CSEC Principles of Accounts Paper 3 January 2025 - Free CXC Past Paper with Answers

Calculate the settlement amount which Diddi Bram received from Cool Breeze Bar & Restaurant on March 8, 2023.

Beginning with the opening bank balance, use appropriate data from the information provided above, to complete the cash book for Diddi Bram for the 1st quarter ended March 31, 2023. A form has been provided for your answer on page 8. Balance and rule the cash book at month end.

Prepare the ledger account for Cool Breeze Bar & Restaurant to show the transactions it conducted with Diddi Bram's Organic Sea Moss Farm during the 1st quarter of 2023. Balance and close off the account at month end.

State ONE advantage of Mr Bram having a partnership business instead of his present form of business.

Advise Mr Bram of ONE disadvantage of forming a partnership business.

On April 1, 2023 Quan Soso provided Diddi Bram with a cheque for $40 000 and was admitted as a partner in Diddi-Quan Organic Sea Moss Productions.

Terms of Partnership

• Interest on capital will be paid at the rate of 10 per cent per annum.
• 5 per cent interest per annum will be charged on partners' drawings.
• Partners will share profits and losses in ratio to their capital contributions.

Use the form provided below to prepare the journal entry to record the admission of Quan Soso as a partner in the business. Narration is not required.

Besides selling their ocean-grown, sun-dried, organic sea moss, the partners are considering options for creating additional revenue streams.

State ONE other line of sea moss-related business activity that the partners could undertake to bring in additional revenue for the partnership.

The sea moss farming partnership business has been flourishing and the partners anticipate growing sales due to national festivities celebrating Creole culture during the month of October, followed by increased demands for sea moss over the Christmas season. The partners have provided the following projections for sales in the 3rd quarter of operations.

Additional Information

The partners have been using a policy of maintaining inventory levels at 25 per cent of the following month's anticipated sales.

Prepare the production budget for Diddi-Quan Organic Sea Moss Productions for the 3rd Quarter ending December 31, 2023. A form has been provided below for your answer.

(i) Currently, the business’ popular variety of ocean-grown, sun-dried, organic sea moss sells at the price of $30.00 per kilo.

Use the form provided below to prepare the business’ sales budget showing projected inflow of revenues for the 3rd quarter.

(ii) Calculate the total projected cash inflows for the 3rd quarter of the partnership business.