Mock Exam 01 – PILOT PAPER

1.
Assets Liabilities
100,000 70,000

(+, - , ÷, x, Trade Receivable, Capital, 30,000, 50,000)

2. Draw up Broad’s Statements of Financial Position as at 31/12/2015 from the following items
and calculate the Capital balance.

$
Motor Vehicles 100,000
Office Equipment 80,000
Bank OD 5,000
Stock of goods 20,000
Payables 25,000
Receivables 30,000

3. Jack has an opening capital balance of $600,000(Cr) on 1st January 2015. During the year
there was a decrease in assets of $40,000 and a increase in liabilities of $30,000.

a) What is the balance on the capital account as at 31st December 2015?

b) If drawings amounted to $8,000, what is the profit/(loss) for 2015?

4. Goods worth $10,000 was sold for $15,000 on credit you are required to state the accounting
entry

Description Dr CR

Trade Receivables

Sales

Capital

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5. Tick the correct column for each of the following:

Debit Credit
1 Increases in Assets
2 Decreases in Income
3 Increases in Capital
4 Decreases in Liabilities

6.

Description Account Balance Category

Debit Credit Asset Liability Income Expense Capital
1 Trade Receivables
2 Bank OD
3 Insurance
4 Discount Received
5 Trade Payables

7. A business has a Bank Overdraft and pays for Rent. What’s the impact on

a) Expenses

b) Liabilities

8.
Bank Account
1. B/D 10,000
5. Sales 18,000 2.Salaries 5,000
6. Capital 20,000 3.Rent 1,000
4. Electricity 3,000

a) You are required to state the closing balance.

$ Dr. Cr

b) Explain Transaction No.6 above

c) Transaction No.5 relates to a cash sale or credit sale?

d) State the movement in the Bank account

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9. Marlon’s petty cash imprest is restored to $4,000 at the end of each month.
The following amounts were paid out of petty cash in December 2015.

1) Refreshment $50
2) Sundry materials $330(including VAT @ 10%)
3) Printing $600 + VAT @ 10%
4) Travel cost $90

You are required to state the amount to restore the imprest.

10. A company makes a sale of $800,000 and a Gross Profit of $300,000. Its opening and closing
stocks amounted to $60,000 and $80,000 respecting. What is the value of purchases?

11. The following data is available from Yoyo’s business for 2012.
$
Sales 900,000
Sales Returns 40,000
Purchases 500,000
Purchase Returns 20,000
Gross Profit 400,000
Opening Stock 30,000

What’s the value of the closing stock?

12. What does carriage inwards relate to?

A Sales
B Purchases
C Drawings
D Capital

13. BCD paid rent on 1 October 2012 for the year ended 30 September 2013 of $600, and paid rent
of $800 on 1 October 2013 for the year ended 30 September 2014.

What was the rent payable expense for the year ended 31 December 2013?

$.......................

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 14. JKL received rent from occupiers of premises during 2015 of $25,000. Of this,
$1,600 related to the year ended 31 December 2014 and $800 related to the year ended
31 December 2016. At 31 December 2015, there was rent due but not yet received on
$500.

What was the rent receivable by JKL for the year ended 31 December 2015?
$ ............. ………

15. An entity had the following rent bills received and paid during the year ended 31 December
2007:

28 Feb $1,380
31 May $1,320
30Aug $1,170
30 Nov $1,260

Additional information:
Bill received on 28 February 2008: $1,350 (for the period 1 December 2007 - 28 February
2008)
Using the drop down lists available show the correct accounting entries for the year end journal
entry.

Debit Rent expense/ Accruals/ Prepayments / Bank $l,350/ $450/ $900/ $390

Credit Rent expense/ Accruals/ Prepayments / Bank $1,350/ $450/ $900/ $390

16. EFG bought machinery for $300,000 on 1 January 2005, and has depreciated it at 10% per
annum by the reducing instalment method.

What was the depreciation charge for the year ended 31 December 2007?
A $21,870
B $24,300
C $27,000
D $30,000

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 17. Which one of the following items should be classified as capital expenditure?

