Free CXC Principles of Accounts Paper 3 May/June 2020 past paper from 2020. 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 2020 - Free CXC Past Paper with Answers
Free CXC Principles of Accounts Paper 3 May/June 2020 past paper from 2020. Includes a worked answer key. Open the PDF, take a timed test, and study with AI on Caribbean AI.
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This paper consists of a case study and TEN questions. Read the case and answer ALL the questions that follow in the spaces provided in this booklet.
First-Class Private School Cafeteria
Five teachers of the First-Class Private School came together to invest in the operation of a school cafeteria. Each teacher contributed $30 000 and agreed that profits would be used to set up a special fund to assist needy students with costs such as buying books, school uniforms and paying school fees.
What was the total cash used to start the cafeteria's operations?
[2 marks]
Suggest TWO other uses to which the special fund could be applied in order to benefit students in need.
[2 marks]
After the first six months of operation, the records of the cafeteria showed the following.
| $ | |
|---|---|
| Total sales | 80 500 |
| Total purchases | 38 000 |
| Total expenses | 18 200 |
| Number of lunches sold |
| 16 100 |
| Number of lunches paid for | 14 720 |
There was no closing inventory at the end of the first six months.
What was the average price of each lunch?
[2 marks]
How much cash was collected from lunch sales during the first six months?
[2 marks]
What is the profit available to set up the special fund? Using the following template draw up the Income Statement for the six months ended 28 February 2019.
At the end of the first six months, records also revealed there were monies owing to the cafeteria, summarized by class groups as follows.
| Amounts Receivable by Grade | |
|---|---|
| Grade 7 | $600 |
| Grade 8 | $1 700 |
| Grade 9 | $2 500 |
| Grade 10 | $2 100 |
Management has decided to create a provision of 5% of the receivables at the end of the first six months, to cater for the possibility of bad debts.
[7 marks]
Calculate the amount required to create the provision for doubtful debts.
[2 marks]
Create the provision for doubtful debts account on 28 February 2019. Be sure to bring down the balance to start off the next period.
[3 marks]
What accounting concept has First-Class Private School Cafeteria's management followed in its decision to create a provision for doubtful debts?
[1 mark]
Calculate the revised or adjusted profit after accounting for the provision for doubtful debts.
[3 marks]
Calculate the return on investment for the five teachers, after taking into account the provision for doubtful debts.
[3 marks]
Prepare a list of FOUR likely inventory items you would expect to see in the cafeteria during the period.
[2 marks]
State FIVE possible expense items relating to the operations of the cafeteria.
[5 marks]
List THREE books of original entry you would recommend for the operations of the cafeteria.
[3 marks]
Identify THREE possible non-current assets you would expect to see in the cafeteria.
[3 marks]