4) 2) 3) Hage a, MC@ (Exam Cc) What would not be included in a statement of changes in equity? A ordinary share dividend paid which relates to the previous year ordinary share dividend proposed which relates to the current year J B © profit for the year D transfer to general reserve Pas) Beth and Carla are in partnership, sharing profits and losses 3:2. They provided the following information at 31 January 2018. $ $ Profit for the year 42000 Interest on capital: Beth 4000 Carla 3000 7000 Salary: Beth 10000 ‘What was the total amount credited to Beth's current account on 31 January 2018? A $15000 W2wee Hes amen ace) B $25200 23 ,000x% Ps ope 2, © $2900 [Spaesteee a ce WY) D $39200 fee) ce ‘Some members of a sports club had not paid their annual subscriptions at the end of the financial year. Where will these unpaid subscriptions be shown in the financial statements? receipts and income and statementof | payments account | expenditure account | financial position A v £ v B v v c v v [| D v v ey 1] Scanned with CamScanner7 ® 4) A disposal account showed the following. Disposal account Pe $ $ lachinery 6200 | Provision for depreciation | 2100 Bank 3800 Income statement 300 200i) - “ee 6200 Which book of prime entry was used to transfer the $300 to the Income statement and how was it treated there? book of prime entry | treatment in income ‘statement A general journal as aloss Y B | general journal as a profit c sales journal as a loss D sales journal as a profit La 5) Sasha buys radios at $20 each. At the year end she has 60 radios in inventory. Of these, 3 radios are damaged and will cost $17 each to repair. All the radios are expected to be sold at $30 each. What is the value of inventory in the statement of financial position? A $979 Z2o-\t =12 $1000 [R — (3x) + 4 224, $1500 5S pes r | Ut 9 oo Scanned with CamScanner6) *) 8) © Which busi 2 his businesses are trading businesses and which are service businesses? trading business service business A food retailer hairdresser B food retailer and a hairdresser neko c hairdresser food retailer D neith food retailer and les ssid hairdresser___—| An appropriation account showed the following. $ interest on drawings ‘Sumit 1300 Tom 1200 interest on capital ‘Sumit 1000 Tom 1000 share of residual profit ‘Sumit 8000 Tom 4000 What was the total profit for the year? A $7500 B $11500 © $12000 D $12500 94 00-200947 002 Dos 1] t ‘A subscriptions account showed subscriptions in arrears, $400, at the start of the year, and subscriptions in advance, $100, at the end of the year. Subscriptions of $15000 had been received during the year. Which value for subscriptions appeared in the income and expenditure account? A $14500 B $14700 © $15300 D $15500 LS O02 -©2-loo 1 Scanned with CamScanner4) lo) tl) @ Amanutacturer provided the following information, $ Purchases of raw materials direct labour 22000 factory overheads 22000 At the year end inventory of raw materials had increased by $4000. Inventory of finished goods had increased by $9000. What was the cost of sales? A’ $37000 $0,000458 999 «12, Q0e B $46000 =< eR ae =\Wtees © st17000 D_ $126000 LJ a Atrader provided the following information. pa ce $s revenue Roo ‘opening inventory 50 Sor 65 =400 purchases 800 closing inventory 150 Which mark-up had been applied? A 16.67% ae = ee x B 31.25% —. COC X00 oO Ld Ces Joo © 33.99% D on A 98 &-400=%80 a Barak did not maintain a full set of accounting records in his first year of trading, How did Barak calculate his credit sales? ‘A closing trade receivables + cash received - discount allowed B closing trade receivables + cash received + discount allowed j c closing trade receivables + cash received ~ discount received D closing trade receivables + cash received + discount received a Scanned with CamScannera) 13) >) 15) A c D A.credit customer buys goods with i P discount is 10%. goods with a list price of $1000. Trade discount is 20: ‘Which amount is entered in the customer's account to record the sale? A ic D tc 'o check the arithmetical accuracy of the double entry ‘Which statement describes a purpose of acoounting? to ensure that all transactions are recorded 10 know the balances on individual customers’ and suppliers’ accounts to provide a calculation of profit $600 $630 $700 $900 (0 9°X207, =00 | c02-300 =}foo ‘Where is discount allowed recorded? A B ic D on the credit side of the purchases ledger control account on the credit side of the sales ledger control account on the debit side of the purchases ledger control account on the debit side of the sales ledger control account RIL oe and cash 2 i NCI va 11] NO [ a ‘Ann's statement of financial position includes the following: A B ic. D 2 1 an amount paid by Ann for a service which has not yet been received PrePmde xp ‘an amount received by Ann for a service which Ann has not yet provided Prepare 3. the value of a service received by Ann for which payment has not yet been made Uo Which item(s) are included in ‘other payables’? tand 2 1 only 2and3 Sonly P exp |\CA u cL Le. \CL - << tl Old Scanned with CamScannerIh) 1%) 18) 1 © Atrader provided the following information at the end of the first year of trading, $ revenue expenses: 1400 closing inventory 800 What were the purchases for the year? A $2300 | k 00+ S00=(Q00 B $3900 S099-\@00-3(00 c $4900 Bl Wo% BOs = aq D $6700 Atrader had a percentage of gross profit to revenue (gross profit margin) of 30%. His purchases for the year were $3400 and his inventory increased by $400. What