CSEC Principles of Accounts · January 2017 · Paper 2

28 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)7 marksPrepare the journal entry to record the formation of the partnership of Chris and Vern.
2. 1(b)9 marksPrepare the Profit and Loss Appropriation Account for the end of the first year for Chris and Vern.
3. 1(c)4 marksPrepare the columnar Current Account of Chris and Vern as at 28 February 2016.
4. 2(a)1 markExplain in ONE sentence how LIFO differs from the FIFO method of inventory valuation.
5. 2(b)11 marksComplete the inventory valuation form using the FIFO method, and state the value of inventory as at 31 March 2016.
6. 2(c)7 marksUsing the information from the inventory form, prepare the Trading Account for Mhalal and Jack for the three months ended 31 March 2016.
7. 2(d)1 markDescribe in ONE sentence the effect on cost of goods sold and gross profit if the LIFO method had been used which yields a lower closing inventory valuation.
8. 3(a)9 marksPrepare Stress Ease Enterprises' Income Statement for the year ended 31 March 2016.
9. 3(b)11 marksPrepare the three-column Cash Book for Stress Ease Enterprises for the month ended 30 April 2016.
10. 4(a)(i)2 marksName the TWO financial statements which were affected by the depreciation method error.
11. 4(a)(ii)1 markName the accounting principle that was NOT being followed by the company.
12. 4(b)(i)5 marksCalculate the balance which had been brought down in error in the Provision for Depreciation Account as at 1 September 2015 using the table provided.
13. 4(b)(ii)7 marksCalculate the amount that should appear in the Provision for Depreciation Account as at 31 August 2016 using the reducing balance method.
14. 4(b)(iii)5 marksPrepare the journal entry to correct this balance in Warwreck's owner's personal account, including the date and narrative.
15. 5(a)(i)7 marksPrepare a statement using the worksheet provided to show the cost of raw materials consumed for EACH raw material (Leather and Fibre).
16. 5(a)(ii)3 marksPrepare a statement to show the total direct expenses incurred for bags.
17. 5(b)10 marksBeginning with the total cost of raw materials consumed, prepare the Manufacturing Account for Authentic Sandals for the period ending 31 May 2016, showing separate amounts for total direct labour cost, total indirect…
18. 6(a)5 marksPrepare a Classified Balance Sheet of Miracle Charity Group as at 1 September 2015.
19. 6(b)6 marksPrepare a Receipts and Payments Account for Miracle Charity Group for the year ended 31 August 2016.
20. 6(c)(i)2 marksCalculate the amount of foodstuff consumed for the year.
21. 6(c)(ii)3 marksCalculate the total depreciation expense to be subtracted.
22. 6(c)(iii)2 marksCalculate the amount of subscriptions paid per member.
23. 6(c)(iv)2 marksCalculate the amount of subscriptions outstanding from all members at year end.
24. 7(a)(i)2 marksList TWO advantages of creating a limited liability company rather than a partnership.
25. 7(a)(ii)2 marksList TWO disadvantages of creating a limited liability company rather than a partnership.
26. 7(b)(i)5 marksPrepare F and W's Bank Account to show the balance of receipts and payments as at 1 January 2016.
27. 7(b)(ii)9 marksPrepare the detailed Appropriation Account for F and W Company Limited for the year ended 31 December 2016, showing all working clearly.
28. 7(b)(iii)2 marksList FOUR items which will appear in the Capital section of F and W's Statement of Financial Position as at 31 December 2016.