CSEC Principles of Accounts · May/June 2010 · Paper 2

33 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)10 marksPrepare Peter Jones' classified Balance Sheet as at March 31, 2010, using the order of permanence.
2. 1(a)(ii)1 markIdentify the most liquid current asset of the business.
3. 1(b)(i)7 marksOn the worksheet provided, show the effect of the listed unrecorded transactions (1 to 6) on the accounts.
4. 1(b)(ii)2 marksCalculate the new balance in the Bank Account.
5. 2(a)(i)3 marksCalculate and enter the interest on drawings to be charged to EACH partner in the Current Accounts.
6. 2(a)(ii)2 marksBalance the Current Accounts of the partners, showing workings.
7. 2(a)(iii)2 marksState the significance of BOTH balances brought down as at December 31, 2009.
8. 2(a)(iv)1 markState ONE possible reason why Angel and Karissa earn different salaries.
9. 2(b)10 marksFrom the information in the Current Accounts, prepare the Appropriation of Profits Account for Angel and Karissa for the year ended December 31, 2009, showing clearly the net profit of the partnership.
10. 2(c)2 marksCalculate the capital invested by EACH partner, showing workings.
11. 3(a)(i)2 marksState TWO limitations of single entry records.
12. 3(a)(ii)5 marksPrepare a Statement of Affairs as at February 01, 2009, to convert Khalel's Gardening Centre's single entry records.
13. 3(b)(i)3 marksPrepare a Sales Total (Control) Account for Khalel's Gardening Centre to calculate the total Credit Sales for the period ended January 31, 2010.
14. 3(b)(ii)9 marksPrepare an Income Statement for Khalel's Gardening Centre for the year ended January 31, 2010.
15. 3(b)(iii)1 markIn which classification section of the Balance Sheet should Khalel record the loan from his sister?
16. 4(a)7 marksPrepare the Appropriation Account of the company for the year ended November 30, 2009, showing all workings.
17. 4(b)13 marksPrepare a classified Balance Sheet as at November 30, 2009, for Cancun Guest House Limited.
18. 5(a)13 marksPrepare a Manufacturing Account for the year ended December 31, 2009, showing clearly the cost of raw materials consumed, prime cost, and factory overheads.
19. 5(b)7 marksPrepare the Income Statement for the year ended December 31, 2009.
20. 6(a)13 marksUsing the stock form provided, determine the value of the tyres remaining in stock at October 31, 2009 using the LIFO method of stock valuation.
21. 6(b)7 marksPrepare a Trading Account for the month ending October 31, 2009.
22. 7(a)(i)2 marksIdentify ONE internal user of accounting information and state how this information is used by that user.
23. 7(a)(ii)2 marksIdentify ONE external user of accounting information and state how this information is used by that user.
24. 7(b)(i)1 markIdentify the type of business organisation described: Several employees are employed in a large organisation owned by a single person.
25. 7(b)(ii)1 markIdentify the type of business organisation described: Three brothers operating a business where the action of one brother is binding on the other two brothers.
26. 7(b)(iii)1 markIdentify the type of business organisation described: Shareholders cannot sell their shares in the company on the stock market.
27. 7(b)(iv)1 markIdentify the type of business organisation described: Groups of consumers or producers form an organisation to provide services to its members.
28. 7(b)(v)1 markIdentify the type of business organisation described: An organisation, operated by members, to provide services to members and is often financed by donations, fund-raising and subscriptions.
29. 7(c)(i)1 markState the accounting concept or principle violated when credit sales made in March of 2010 were not recorded until the money was received in May 2010.
30. 7(c)(ii)1 markState the accounting concept or principle violated when management refuses to write off an uncollectible debt of $20 000 from a bankrupt debtor or create a provision for bad debts.
31. 7(c)(iii)1 markState the accounting concept or principle violated when management changes from straight line depreciation to reducing balance method in order to report higher profits.
32. 7(c)(iv)1 markState the accounting concept or principle violated when the owner pays insurance for his private house and records it as a business expense.
33. 7(d)7 marksDraw a labelled diagram of the six (6) stages of the accounting cycle.