manufacturer's defect.
The roll from Felix's cash register has recorded the following transactions:
| March | $ | |
|---|---|---|
| 4 | Sales | 25 190 |
| 6 | Purchases | 9 710 |
| 9 | Sales deposited directly to bank | 14 730 |
| 18 | Sales | 27 200 |
| 25 | Purchases | 22 810 |
| 26 | Sales deposited directly to bank | 12 980 |
Using the information above, prepare the Trading Account of Felix Stamp for the month ended 31 March 2014.
[8 marks]
Starting with the Gross Profit in Question 10, use the relevant information from the responses provided in Questions 3, 5, 8 and 9 to calculate the net profit of Felix Stamp for the month ended 31 March 2014.
[8 marks]