-PRWerPus oF necQUNTS Multiple Choice > iee 1, X sends back $800 of faulty goods to Y im which ‘book of prime entry would Y record this transaction? (A) General Journal (8) Purchases Journal (©) Saies Journal (D) Sales Returns Journal 2. Ifthe following lists of assets found on the Balance ‘Sheet ofa retail trader were fo be arranged in order of liquidity; the sequence would be (A) Motor Van, building, bank, fixtures, cash, debtors (B) Cash, fixtures, debtors, bank, building, motor van (©) Cash, bank, fixtures, debtors, motor van, building () Cash, Bank, debtors, fistures, motor van, building 3. Which ofthe following are reat accounts? 1. Furiture Ale HL. Debtors Alc UL Capital Ave IV. Motor Van Ale (A) [and ILonly (B) Fand TV only (© Hand 10 only (D) I and 1V only 4. The assets ofa business fotal $3 200 and the liabilities ‘otal $820. What is its capital? (A) $2038 (B) 2.380 (©) $4 000 (0) $4 020 5. Which ofthe following states the correct order of the ‘stages in the accounting cycle? (A) Journatizing, Posting to the ledger, Trial Balance, Final Accounts (B) Jouralizing, Trial balance, Posting to the ledger, Final Accounts (O Posting to the ledger, Journalizing, Trial Balance, Final Accounts (©) Posting to the ledger, Trial Balance Journalizing, Final Accounts 6. A retailer purchases goods worth $3 000. He receives 30 per cent trade discount and 5 per cent cash discount How much should he pay for the goods? (A) $1 995 ) 2095 u (©) $2 100 (D) $2850 7. On December 31, 1978, the Balance Sheet of Mr, 1 W. Ward showed the following: Fixed Assets $80 000 Current Assets $35 000 Liabitities $30 750 ‘What was his capital? (A) 45 250 (B) $65 000 (© $80 000 (D) S84 250 8, An article is subject to a 20% trade discount. ts list price is $600. What is the sale price? (@) $120 (8) S480 (©) $580 ©) S70 9. Mrs, Green isa dry goods merctant. Which 6f the following transactions would result in a debit to her Cash Account? (A) Sold goods for eash (B) Paid cash to office cleaner (©) Bought goods for cash (D) Paid installment on loan 10, The trial balance is a statement which helps us to (A) Discover all types of errors (B) Determine the arithmetical accuracy of postings (C) Prove that transactions have been recorded in the proper accounts (D) Prove that transactions lave been correctly analysed 11, Which of the following statements describes real accounts? (A) The return accounts which appears in the Trading “Account (B) Purchases and Sales Accounts which appears in the ‘Trading and Profit and Loss Account. (© Records of property which appear in the Balance Sheet (D) All debtors” and creditors’ accounts shown in the subsidiary ledgers 12, A trader received an invoice for $4 000 Tess 25% trade discount. Subsequently he returned one-cighth of the value of the goods. What amount would be centered in his Returns Outwards Account? (a) sa7s (B) S400 (©) $430 (D) $50013, Which of the following transactions should be debited inthe Cash Account? (A) Bought goods for cash from J. Jones (B) Paid office cleaner by cash (©) Sold goods for cash (D) Paid on loan account 14, A businessman bought a new typewriter for $6 000. He paid $4 000 in cash and traded in his old. typewriter. What is the entry to record this ‘transaction? DR R (A) New typewriter 86 000 Old typewriter 2000 Cash 4.000 (B) Old typewriter 2.000 Cash 4000 New typewriter 6.000 (©) New typentiter 4000 Cash 2.000 Old typewriter 6 000 (D) Old typewriter 2.000 Cash 4000 New typewriter 6.000 15, Which of the following groups would be regarded as ‘examples of current assets? (A) Vehicles, equipment, machinery, typewriter (B) Debtors, stocks, creditors, cash at bank (©) Bank overdraft, machinery, debtors, stock (D) Stock, cash at bank, debtors, cash in hand 16, Goods previously bought for $90 are returned by the ‘buyer to D. Fine. How should this be recorded in ‘the buyer's journal? (A) Dr. D. Fine’s Ale Cr. Returns Outwards Ale (B) Dr. Fine Alc Cr, Returns Invards A/c (C) Dr. Returns Inwards Ae Ce. D. Fine’s Ale (©) Dr. Returns Outwards Ale Ce. Goods Ale Item 17-18 refer to the Balance Sheet below Balance Sheet of Boot’s Sports Store as at Dec. 31, 1992. s s Capital 12000 © Land & Buildings 9000 + Net Profit_4.000 Motor Van 76000 Fixtures & fittings =Drawings __500 Stock 15500 Debtors Creditors 2100 Bank Cash 17.600 17, The amount for total fixed assets is (A) $9000 (®) $14 000 (© S14 600 (D) $15 050 18. The amount for the total current assets is (A) $2 550 (B) $3 000 (© $3 600 (D) $8 600 em 19 refers to the following information __ Cash Ale 8 5 Opening balance | 400 | 3.5.94 Rent 50 15.94Sales | 150 | 7.5.94 Wages 20 | 7.5.94 Sales 75 | 9.5.98 Tax 150 | Closing balance | 405 | 23 19, From the account above, which of the following figures will be posted to the trial balance? (a) $150 (B) S400 (© s40s (D) $625 20, Am increase in drawings will result in (A) An increase in long-term liabilities (B) A decrease in capital (©) A decrease in current liabilities (©) An increase in capital 21, A credit balance in the Cash Book indicates that (A) There is a balance in the banic (B) Too much cash is paid out of the office (© The bank balance is overdrawn (D) Too many discounts are allowed 22, Which of the following are functions of a ‘bookkeeper? 1. Analysing Hl Interpreting UL Posting IV. Recording (A) Hand II only (B) TM and TV only (C1, Hang (©), and IV oniy(©) The supplier has paid $8000 (©) The supplier owes $8000 38. Atthe end ofthe year, the capital of a business was $33 000, At the beginning of the year, the capital ‘was $28 000. During the year, the owner withdrew for personal use $2,000. Whal is his net profit for the year? (A) $5 000 (B)S7 000 (©) $30 000 (D) $61 000 36. The maximum capital a company can issue to the public is called (A) Authorised capit @) Issued capital (C) Subscribed capital (D) Paid up capital 37. A limited tability company is owned by | (A) The state 4, (B) Private shareholders (©) The public at large {D) A limited mumber of partners 38. Which of the following tasks would NOT normally be carried out by a book-keeper’? 1, Keeping the journal TL Extracting the tra! balance TH, Drawing up the balance sheet TV. Auditing the accounts (4) Land Monty (@) Land Ti only (©) Wand LV only (D) Hand TV only 39, When comparing the books of a company with the books of a sole trader, which of the following items ‘on a Balance Sheet would differ MOST in presentation? (A) Capital () Current Assets (©) Curent Liebilities (D) Fixed Assets 40. Which of the following transactions will NOT be recorded in the Purchases Day Book of a grocery shop? (A) Bought from K. Leen goods $500 () Purchased goods on credit $975 (©) Bought chicken on credit $100 (D) Purchased cash register on credit $1 200 Cash at bank and in hand ‘Trade debtors 5.000 2400 Stock in hand 4600 Acorued expenses 700 Trade creditors 4800 41, Whatis the working capital? (A) $5 000 (B) 86 500 (©) $7 200, (D) $11 300 42. A trader had an opening capital of $3 900. His drawings were $900 and his closing capital was 94 860, What was the net profit? (A) $900 (B) $960 (© S1 860 (D) $3 000 43. An employee works for 45 hours each week. He is ‘paid $4 per hour for a basic 40-hour week and $6 ‘per hour for overtime. His gross weekly wage is (a) si8o (8) si90 (C) $240 9) 8270 44, What would be the effect on a firm's Balance Sheet Of the purchase of equipment on credit? (A) Asset increased; liability decreased (B) Asset increased; liability increased (© Asset decreased; liability increased (D) Assel decreased: liability decreased 45, Mr. Jones business began the month with an overdraft of $1 200, During the month, total deposits were $2,000 and total payments were $600. What ‘was the Cash Book balance at the end of the month? (A) Credit balance of $200 (B) Debit batance of $200 (© Credit balance of $600 (D) Debit balance of $1 400 46. A business operates its petty cash on the imprest system. AC the beginning of the