st copt 01239010 MAYJUNE 2019) FORM TP 2019105 CARIBBEAN EXAMINATIONS COUNCTIL CARIBBEAN SECONDARY EDUCATION CERTIFICATE® EXAMINATION PRINCIPLES OF ACCOUNTS Paper 01 ~ General Proficiency hour 30 minutes . 13 MAY 2019 (p. READ THE FOLLOWING INSTRUCTIONS CAREFULLY 1 This test consists of 60 tems You will have | hour and 30 minutes to answer them 2 Inaddition to this test booklet, you should have an answer sheet 3 Hach stem in this test has four suggested answers lettered (A), (B),(C),(D) Read each stem you fare about to answer and deeide which choice 15 best 4 On your answer sheet, find the number which corresponds to your item and shade the space hay ing the same letter as the answer you have chosen Look at the sample tem below Sample Hem Peume costs calculated by adding direct factory expenses to the Sample Answer g (Ay cost of goods sold AN BIC) (©) sale of finished goods {D)—costot materials used Ihe best answer to this tem 4s “cost of materials used 0 (D) hay been shaded 5 Hyou want to change your answer, erase it completely belore you fll an your new choice 6 When you are tod to begin. turn the page and work as quickly and as carefully as you ean I you cannot answer 9. goon to the next one You may return te that ste 7 The use of silent, electrome calculators 1 allowed EX worn oer ta nur tou ate 1010 9080 Copyright © 2018 Caribbean Exam All ations Co his reserved 01239010 MICSEC 20198 4 1. Atrader had an opening capital of $3 900. his drawings were $900 and his closing tal was $4860, shat was his net profit? capi fay $900 (By $960 cr $1860 1D) $3000 2. Acompany's rent expense account had an ‘opening debit balance of $2 000. During the year $6,000 was paid for rent, At the end of the year there was a closing debit balance of $1 SOD in the account, What wasthe rentexpense recorded for the year? Ay 36.000 By $6 500 (Cc) $7500 (Dy $9300 3. Ina partnership, which of the following transactions is compulsory? Paying of salaries ™ (3) tnterest an capital (C)—tnterest on drasings Sharing of profits oF losses yr Which or the following terms describesthe 4 exchange of goods and services? (A) tournal Transaction “C) Balance Sheet (D) Trial Balance O12 3901 MECSEC 2019 Which of the following BEST desenbes the -double entry” system of aecounting? A ledger account must have two A) vides. (By Anaccount must be » in the ledger. (©) Each transaction must be written in two subsidiary books. (Dr Each transaction must have adePit entry and a credit entry Which of the following itemsare examples of current liabi 1 Mortgages I. Accounts payable HL Averucd wages (A) Land IL only (By Land IITonly SC}— Mand Ill only (Dy Land UE Which of the follow ing is usually used to complete a general journal eniry? WS Narration (B) Description of assets (C) Description of liabilities {D} Name of book to which entry must be posted The purpase of electronic clock cards is to (Ay nployess” skills YS) employees’ attendance (C) jobs done by employees. (D) “deductions fromemploy ees’ wages The cash book is BEST used for recording (Ab goods sold fir cash (By goods retumed for cash wy goods purchased for cash: YAH cash receipts and eash pay ments GOON TO THE NENT PAGIAs {tem U0 refers to the following data which pertain to Tarisha Ali, an employee of a bank Monthly salary $3 500 ‘Overtime 3 800 Income Tax Rate. 25% on every dollar above $2000 of monthly salary 30% on overtime earned 10, The TOTAL income tax to be deducted from Tarisha Ali is be § 615 (B) S740 «C) $875 (Db) 31.075 M.A businessman offers a discount for prompt payment for goods purchased. Under which column in his three-column ‘ash book would this discount be entered” (A) Bank (B) Cash Discount allowed (D) Discount received them 12 refers to the following information ‘which relates to Jim's salary 8 Net pay 1900 Tax 150 ‘Overtime pay i Union dives 125 Pension pl 28 12. What is the sum of money Jim receives as his gross salary’? (ay $2 000 3) 200 (cy $2,300 (bd) $2490 @1239010/MSICSEC 2019 Eat 13. i, 16. P Hawk has a manufa turing, business The cost of his raw materials is $1 900, Rates and rent total $2 000, and factory wages amount to $2 500, The number of units produced is. 640. Whaat is the cost of ONE unit? (Ay $4 (By S$ & ir slo (DSB Control accounts are kept in order to assist ‘management in locating errors and payments fora club at $300 Rent paid $00 Purchase of games and 6 siso, Postage of crculars 320 sceeds from book sale 250 What is the cash balance at 34 Mary HAY SIKU 1B) 8280 foe 3300 ‘Dy $6 U1 2340 1OIMCSEC 201% ncome for the year s& BL seas $89,000 OF it, $8 000 sas, wet sfemedtthe general reserve. preference vaitend pard way $2 400 and ordinary dreadend proposed was $0500 The value w fetnined profits for the year as ot tte $72 100 (By $80 100 cy SE 000 (Dy $89 000 47. A mechanig starts hrs business with $10000 worth oftools. What entries should he make to record Unis transactie tA) De Bank Account, Cr Capital Agsount 4B) Dr Captial Asso (Cr Bank Account HEF Dr Toals Account Cr Capua Ascount (D) Dr Capatal Account, Cr Tools Account 48, When wating, which accoun FAL Bank oer «© (Dy Fixed deposit 49, Anasset purchased for $1 OW stepresiates av the rate of 10% per annum using the reducing balance method What is the book value of the asset nung the thied year? mers tAr $s BOO aS KL wr $400 (By ST 190 GOON TOTHE SEX E PAGE$0. Which of the following accounts are usually ransferredto the Trading and Profitandlloss Account’? (A) Rent, Premises. Drawings (B) Drawings, Rent, Purchases 4€7 Commission Received, Rent, P cha: (D) Purchases, Furniture, ion ee ‘Commission Received $1. An example of a capital expenditure is money spent for (A) paying rent (B) paying wages (C)__ purchasing goods SPF purchasing a new building 52, Amalgamated Components was a private company until it admitted additional shareholders by selling shares on the stock exehange. Amalgamated Components can now be described as a (A) partnership {B) statutory corporation Jr public limited company (D) private limited company Item 53 refers to the following information, De 3. Baynes Manufacturing Account for period ending 31 December 2018 Cr s 5 Inventory ofraw materials | January 2018 — 800 Balance eid 6 BOO irchases of raw materials during year 4500 5300 Less closing inventory of raw materials 31 December 2018 roduction wages 4 x Fuel and power 100 Lubricants 400 Rent and rates ‘ Insurance a 6.300 453, What is the cost of raw materials aval lable for product 4A) $ BOO (By $4: 100 «cy, $4500 $5 300 GO ON 10 THE NEXT O1239010/MIICSEC 2019 te969, 56. s7. -ount should depreciation of be transferred? (A) Trading (B) Manufacturing SOT Profit and Loss (D) Appropriation The reward of profit received by @ shareholder in a limited company is called (Ay imerest (By ser divi D> calculate the cast of production? A) 1 cost + factory overheads ~ work inprogress4 closing work in progress (B) Prime cost ~ factory overheads ‘work in progress +closing in progress (C) Prime east + factory overheads ‘opening work in progress ~eloxing work in progress LDIF Prime cast + factory overheads + “opening work in progress closing work in progress Fisk Company’s accountant has not recorded reitt owing for the period. Visk’s ‘accountant has violated the conceptorrule of ka accrual (B) prudence (€) consistency (D) separate entity END OF TEST IF YOU FINISH BEFOR! lo. 58. 59. the purchase of equipment on credit ill affect a firm's balance sheet by increasing assets and increasing liabilities (B) decreasing assets and increasing liabilitie (C) increasing assets and decreasing links - wy Which of the following is NO considered a source document for the payroll? (A) Electronic timesard (OT Medical certificate (C) Attendance re} (D) Clock card Mr Amos is employed by a construction company ata rate of $7 per hour. During the week of 6 April 2018, he worked his basic week of 40 hours. The income tex due on his pay is $20, and he is also liable to pay social security contributions of $* of his gross pay. What is Mr Amos’ net pay’? wr 3246 (By) $260 (Cy) $266 (D) $280 IME IS CALLED, CHECK YOUR WORK ON THIS TEST. 0123901 0/MUICSEC 2019