Free CXC Principles of Accounts Paper 3 May/June 2017 past paper from 2017. 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 2017 - Free CXC Past Paper with Answers
Free CXC Principles of Accounts Paper 3 May/June 2017 past paper from 2017. Includes a worked answer key. Open the PDF, take a timed test, and study with AI on Caribbean AI.
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Name ONE ledger that Alex Weeks would be using in her business.
[1 mark]
A customer, who has only heard of cash discounts, has asked Alex for a trade discount. Explain the difference between the two types of discounts.
[2 marks]
Alex provides the following information on her assets and liabilities as at 31 August 2016.
| $ | |
|---|---|
| 5-year fixed deposit at bank earning 10% per annum | 12 000 |
| Balance at bank | 25 870 |
| Delivery van at cost | 190 000 |
| Delivery van: Depreciation (straight line method for 6 months) | 28 500 |
| Invoice to be settled for specialty cake sold to Happy Holidays Hotel | 1 980 |
| 3-year 15% per year loan received on 01 March 2016 | 36 000 |
| Rental agreement of shop premises at $1000 per month (no payment made for last 6 months) |
| 6 000 |
[12 marks]
What percentage of the cost has been applied to the delivery van to arrive at the six-month depreciation amount shown? (Show your working.)
[3 marks]
Prepare a Statement of Financial Position (Balance Sheet) for Awesome Cakes for the six months ended 31 August 2016.
[9 marks]
Calculate the current ratio of Awesome Cakes as at 31 August 2016. (Show your working.)
[4 marks]
Based on your answer in (a), make a brief comment on Alex Weeks' liquidity position, giving a reason for your conclusion.
[2 marks]
Alex Weeks has hired you as her accountant. You collect the following information about her sale of cakes over the 12-month period ending 28 February 2017.
Sold 110 two-kilogram cakes @ $300 each Sold 60 wedding cakes @ $2500 each Sold 105 theme party cakes @ $1000 each
Using the form below, calculate total sales revenue for Awesome Cakes for the 12-month period ending 28 February 2017.
| Sales Revenue | $ |
|---|---|
| 110 two-kilogram cakes @ $300 each | |
| 60 wedding cakes @ $2500 each | |
| 105 theme party cakes @ $1000 each | |
| Total Sales Revenue |
[3 marks]
Alex Weeks' records show the following operating costs.
| Cost of ingredients used for all products | $86 400 | | Wages for assistant bakers and cleaners | $28 800 | | Special Awesome Cakes boxes @ 1 box per cake | $4 125 | | Miscellaneous Expenses | $11 200 | | Accountant's Salary | $15 000 |
Prepare an Income Statement for Awesome Cakes for the 12-month period ended 28 February 2017. Remember to include all previous information that is relevant to this statement.
[10 marks]
At the end of the year, Alex Weeks wrote a cheque for $24 000 for personal living expenses. Calculate her net worth or closing capital on 28 February 2017. (Show your working.)
[2 marks]
Alex Weeks' sister, Samantha, wants to be part owner in the business and offers to put $50 000 in cash into the business. Draw up the General Journal entry to record the transaction.
[4 marks]
What kind of business is Awesome Cakes after Samantha Weeks deposits her money into the business' bank account?
[1 mark]
Make a recommendation to Alex Weeks on the use of the additional cash from Samantha Weeks.
[1 mark]