month, the petty cashier was given $200 out of which she spent $152, How much will she be reimbursed? (A) $48, (B) S152 (©) $200 (D) 8352(8) Locating errors (C) Increasing profits AD) Limiting drawings 16. What is the balance of cash at the end of the month © for a club which showed the following Summary of Receipts and Payments at the end of the month? ert Subscription received $300 ] Rent paid 60 © | Porchaseof games and © | Banioment 150 L | Postage of circulars 20 [| Proceeds rom book sale 250 he $180 @) $280 to 5320 (D) $620 tem 77 refers tothe following extract from T. Armand's ‘Balance Sheet Closing capital $4 500 Net Profit 1250 Drawings 750 71, What was his opening capital? Fays2500 £@) 84 000 §(©)$5 000, 086 500 178, Tom, Perey and John formed a partnership and greed that profits were to be shared in the ration 11:2 respectively. The net profit forthe year was $18 900, What was John's share of profit? | (A) $4725 |B) 89.450 (© s14175 D) $18 900 total liabilities at $ 97 000. The owner values the business at $150 000. What is the goodwill? (A) $22 000 8) $53 000 (©) $75 000 (©) S128 000 (0 disagree with the Bank Statement? L. Bank charges were not entered in the Cash Book 1. Cheques were drawn and presented for payinent on the same dates [ é i } F 40, which ofthe owing would cause the Cash Book i IM Bank transfer was not entered inthe Cash Book TV. Bank deposit was not shown on the Bank Statement (A) I, and Ui only (8) Mand IV only (OL, Wand IV only (D) IL, WT and IV only 81. Under which of the following conditions would a ‘rial balance still balance? L.A transaction was completely left out, TL. Both a debit and credit entry were overstated by the same amount IML A debit entry was left out TV. Both a debit and a credit entry were understated by the same amount. (A)L, Hand U1 only (B) I, Mand IV only (OL, Mand IV only (D) I, and Wy only ‘82. A trader sent Mr. Jones an invoice charging him for 10 articles at $68 each instead of $65 each, Which type of note should the trader subsequently send to Mr. Jones? (A) Promissory note () Advice note (© Debit note () Credit note ‘Smith, Brown and Robinson are partners who share ‘profits in the proportion of their capitals of $5000, {$2000 and $1000 respectively. ‘Net Profit is $7 100 Interest on capital is 5% Robinson is paid a salary of $300 83. Total interest on capital is (asso S100 (© $250 () s400 84, Robinson’s share of the net divisible profit is (a) $800 (B) $1 600 (© $4000 (©) $6 400 85. Smith's current account is credited with (a si175 (®) $170015. Which ofthe following items are related to a consumer cooperative? Patronage Dividends Ordinary Dividends I. Dividends on cepital TV. Preference Dividends Sree = (A) Tand I only 3) Land IV only H(C) [and I only 4D) Trand IV only r (On May 1, a petty cashier received an imprest of $150, During the month, petty cash expenses amounted to $77.00 and $2.00 was received from a member of staff who made a personal telephone call How much cash is needed to restore the imprest on May 317 (8) $73.00 @) $75.00 E(C) $7.00 -(D) $150.00 97. Which of the following must be fled with the ‘Registrar of Companies to establish 2 PRIVATE, Joint Stock Company? Articles of Association |. Memorandum of Association I. Share Certificates . Prospects BESO eS AE Land H only € (B) and TV only | ©) Hand I only (D) Mand IV only 98, Inthe wading acount, rts outwards deducted settee ipsa serene enmener ice eomete 99, Ta which ofthe cases above does a "loss" exist? (A) Land I only (@) U and I only (© Monly OL Tana mt (A) Cartiage outwards (B) Carriage inwards © (© Parchases | (D) Sales Ec ASSETS _ LAST CAPITAL, 8 $ s alr 100 000 50000} 40.000 n 250 000 100.000} "150 000 fl 15,000 22.000 8.000 i sis eereongenees : 100. Which of the following tasks must be completed in payroll accounting before 2 trial balance can be prepared? 