0% found this document useful (0 votes)
80 viewsPOA 2021 P1
POA past paper
Uploaded by
wyangamingCopyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF or read online on Scribd
0% found this document useful (0 votes)
80 viewsPOA 2021 P1
POA past paper
Uploaded by
wyangamingCopyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF or read online on Scribd
/ 12
93
<
CANDIDATE — PLEASE NOTE!
PRINT your same nthe ine Delon and retrn
ths beck ws Your answer sere. Palre
epee teeneepene | TEST CODE 01239010
FORM TP 2021107 MAY/JUNE 2021
CARIBBEAN EXAMINATIONS COUNCIL
CARIBBEAN SECONDARY EDUCATION CERTIFICATE®
EXAMINATION
PRINCIPLES OF ACCOUNTS
Paper 01 — General Proficiency
1 hour 30 minutes
10 MAY 2021 (p.m.)
READ THE FOLLOWING INSTRUCTIONS CAREFULLY.
1. This test consists of 60 items. You will have | 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, Onyour answer sheet, find the number which corresponds to your item and shade the space having
the same letter as the answer you have chosen. Look at the sample item below.
Sample Item
Prime cost is calculated by adding direct factory expenses to the Sample Answer
(A) cost of goods sold ®@O®
(B) sale of fixed assets
(©) 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. Ifyou want to change your answer, erase it completely before you fill 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.
7. The use of silent, electronic calculators is allowed.
DO NOT TURN THIS PAGE UNTIL YOU ARE TOLD TO DO SO.
Copyright © 2021 Caribbean Examinations Council
All rights reserved.
0123901 0/MI/CSEC 2021 1.
2
A trader had an opening capital of $3 900.
If his drawings were $900 and his closing
capital was $4 860, what was his net profit?
(A) $ 900
(B) $960
TH $1860
() $3000
Item 2 refers to the following balances at
the end of a financial period.
s
Motor vehicle 2.000
Payables 3.000
Receivables 2.000
Capital 11.000
Building 10000
‘What is the TOTAL amount for the assets?
(A) $1200
(B) $13.00
en = $14.000
(@) $15.00
Ms Hoyte, a grocer, bought a computer on
credit from Tan Company. In Ms Hoyte’s
books, which of the following journal
entries would be made for this transaction?
(A) Debit purchases account
Credit Tan Company
(B) Debit computer account
Credit eash
(© Debit Tan Company
Credit purchases account
d Debit computer account
Credit Tan Company
01239010/MJ/CSEC 2021
4
5
During the year, acompany boughtstationery
for $220 and used $120 worth of it. What
figure would be posted to the profit and loss
account to represent the expenditure for
stationery?
(A) $100
$120
(©) $220
() $340
The acid test ratio indicates
QD carer sts es invemary
available to pay current liabilities
(B) current assets to pay current
liabilities
(©) non-current assets to be sold to pay
current liabilities
(D) an overdraft that the trader could
secure to pay his current liabilities
Which of the following items are examples
of current liabilities?
I. Mortgages
I, Accounts payable
II Accrued wages
(A) Tand I only
(B) Land Ill only
eH Mand I only
(D) Mand it
GO ON TO THE NEXT PAGE a
Item 7 refersto the following balances from
the books of J. Sammy, a sole trader, at the
cend of a financial period.
s
Land 7.000
Building 5.000
Inventory 1100
Receivables 500
Bank overdraft 400
Payables 700
Cash 200
Capital (at start) 10.000
Drawings 300
Net profit, 3.000
The current ratio of the business (rounded
to 2 decimal places) is
(A) 14521
(B) 1.6421
© 25731
ie 3.1421
Merill Industries operatesona 40-hour work
shift perweek. Overtime is paid at timeand
ahalf, Employees are paid $50 an hour.
What is the gross pay of an employee who
worked for 49 hours for the week?
(A) 82000
@B) $2225
(© $2450
Wr 82675
01239010/MJ/CSEC 2021
9.
10.
Which ofthe followingaccountsare usually
transferred to the income statement?
(A) Rent, premises, drawings
(B) __ Drawings, rent, purchases
TH Commission received, rent,
purchases
(D) Purchases, furniture, commission
received
Which ofthe followingitemsis/area capital
expenditure?
