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June 2017 p1 (With Answers)
June 2017 p1 (With Answers)
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coDE 01239010
FORM TP 20l7l0l MAY/JUNE 2OI7
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CARIBBEAN EXAMINATIONS COUNCIL
CARIBBEA]\ SECONDARY EDUCATION CERTIFICATEO
EXAMINATION
" PRINCIPLES OF ACCOUNTS
Paper Ol - General Proficiency
I hour 3O minutes
18 MAY2017 (p.m.)
1. This test consists of 60 items. You will have t hour and 30 minutes to answer them.
2. In addition to this test booklet, you should have an answer sheet.
3. Each item in this test has four suggested answers lettered (A), (B), (C), (D). Read each item
you are about to answer and decide which choice is best.
4. On your answer sheet, find the number which corresponds to your item and shade the space
having the same letter as ttre answer you have chosen. Look at the sample item below.
Samole Item
Prime cost is calculated by adding direct factory expenses to the Sample Answer
(A)
(B)
cost of goods sold
sale of fixed assets
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(C) sale of finished goods
(D) cost of materials used
The best answer to this item is "cost of materials used", so (D) has been shaded.
5 If you want to change your answer, erase it completely before you filI in your new choice.
6 When you are told to begin, turn the page and work as quickly and as carefully as you can.
If you cannot answer an item, go on to the next one. You may return to that item later.
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! 7 The use of silent, electronic calculators is allowed.
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1. Accounting is the process of the 5. Abalance sheet serves the purpose of
(A) Posting to led ger, j ournalizing, trial (A) Plant, machinery, inventory,
balance receivables
(B) Posting to ledger, trial balance, (B) Equipment, furniture, vehicles,
journalizing plant
(c) Journalizing, trial balance, posting (c) Vehicle, capital, building,
prepa)rments
to ledger
(D) Journalizing, posting to ledger, trial (D) Cash, inventory, building,
balance receivables
4. Which of the following terms is described 8. Which of the following lists of current
assets is arranged in order of liquidity from
in documents showing exchanges ofgoods
and services? least to most liquid?
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9. TheCashBookisBESTusedforrecording 14. The total credit of the bank column of a
Three-Column Cash Book is greater than
(A) goods sold for cash the total debit. The MOST likely result for
(B) goods returned for cash this situation is that
(C) goods purchased for cash
(D) cash receipts and cash payments (A) there was an overdraft
(B) transactions were omitted from the
debit side
10. A. Portap bought goods for $500 on credit. (c) some figures were overstated on
In which book of prime entry will this be the credit side
recorded? (D) the incorrect transactions were
entered on the credit side
(A) Purchases Journal
(B) Sales Journal
(c) General Journal 15. Any expenditure which is written off
(D) Cash Book entirely to the Income Statement is known
as
(A) liabilities
11. A businessman offers a discount for (B) purchases
prompt payment for goods purchased. (c) revenue expenditure
Under which column in his Three-Column (D) capital expenditure
Cash Book would this be entered?
(A) $320
(B) $3s0 17. A businessman incurred the following
(c) $370 expenses.
(D) $400
Factory repairs s6 oo0
Machinery repairs $2 000
13. An article is subject to a 2Oo/o trade New machine $3 000
discount. Its list price is 5600. What is its New vehicle $7 oo0
sale price?
What is the total capital expenditure?
(A) $120
(B) s48o (A) $6 000
(c) $sgo (B) $7 000
(D) $72o (c) $8 oo0
(D) $10 oo0
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18. Mr Abel and Mr Blue purchased goods 21. K. Khan, a debtor ofA and B Enterprises,
valued at $50 and $75 respectively from settles his debt of $120 less 2%%o
MrKane, on credit. Another customerpaid discount by cheque. How should the
cash for goods amounting to $550. Mr Kane double entry be recorded in the books of
took goods at cost for himself amounting A and B Enterprises?
to $500. Which of the following figures
represents the total in Mr Kane's Sales (A) Dr K Khan $117
Account? Dr Discount received s3
Cr Bank $120
(A) $ t2s (B) Dr K Khan $117
(B) $ 42s Dr Discount allowed :$ 3
(c) $ 67s Cr Bank $120
(D) $1 175
(c) Dr Bank $117
Dr Discount allowed s3
19, Which of the following accounts are usually CrK Khan $120
transferred to the Income Statement? (D) Dr Bank $r 17
Cr Discount received $3
(A) Rent, Premises, Drawings Cr K Khan $120
(B) Drawings, Rent, Purchases
(c) Purchases, Furniture, Commission
Received Iterns 22-23 refer to the following
(D) Commission Received, Rent, information.
Purchases
A calculation to determine gross profit
percentage is as follows.
20. When current liabilities are subtracted from
current assets, the result is termed sl85 s30x t00
= 35.O2o/o
$s29 800 - I
(A) cash balance
(B) capital owned
(C) working capital 22. What does the $529 800 represent?
(D) capital employed
(A) Total sales
(B) Gross profit
(C) Cost of sales
(D) Total purchases
Item 24 refers to the following information. 25. The working capital ofA. Young and Sons
is $15 500. The total amount of current
Machinery Account $4 000 assets is $16 500. What is the total amount
Stock Account $3 000 of current liabilities?
Purchases Account $1 000
Sales Account $s 000 (A) $ 1000
Capital Account $3 000 (B) $15 500
(c) sl6 soo
24. The above balances appeared in the ledger
(D) $32 000
of Mrs G. Dalton. What is the total of the
trial balance?
(A) $s 000
(B) $6 000
(c) $7 000
(D) $8 000
Items26--27 refer to the following table which shows a trader's operation at the end of the trading
period.