1. Providing the payroll register UL Posting the payroll totals TIL Recording payment of employees and payroll returns IV. Preparing employees income-tax returns (A) Land I only (B) Land IV only (© Wand Wi only (D) Hand IV only 101. The process of putting financial records in their analysis form is called (A) Accounting (®) Adjusting (© Record keeping e (©) Decision making 102. Joanne Barrett is a dressmaker. She buys 100 ‘metres of material from S, Wright for $100 cash. ‘The correct double entry for this transnetion in Barrett's ledger would be to (A) Dr. Materials Alo; Cr. S. Wright's A/c (B) Dr. Materials Ale; Cr. Cash Ale (©)Dr. Cash A/c; Cr. S. Wright’s Ale (D) Dr. Cash A/c; Cr. Materials Ale 103. Mr. Harry, a grocer, bought a typewriter on credit from Tan Company. "Which of the following journal entries will be made for this transaction in Mr. Harry’s books? (A) Dr. Parchases A/c: Cr. Tan Ale (B) Dr. Typewriter A/e; Cr. Cash Ale (© Dr. Tan Ale; Cr. Purchases Ale (D) Dr. Typewriter A/c; Cr. Tan Company 104. ‘The account which discloses the grass profit or loss is called the (A) Profit and Loss Ale () Appropriation Ae (©) Trading Ale ©) Cash Ale 105. Which of the following claims are ranked in order of priority, if a company is liquidated? (A) Ordinary Shares, preference shares, debentures (B) Debentures, ordinary shares, preference shares (O) Preference shares, ordinary shares, debentures (D) Debentures, preference shares, ordinary shares(A) Private company (B) Public limited company (© Partnership (D) Propritorship 6. In converting from ‘single entry" 10 double entry the source from which details wil be extracted is the (A) Genet Ledger “(@)Sabsidiary Books _ (C) Statement of Affairs = (D) Bank Reconciliation Statement 169, Which ofthe following accounts show how profits ‘and losses are shared among partners? (A) Prot and Loss Account (B) Appropriation Account = (C) Current Account = ©) Income and Expenditure Account | 170, When a company issues new shares 2t a price above face value, the increase is (2) Gross Profit © (B) Not Prob (C) Capital Protit © (D) Normal Profit © TL, "The reward of profit received by a shareholder in a Jimited company is called ~ (A) Commission (@) Interest © (©) Drawings (D) Dividends Hem 172 refers to the extract from the records of 2 business, shown below. 1 008 © | Opening Capit Closing Capital 2.000 Drawings 400 ‘Additional Capital 6a 172. According tothe information given above, the resulting position is a (A) Profit of $1 000 @) Loss of $1 000, (©) Profit of $800 () Loss of $800 173, A crett balance Bin the Sales Ledger Control A/c represents an overpayment © (Ay Tocrditors © (@) By debiors (© Todehiors (D) By creditors, 174, Employees of a business are emitled to anmual profit sharing borms of 20%. Profit for the year was $10 000 before tax and boms. IF tax is to be 30%, What is the amount for bonus? (A) St 400 (B) $2.00 (©) $4 400 (0) $7 000 [em 175 refers to the following information: Stock at Jan: rr S| Purchases during the month $1200 | Cost of goods sold sisoo_} 5. What is the sfock al the end of Janay? (AS 300 (B)S 700 (QS 300 ()$1 200 176, ‘The purpose of am appropriation account isto (A) Change capital expenditure as agrced upon in the Anticles of Association (B) Show how the net profit is distributed in a partnership or co-operative (C) Make appropriate changes related fo net profit as agreed upon in the Articies of Association (D) Enter all capital and revenue expenditure as stipulated in the Partnership Act 177, Im which book would a trader enter the writing-off| of a debt of a bankrupt customer? (A) Sales Journat (B) General Journal (© Returns Journal (D) Purchase Journal 178, Credit notes issued for goods returned by customer ‘will be entered firstly in the (A) Returns outwards book (B) Returns inward book (C) Sales returns and allowances account (D) Purchases returns and allowances account 179._A Suspense Account was opened for an error of '830 found in the trial balance. Later it was observed. that sales were understated by $20, This item would