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 2 4 Ateader had an opening capital of $3 900. his drawings were $900 and his closing tal was $4860, shat was his net profit? capi tA) % 900 (By) $ 960 acy ‘$1 860, (p) $3000 ‘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 (B) $6500 (Cc) $7500 (Dy $9300 In a partnership, which of the following transactions is compulsory? (A) Paying of salaries (3) tnterest an capital (C)—tnterest on drasings (D) Sharing of profits oF losses Which or the following terms describesthe exchange of goods and services? (A) tourna (B) 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 vides. (B) — Anaceount must be w in the ledger. (€) Each transaction must be written in two subsidiary books. (D) Each transaction must have a debit entry and a credit entry WA) ing itemsare examples Which of the follo of current liabi 1 Mortgages I. Accounts payable HL Averucd wages (Ay Tand I only (By Land Ill only {C) Mand Hil ony wD) Liland UE Which of the follow ing is usually used to complete a general journal eniry? (Ay 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 record (Ay employees’ skills (B) employees” attendance (C) jobs done by employees (Dy deductions fromemploy ees’ waxes The cash book is BEST used for recording (Ay goods sold far cash (B) goods retumed for cash (C) goods purchased for cash Di cash receipts and cash paymerts GOON TO THE NENT PAGIAs 10, M. 12. {tem 10 refers tothe following data which 13. pertain to Tarisha Ali, an employee of a bank Monthly salary $3 500 ‘Overtime 3 800 Income Tax Rate. 25% on every dollar above $2000 of monthly salary 30% on overtime earned The TOTAL income tax to be deducted from Tarisha Ali is 14. (A) S615 (B) S740 «C) S$ 8T5 (D) $1075 A businessman offers a discount for prompt payment for goods purchased Under which column in his theee-column 15. ‘cash book would thix discount be entered”? (A) Bank (B) Cash (C) Discount allowed (D) Discount received tem 12 refers to the following information ‘which relates to Jim's salary 16. 3 Net pay 1900 Tax 150 Overtime pay 400 Union dies 125 Pension pl 25 What is the sum of money Jim receives as his gross salary’? @1239010/MSICSEC 2019 Eat 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 84 (By $6 (cy S10 cD) Control accounts are kept in order to assist ‘management in (A) locating errors 4B) inereasing profits (C) limiting drawings (D)—Kimitiny expenditure The balance of an accounts payable account is entered in the Balance Sheet under the heading (Ay capital (B) fixed assets (©) current assets (D) current li How does an increase in bad debts affeet a sole trader's financial staternents? (A) Increases the net profit (B) Decreases the net profit (C)thereases the gross profit (D) Becrweases the gross profit GOON TO THE NEXT PAGE19, 20. ade A wader received an invoice for $4 000 less 25% trade discount. Subsequently, he returned one-eighth of the goods. What amount would be entered in his returns outwards account? (A) $375 (B) $400 (C) $450 (D) $500 Mr Abel and Mrs Blue purchased goods on credit valued at $50 and $75 respec- tively from Mr Kane. Another customer paid cash for yoods amounting to $550. Mr Kane took goods at cost for himself amounting to $500. Which of the following figures represents the total in Mr Kane's Sales Account? (Ay S$ BS (B) $428 (C) $675 (Dy $1178 of the following accounts are (Ay (B) Stock and Debtors (C) Machinery and Plant Wages and Rent (Creditors and Fixtures (py Wien a proprietor withdraws cash or other assets from a business, what effect does have on drawi (A) Capital is (B) Capital is decreased (C) Drawings are deercused wD) 1 drawings nor capital is 012390 10/MS/CSEC 2019 Ee 21. 