is el CARIBBEAN EXAMINATIONS COUNCIL CARIBBEAN SECONDARY EDUCATION CERTIFICATE® EXAMINATION 15 MAY 2023 (a.m,) FILL IN ALL THE INFORMATION REQUESTED CLEARLY IN CAPITAL LETTERS. TesTCODE |o}1]2}3]9]o}2/o SUBJECT PRINCIPLES OF ACCOUNTS ~ Paper 02 PROFICIENCY _GENERAL REGISTRATION NUMBER SCHOOLICENTRE NUMBER NAME OF SCHOOL/CENTRE. (CANDIDATE'S FULL NAME (FIRST, MIDDLE, LAST) DATE OF BIRTH SIGNATURE 8 [es& ‘restrcopr 01239020 | FORM TP 2023113 MAY/JUNE 2023, CARIBBEAN EXAMINATIONS COUNCIL CARIBBEAN SECONDARY EDUCATION CERTIFICATE? EXAMINATION PRINCIPLES OF ACCOUNTS Paper 02 — General Proficiency 3 hours READ THE FOLLOWING INSTRUCTIONS CAREFULLY. 1, This paper consists of FIVE questions 2, Answer ALL questions. 3. Write your answers in the spaces provided inthis answer booklet 4, DO NOT write in the margins 5. Show ALL working clearly 6. You may use a silent, non-programmable calculator to answer questions. 7. You are advised to take some time to read through the paper and plan your answers, & If you need to rewrite any answer and there is not enough space to do so on the original page, you must use the extra lined page(s) provided at the back of this booklet. Remember to draw a line through your original answer, 9. If you use the extra page(s), you MUST write the question number clearly in the box provided at the top of the extra page(s) and, where relevant, include the question part beside the answer. DO NOT TURN THIS PAGE UNTIL YOU ARE TOLD TO DO SO. ‘Copyright © 2022 Caribbean Examinations Council ‘All rights reserved. L_ovsssc2omesee 2023 Mga JjIe “+ 7 ces. He has been recordin, sled Yahim Printing Services. ; rvahim intends to hire a bookkeeper to assist him wih ‘make his workload easier and to improve 1. Yahim, a sole trader, owns a printing fi his accounting information manually. incorporating a software program into his business 10 his accounting system, (@) (Identify ONE accounting software program that Yahim can use to help improve the business. (mark) Gi) Identify ONE skill a bookkeeper should possess. (1 mark) (b) The following table shows transactions that were omitted from the books. Date ‘Transactions 2022 2April | Bought goods on credit costing $400 from R. Truc. S April | Sold goods valued at $600 on credit to U. Moon, 12April_| U. Moon returned $50 worth of goods. Received an invoice from B. Vie for goods worth $4 000 less a trade 1Bapa | cout of33 voapay | Goods retuned to. Son, These goods had ben invoiced at $120 es ” a trade discount of 20%. e i GO ON TO THE NEXT PAGE (01239020/MJ/CSEC 2023 a EN 4Annee pene eeyanana anata: DY NOL IED E IN Lento ance: (@ Using the following general journal, record the transactions from the table on page 4, Narrations are NOT required. Yahim Printing Services General Journal Debit | Credit ate Details Foti Dat ‘lio : (marks) Gi) Identify the source document that was issued for the transaction on 19 April 2022. (mark) GO ON TO THE NEXT PAGE re oI 01239020/MJICSEC 2023 ie5 ree of the employees of Yahim Printing (©The following information is avaiable for Services. Employee: Leila the year ended April 2023. Yahim has 4.000 for ie the new financial year ending cil’s anna slay was agreed at es ae oi her annual salary for t agreed (o give her a 2% pay raise om 30 April 2024. (Calculate Leil's monthly gross earings forthe new financial year ending 30 April 2024, @ marks) Employee: Samson ‘Samson is paid $30 per hour, Yahmin has contracted him to work 35 hours per week. For the week ended 30 April 2023, he worked 49 hours. Overtime is paid at time and a quarter. (i) Calculate Samson’s gross wage for the week ended 30 April 2023. (4 marks) GO ON TO THE NEXT PAGE al (01239020/MJ/CSEC 2023, 1. EO DesDUINBE Made La ana (DONOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA Employee: Dolly Dolly cams a basic salary of $3 400 per month. In addition, she is paid a coms ‘of 2% of the amount by which the revenue of the business exceeds $40 000 per month, For the month of April 2023, the company’s revenue was $58 000, (ii) Calculate Dolly's gross pay for the month of April 2023. (GB marks) Gv) State TWO types of compulsory deductions that are normally deducted from employees’ gross pay. ‘@ marks) Total 20 marks GOON 10 THE NEXT 01239020/MJ/CSEC 2023 noe e gL gL |VSDMY SIE NY BELUH LONOD, VOR STL NE LIMA LON OE SRR Sea en sannan ns bons oes - Se al : 2 5 = 2 & 2 g 3 4 g Zz a z 2 & = § [ose Biepaea |) oc g z é & 0091 (ouyadewrr x | 62 8 2 0s rt yore sc | 00s pr se az z = 2 | coooe asada yewe | 4 00091 sajvonmsiea ft = 3 = 2 | coos 00st sporno | st | ooo see 00s | prammoiereoa | cl = oa : = 38 anbays paunouoas cae = ES | ov paena| [foo eo} weg ect | = 2S | ox ‘aaa use 8g 1 | 0000 0s, eT ® = 2 passuneg | Vt ose pr oompa is £5 | ows 20 ; BB s s cael ss ig s s s a 52 | 8, | wS> | sued awa | Sq | ghy | mmo 00 wa] og 22 | owea | wo | Oe eee) | ao a ga 2 ey era 9 32 seoyuiag AOU INSUOD 9MIAN 2 33 g 2s §7 * 7 / (@) State the meaning of EACH ofthe balanes on 1 April 2023 5 i (0) Balance bd the cash column 2 a z — g (mark) 2 : (ii) Balance ba in the bank column 5 = $ | (mari (©) State whether Nyluc Consultancy Services allowed oF received a discount of | 1 500 on 15 Apel 2023, a = = 2 - = (mari) z (3) State TWO reasons why the cheque ffom ADF Ple may have been dishonoured @ 1009 April 2025 = & 5 2 a cay = @maris) EB (ii) State the reason forthe two entries on 28 Apri 2023 nT gg A g £ (mario = : | an : | GOON TOTHE 5 | S| 01239020/MJ/CSEC 2023 aes =EE -10- TI 1023. (© 6) Caleutate the percentage discount on 12 Apri 2 (@ marks) Gi) Suggest a reason why Nylue Consultancy Services had to refund K. Lima on 29 April 2023, (mario ii) Calculate the yearly interest that Nyluc Consultancy Services would have to pay for the bank loan shown on 10 April 2023, @ marks) (iv) Calculate the balances in the cash book for | May 2023. State whether they would be debit or eredit balances, Balance bid in cash column on | May 2023 s. ‘Type of balance (debiveredit Balance bd in bank column on | May 2023 s. ‘Type of balance (debiveredit) (marks) GO ON TO THE NEXT PAGE (01239020/MI/CSEC 2023 e UO 2]DO NOT WRITE IN THIS AREA DUNOT WRITE IN THIS AREA oonntneaeceenineena ances E ae (© Complete owing ascutin te tacks of Syne Consutaney Servite mth © Lime a Details Dente pete Details Fotio | Credit : : 28 33, | anne $6400 mans) Gi) Discount Allowed Pac [pats] rw | Pe] PH | pate] re | ert aman GOON TOTHE NEXT PAGE o1zsso20n0'CSEC 2023 is |r an (01239020¢MJ/CSEC 2023 EL 212 ‘The following information is avaiable for Chevon Manufacturing Company: AUT May 2022 : 23.000 ‘Work-in-proces inventory Boy Finished goods inventory a For the year ended 30 April 2023 Sales revenue tm Purchases of aw materials aoe Factory wages — 60% of the factory wages are direct andthe rest | 15 999 are indireat Royalties 17,000 Returns inwards 1600 Carriage inwards 2.000 Katalin: —Therisstadaniaceatabespetoot | ogg ine expen — S500 apoio ote fie and te | 14 gp ‘A¢30 Apel 2023 Raw material inventory 33.000 Work-n-process inventory 29.000 Finished goods inventory 38 000 GO ON TO THE NEXT PAGE al { i q iDONOT WRITE IN THIS AREA i be wor were ny reis ARIA” DO NOL WRITE IN THISAREA 4 -13- | Use the information from the table on page 12 to answer the following questions. (@) —_()_ Identify TWO examples of direct costs used in the manufacturing of the product, (@ marks) (ii) Identify THREE examples of indirect costs used in the manufacturing of the product. “e marks) GO ON TO THE NEXT PAGE ng | (01239020/MI/CSEC 2023 L ingr = ()—@_Using the form on page 15, prepare the manufacturing account for the year ended 30 April 2023 for Chevon Manufacturing Company, showing clearly + the cost of raw materials consumed + the prime eost + total factory manufacturing overheads + the production cost of goods completed for the year ended 30 April 2023, (12 marks) Gi) Calculate the net sales figure. (1 mark) Chevon, the owner, paid $2 300 for insurance. This amount covered the $1 200 insurance premium ‘on Chevon Manufacturing Company and the $1 100 insurance premium on Chevon's family house. ‘The accountant credited the bank account with $2 300, debited the insurance expense account ‘with $1 200 and debited the drawings account with $1 100. © @ _ Identify the accounting principle applied by the accountant in this transaction, (mark) ‘The accountant did not make any entries in the accounting records for orders received for ‘goods to be supplied in the next financial year on May 13 2023, (ii) Identify the accounting principle the accountant has applied, : (i mark) ‘Total 20 marks GO ON TO THE NEXT PAGE (01239020/M1/CSEC 2023 les Mg a ATT TTR& 2 i : 3 z : 3 +18. 4 ‘Chevon Manufacturing Company Manufacturing Account For the Year Ended 30 April 2023 s s s 01239020/MI/CSEC 2023 ke GO ON TO THE NEXT PAGE un |= 16. 