be corrected in the jonrnal by (A) Dr, Trading, Cr, Suspense: (B) Dr, Suspense. Cr. Goods“F@ sis 500 Direct labour $30 000 (©)520 000 5 Which ofthe following when overcasted would ‘result ina all in the cost of production? \} Purchase of raw materials $20 000 Closing stock of raw materials $10 000 150, ‘The closing capital is (A) $20 000 (B) $20 700 (©)$21 800 (D) $22 800 151, Which of the following is entered in the Purchases Account of a grocery? (A) Goods for sale ) Duplicating machines (© Typewriters (D) Office stationery 152. Which of the following are nominal accounts? (A) Machinery and plant : (B) Stock and debtors (©) Creditors and fixtures (D) Wages and rent 153. Two methods of stock evaluation, Last in First Out and First in First Out, were compared after calculating a closing stock of 50 units. LIF.O, gave a clasing stock of $350 and F.LF.O. gave a closing stock of $400, ‘What conclusion can be drawa from this? 1. Prices were rising, UW. Prices were falling, TIL Prices were neither rising nor falling. IV. Profit will be understated if L.LF.O. is used. (A) Lonly ) only (© Mand IV only (D) Wand IV only 154. If closing stock is 900 units, the purchases 7 000 ‘units, the sales 6 500 units, the cost price per unit $1.50 and the selling price per unit is $2.00, then the ‘cost of the closing stock is (A) $1400 ®) $1600 (©) $2100 ©) $2800 4520 (Closing Stock 920 Using the information above, what is the cost of goods sold?i E ledger entries? 914. What are the corresponding ledger ® E(t end only =) Land IV only (©) Mand Monty {pI and IV only Bus. ‘And B had a partnership and shared profs and pees ¢ joodwill $3 600. How much did A and B receive hte sae of Gnd” & oo PrScks | 116, Mz, A. Jones paid $250 for repairs to machinery + This wansiction was entered i the Cash Book ad {posted tothe ledger. How was this transaction © rconded? (A) Debit Cash Ale; Credit Repairs A/c (®) Debit Cash Ave; Credit Machinery A/o } (© Debit Repairs A/e; Credit Cash Ale ©) Debit Machinery Alc; Credit Cash Aye Tem 117 refers to the information below which was ; taken from the books of John Smith, a grocer TT Samm owed J. Smith 375 J. Smith owed W. Wallace 340 A. Blackie loaned J, Stith $75 117. Whose account would appear in the ledger of J. Smith as a debtor? isnt ance (ADI. Smith Ae |) T. Samm Ale (© W. Wallace Ae @)A. Blackie Ale ee Teen 118 refers to the following information: Fixed Assets at cost 20 000 ‘Accumulated depreciation to date 1000 Rate of depreciation per annum 10% 118, How much would be provide for depreciation this year using the reducing balance method? (A) $1 000 (B) 1.900 (©) 82.000 ()82 100 La ling sock of 7 waters 31.12.92 Pradaction vgs ‘19; What is the coat of raw materials available for production? (A) $800 (®)$3 900 (©) $4 500, (D) 55 300 120. What is the cost of raw materials consumed? (A) $800 (B) $1200 (©) $3 900 (©) $4 500 121. What is the prime cost? (A) $3 900 (B) $5 200 (©) $5 300 () $6 800 Ttem 122 refers to the following figures taken from a mai ‘account Prime costs 29.950 Factory overheads 11.250 Direct manufacturing wages 22.000 122. What is the cost of raw materials consumed? (A) $7 950 () $8 700 (© $11 750 (D) $33 000 123, Pis to join X and ¥ in partnership. P brings to the Dartnership as capital, furniture valued $3 000 and a ‘motor van $5 000, In addition, he is to pay a Premium of $1 000 to be shared between X and Y. How much would be the amount of P's capital? (A) $4 000 (B) $6 000 (© s8 000 (D) 89.000Tom 190 refers fo the following Appropriation Account. Appropriation Account 8 ‘Taxation reserve 10.000 By balance 894,50 E Preliminary 250 Net profit 26 106.50 “Transfer to general reserve 4000 | Proference share dividend 1200 Ordinary share dividend 6.000 190, What conclusions could be drawn from the abave Appropriation Account? L The company has recently come into existence H. The company is engaged in profitable enterprise, MM. The company is not doing too well, IV. More