22 23. A standing order of $25 for insurance appears in the debit column of the bank aatement, This amount does not appear in the cash book. How is this item treated in order to update the cash book? Credit the bank account with $25, ™ Debit the bank account with $25 (€) Add $25 to the bank statement balane (D) Subtract $25 from the bank statement balance. ‘The ‘Trial Balance is prepared by using balances from the (A) Ledger (B) Journal {€) Sales Book (D) Purchases Book Item23 refersto the following information. Acalculation to determine gross profit percentage is as Follows: 185.530, 100_ 529800" 1” 802% that does the $529 800 represcr (A) Total purchases (By Cost of sales (C) Tota! sales (D) Gross profit GO ON TO THE NEXT PAGEea 24, Mrs Smith does not keep proper records, She began her business with $10 000 in its bank account. She uses her vehicle and building worth $6 000 and $15 060 respectively as part of her business. ‘Customersowe her $4 000, She withdrew SI 500 for personal use and owed creditors $2 000, ‘What isthe closing capital of the business? (A) $25 500 (B) $28 so0 (C) $31S00 (Dy $33 000 Sales Sales returns $1570 Discounts allowed = § 91 26. What isthe cost ef goods sold”? (A) $49 742 (B) — $30653 () ssi4ns (D) $53 103 27. What is the gross profit? 25. Inventory at Sart Inventory at close Purchases Purchases returns The working capital of A. Young and Sons is $15 $00. The total amount of current axsets is $16 $00, What is the total amount of current liabilities? (A) $ 1000 (B) $15 500 cy $16 500 (D) $32 000 ‘operation at the end of the trading 3 9850 S11 075, $52 610 S762 (A) $31 64s (B) $33 215 «) si80, (D) $80.05 28. When a Trial Balance fails to-agree. the di (Ay Control aceour (By « sion account (D) Suspense account 012390] UI MJ/ICSEC 2019 GO ON TO THE NEXT PAGE<6. 29, h of the following items are NOT recorded in the Appropriation Account? . — Inferest on loans from partners. Interest on capital Withdrawals by partners (A) Land HLonly {B) Land It only (C) Mand Hl only (D) 1, Hand 1 30. Which of the following accounts shows how profits and losses are shared among partners? (A) Current (B) Appropriation (C) Profit and Loss (D) Income and Expenditure uM During the year, a company bought stationery for $220 and used $120 worth of it, What is the expenditure for stationery that would be pasted to the Profit and Loss: Account? fA) $340 (B) $220 qc) $120 «by $100 32. Amotor van was credited from AG Motors for use ina business. How should this be recorded? (A) Debit Motor Veh Ee Credit Bank Account (2) Debit Motor Van Expense Aces Credit Bank Account (C) Debit Purchases Accout Credit AG Motors Agsount (D) Debit Motor Vehicle Account; Credit AG Motors Account 01 239010/MJ/CSEC 2019 33. 34. 36, Which of the following are a long-term liability? (A) Creditors (B) Debentures (C) Accrued wages (D) Bank overdrafts Cash sales were not entered in any books of accounts. This is an error of (A) omission (B) principle (cy commission (D) complete reversal Which of the following are bene fits of accounting software? |. Integrated analy sis of information Ii, Almost immediate updating of records I, Programmable to revo, irregular entries ize (A) Land tt only (B) Land I only (c) Wand III only (D) 1 Hand tH The total credit of the bank column of a three-column cash book is greater than the total debit, The MOST likely reason for this situation is that (A) there was an overdratt @) the (C) some figures were overstated on the credit side (D) incorrect transactions were entered ‘on the credit side GOON TO THE NEXT PAGHa. a 39. Inventory att January Purchases du Cow 201m NE the mom — $4 1A) $300 (By $ S09 Wr $8 700 (Dy $1300 Andina Willams isa petty ca has a float of $200 an how much sh nd she spends $140 whd she be reimbursed at the end off the period’? (Ay S30 (By sixo. S200 sano Which of the following isa book of pe entry? (AY Imone (HB) Balance Sheet (C) Sales Ledger (Dy Sales Journal A non-trading organization iy MAINLY concemed with (A) anpeorting pensds for resale (BH) trading only seuth wholesalers (CO) prowading sarius serswes for ats members (D) aking maximum prot tor the propustor OPW LO MCSE C 2014 At. 42. 