CSEC Principles of Accounts · January 2013 · Paper 2

30 questions and parts from this paper. Open one to see it in full, then practise it on Quelpr and get it marked against the mark scheme.

1. 1(a)(i)2 marksDescribe the transaction that occurred on 2 May.
2. 1(a)(ii)2 marksDescribe the transaction that occurred on 3 May.
3. 1(b)11 marksUsing the order of permanence, draw up a classified Balance Sheet (Statement of Financial Position) for R. Robin at the close of business on 31 May 2012, including closing capital.
4. 1(c)5 marksGiven that R. Robin withdrew $65 000 during the first year of operation, calculate his profit for the year using the closing capital. Show your working clearly.
5. 2(a)8 marksPrepare the partnership Profit and Loss Appropriation Account for the year ended 31 December 2012.
6. 2(b)10 marksPrepare Current Accounts for the partnership as at 31 December 2012.
7. 2(c)2 marksShare the profit of the business between Threaker and Waitley as if there was no partnership agreement.
8. 3(a)7 marksUsing all relevant information, prepare James Johnson's Statement of Affairs as at 31 December 2011 to determine his capital.
9. 3(b)(i)3 marksCalculate by means of an account or statement the total credit purchases for the year.
10. 3(b)(ii)3 marksCalculate by means of an account or statement the total credit sales for the year.
11. 3(c)7 marksPrepare James Johnson's Income Statement for the year ended 31 December 2012.
12. 4(a)10 marksUsing the vertical style of presentation, prepare a classified Balance Sheet for K.A.M. Enterprise as at 31 December 2012.
13. 4(b)5 marksUsing the income statement given and the classified balance sheet prepared, calculate the Net income margin, Return on capital invested, and Current ratio.
14. 4(c)1 markUsing the current ratio, comment on the liquidity position of K.A.M. Enterprise.
15. 4(d)2 marksUsing TRU Brothers Enterprise's ratios (Net income margin 15%, Return on capital invested 18%) and those calculated in (b), make two different comments comparing the performance of K.A.M. Enterprise and TRU Brothers…
16. 4(e)2 marksCalculate the value of TRU Brothers Enterprise's ending inventory using the First In, First Out (FIFO) method of stock valuation, stating the amount of units in inventory at close.
17. 5(a)10 marksPrepare the Manufacturing Account of Glen Co. for the year ended 31 December 2012 showing clearly the cost of raw materials consumed, prime cost, factory overheads, and cost of production.
18. 5(b)10 marksPrepare the Income Statement (Trading and Profit and Loss Account) of Roy Co. for the year ended 31 December 2012 showing clearly the cost of sales and total expenses.
19. 6(a)5 marksPrepare the Subscriptions Account for the year ended 31 October 2012.
20. 6(b)3 marksPrepare the Creditors' Account for the bar to determine purchases.
21. 6(c)9 marksPrepare the club's Income and Expenditure Account for the year ended 31 October 2012.
22. 6(d)(i)1 markState the name of the section of the balance sheet in which subscriptions in arrears appears.
23. 6(d)(ii)1 markState the name of the term used in place of 'Capital' in non-trading organizations.
24. 6(d)(iii)1 markShow the total value of the club's non-current assets, showing working.
25. 7(a)(i)5 marksPrepare the journal entry to record the issue of the shares.
26. 7(a)(ii)1 markState ONE difference between ordinary shares and preference shares.
27. 7(b)6 marksPrepare a statement of MMC Company Ltd's Profit and Loss Appropriation Account for the year ended 31 December 2012.
28. 7(c)(i)a)2 marksCalculate the Return on the capital invested at 1 January 2012 for MMC Company Ltd.
29. 7(c)(i)b)4 marksCalculate the Dividend rate (percentage) for ordinary shareholders for MMC Company Ltd.
30. 7(c)(ii)2 marksCompare your calculated return on capital invested and ordinary dividend rate to the industry averages (30.82% and 10.5%), and write a statement on MMC's performance for EACH ratio.