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CSEC Principles of Accounts Paper 1 2012
CSEC Principles of Accounts Paper 1 2012
thisbookletwlththean.,.ersheet. Failnretodo
so may result in disqualification.
TEST CODE 01239010
FORM TP 2012105 MAY/JUNE 2012
I. This test consists of 60 items. You will have 90 minutes to answer them.
3. Each item in this test has four suggested answers lettered (A), (B), (C), (D). After reading
each item you are about to answer, decide which choice is best.
4. On your answer sheet, find the number which corresponds to your item and shade the space
having the same letter as the answer you have chosen. Look at how it is done in the sample
item below.
Sample Item
Prime cost is calculated by adding direct factory expenses to the Sample Answer
(A)
(B)
cost of goods sold
sale of fixed assets
®®©•
I (C)
(D)
sale of finished goods
cost of materials used
The best answer to this item is "cost of materials used", so answer space (D) has been shaded.
5. If you want to change your answer erase it completely before you fill in your new choice.
6. WJ;ien you are told to begin, turn the page and work as quickly and as carefully as you can.
If you cannot answer an item, omit it and go on to the next one. You can return later to the
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item omitted. Your score will be the total number of correct answers.
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= DO NOT TURN THIS PAGE UNTIL YOU ARE TOLD TO DO SO.
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01239010/F 2012
Copyright Cl 20 I 0 Caribbean Examinations Council
All rights reserved.
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1. The MAIN internal users of accounting s. Which ofthe following lists ofcurrent assets
information are is arranged in order ofliquidity?
3. Rent expense which is still owing at the end 7. How would the purchase of equipment on
of the period must be debited io the Profit credit affect a firm's Balance Sheet?
and LossAccountand shown in the Balance
Sheet as a liability. Which accounting (A) Increase assets; Increase liabilities
concept does this represent? (B) Decrease assets; Increase liabilities
(C) Increase assets; Decrease liabilities
(A) Accrual (D) Decrease assets; Decrease liabilities
(B) Consistency
(C) Going concern A business, which owns goods valued at
8.
(D) Money measurement $500, also has a van valued at $I 000;
and owes $ 50 for goods. If it goes out of
business at these prices, the owner's closing
4. Which of the following features are
capital will be
benefits of using accounting software?
(A) $1 050
I. Integrated analysis of information
(B) $1 450
II. Almost immediate updating of
(C) $1 500
records
(D) $1 55'.l
Ill. Programmable to recognize
irregular entries
9. In order to avoid writing numerous cheques
(A) ·1 and II only for small amounts, a firm may set up a
(B) I and III only
(C) II and III only (A) generl!-1 ledger
(D) I, II and III (B) general journal
(C) petty cash fund
(D) standing order with a bank
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10. TllfJ'tot!!l tredlt of the bank column of a 14. On I May, a pe.ty cashier received an
I
'I'hrel! CO!ilifltt Cash Book is greater than imprest of$150. During the month, petty
I. the total del:lit The MOST likely reason cash expenditures amounted.to $77.00 and
I
for this sitiJatiOh is that $2.00 was received from a member of staff
who made a personal telephone call. How
(A) l:liere 'Was an overdraft much cash is needed to restore the imprest
(B) tta.nsiclions were e>mitted from the on 31 May?
debit side
(C) some figureS were overstated on (A) $ 73.00
the credit side (B) $ 75.00
... ,,. ·(b) the incorrect transactions were (C) $ 77.00
',·:;...:~;,:./.~ entered on the credit side (D) $ 150.00
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~futbpurchases goods valued at $500 15. When goods are returned by a customer,
· oii credit .He pays off his bill within the they are recorded in the Returns Journal
grace period and so receives a 10% cash of the supplier. Which account should be
discount. How much does he pay for the debited in the supplier's ledger?
goods?