26. What is the cost of goods sold? 27. What is the gross profit?
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28 In the balance sheet, expenses owing will 31. The gross profit ofa firm is $7200. Bad
be listed as debts are $200. Insurance paid is $1240,
which includes a prepa)rment of $40. What
(A) fixed assets is the net profit of the firm?
(B) current assets
(c) current liabilities (A) $s 720
(D) long-term liabilities (B) $s 760
(c) $s 800
(D) s7 000
29. A debt is considered a 'bad debt' if the
debtor
32. Control Accounts are needed to
(A) pays late
(B) fails to pay (A) locate errors
(c) clears the debt in parts (B) calculate ratios
(D) does not use money to pay (C) calculate profits
(D) record opening entries
(A) omlsslon
(B) principle
(c) commission
(D) complete reversal
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(A) s 6800
(B) s 8800
(c) slr 800
(D) s14 800
36. At the end of the year the capital of a 38. Which of the following accounts are
business was $33 000. Atthe beginning of nominal?
000. During
the year the capital was $28
the year the owner withdrew $2000 for (A) Wages and Rent
personal use. What is his net profit for the (B) Stock and Debtors
year? (c) Machinery and Plant
(D) Creditors and Fixtures
(A) $ s000
(B) $ 7000
(c) $30 000 39. A customer who owed $20 000 retumed
(D) $61 000 goods valued at $3 OO0. He then settled
his outstanding balance by paying $ 15 300-
The discount allowed to this customer is
Item 37 refers to the following information
(A) $7 700
Inventory atOl Jarruary 2Ol4 s1 s00 (B) $4 700
(c) $3 000
Purchases during the month $1 200
(D) $1 700
Cost of sold $1 400
(A) $ 300
(B) $ s00
(c) $ 700
(D) $1 300
41. Which two of the following items are NOT recorded in the AppropriationAccount?
Select the two terms below which correctly complete Items 42 and 43
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44. Mr Green and Mrs Brown agreed to 47. A company eamed a net profit of $60 000
establish a partnership and each deposited for the year ending 30 September 2016-
$5000 into a bank account, Green & Brown Proposed dividends were: ordinary shares
Co. How should this be recorded in the $10 000 and preference shares Sl5 000.
books of the partnership? The company decided to transfer $8000 to
a general reserve. The retained earnings
(A) Cr Cash $10 0OO, on 30 September 2016 were
Dr Capital $10 000.
(B) Dr Green & Brown Co. $10 000, (A) $27 000
Cr Bank $10 000 each. (B) $33 000
(c) Dr Partnership Bank Account (c) s35 000
s10 000, (D) s93 000
Crpartners' CurrentAccounts $5 000
each.
(D) Dr Partnership Bank Account 48. When a company declares a dividend
slo ooo, of l5%o, the dividend warrant sent to a
Cr partners' Capital Accounts shareholder who owns 1500 ordinary
$5 000 each. $l shares is
(A) $ 100
45. Which of the following features is (B) $ 22s
associated with private limited companies? (c) $r s00
(D) $l sls
(A) Family owned
(B) Shares not sold publicly
(C) Financialstatementspublished 49 Which of the following is an example of a
(D) Government agencies purchase co-operative?
shares
(A) Abank
(B) A sports club
46. A company proposes a lO%o rate of (C) A corporation
dividends. A shareholder who owns 500 (D) A credit union
two-dollar ordinary shares will receive
dividends of
(A) s10
(B) $s0
(c) $100
(D) ss00
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Appropriation Account
50. What conclusions could be drawn from the Appropriation Account above?
(A) s s000
(B) s15 000
(c) $20 000
(D) $2s 000
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GolfClub'sReceiptsandPaymentsfortheMonthofApril
53 What is Golf Club's ending cash balance for the month ofApril?
(A) $ 4 000
(B) $14 2oo
(c) $22 too
(D) $36 300
54. The balance in the Income and Expenditure Item 55 refers to the following information
Account represents the relating to the pay of different categories
of workers in a garment factory.
(A) assets owned or liabilities owed by
firms Machine operator $ 6000
(B) profi.ts orlosses made from aprofit- Supervisor $ 7300
making activity
(c) cash available to spend or amount
Maintenance worker s 4s00
owed to the bank Accountant $10 000
(D) surplus or deficit arising from the
operation of a non-trading entity 55. The direct labour cost is
(A) $ 6000
(B) sll 800
(c) $17 800
(D) $27 800
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56. which of the following may be used to calculate the cost of production?
(A) Prime cost + factory overheads - opening work in progress + closing work in progress
(B) Prime cost - factory overheads - opening work in progress + closing work in p.ogr"r.
(C) Prime cost + factory overheads - opening work in progress - closing work in prog."rt
(D) Prime cost + factory overheads + opening work in progress - closing work in p.ogr"".
57 The items raw materials inventory, work- 59. Which of the following is NOT considered
in-progress inventory and finished goods a source document for the payroll?
inventory are MOST likely seen together
on the balance sheet ofa (A) Electronic timecard
(B) Medical certificate
(A) garage (C) Attendance register
(B) supermarket (D) Clock card
(C) shoe factory
(D) bus company
60. Mr Amos is employed by a construction
company at a rate of $7 per hour. During
58. Ms Hawk has a manufacturing business. the week of 6 April 2008, he worked his
The cost of her raw materials was $1900. basic week of 40 hours. The income tax
Rates and rent totalled $2000, and factory due on his pay is $20, and he is also liable
wages amounted to $2500. to pay social security contributions of 5oZ
ofhis gross pay.
The number of units produced was 640
What was the cost of ONE unit? What is MrAmos'net pay?
END OFTEST
ot2390to/F 2017