test cope 01239010 JANUARY 2010 Sad the number which corresponds to youritemandshede thespacehaving rasthe answer youhave chosen. Lookathowitis done in the sampleitembelow. ‘SumpleAnswsr @O0@ mu sneavwvasxuuy + +‘A non-tading organization is MAINLY concerned with (A) importing goodsforressle (@B) trading only with wholesalers (© providing various services for its ” members making maximum profit for the ropretor Which ofthe folowingisNOTensccounting transection? (A) Peymentoftaxes (B)__Day-to-dayaccumulationofinerest (©) Physicalweerendtearonmachinery ‘andequipment (D) Corresponding withcestomersand creditors 2. Pascal,asoletrader, sted heyearowing $6000. Thebusinessemly rid $5000 forthe yeas, The 5 000 wasrecordedin the Trading ‘audProfitandLoss Acoount. Whichacoouning conceptwasbreached?” () Accruals B) Prudence (© Consiseney ©) Segartoeatiy Which of the following sites the conect, order ofthe stages in the accounting cycle? @ ® © © Jouralizing, vil Balence, Posting toLedger, Final Accounts Journaling Postngto edges, Til ‘Balance, Final Accounts PostingtoL edge, Journaizing, Tiel ‘Balance, Final Accounts Posting to Ledger, Trial Balance, Joumalizing Final Assounts ‘Taebalanceofacreditr’seccountiseatered inthe Balance Sheet underthe heeding (A) capital @) fxedssses (© curentassets (©) curentisbilities ‘Thesummarizedpositionof FoserendSoott Limitedat March 6,2007 vas: ‘Curent Liailites 50000 (Caren Asses 100000 Fined Asset 700000 Long TermLisbites 150000 | ‘What was the capital of Foster nd Scott Limitedat Mare 6,2007? ®& — s40000 ® $9000 © s1s0000 ©) 190000 Hem referstothefollowinglistofbalences. ‘Whatisthe total ofthe assets? (a) 12000 @) 13000 (©) 18000 ©) 315000 GOONTOTHENEXTPAGE10. un. ‘What wouldbetheetTectona izm's Balance ‘Sheet ofthepurchaseofequipmentoncredi? (A) Assetincreaseds Liability increased (B) Assetineeasd: Liability dacreased (OQ) Assetdecresed:Lisbiityincreased (D) Asset decreased Lisbility decreased Ifabuyer’sinvoicehasbeen overstate, the sellershouldsendbima A) comectedinvoice ®B) — retumsvoucher (© creditnote D) aeditnote Atrader bought goods worth $800 ess 10% ‘eade discount. How muchdidbepay forthe good? (a) S700 ® sm (S70. ©) S80 On May 1, @ pety cashier received am imprest of $150. Petty cash expenditures amounted to $7700ferthermonth $2.00 was received fromamember of staff whomade spersonaltelephone cal. Hownmucheashis needed torestore the imprest on May31? $73.00 @ $7500 © $77.00 ©) $1000 2. 13, 44 Jan 15 Sales $150 ‘OnJanuary 15, Jonson, wholesaler, sold ‘g00ds valued t$200to Slim, eresiler, nd mate the following entiesinhis books Slin’'s Account Seles Account JuniSSlim $150 ‘Thesboveenitesshow goodssoldatS200%ess (A) goodsretumed amountingto$s0 B) —_cashdisoountof$50 (©) tradediseountof $50 @D)__overchargeotSs0 Whichofthe folowing shouldbe enteredin she Pety Cash Hook? (A) Payingwagss B) —Payingsalres (©) Buyingposagestamps (D) —Buyinggoodsforresale ‘A trade discount may be described as an allowance given (A) toattactbuyers B) _forquickpeymentofaccounts (©) whengoodssreofapoorquality (©) towradenhobuyinlagequaniies GOON TOTHENEXT PAGE15, 16. “ ®) © o K Khan, a debtor of A and B Enterprises, stleshisdebeof$120%ess 23% discount by cheque. How should the double entry be eardedinthebooksofA and BEnterprises? (A) De.K-Khen su Dr. Discount Receives = § 3 Cr. Banke 8120 (8) DrK Khan su7 Dr.Discunt Allowed $3 Cr Bank 8120 (© Dr. Bank sur Dr Discoum Allowed = $3 C.K Kim si20 (©) Dr. Bask sur Cr:DiscoustReedved $3 Cok Khan S120 A businessman bought anew computer for ‘36000. He paias+000incashandtraceain hisoldcomputer. Whatistheenzy to record ‘bistansaction? ec Dr newcomputer 6000 Cx ld computer $2000 Ce cash 84000 Dr. new computer $2000 Dr