MCQ Year June 2023

1. A
2. B
3. D
4. B Sales ledger control a/c
Balance b/d 700 Cash received 1 250
Credit sales 1 000 Balance c/d 450
1 700 1 700
5. D
6. A
7. D
8. D – Basic salary 40 hours x $50 = $2 000
+ Overtime 9 hours (49 – 40) x {1.5 x $50} = 675
Total salary $2 675
9. C
10. D
11. D
12. C
13. D
14. A
15. Trading Account
Sales
less Cost of Goods Sold
Opening inventory 2 000 ( 6500 – 4500)

add purchases 5 000

add carriage inwards 500
less purchases return (1 000)
Net Purchases 4 500
Cost of goods available for sale 6 500
less closing inventory (1 000)
Cost of Goods Sold 5 500
16. C
17. A Invoice - cost price $4 000
less trade discount (25/100 x $4 000) (1 000)
$3 000
Return outwards 1/8 x $3 000 = $375

18. A Sales Account

Mr. Abel $50
Mrs. Blue 75
Cash sales 550
less drawings (500)
Balance in the sales account $125
19. A
20. C
21. A
22. A
23. B

24. C Bank $10 000

Vehicle 6 000
Building 15 000
 customer 4 000
Total Assets 35 000
less drawings ( 1 500)
creditors (2 000)
Capital 31 500

25. D

26. A - Working capital = Current assets – current liabilities

$15 500 = $16 500 – x
$16 500 – 15 500 = $1 000 ( current liabilities)

27. B List price $600

less trade discount (20/100 x $600) = ($120)
Sales Price $480

28. C Receipts and Payments a/c

subs. Recd 300 Rent 60
proceeds 250 Purchase of games 150
postage 20
Balance c/d 320
550 550

27. C Raw materials $1 900

+ factory wages 2 500
+rent and rates 2 000
Production cost 6 400
Production cost per unit = 6 400 /640 = $10
28.
29.
30. A
31. D Balance as per updated cashbook $560
add unpresented cheques 120
less lodgements (150)
Balance as per bank statement $530
32. C

33. D Trial Balance

Debit Credit
Machinery $4 000
Inventory 3 000
Purchases 1 000
Sales $5 000
 Capital 3 000
$8 000 $8 000
34. C Manufacturing a/c
Cost of materials used $ 3 000
add factory wages 5 000
Prime Cost $8 000
add indirect expenses 3 200
Total Current Manufacturing Cost $11 200
add Opening working-in-process 1 600
less Closing working-ini-process ( 1 700)
Cost of goods produced $11 100
35. D
36. D
37. B
38. D
39. Rent Expense a/c
Balance b/d 2 000 Transfer to Profit and loss 9
500
Bank 6 000
owing c/d 1 500

40. B
41. D Trading A/c
Sales $45 000
less cost of goods sold
opening inventory
add purchases 10 000
Cost of goods available for sale 10 000
less closing inventory (FIFO) (5 000)
( 5 000)
Gross profit / Gross Income $40 000

42. C Trading A/c

Sales $45 000
less cost of goods sold
opening inventory
add purchases 10 000
Cost of goods available for sale 10 000
less closing inventory (AVCO) (3 000)
( 7 000)
Gross profit / Gross Income $38 000
43. B
44. A
45. D
46. B
47. C
48. A
49. D
50. B
51. A
52. B Receipts and Payments a/c
Balance b/d $700 Purchase of refreshments 500
Proceeds from raffle 1 500 Purchase of furniture 500
Sale of equipment 600 Donations to charity 200
Balance c/d
1 600
2 800
2 800

53. C - Value of Assets

Motor vehicles 2 000
Receivables 2 000
Building 10 000
Total value of assets $14 000
54. C

55. C

56. B - 10/100 x 5 000 x $5 = $ 2 500

57. A - national insurance $ 250

+ income tax 1 500
total statutory deductions $1 750

58. A - Gross Pay $10 000

+ sales commission 300
total gross income $10 300
- statutory deductions ( 1 750)
- credit union ( 2 500)
Net Pay $ 6 050

59. B

60. A - factor y rent $ 2 000

+ depreciation on factory machinery 7 000
+ factory insurance 6 000
+ lubricants 500
Total indirect costs $15 500