(A) Wages
(B) Repairs
(©)__ Purchase of goods
‘(DT" Purchase of machinery
GO ON TO THE NEXT PAGE i.
Item 11 refers to the following information about the operation of a firm.
Provision for doubtful debts on 1 January 2020
Receivables on 31 December 2020
$ 700
$25 000
The provision for doubtful debts is calculated at a rate of 2% of receivables.
‘What amount would be recorded in the provision for doubtful debts account at year end?
(A) Credit $200
(B) Debit $200
Wr Credit $500
(@) Debit $500
2.
K. Khan, a debtor of A and B Enterprises,
settles his debt of $120 less 24% discount,
by cheque. How should the double entry
be recorded in the books of A and B
Enterprises?
(A) [Dr K. Khan S17
Drdiscountreceived $3
Cr bank $120
(B) [Dr K. Khan su7
Drdiscount allowed $3
Cr bank $120
Dr bank Si7
Drdiscount allowed Ss
CrK. Khan $120
(D) | Dr bank Su7
Crdiscountreceived $3
Cr. Khan $120
0123901 0/MJ/CSEC 2021
13.
14.
Partnerships are formed for the purpose of
I. combining capital from different
persons
II, benefiting from different skills and
specializations
II sharing ideas, experience and
responsibilities
(A) Lard Tl only
(B) Land Ill only
(©) Mand It only
Pr Mandi
Control accounts are kept in order to assist
management in
‘See locating errors
(B) __ increasing profits
(C) limiting drawings
(D) limiting expenditure
GO ON TO THE NEXT PAGE, 5.
Items 15-16 referto the following statement 18.
of financial position provided for a firm as
at I January 2019.
$
Bank 3000 |Payables 500
Receivables I |It 5500
Inventory 1000
15. What sum of money is represented by 1?
(A) $1000
“Sr = $2000
(C) $3 000
D) 16 000
©) § O,
16. Which of the following accounts is
represented by II?
(A) Loan
(B) Cash
Debit cash, credit bank
(B) Debit cash, credit cash
(c) Credit cash, credit bank
() Debit bank, credit bank
Item 31 refers to the following information
provided by a business.
Ss
Total unpresentedcheques | 120
Lodgement not entered
on bank statement 150
Balance per cash book 560
31. ‘What is the balance per bank statement?
(A) $120
(@B) $150
(c) $340
ee $530
01239010/MJ/CSEC 2021
Se
Item 32 refers to the following table which
shows balances on the asset accounts of the
Bayroe Club as at 30 June 2020.
Assets, $
5-400
1825
Premises
Equipment
Furniture 960
Bank and cash 1640
Inventory and refreshments 2
‘The amount of the club’s accumulated fund
was
$1 640
$4497
$8 185
$9 897
Cy)
(B)
©
—
33. Which of the following are a long-term
liability?
(A) Creditors
—@> Debentures
(©) Acerued wages
(D) Bank overdrafts
GO ON TO THE NEXT PAGE aL
Item 34 refers to the following information.
Debit Insurance AJe Credit
2020 $ 2020 $
2 January Balance b/d 700 31 December Profit & loss a/c 8 100
15 January Bank 31 December Balance e/d. 600
8 700
34, What is the amount of insurance prepaid at the end of the year?
am S$ 600
@) — $ 700
(C) — $8000
(D) $8 100
Item 35 refers to the following information. 37. A photocopying machine valued at $5 000
isdepreciated at 10%using the straight line
3 method. What is its book value after TWO
Inventory at | January 2020 1500 years?
Purchasesduringthemonth | 1200
Cost of goods sold 1400 “w= 34.000
(B) $4050
(©) $4500
38. Whatisthe inventory attheend of January? @) $4980
(A) $ 300
®) $ 500 38. Andina Williams is a petty cashier. If she
(©) $ 700 has a float of $200 and she spends $180,
Pe 51300 how much should she be reimbursed at
the end of the period?
36. Whichofthe following itemsonastatement, A $20
of financial position would differ MOST in a $180
presentation, when comparing the books of (C) $200
a.company and the books of a sole trader? @) $380
(A) Non-current assets
(B) Current liabilities
(©) Current assets
> Capital
GO ON TO THE NEXT PAGE
0123901 0/MJ/CSEC 2021 39,
40.