(A) Sales
(A) $ 50 (B) Purchases
(B) $ 450 (C) Return Inwards
(C) $ 490 (D) Return Outwards
(D) $ 550
18. K. Khan, a debtor of A and B Enterprises, 19. Mr Ram, a shoemaker, bought a motor
settles his debt of $120 less 2 Y, per cent van for $11 000 cash. In recording this
discount, by cheque. The double entry in transaction he should
the books ofA and B Enterprises should be
(A) Dr. Cash; Cr. Motor Van Account
(A) Dr. K.Khan $117 (B) Dr. Cash; Cr. Purchases Account
Dr. Discount Received $ 3 (C) Cr. Cash; Dr. Purchases Account
Cr. Bank $120 (D) Cr. Cash; Dr. Motor Van account
$ $
(Opening balance) 400.00 3 May 2010 50.00
1May2010 Sales 150.00 7 May20)0 20.00
5 May 2010 Sales 75.00 9 May2010 150.00
(Closing balance) 405.00
625.00 625.00
20. From the account above which of the following figures should be entered in the trial balance?
(A) $ 150.00
(B) $ 400.00
(C) $ 405.00
(D) $ 625.00
(A) Wages
(B) Repairs
(C) Purchase of goods
(D) Purchase of machinery and equipment
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Item 22 refers to the following balances Item 25 refers to the following information.
from J. Sammy, a sole trader, at the end of
the financial period. A calculation to determin.e gross profit
percentage is as follows.
$
Land 7 000
$185530 x 100 ~ 35.02 %
Building 5 000
$529800 1
Stock 1 000
Debtor 500
Bank overdraft 400 25. What does the $ 529 800 represent?
Creditors 700
Cash 200 (A) Total sales.
Capital (at start) 10 000 (B) Gross profit
Drawings 300 (C) Cost of sales
Net Profit 3 000 (D) Total purchases
(A) $ 2 600
(B) $ 6 100
(C) $ 7 700
(D) $ 8 800
Item 27 refers to the following information 29. How does an increase in bad debts affect a
about goods bought and sold by a company. sole trader's financial statements?
(A) $ 800
(B) $ 810
(C) $ 900
(D) $1190
31. What is the amount in the firm's 'provision for doubtful debts' on 3I December?
(A) $ 200
(B) $ 500
(C) $ 600
(D) $ 700
32. Which of the following journal entries 36. Mr Smith does not keep proper records. He
represents the correction to an overcast began his business with $ I 0 OOOin its bank
total in the sales journal? account. He uses his vehicle and building
worth $ 6 000 and $ 15 000 respectively
(A) Dr Sales Account, as part ofhis business. Customers owe him
Cr Debtors $ 4 000. He withdrew$ I 500 for personal
(B) Dr Debtors, use and owed creditors $ 2 000.
Cr Sales Account
What is the closing capital of the business?
(C) Dr Suspense Account,
Cr Sales Account (A) $ 25 500
(B) $ 28 500
(D) Dr Sales Account.
(C) $ 31 500
Cr Suspense Account
(D) $ 33 000
I. A transaction was completely left 38. What is the inventory at the end ofJanuary?
out.
II. Both a debit and a credit entry were (A) $ 300
overstated by the same amount. (B) $ 500
III. Both a debit and a credit entry were (C) $ 700
understated by the same amount. (D) $I 300
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39. Mrs Miguel's capital on 1 January 43. Payne and Quarless decided to admit Rose
was $ 40 000 and on 31 December was as a new partner. The total capital after
$ 85 000. She withdrew $ 1 000 in stock the admission of Rose would be$ 30 000,
during the year. of which Rose is to contribute $10 000
for interest in the capital. If Rose were to
What is her profit for the year? bring in cash and a motor van valued at
$ 3 000, his admission would be recorded
(A) $ 5 000 in the journal as
(B) $ 46 000
(C) $ 125 000 DR CR
(D) $ 126 000 $ $
(A) Cash 10 000
Rose's capital 10 000
40. When writing up the books of a partnership,
which account must EACH partner have? (B) Rose's capital 7 000
Cash 7 000
(A) Bank
(B) Current 7 000
(C) Cash
(C) Savings Motor van 3 000
(D) Fixed deposit Rose's capital 10000
41. W, X, Y and Z are partners sharing profits (D) Rose's capital 10 000
and losses in proportion to their capital. The Motor van 3 000
capital of each partner is shown in the table Cash 7 000
below.
44. Mrs Allen invested $ 20 000, Mrs Brown
Parties Profit($)
invested $ 5 000 and Mr Cable invested
$ 5 000 in the same business. The loss
w 300 sustained during the year was$ l 000. The
x 200 'partnership agreement' is silent on the item
y 100 oflosseo, although profits are to be split in
z 300 the ratio 2:2: 1 in favour of Allen, Brown
and Cable respectively. How much of the
loss must be borne by Mr Cable?