cash $4000 Cr od computer 86000 De. new computer 4000 Dr cash $2000 Cr. old computer $6000 Dr old computer 32000 Dr cash 4000 Cx new computer 6000 Vy. 18, Amotorvan waspurchesed on credit forse ‘nthe business, fom Things Criom Motors (Co.How shouldthistansactonberscorded? w ® © DebitMotor Van Expense Account Debit Purchases Account; Creit Things Caricom Motors Co. Debit Motor Vehicle Aout; Credit ‘Things Caricom Motors Co, ‘Account em 8refersto the information below. RIEWIS SALESDAYBOOK 2007 an20 Dick es 30 Poses asiso 45.00 1 tasaah se sa Trade discount snag How would Lewisrovord the information aboveinhisledger? A) DebitDick’sarcs4s Credit Sales A/C $45 @B _ DeditDiee’s A130 Credit Sales A/C $30 © Debitdick’sasc sas Crodit Sales AIC $30 ©) DebitDiek’sA/C $30 Credit Sales Day Book $30 GOON TO THENEXTPAGE19. Abusinessmunincurredthe following costs Item 22 refers to the following balances ‘aken fom the books ofV.Ssscon, s Factoryrepsis 6000 Machineryrepeirs 2000 ‘Newmachine 3000 Newvhicle 7000 ‘Whatisthetotal capital expenditure? $6000 22. Whatistbeworking capital? ®) $7000 © $8000 (a) $5000 @) $1000 ®) $6500 (© $7200 D) 811300 20. Which ofthe following is NOT nominal account? em23 refersto the fllowinginformation () Famiure providedby busines, (B) Commision - (Q Caciagetnwarss | (D) _DiscoutAllowed Curent Assets $6000, CurentZisbiliies $1100, ‘Acid Test Ratio 5:1 21. Aproprietorwinsamotorvan valued$10000 ‘anddecidestoputitintthe business, Which ofthefollowingentresshouldberecorded? 23. _‘Thevalueofelosingstockis (A) DebitMotor Vehicles Account; @) $_ 500 Credit Drawings Account. ® $5500 (B) _DebitCapisl Accouns; (© $6500 Credit otor Vehicles Account, ©) $7200 (© _DebitMotorVehicles Account; CreditCapital Account. (D) _DebitBank Account, (CreditCapital Account GOONTOTHENEXT PAGE,tems24-2Sreferothefllowing information Itzm27 refersto the fellowinginformation. suppliedby asoletrader. aa eoecrcnetans InventoryatJan.1,2008 1500 Purchasesduringthemonth 1200 (Costofgoodssold| 1400 NetSales 30000 RentExpense 3.000 DisconntReceived 2000 27. WhatistheinventorytJanuary31? GrossProft 12000 (a) 5130 Discount Allowed 4000 ® 31500 - © 32600 ©) $2700 ‘What the Gross Profit Percentage (tothe ‘nearest wholemumber)? 28. Whatis the journal entry forreconding rent owingatthe close ofthe period? DR GR og (A) RentExpense Account 500 ‘What is the Net Profit Percentage (to the ‘AccruedRent Account 00 secrectwholemurber)? (@)AccruedRentAccount 500 ® 10% Rent Expense Account 500 ® oO (© PrepsidRentAccoust 500 o Rent Expense Account 500 (©) RentExpense Account 500 ‘The MAIN purpose of prepeing financial ‘Prepaid Rent Account 500 (A) determine gossproit 29. A.company’s rentexpease account had an (B)_— makeinformed financial decisions ‘opening dcbitbalaaceof$2 000, Duingthe (©) mesttdeobjectivesofthe business year $6 000 was pid forrent. Attbeendof (D) determine whether capital bes ‘the yearS1 $00 was owing. ‘neresed ‘What was the amount of te rent expense recorded forthe year? () —s6000 ® $6500 © $7300 ©) $9500, GOON TO THENEXTPAGE30, 34 2 33, Aphoto-copyingmachine valued at $5 000s ‘depreciated at 10% per annum using the saightline method, Whatisitsbook value after two years? (a) s4000 B) $4050 (© $4500 D) $4980 On January?2,2007,1.Brown, adebtor, was declared bankrupt” He owed the Elmer BrowneLtd.$800fergoodspurchased. What effect does this haveon thebalance shestof ElmerBrovnelt.? “ @ © © Debtorsisincreased by $800. Debtorsisdecreasedby $800. (Closing tockisreducedby $800. Closing stockisinereasedby $800, Under whichofthe following conditions would atralbalancestillbalance? 