dividends can be given to the ordinary shareholders, (A) Mand TV only (8) Mand tv oniy (©) 1, and 1V only (D) 1, Wand TV only. 194. A statement that gives the financial position of a Cost of raw materials $7800 ‘business at a specific dave is a Monnfacturing wages $21 000 Rent and taxes $1000 (A) Trial batance Indirect wages $9000 (B) Balance Sheet Royalties $200 (©) Trading Account Machinery depreciation 3 600 (D) Working Paper General Expenses $400 : 195, An invoice is adocument nade out when goods are ~ rom the fciory expenses given in the above table what “ts the produetion cast of goods manufactured? (A) Overcharged E (B) Returned (a) $29 000 (©) Undercharged 7B) $30 000 (D) Sola §(C)$39 000 7) S10 000, 196, Which of the following assets is the MOST liquid’? 192, Prime Cost is $79 110 and overheads is $4 720. (A) Cash 2 What is the cost of production? (B) Debtors © (C) Equipment sano «D) Stock © (B) $74 390 (O79 110 197, The petty cash system saves time in the posting of (0) 383 450 expenses to the nominal accomals because 193. B. Black purchased goods for $400 and received (A) A small aumber of payments is involved © 10% discount, Later he retmed goods worth $100, (B) An analysis system is involved because they were faulty. How much did he receive (C) The imprest position is always restored 5 far he goods returned? (D) Petty cash vouchers are used Sws o 198. What are the fimetions of a book-keeper? PBs 30 Os 9 1. Analysing =) st 00 Hi, Interpreting M1, Posting. IV. Recording(A) Machinery and plant ‘Xp Stock and debtors (©) Creo and fixtures “(D) Wages and rent S352, Which of he following is NOT classified as dinect varia? & “(do Laer ina furniture shop 21 Fol for firature workshop engine (e Camtageimards on imestone in a cement factory “{(D) Transistors purchases for radio assembly plant “SL The principal document to be registered with the Rogar of Joint Stock Companies, which would ermine he sights ofthe members in a private company isthe | Memorandum of Asotin Fp) Prospeats AC) Cenifeae of incorporation § {D) Articles of Association 235 refers to the following information Debiorsalsartofthe year $8 200 Cas received fom debtors 2 During the year 47-400 £| Debrsattheend oC the year 9 300 [Devore bend oe 35, The above information was provided by a trader. How inch were his credit sales for the year fa) si6 300 ©) S18 S00 £0) 325 600 * (py $26 700 336. The asses in the Balance Sheet of a sole trader are listed in £ a order of tasty = {b) Orr of permanence (0 Alphabat onder 5 {D) Chronological order 2237, hvoices sent (o customer are entered in the © (§) Sales Journal © {py Parts Fura © {0 Retr lnvardsJoural {D) Retin Outward outa 2298. A partner has a “one sixth (",) interest” ina consult ing partnership. This means one sixth (") of the (4) Profits only ¢B) Losses and profits (C} Capital only (D) Profits, losses and capital 37. Given the following information for a firm. what is the closing capital? $300 $4000 $1000 ‘Opening capital “Total clo (as 400) (B) 82.500 ($3 000 (D) $3 500 3. A.club had 100 mesnbers and the subscription is $1 per year. However. three members paid $2 each because they owed for the previous year and one ‘member pnid for the next member paid for the nest year. The others paid the animal subscription. What the imcome from subscription for that year? (As 96 (8) $100 (©) $103 (D) $104 259, ‘The summurized position of Foster and Scott Limited at March 6. 1996 was: Current liabilities 60 000 Current assets 00 000 Fixed assets 200 000 150000, Long term liabilities ‘What was the capital of Foster and Scott Limited a March 6, 1996? (A) 8-40 000 (B) $90 000 (© $150 000 (B) $190 000 240, Which of the following BEST describes a trial balance: 1. A list of balances of acconnts 1, A financial statement HT, An account TV. A check on the accuracy of the double entry system (A) Land IJ only (B) Land IV only (C) EH and IL only (D) LM and LV oniy210, Which of te following gives a cores definition of the ‘double entry” sysiem of accounting? (A) Every account is recorded twice. © (B) Bvery transaction is concermed with at least two accounts (€) Every enty is recorded twice. (D) Every tno entries are recorded in the same account. 