Professional Documents
Culture Documents
Poa Jan. 2002 Paper 2
Poa Jan. 2002 Paper 2
FORM TP 2238
001092
JANUARY 2002
C AR I B B E AN E X AM I N AT I O N S C O U N C I L
SECONDARY EDUCATION CERTIFICATE
EXAMINATION
PRINCIPLES OF ACCOUNTS
Paper 02 General Proficiency
3 hours
07 JANUARY 2002 (a.m.)
1.
Answer ALL the questions in Section I and TWO questions from Section II.
2.
3.
4.
Silent electronic calculators may be used, but ALL necessary working should be clearly
shown.
5.
______________________________________________________________________________________
DO NOT TURN THIS PAGE UNTIL YOU ARE TOLD TO DO SO
Copyright 2001 Caribbean Examinations Council.
All rights reserved.
001092/JANUARY/F 2002
SECTION I
Answer all THREE questions in this section.
1.
M Pradash prepared his Trading and Profit and Loss Account for the year ending March 31 2000.
which showed a profit of $69 050. He then provided you with the following list of balances
and additional information:
$
200
800
600
15 000
27 000
40 000
25 000
8 000
6 000
13 000
55 000
14 000
7 500
30 000
1 500
30 000
Depreciation written-off during the year and accounted for in the profit
and loss account was:
Plant and machinery 10% of cost
Fixtures and fittings 15% of cost
Motor vehicles 25% of cost
(ii)
(a)
(b)
(c)
(i)
Calculate ONE ratio which will indicate how liquid Pradashs business is.
(Show the formula)
(ii)
Use the ratio in (c) (i) above to make a BRIEF comment (one short sentence) on
the liquidity of Pradashs business.
(3
marks) 001092/JANUARY/F 2002
GO ON TO THE NEXT PAGE
-32.
(a)
State the Book of Original Entry in which the following transactions should be recorded.
(i)
(ii)
(iii)
(iv)
(v)
(b)
(5 marks)
January 1
2
3
4
7
8
12
17
20
21
25
(c)
(d)
Discount allowed
(ii)
Discount received
(1 mark)
(2 marks)
-43.
(a)
(i)
(ii)
54
166
(10 marks)
(b)
On 31 July 1999 a trader decided to raise provision for bad debts based on 5% of debtors and to
maintain the provision at that percentage at the end of each financial year. The following
particulars relate to THREE financial years:
YEAR
1999
2000
2001
DEBTORS BALANCE
$
25 200
21 400
35 700
(i)
Construct the provision for bad debts account for the THREE years.
(ii)
Show the entries in the balance sheet for EACH of the THREE years..
(iii)
How would the amount for bad debts provision be dealt with in the profit and loss
account in 2000?
(10 marks)
001092/JANUARY/ 2002
-5SECTION II
Answer any TWO questions in this section.
4.
A Ramsook keeps a cash book as his only book-keeping record. The following is a summary of
transactions for the year ending 30 June 2000.
______________________Cash Book (Cash and Bank combined_________________
Opening balance
Cash received from debtors
Closing balance
$
3 284
97 056
4 120
_______
104 460
$
74 496
8 996
3 296
672
7 124
9 876
______
104 460
His assets and liabilities on 30 June 1999 and 30 June 2000 were:
30.06.99
$
8 800
8 484
12 876
400
7 368
124
30.06.2000
$
8 800
10 592
13 552
480
7 564
168
Trading and Profit and Loss Account of A Ramsook for the year ending 30 June
2000.
(11 marks)
A balance sheet as at that date.
(9 marks)
GO ON TO THE NEXT PAGE
-65.
The following list of balances as at December 31 2000 has been extracted from books of K
Pringle a door manufacturer:
$
Stocks of lumber and other raw materials 1.1.2000
32 000
Work in progress (incomplete doors) 1.1.2000
20 000
Completed doors 1.1.2000
48 000
Purchases of lumber and other raw materials
110 000
Carriage inwards
2 400
Carriage outwards
1 300
Manufacturing wages (worker making doors)
56 000
Supervisory wages
15 200
Rent and rates
9 200
Electricity and cleaning
14 000
Office salaries
12 800
Plant and machinery at cost
136 000
Sales
281 200
Returns inwards (damaged doors)
7 500
The following additional information is available:
$
(1)
Stocks at 31.12.2000
Lumber and other raw materials
Work in progress (incomplete doors)
Completed doors
(2)
(3)
Electricity and cleaning expenses are to be apportioned 80% to the factory and 20% to
administration.
(4)
(a)
Prepare the Manufacturing Trading and Profit and Loss A/C for K Pringle for the year
ending 31 December 2000. Your accounts should clearly show the following:
(i)
(ii)
(iii)
(iv)
(v)
(vi)
(vii)
(b)
marks)
40 000
38 000
28 000
(18 marks)
If 400 doors were manufactured during the year what was the cost of producing ONE
door? Show workings.
(2
for a
(a)
(2 marks)
(b)
(c)
Give TWO reasons why a partnership might choose to convert to a company. (2 marks)
(d)
The draft final accounts of Gasoline Retailers Ltd are shown below. The accounts are
badly presented. Re-draft the accounts using the vertical format after providing
dividend of 10% and a transfer to general reserve of $1 500.
(1 mark)
54 000
25 000
5 500
2 675
2 875
350
375
5 725
_____
96 500
Investment income
Closing stock
Sales
______
96 500
250
15 000
81 250
25 000
5 000
20 000
5 000
8 000
5 000
18 750
500
_____
57 250
Bank
Debtors
Pre-payments
Property at cost
Investment at cost
Plant and machinery
Stocks
Goodwill
500
12 500
500
8 250
4 500
12 000
15 000
7 500
_____
60 750
(15 marks)
-87.
(a)
The following is a summary of the receipts and payments for the year 1 April 1999 to 31
March 2000 of the Rock Hall Cricket Club:
Receipts
Club subscriptions
Donations
Christmas dance
Bar takings
25 500
2 250
1 275
40 500
Payments
Rates
General expenses
Bar purchases
Christmas dance expenses
1 350
39 300
27 750
225
Other relevant information at the beginning and end of the year is as follows:
Rates
Bar stocks
Club premises (cost $75 000)
Furniture (cost $15 000)
Bank and cash in hand
April 1 1999
$
3 000
30 000
4 500
2 400
March 31 2000
$
150
3 750
27 000
3 000
3 300
(i)
Prepare the clubs Bar Trading Account for the year ending 31 March 2000.
(5 marks)
(ii)
Prepare the clubs income and expenditure account for the year to 31 March
2000.
(8
marks)
(b)
Prepare the subscriptions account for a sports club at December 31 1999 from the
following information:
Members paid $2 per annum in 1998 and $4 per annum in 1999 and 2000.
At 31.12.98
6 members had not yet paid last years subscription while 3 had paid in
advance.
At 31.12.99
5 members had not paid their 1999 subscriptions while 12 had paid in
advance for 2000.
(7 marks)
END OF TEST
001092/JANUARY/F 2002