What is Z's share of a profit of$ 7 200?
(A) $200
(A) $ 800
(B) $240
(B) $ 1 200
(C) $300
(C) $ 1 800
(D) $400
(D) $ 2 400
42. Which of the following accounts shows 45. The reward of profit received by a
how profits and losses are shared among shareholder in.a limited company is called
partners?
(A) interest
(B) dividend
(A) Current
( C) drawings
(B) Appropriation
(D) commission
(C) Profit and Loss
(D) Income and Expenditure
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46. In an effort to raise capital, a company Item 50 refers to the following information.
offered 200 five percent ( 5%) debentures
of$ I 00 each for subscription. The Picadilly Teachers Cooperative has
a share capital of $ 10 000 made up of
What is the significance of the 5%? $ 2 shares. The cooperative made a profit
of $ 30 000. The Board of Directors has
(A) The company's capital will increase decided to pay a dividend of 20 % of the
by 5%. profits to the shareholders.
(B) The company receives 5% of
$ 20 000 as capital. 50. What is the number of shares which make
(C) The company will pay 5% of up the share capital ofthe Picadilly Teachers
$ 20 000 in interest to the deben- Cooperative?
ture holders.
(D) The ·company will receive 5% (A) 5 000
of $ 20 000 in interest from the (B) 10000
debenture holders. (C) 20000
(D) 30 000
48. A company is allowed by law to sell 'f.he amount of its accumulated fund was
I 00 000 shares at $ 1.00 EACH. Half of
these shares were bought by the public. (A) $I 640
(B) $4497
What is the authorized capital?
. (C) $ 8 185
(A) $ 40 000 (D) $ 9 897
(B) $ 50 000
(C) $ 80 000
(D) $ 100 000
(A) Financial
(B) Producer
(C) Consumer
(D) Commercial
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Item 52 refers to the following summary of receipts and payments for a club at I March.
$
Subscriptions received 300
Rent paid 60
Purchase of games and equipment 150
Postage of circulars 20
Proceeds from book sale 250
(A) $ 180
(B) $ 280
' (C) $ 320
; (D) $ 620
i.
,
$ $
Rent I 000 Profit from bar I 500
4 000
7 000 7 000
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53. Which of the following BEST describe (I) and (II) shown in the table?
I
R
t;
(D)
(II)
(I)
Subscriptions Received
54. A club treasurer found, on closingl;iis books, Item 57 refers to the following list of
that a $50 subscription had been paid in baiances.
advance. Where should this amount appear?
$
(A) Among the liabilities on the Balance
Sheet Work in progress I January I 600
(B) Among the assets on the Balance Work in progress 31 December 1 700
Sheet Cost of materials used 3 000
(C) On the credit side of the Profit and Indirect expenses 3 200
Loss Account Factory wages 5 000
(D) On the debit side of the Income and
Expenditure Account
57. From the list of balances above, what is the
cost of goods produced?
55. Which of the following will result when
opening stocks of raw materials are added (A) $ 8 000
~ net purchases of raw materials? (B) $ 8 700
(C) $ 11 100
(A) Prime cost (D) $ 11 200
(B) Production cost
(C) Raw materials used
(D) Raw materials available for use
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(A) $ 800
(B) . $I 200
(C) $ 3 900
(D) $ 4 500
59. P. Amos is employed by a construction 60. . An employee works for45 hours in a given
company at a rate of$ 7 per hour. During week. The rate for a 40-hour week is $ 4
the week of 6 April, he worked his basic per hour. Overtime is paid at time and a
week of 40 hours. The income tax due on half. What is his gross weekly wage?
his pay is $ 20, and he is also liable to pay
social security contributions of 5% of his (A) $ 180
gross pay. What is his net pay? (B) $ 190
(C) $ 240
(A) $ 246 (D) $ 270
(B) $ 260
(C) $ 266
(D) $ 280
END OFTEST
IF YOU FINISH BEFORE TIME-IS CALLED, CHECK YOJ.JR WORK ON THIS TEST.
01239010/F 2012