211, The excess ofthe income over the expenditure of a not-prfit-making organisation is called = (A) Gross Profit 8) Net Profi (©) Accumulated Fund (D) Surplas 7212. Jol Jones paid his employees’ wages in cash, £5 How will he record this payment in his books? © (A) Debit Wages Alo Credit Employees’ A/c + (B) Debit Employees’ A/c Credit Wages A/c (€) Debit Wages Ale Credit Cash Ae (D) Dobit Cash Ale Credit Wages Ale 213. [Costar goods sald $ 68.000 Sales 100 000 Selling Expenses R000 ‘Administrative Expenses 12.000 Reserves appropriated for the Current year 3.000 ‘rom he table above, what isthe maximum amount that could be used for dividends? (a) $ 6 000 - (B)$ 9.000 (€) $12,000 ais, We Capital X's cai Ys Capital 2s Capi S00 © W.XY and Z are partners sharing profit and Toss in proportion to their capital, What is Z's share of profit of Sam 21S. Fora firm, which of the following performs the same fanctions as a club's Income and Expenditure Account? (A) Petty Cash Book. (B) Profit and Loss Account {C) Cash and Bank Account (D) Balance Sheet Tom 216-217 refers to the foliowing information ‘Tho table below gives the assets and liabilities of A Jackman, a sole imder, at a certain time, Asset 8 8 Liab Penida ah ras Fearne Figs at) Wes de Pee eo ndings ed | Chacko too Motor Vehicles 4 000 tock sin 216, His current assets is 217. His capital is (A) $2 628 (A) 813 750, (BY83 125 (B) S13 850 (C) $4.05 (C) $14 750 (D) 54 125, (D) $14 850 ‘These poneral (9 item 218 = 225, For each group of items below, there is a common set of options fabeted (A), (B), (C). and (D). Tn answer to EACH item an option may be used more than once, once or not at all. Mem 218 = 220 are based on the information below Eximet from Trading Account ofa trader Sales ss600 | Parchases 22.000 Gross Profit 11.000 Closing Stock 6 000 Sales Returns 1.000 Opening Stock 000 (A) 7000 (B)$ 9 000 (©) $24.00 (B) $30 000 218. What is the Cost of goods sold? © 219, What is the stock available? B 220. What is the average stock held? AAlem 241 refers o te following information. ttchiase of refreshments 500 Donations to charity 200 valued at $3 000 and a motor van worth $5 040. Ta "© addition, le is to pay a premium of $1 000 to be thhared between Dennis and Tony. How much would be the amount of Patrick's capital? y+ 000 psa $8000 Eip) $9000 bo K Khun, a debtor of A and B Enterprises setles his Feo of 8120 ess 22% discount, by cheque. The <2 Gexble etry i the books of A and B Enterprises shold bo ) Dr. K. Kha su7 Dr, Discount Received sis Cr. Bank $120 ) De. K. Khan Sui7 Dt. Discount Atlowed a fcr Bank $120 © (© Dr. Bank s1i7 Dr. Discount Allowed sie) x, K Khan 3120 (py Dr. Bank su7 Fo, Cr, Discount Received $3 C.K Khan $120 14, Company X is legally allowed to sell 40 000 shares at "$5 000 gar vaine. 30 000 of those shares were taken 1p ‘by the public, but the company only collected $100 00 Snitally, AMl shares were sold at par value. ow much was the authorized capital? (ays 50000 patentee = (@) $100 000 #eEsisoo r (9) S200 000 } Ey nati 245. Goods were bought from James Holt for cash. ‘Which of the following is the correct double-entry te record the transaction? (A) Debit Purchases Alo Credit James Holt A/c (B) Debit Purchases A/e Credit Cash Ale (C) Debit James Holt Ale Credit Casit Ale (D) Debit Cash Ale Credit Jaines Holt A/c 246. Peter. Gail and John formed a partnership. When the ‘partnership deed was drawn up no mention was made 1s 1o how profits and losses were to be divided. How shonid the profits be shared among then? (A) In proportion to their capital contributed (B) In ratio to how stich work is done by each partner (©) Divided equally among the three partners (D) Divided in accordance with each partner"