CSEC Principles of Accounts Paper 3 May/June 2019 - Free CXC Past Paper with Answers

Suggest the MOST appropriate formula Mrs Elias should use to calculate her net worth or capital in her new business.

Calculate the net worth or capital of Mo-Mo's as at 1 April 2018.

Prepare the opening entry in the journal provided below to record the financial position of Mrs Elias in the business on 1 April 2018.

GENERAL JOURNAL

Date	Details	Fo.	Debit	Credit

Using the form provided on pages 7 and 8, beginning with opening balances, enter the transactions above in a two-column Cash Book for Mo-Mo's business. Total and rule up the Cash Book at the month end.

Additional Information During that first month, Mrs Elias failed to keep proper records. She made several transactions as follows.

April
- 02 Cash sales of $3 200.
- 03 Took $5 000 from the Cash and deposited it into the Bank account.
- 05 Paid rent of $3 500 in cash.
- 06 Bought IT equipment costing $18 000, paying by cheque.
- 09 Purchased $15 800 worth of inventory, paid for by cheque.
- 11 Received $3 900 by cheque for Sales.
- 13 Bought $1 700 worth of supplies, paying by cash.
- 16 Cash withdrawal for personal use, $1 800.
- 19 Paid for petrol and vehicle maintenance, $2 600 by cheque.
- 24 Paid utilities of $600 in cash.
- 27 Paid wages of $4 000 by cheque.
- 30 Settled cell phone charges of $900 in cash.

Mo-Mo's had the following balances at 31 October 2018.

Cash $1 400 Accrued Expenses $8 400 Accounts Payable $15 600 Accounts Receivable $12 500 Bank $28 000 Inventory $6 000

In the space provided below, calculate Mrs Elias' working capital at 31 October 2018.

What is the significance of working capital to Mo-Mo's?

Mrs Elias now finds that she has a total of $12 940 in receivables. She anticipates that 5% of them may prove uncollectable and wishes to provide for this.

Show Mo-Mo's Provision for Doubtful Debts account at 31 March 2019, with the amount needed to provide for these possible bad debts.

State the concept or principle that requires Mrs Elias to provide for doubtful debts.

Additional Information At the end of the year on 31 March 2019, Mrs Elias had the following balances in her books.

Sales $179 200
Petrol and Vehicle Maintenance $28 700
Wages $48 000
Inventory $14 000
Purchases $56 000
Carriage Inwards $3 800
Commissions Received $8 300
Utilities $10 800
Cell Phone Charges $1 180
Rent $45 000

Other notes to be considered:

Zukee paid Mrs Elias $3 800 for musical instruments which she promised to deliver to him during May 2019. This amount had been treated as sales.
Mo-mo's rent was paid up to June of 2019 by an amount of $2 700.

Prepare Mo-Mo's Income Statement for the year ended 31 March 2019, using the form provided below.

Calculate the return on capital employed (ROCE) for Mo-Mo's for this first year of operation.

With reference to your calculation in Part (b), describe briefly Mo-Mo's performance for the first year of operation.

Additional Information Mrs Elias calculated a revised net income of $18 000 for her first year of operation. Her total drawings for the year were $10 200.

Using the opening capital figure calculated in Question 2, determine the closing capital at year end.

Mrs Elias is thinking about undertaking an additional or alternative career. Recommend ONE new career that she could pursue if she were to study accounting.

CSEC Principles of Accounts Paper 3 May/June 2019 Questions

Question 1 (1 marks)

Question 2 (3 marks)

Question 3 (5 marks)

Question 4 (9 marks)

Question 5 (3 marks)

Question 6 (1 marks)

Question 7 (4 marks)

Question 8 (13 marks)

Question 9 (3 marks)

Question 10 (1 marks)