41.
42,
43.
-9-
Which of the following is a book of prime
entry?
(A) Invoice
(B) Sales ledger
‘eT Sales journal
(D) Statement of financial position
Which of the following financial documents
shows the net earnings of a business?
hdd Income statement
(B) Appropriation account
(C)__ Statement of financial position
(D) Receipts and payments account
A sole trader uses his trading account to
determine
(A) surplus
(B) net profit
== sr0ss profit
(D) super profit
Inordertoavoid writing numerouscheques
for small amounts, a firm may set up @
(A) bank draft
<= petty cash fund
(©) general journal
(D) _ bank standing order
Which of the following states the correct
order of the stages in the accounting cycle,
before final accounts?
(A) Postingtoledger, journalizing, trial
balance
(B) Posting to ledger, trial balance,
journalizing
(C) _ Joumalizing, trial balance, posting
to ledger
p Journalizing, posting to ledger, trial
balance
01239010/MJ/CSEC 2021
44,
45.
46.
According to the Partnership Act, if there
is no Deed of Partnership, the amount of
profitto bereceived by EACH partner would
be
TP divided equally
(B) calculated at 5% of net profit
(C) calculated at5% oncapital invested
(D) divided in proportion to capital
invested
In the books of a partnership, the salaries
of the partners should be
(A) debited in the drawings account
(B) credited in the appropriation
account
(©) debited in the partners’ capital
account
D> credited in the partners’current
account
Item 46 refers to the following table which
shows the summarized position of Foster
and Scott Limited at 6 March 2020.
8
Current ies 60 000
Current assets, 100 000
Non-current assets 200 000
‘Non-current liabilities | 150.000
What was the capital of Foster and Scott
Limited at 6 March 2020?
(A) $ 40000
$ 90.000
(C) $150 000
(D) $190 000
GO ON TO THE NEXT PAGE 47,
49,
-10-
A mechanic starts his business with
$10 000 worth of tools. What entries
should he make to record this transaction?
(A) Debit bank account
Credit capital account
(B) Debit capital account
Credit bank account
Debit tools account
Credit capital account
(D) Debit capital account
Credit tools account
The net profit of a firm was shown as
$1 600. It was later discovered that
discounts received were undercast by $10
and purchases were understated by $36
What is the correct net profit?
mee 51574
(B) $1610
© $1636
(D) $1646
An asset purchased for $1 000 depreciates
at the rate of 10% per annum using the
reducing balance method. What is the
book value of the asset at the beginning of
the third year?
(A) $ 800
ee 5 810
© $ 900
©) si190
01239010/MJ/CSEC 2021
50.
51.
R.A. David operates a small grocery. You
have been asked to assist in the preparation
ofthefinal accounts for2020andhave been
provided with the following information,
Balance at 31 December 2020
Debtors 40.000,
Accounts payable 25 000
Bank overdraft 35.000
Inventory of goods for resale | 80000
Non-current assets 180 000
Long-term loans 130 000
What was the capital at | January 2021?
(A) $110 000
(B) $130.00
(© $160 000
180.000
MrGreenand Mrs Black agreed to establish
a partnership, Green and Black Co., and
each of them deposited $5 000 into a bank
account. How should this be recorded in
the books of the partnership?
(A) Credit cash $10 000
Debit capital $10 000
Debit Green and Black Co. $10.000
Credit bank $10 000 each
®)
(C) Debit partnership bank account
$10 000
Credit partners’ current accounts
$5,000 each
P Debit partnership bank account
$10 000
Credit partners’ capital accounts
$5 000 each
GO ON TO THE NEXT PAGE -1l-
Items 52-53 refer to the following information for Jaco Ltd.
Jaco Ltd sells canned tomato sauce. The following inventory information was available for the
month ended 31 May 2020.
[ Date ‘Transaction ‘Amount
May 1 | Beginning inventory | 40 cans @ $500 per can
4 _| Purchased 80 cans @ $515 per can
15_| Sold 100 cans @ $650 per can
20 _| Sold’ 10 cans @ $650 per can
52. Using the FIFO method, what is the value of ending inventory?
(A) $ 5.000