43. A sole trader uses his Leading Account to determine 1A) super profit {BY gross prof (C1 net profit (Dy surplus Mom 42 refers tothe follow ing formation provided by Kay and Friends s Hank balance | August 2017700 Purchase of refreshinenty soo Purchase of furmita soa Progceds fron raffle 1 soo Stock M1 July 2088 2000 Donations ts charity 00 n of furniture su equipment oun) (ADS 900 (By SE 000: WC) 82 KS0 WD) $4850 Which of the following state under of the stages bbetore Tana he connect the accountang evete, (A) Postingte hedge balance ig te ledger, tal balan journalerinyg 40) Journal tus ted (Dy Journal rang, po balance ar trial halanice, posting iy ON TO THE NENT PAGEia Mr Green and Mry Brawn agreed te ‘establish a partnership and each deposed $5 (Mi) into bank agsount, Greennde Brown Ca How should thy be regoeded on the books wf the partnership? (Ab Crash $10 000, Dr Capnal $10.000 (By De Green & Brown Co. $10 000, Cr Bank $10 000 cach (C) Dr Pannership Bank Ascount ‘510 000, Cr Partners’ Current Ascent $5000 cach (D) Dr Partnership Bank Axcount ‘$10 000. Cr Pariners’ Capital Accounts "$5,000 each feters to the Following summary > 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) S280 wy) 3320 (Dy $6 U1 2340 1OIMCSEC 201% a. 4H 4, 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 ne retained profits for tke year Sas 4Ay $72,100 (By $80 100 cy SE 000 (Dy $89 000 A mechanic starts his 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 (Ch Dr Toals Account Cr Capua Agcount (D) Dr Capatal Account, Cr Tools Account When wrung which accoun WAY Bank By « (Br Tied deposit An asset purchased for $1 O00 stepres ates av the rate of 10% per annum using the Feducing balance method What iy the hook value of the asset at t ming of the third year” he beginning HAy S% KOO ys xo wr $400 (Dy SE Lo GOON TOTHE NENT PAGE50. Si. te 52. Which of the toto Mefollowingaccounts are usually transferred to the Trading and Profitand 1.oss Account? (A) Rent, Premises, (B) Drawings, Rent, Purchases (C) Commission Received, Rent, P (D) Purchases, Furniture, Drawings turchases ‘Commission Received An example of a capital expenditure is money spent for (A) paying rent (B) paying wages (C) purchasing goods (D) purchasing a new building Amalgamated Components was a private company until it admitted additional selling shares on the stock exchange. Amalgamated Components ean now be dese areholders by ibe as 8 (A) partnership, (By statutory corporation (C) public limited company (D) __ private limited company lem 33 refers to the Following information, De J. Baynes Manufacturing Account for period ending 31 December 2018 cr + $ Inventory ofrawmaterials | January 2018 800 Balance ed 6 800 irchases of raw materialsduring year 4.500 5300 Less closing inventory of raw materials 3A December 2018 roduction wages 1200 Fuel and power 800 Lubricants ito Rent and rates i Insurance swe What is the cost of raw materials available for prostuct (ay $ BOD xB) $4 100 «cy $4500 «Dy $5300 GO ON 10 THE NEXT O1239010/MIICSEC 2019969, 56. s7. lo. -ount should depreciation of be transferred? (A) Trading (B) Manufacturing (C) Profit and Loss (D) Appropriation The reward of profit received by @ shareholder in a limited company is called (A) imerest (By «© (D) commission Which of the following may he used to ‘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 closing work in progress (D) Prime cost + factory overheads + work in progress Fisk Company’s accountant has not recorded reitt owing for the period. Visk’s ountant has violated the coneeptor rule (Ay accrual (By prude! (C} consistency (D) separate entity END OF TEST IF YOU FINISH BEFOR! 58. 59. the purchase of equipment on credit ill affect a firm's balance sheet by (A) increasing assets and increasing liabilities (B) decreasing assets and increasing liabitiie (C) increasing assets and decreasing iy wy Which of the following is NO considered a source document for the payroll? (A) Electronic timecard (B) 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’? (Ay 246 (By $260 (C) $266 (D) $280 IME IS CALLED, CHECK YOUR WORK ON THIS TEST. 0123901 0/MUICSEC 2019