A. Repairs to motor vans

B. Depreciation of machinery
C. Extension of premises
D. Purchase of motor vans for resale

18. Tick the correct boxes in the table below to show whether each of the following items would
be recognised as capital expenditure or revenue expenditure.

19. A non current asset register is

A. an alternative name for the fixed asset ledger account.

B. a list of the physical fixed assets rather than their financial cost.
C. a schedule of planned maintenance of fixed assets for use by the plant engineer.
D. a schedule of the cost and other information about each individual fixed asset.

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20. S purchased equipment for $80,000 on 1 July 2012. The company's accounting year end is 31
December. It is S's policy to charge a full year's depreciation in the year of purchase. S
depreciates its equipment on the reducing balance basis at 25% per annum.

The carrying value of the equipment at 31 December 2015 should be:

A Nil
B $25,312
C $29,531
D $33,750

21. A company has been notified that a customer has been declared bankrupt. The company had
previously made an allowance for this debt. Which of the following is the correct double entry to
account for this new information?

Debit Credit
A Irrecoverable debts Receivables
B Receivables Irrecoverable debts
C Allowance for receivables Receivables
D Receivables Allowance for receivables

22. At 1 January 2011, there was an allowance for receivables of $3,000. During the year, $1,000 of
debts were written off as irrecoverable, and $800 of. debts previously written off were recovered. At
31 December 2011, it was determined that the allowance for receivables should be adjusted to
5% of receivables, which are $20,000.

What is the total receivables expense for the year?

A $200 debit
B $1,800 debit
C $2,200 debit
D $1,800 credit

23. If an entity had increase in receivables of $750, a decrease in the bank overdraft of $400,
a decrease in payables of $3,000 and an increase in inventories of $2,000, what would be
the change in working capital?

increase/decrease of $ __________

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24. An increase in the allowance for receivables would result in

A an increase in liabilities
B a decrease in working capital
C a decrease in net profit
D an increase in net profit

Select All correct answers above

25. The following information is for the year ended 31 October 2010.

$
Purchases of raw materials 56,000
Returns inwards 4,000
Increase in inventory of raw materials 1,700
Direct wages 21,000
Carriage inwards 2,500
Carriage outwards 4,000
Production overheads 14,000
Decrease in work-in-progress 5,000

The value of factory cost of goods completed is

26. The prime cost of goods manufactured is the total of:

A Raw materials consumed

B Raw materials consumed and direct wages
C Raw materials consumed, direct-wages and direct expenses
D Raw materials consumed, direct wages, direct expenses and production overheads

27. If work-in-progress (WIP) decreases during the period, then:

A. Prime cost will decrease

B. Prime cost will increase
C. The factory cost of goods completed will decrease
D. The factory cost of goods completed will increase

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28. Paul paid $240,000 in net wages to its employees in August 2012. Employees' tax was $24,000,
employees' national insurance was $12,000 and employer's national insurance was $14,000.
Employees had contributed $6,000 to a pension scheme and had voluntarily asked for $3,000 to
be deducted for charitable giving.

The amount to be charged to the statement of profit or loss in August 2012 for wages is:

A $296,000
B $299,000
C $290,000
D $264,000

29. Double entry for payment of net wages is:

A. Dr: Wages and salaries expense Cr: Bank

B. Dr: Bank Cr: Wages control
C. Dr: Wages and salaries expense Cr: Wages control
D. Dr: Wages control Cr: Bank

30. The following is an extract from the trial balance of a business for its most recent year:
Debit ($) Credit ($)
Heat and light 22,000
Rent and local business tax 27,000
Non-current assets 80,000
Acc. depreciation on non-current assets 20,000

Gross profit has already been calculated as being $85,000.

Depreciation is to be calculated at 25 per cent on the reducing balance. At the end of the year, heat
and light accrued is $4,000, and rent and local business tax prepaid is $2,500.

The correct net profit is:

$.............................

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