CAT

T3
FREE ONLINE CBE BASED MOCK EXAM

20 Questions

Prepared by | Hasaan Fazal

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CAT – T3 Maintaining Financial Records – CBE Mock Exam www.ACCA-LIVE.com

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CAT – T3 Maintaining Financial Records – CBE Mock Exam www.ACCA-LIVE.com

Following data relates to Question # 1, 2 and 3

According to Spontaneous Inc’s accounting records has 128,000 of inventory at the start of the year and
by the end of the year it is 75,000. The financial year ends on 31 December 2009.

Other relevant information is as follows:

Company placed an order in last week of December valuing 13,000 but the goods are still in transit.
No accounting treatment has been made in this regard.
Wages for the year were 12,000
Selling and distribution costs were 5,000
Company charges mark-up of 20%
Sales for the year were 330,000 of which 73% were credit sales

Q1. What is the amount of profit for the year?

Q2. What is the amount of purchases?

Q3. What will be the amount of closing capital of Spontaneous Inc. for December 2009 if:
Drawings for the year are 3,200
Fresh capital introduced 12,000
Long term liabilities are 6,000
Opening capital 100,000

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CAT – T3 Maintaining Financial Records – CBE Mock Exam www.ACCA-LIVE.com

The following data relates to Question # 4, 5, 6 and 7

Husnain, a sole proprietor, has reached you to help him compute sales tax liability and related
accounting treatments. He presented you the following data for the financial year just ended.

Total sales made during the year were 250,000, out of which 65% are on credit. Total purchases for
the year are 180,000 out of which 35% are on credit. During the year he allowed and received a
discount of 2,000 and 3,000 respectively. Sales and purchases figures are inclusive of sales tax which is
17.5%.

Q4. What is the amount of sales tax payable/refund?

If the opening balances of debtors and credits are 70,000 and 30,000 respectively then;
What is the closing balance of:
Q5. Debtors
Q6. Creditors

Q7. If Husnain found out that one of the sales invoices has an error on which there is an under casting
of trade discount. How it would affect the sales tax figure?

A. Sales tax liability will remain unchanged

B. Sales tax liability will be over casted
C. Sales tax liability will be under casted
D. Insufficient data to conclude the effect

Following data relates to Question# 8, 9, 10 and 11

Opening balance of Machinery account of a company is 890,000 and for provision for depreciation of
the machinery the opening balance is 433,000. The company’s policy is to charge depreciation on
reducing balance method to the assets held at the end of the financial year at the rate of 25% p.a.

During the year company made the following transactions:

Bought a new piece of machinery costing 220,000 net of installation charges amounting
to 12,000.
Sold old machinery for 24,000 which was bought for 80,000 4 years back and installation
charges of 3,000 were incurred. Additionally for the same machinery 3 years back
repairs of 2,500 took place and in the year preceding the year just ended a new tubing system was
installed to increase the capacity.

Q8. What is the closing balance of Plant and machinery account?

Q9. What is the provision for depreciation for the current year?
Q10. The profit/loss on disposal of machinery
Q11.What is the value of net assets to be shown on the face of balance sheet?

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CAT – T3 Maintaining Financial Records – CBE Mock Exam www.ACCA-LIVE.com

The following data relates to Question# 12, 13, 14 and 15

The closing balance of Plastic LLC’s debtors is 150,000. The opening balance of provision for doubtful
debts is 35,000. Other relevant information is as follows:

Company provides for allowance for bad debts @ 5%

The bad debts, still to be adjusted, amounted to 2,000 during the year
Company has received a debit note of 6,000 from one of the customer which has not been
accounted for yet.
Company provides for allowance of discount to customer @ 3%

Q12. What is the provision for bad debts for the year?
Q13. What is the provision for discount for the year?
Q14.What is the amount of net debtors to be shown on the face of balance sheet?
Q15. If the profit for the year before above stated adjustments was 44,000 then what will be profit
after such adjustments?

Q16
Which of the following statements truly states the revenue recognition concept?
We should recognize income when:
I. Goods are made available for the buyer
II. Goods are sent to the buyer
III. Customer has made the payment for the goods received
IV. Customer has promised to pay for the goods yet to be manufactured

A. II and III only

B. I, III and IV only
C. I only
D. I and II only

Q17
One of the partners of ABC associates while making the financial statements added the
expenses incurred on households and personal car. This is against which of the following
accounting convention?
A. Objectivity
B. Business entity concept
C. Accrual concept
D. Money measurement concept

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Q18.
The bank statement of Richie Rich shows that bank has credited an amount of 5,000 which has not been
accounted for in the cash book, also bank has charged service charges of 35 for which no adjustment has
been made in cash book.
The accountant told him that he has received two cheques from customers amounting to 14,000 and
3,000 during the month in which the later one is bounced where the other is still with the accountant. In
addition company issued three cheques totaling 13,000 out of which one cheque of 4,000 amount is not
visible in the bank statement.

If the opening balance of cash book is 2325 Cr. Then what will be the balance of bank according to bank
statement?

The following data relates to Question# 19 and 20

Sue and Soo are in partnership sharing profits in the ratio 3:2.
Following is the data related to this year:

Total profit earned during the year is 190,000

Opening balances of Sue and Soo’s current account are 59,000 and 64,000 whereas balances for
capital account are 100,000 and 120,000 respectively.
Sue has made an additional contribution of 30,000 in the business during the year.
They earn interest on capital @ 1% each per month
Drawings made by them are Sue: 4,500, Soo: 3120 where interest on drawing is charged at 15%
per annum

Q19. What will be the share of profit for Sue?

Q20. What will be the closing balance of Soo’s capital account?

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