1 a. m W. “ @) © © A debitentry was left out ‘A teanssction was completely left out. Bothadebitentry andacreditentry were overstated by the same amount Botha debitentry and acreditentry ‘were understated by the same 1, [and tfoaly TllandIV only 1,Mand V only 1, UandIV only ‘Thenetprofitofa firmwasshownas$1 600 and it was later discovered that discounts reeeived were underestby $10 andpurchases ‘were understated by $36. What is the conectednetprofit? wy @) © © sista s1610 $1636 $1686 34 35, 36 Morrispurchased$1 000 worth offirninare foroffice use and entereditinthejournalas purchases, How will ths exor affoce his Balance Sheet? (A) Fixed assets and net profit will be {ncreasedby $1 000. (B) Fixed assets and net profit will be decreasedby $1000. (©) Currentassetsandnetprofit willbe ‘ncreasedby 1000. (©) Curentassetsandnetprofitwillnot be affected, Kem3$refersto the informationbelov. s ‘Totalunpresentedchegues 120 Lodgemeatnotenteredon BankStatement 1 Balanceper CashBook @ Whatis “ ® oO ” the balance perBank Statement? si S150 0 $530 uem36referstothe following information, 8 BepinningCapital 29500 Ending Netlos Capital 22100 sforthe year 3150 ‘What is the amount of drawings for the petog? 4250 37400 10500 10550 (GO. ONTO THE NEXT PAGE37. 38, cs MrButerfielddoesnotkeepproperaccouning records, He provided the following intoemation. s ‘Openingbalenceorereditars 3500 Closingbalanceofereditors 3200 Cash purchases 2830 Paymentto creditors 6000 ‘What waste amountof his credit purchases? @ sas (B) $5700 (©) $6000 D) $8830 ‘tema8refesto the fellowing information, ¥ Beginingcapital 30000. Endingeaptal 40000 rawingduringperiod 4000 Aaditonalinvestnent uingperiod 3.000 ‘What is the amount of Net Income for the petiod? (a) $7000 ®) $9000 (© s11000 ©) s17000 tem39 refers tothe folowing information providedby atrader, a [Debrors at start ofthe year 8200 \Cash received from debtors during year 17499 Debtors tend ofthe year 9300 39, What was the amount of is credit sles for the year? (a) s16300 @® — siss00 (© $2600 ©) 826700 40, “Tom,Perey and John formed aparmership ‘and agreed that profits were tobe sharedin rf :1-2respectively. Thenetprofiforthe yearwas$18900, WhatwasJoha’ssareof theprosi? @ sans ® $9450 © sits ©) siss00 41. According to the terms of Parmership ‘Agreement,a Parteris tobe credited with ‘salary of 5000 per year, How wilthisbe recordedinthe books? (A) DebitAppropriation A/C, CCreditPartmer's Curent AIC (B)_DebitAppropriation A/C, Credit Cash (©) DebitParier'sCurent A/C, Credit Cash (©) DebitParter’s Curent A/C (Credit Appropriation A/C GOONTO THENEXT PAGE42, Profits of $2 400 have been shared in equal proportions between two parmers, Debbie and Andres. Andkea, however, shouldonlyhavereceived0¥s. Whatmustbe he correcting entiesin the partnership books? DEBIT cREDIT | (A) Andrea's curent ecooumt $96 ‘Debbie's curentaccaunt $960) (B) Andrea’scurentaccomt $240 Debbie's curent account $240) (©) Appropriation account $960 Andrea's curentaccount $960 () Debbie's cureat scout $240 Area's currentsccount $240 43. Payne and Quarles decided to admitRose as anew partner. The total capital ater the admission of ‘Rose willbe $30 000, of which Rose isto contribute $1000 fr aninterestn the capital. Rosebrougt in$3 000 anda motor van aluedat $7000, how wouldhis admission be recordedin the journal? DR a Cast, 10000 Rose's capital 10000 z @) — Rose'scapitel $7000 Cash $7000 © com $3000 ‘Motorvan $7000 Rose'scapital 10000 E ©) Rose'scepital 10000 Motorvan $3000 i Cash $7000 44. W.XYandZereparmerssharingproftsée 48. Inmefforttorisecapitaacompany offered losses in proportion o their capital, The orsubseripcion200 fivepercentdebentres capital ofeach partners shownin he table of $100eech. below. ‘What sthe significance ofthe 5%? s ey (A) Tiecompany ein viinnee Sate! 2 B) The company receives 5% of ae $20000aseapita aerate (© Thecompenywillpay S%60f'S20000 {niterestiothe debenture older, ‘What i 2's share ofa profit of $7 2007 (D) The company will receive 5% of $20 000 in interest ffom the 8 800 debentureholder. @) $1200 © $1800 ©) $2400 GOONTOTHENEXTPAGE46. a. 49, 210 ‘Whenacompany declaresadividendof15%, ‘he dividend warrentsenttothe shareholder ‘owning 1 $00 onedollaropdingry sharesis a) $ 100 ® $25 © sis ©) sisis ‘Whats the name of the document usually under a company's seal and which $0. acknowledges a Joan to the company at & fixedrateofinterest? () Sook B) Morgage (© Debesture (D) Memorendum lem48referstotheinfornation givenintse 51 tablebelow. Naw ‘Type ofStaw [Unis | ParVane Oniney | 20000 | $200, S6Prizence | 1000 | $500 APubliL ited Company ssuedaprospecas offering the shares, described inthe table above forsaleatpar value, ‘Theissue was filly subscribed, How much capital dish company aise? 3. Inaco-operativesociety,thedalyeffirsare administredby (A) personselectedoreppointedtadoso (B) thechsinmanoftheboard only (©) allmembersmectingtogether ©) amajorityofebarcholders TiemS0.refersto the following informetion aboutaco-operativesciey, surplusb/f2007 $1200 $3500 25% toloan servicing 30% to development find Cee! ‘What amount will be carried forward as ‘undiseibutedsuplusfor2009? | Recommended enter fom 2008 sup (a) si92s ®) 82775 (© $3085 ©) $4700 Inprepsring the final ccountsofacl, the Account wich is used to show surplus or efit foraperiodisealledthe (A) TradingandProftandLoss Account (B) _Incomeand Expenditure Account (©) Receiptsand Payments Account (D) Manufacturing Account ‘em $2 refers tothe following summary of Receipis and Payments foraclub, -————__—__, 8 ‘Subserptionsreceived 300 Rentpaid ea Purchase ofgsmesandequipment 150 Postageofcirculars 20 Proceeds frombooksale 250 ‘What is the cash balance atthe end ofthe ‘mints? (a) 180 @) $280 © $320 ©) seo sanaue ‘tems 53-&4refertothe following information provided by asporting cub, 40.Plus Golfclub @. or the month ended December 31,2007 ea Rent 1090 | Prost fom bar 1500 Eectcity s00 | cn 3500 “Thips to Miami 5 500] + Subs, ue (end) 5004000. a a) 7000 77000 53, Whichofthe following BEST describes(2) 54, Whichofthefollowing BEST describes 11) ‘and(I) shown inthe able? shove? A © Profit&Loss ave (a) Dessit (I) RentReceived ®) Saphs (©) NetLoss BD Proftetossac D) NeProsit, (D)SubseriptionReceived © © Tadagac Subscription Received ) Incomes Expenditure (D SubscripionReceived GOON TO THENEXTPAGE55, 57, -12- em $Sreferstothe following information, 10000 Overheads 16000 Workinprogress January! 3000 WorkinprogressDecember31_ $000 Primecost 58, ‘What isthe year's cost of production of finished goods? ($1400 ®) 18000 © 821000 @) $2600 9, ‘tem Sreferstothefllowing ist of balances, Workin progress Jan 1 Workin progressDec 31 Costofmateralsused 60, From the above list of balances, what is thecostofgoodsproduced? a) $8000 ® $870 © — siit00 D) s11200 Prime Costis 79110, office expenses $3000 and factory overheads isS4720. Howmueh isthecostof production? $470 B) 874390 (© $8380 ©) $8680 ‘tem refers tothe followingtigurestaken omamanufscturingaccount ‘Whatisthecostofraw mateialsconsumed? (a) $7950 @) $8700 © — s11750 (©) $33000 ‘Which of the following formulae is used to caleulate“Yakehomepay”? (A) Gross pay-Netpay (@)_NetPay+ Deductions (©) GrossPay—Deductions (D) _Netpay-+Grosspay P. Amos is employed by a construction company atarateofS7 perhour. During the vweekofApril6, heworkedhis basic weekof -40hours. The income tax due on his pay is $20, endheisalsoliabletopay social security contributions of of hisprosspay. Hisnet evi $246 @) $260 (©) $266 D) $280 IF YOU FINISH BEFORE TIME IS CALLED, CHECK YOUR WORK ON THIS TEST.