was his revenue for the year (to the nearest dollar)? A $3900 Cos 3h00-Khoar 3005 eeene Ge Bors. = Ae © 4940 qo D $5429 (Pox 0002 949 When is financial information considered to be relevant? A when it affects business decisions when it can be compared with other periods when it can be understood by the users oo 8 when itis free from error and bias Scanned with CamScanner19) 20) 2) Which type of error did Min make? A commission B compensating C original entry D principle John is a retailer of garden furniture. He bought stationery, $25, on credit from A4 He did not record this in his books of account. Which entries are needed to correct the error? Cc] Supplies debit account credit account ‘A4 Supplies $25 _ | stationery $25 B | A4 Supplies $25 | suspense ‘$50 stationery $25 C | stationery $25 A4 Supplies $25 U4 D | suspense sso | a4 Supnes $25 — Which statements describe capital expenditure? $25 i 4 Itis for an item which will last more than a year. 2 Itis recorded in the income statement. 3. Itis recorded in the statement of financial position. A tand2 B 1and3 Cc 2only D 3only i Scanned with CamScanner2a) 23) 24) How does he record this increase? debit entry credit entry bad debts Provision for doubtful debts Provision for doubtful debts income statement o}/o;a]> bad debts C] Provision for doubttul debts | [oJ Provision for doubtful debts income statement Thang bought goods costing $2 unsold goods at the selling price What is the effect of this valuation? A B c D The directors of a limited company increased the general reserve. profit is overstated profit is understated purchases are overstated purchases are understated Which item decreased? A B c D balance at bank ordinary share capital preference share capital retained earnings hn }0 each. At the end of the year Thang valued inventory of of $30 each Scanned with CamScanner7? 2) 21) ) A trader provided the following information about a non-current asset. cost $ ja 1 accumulated depreciation at start of year 1800 meth 10d of depreciation reducing (diminishing) balance at 15% per annum What was the accumulated depreciation at the end of the year? A $1530 \2 990—\BOS=\9 boo B $3330 (oloce % ISI. =|$30 c $3600 (GtacMon- seas 1] D $8670 (1) The non-current assets of a sole trader increased. What might have caused this to happen? ‘A adecrease in the bank overdraft B _ anincrease in trade receivables the charging of depreciation D__ the introduction of capital by the owner a k “The directors of a company provided the folowing information, $ total equity at start of year 426000 profit for the year 90000 dividend paid 40000 transfer made to general reserve 25000 What was the total equity at the end of the year? A $451000 by et + So,9 oP. 12boco B $476000 ra CG $501000 9 0/990 -he, cao = D $516000 ma gh mde Scanned with CamScanner38) 2a) we) Which entries correct this error? The total of the discount received column of the cash book, $80, was posted in error to the d oft book, $80, was it debit account(s) | $ | credit account(s) § A | discount allowed 80 | discount received 80 B | discount allowed 80 | discount received 160 suspense 80 € | discount allowed 160 | discount received 80 - suspense 80 D | discount received 80 | discount allowed 80 1 Which account or statement pro} ‘A bank reconciliation statement provisi ion for doubtful debts account B ¢ sales ledger control account D staternent of financial position a trader compare his cash book with his bat vides a summary of transactions involving trade receiv ables? nk statement? Why does rp check forerrorsinthe cash | toensure the cash book is book up to date A no no B no yes c yes no D yes yes aah uf Scanned with CamScanner31) Asma bought a motor vehicle for cost, calculated monthly, © After 18 months she sold the motor vehicle for $9200. What was the profit on disposal? A $200 B $650 c $700 D $1200 32) At the start of the year Basil had paid $4500 rent in advance. During the year h LO, ae0 x (07. K\.S=\Soo ( S002 4S 00 = BSoo Q100-3S00= F090 $12000. At the year end he owed $1500. What was Basil's annual expense for rent? $10000. She depreciated it at the rate of 10% per annum on 2 1e paid rent, A $9000 B $1200 (2000 + Koo + 4Sooz Geos © $1500 D $1800 4 133) And B were in partnership, Their curent accounts forthe year were as follows. Ae a] 8 s | $ toe drawings 7500} 2500 | balance bid 40200 | 12000 balance c/d 41700 | 17500 | interest on capital 2000 1000 share of profit, 7000! 7000 19200 | 20000 19200 | 20000 batance bid 41700 | 17500 What was the profit for the year? A $7000 B $14000 © $17000 D $2700 3 o004\hooe=|F eee (a Scanned with CamScanner Ss@ » Two companies, X Limited and Y Limited, provided the following information. (0,009 a ——_ 2 {eee & (oo =S.SS X Limited Y Limited 300,000 $ $ = (B°0% profit for the year 40000 40000 =a Revenue forthe yoar 200000 100000 12,203 ‘ 14 ‘apital employed 180000 300000 (00,000 4 Which company had the higher profit to revenue percentage (net profit margin) and which had the higher return on capital employed (ROCE)? -h (2102, Ke] profit to revenue percenta: it ge_| _ return on capital employed | ier 200 A X Limited X Limited 2s B X Limited Y Limited c Y Limited X Limited 4] D Y Limited Y Limited a 35) business provided the folowing information forthe year. $ credit sales 14000 cash sales. 3600 returns from credit customers 2000 gross profit margin 20% What was the gross profit for the year? A $2400 $3120 $3520 oo 8 $3900 \ hee 3600-2 200) x20/, 4 Jw Scanned with CamScanner