4 Supplies Ltd. 5 Brooklyn Salis the owner of two businesses — Brooks Technologies and Brooky Computer Brooks Technologies manufactures components used in the production of computer monitors. ‘The forecasts for sales of the components during each quarter of 2023 are presented inthe following, table. 2023 Units ‘Quarter I January —Mareh 6000 Quarter 2 April ~ June 8.000 ‘Quarter 3 July ~ September 12.000 Quarter 4 October — December 16000 01239020/MJ/CSEC 2023 Es GO ON TO THE NEXT PAGE PARRA ‘DO NOT WRITE IN THIS aaaBrooklyn's policy is to maintain a closi sales. ‘The opening inventory for the components on 1 January 2023 will be 1 500 units. ® @ ww -17- 5 ing inventory sufficient to cover 25% of the next quarter's Prepare a production budget for EACH of the frst TWO quarters of 2023 forthe ‘components, Quarter 1 Quarter 2 ‘The selling price of one component is $65. The cost of producing one component js $50. Calculate the mark-up applied by Brooks Technologies for a component. (marks) (2 marks) GO ON TO THE NEXT PAGE, 01239020/Ms/CSEC 2023 I |F “ 4 (On 31 December 2022, Brooklyn discovered the following errors inthe books of Brooky Computer Supplies Ltd, ExrorA: — Thebalanceof $12.436 for office furniture was recorded in the edger account as $12 364, Error B: An item of capital expenditure had been recorded as revenue expenditure. ErrorC: An item of capital expenditure had been overstated in the books. ()——G@_ Complete the following table by putting ticks (1) in the correct columns to indicate the effect of the errors on the non-current assets and the profit for the year. An example has been provided for you. Non-Current Assets Profit for the Year Ended ee at31 December 2022 ‘31 December 2022 Overstated | Understated | Overstated | Understated | No effect A y v c (4 marks) (Gi) Identify TWO payment methods that Brooklyn can use to pay suppliers of Brooks Technologies for tools purchased on eredit @ marks) GO ON TO THE NEXT PAGE, 3] (01239020:MJ/CSEC 2023 Eis DD NOP WRITE IN THIS AREA BO NOT WRITE IN PHIS AREA Wa Nate Warren IA Pare bea-19- = Tbooks of account. A purchases ledger control account and a sales ared at the end of every mont State TWO uses of control accounts in the accounting process. @ marks) sesame planes were exrated fromthe books of rooky Compute pple Lid $ Refunds to trade receivables 1400 Contra items transferred to purchases ledger 550 Bad debts 700 Interest charged on overdue aecounts 2.600 Record the balances above as they would appear in the sales ledger/receivables control account. Debit Credit Entry Entry Refunds to trade receivables Contra items transferred to purchases ledger Bad debts Interest charged on overdue accounts (4 marks) Total 20 marks GO ON TO THE NEXT PAGE 01239020/MJ/CSEC 2023, ls — alcae |e ae: Membership fees due 13,000. Short-term loans to members 301 900 Building at cost 220 000 Motor vehicles at cost 140.000 | Provision for depreciation on motor vehicles — as at | May 20000 | ata Ta | ‘Members’ deposits (repayable at short notice) 20000 | Bank balance 40.400, ST a) a ee near ie ere Ty tebe 01239020/MI/CSEC 2023 GOON Te THE NEA TEASE: IE -20- 1s which were extracted from the books of the Caribbean WRITE IN THIS AREA. 22. (pO Wor weire IN THIS AREA po Wolk Whe IN HHISUREALn k Hl i f r @ -2- =] Use the following form top fo vm (0 prepare a statement ofthe corrected surplus forthe Caribbean Teachers’ Cooperative Cre Union forthe year ended 30 April 2023, Caribbean Teachers’ Cooperative Credit Union Statement of Corrected Surplus For the Year Ended 30 April 2023 3 s (4 marks) GO ON TO THE NEXT PAGE (01239020/MIICSEC 2023 fe ingen eg tg(©) Use the following form to prepare a statement showing the appropriation of undistributed surplus for the year ended 30 April 2023. The board of directors decided to transfer -2- '$12.000 to the education statutory reserve fund. Caribbean Teachers? Cooperative Credit Union ‘Appropriation Account For the Year Ended 30 April 2023 (01239020/MJICSEC 2023 Le 8 8 G marks) GO ON TO THE NEXT PAGE ps B A 5 E E E Er “» 7 (©) Use the followin, ‘ 'g form to prepare a classified statement of finan al position, in the order Permanence, for the Caribbean Teachers" Cooperative Credit Uni von as at 30 April 2023, (13 marks) ‘Total 20 marks END OF TEST IF YOU FINISH BEFORE TIME IS CALLED, CHECK YOUR WORK ON THIS TEST. (01239020/MI/CSEC 2023 Le al