CSEC Principles of Accounts · May/June 2012 · Paper 2

34 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)13 marksPrepare the corrected trial balance for Heavy Metal Enterprise, showing clearly the correct amount for Capital.
2. 1(b)(i)3 marksPost the information from the day books to the personal account of U. Plumber and balance the account.
3. 1(b)(ii)4 marksPrepare the Debtors Control Account and any other relevant account in the General Ledger for the month of September.
4. 2(a)(i)7 marksPrepare the journal entry on page 5 of JJ's journal to write off the three receivables, including a narrative.
5. 2(a)(ii)4 marksPrepare the journal entry, including a narrative, to create the Provision for Doubtful Debts Account.
6. 2(a)(iii)5 marksDraw up the Provision for Doubtful Debts Account for the two years, 1 January 2010 to 31 December 2011, to show the change in provision, balancing the account at the end of each year.
7. 2(b)(i)1 markState ONE reason why adjustments are made to financial statements.
8. 2(b)(ii)1 markIdentify ONE accounting concept which guides adjustments to financial statements.
9. 2(b)(iii)2 marksExplain how the concept identified in (b)(ii) guides adjustments made to financial statements.
10. 3(a)(i)7 marksPrepare the journal entries to correct the three listed errors (narratives not required).
11. 3(a)(ii)5 marksBeginning with the incorrect balance of $2 570, correct the summarized Cash Book for the relevant errors given, showing all working.
12. 3(b)(i)5 marksUsing the corrected summarized Cash Book balance from (a)(ii), draw up an updated Cash Book for the month ended 31 August 2011.
13. 3(b)(ii)3 marksStarting with the updated Cash Book balance, draw up a Bank Reconciliation Statement for V. Cheeseman for the month ended 31 August 2011.
14. 4(a)(i)7 marksPrepare individual opening entries as at 1 May 2012 to record each sole trader's contribution to the partnership.
15. 4(a)(ii)7 marksPrepare a classified summarized Balance Sheet for PG Enterprises as at 1 May 2012, using the order of permanence.
16. 4(b)(i)2 marksCalculate each partner's share of profit in the capital sharing ratio, showing all working.
17. 4(b)(ii)2 marksCalculate each partner's share of profit in the ratio 3:7, showing all working.
18. 4(c)2 marksList TWO features, other than the profit sharing ratio, that should be included in P and G's partnership agreement.
19. 5(a)(i)1 markExplain, in ONE sentence, the meaning of: The owners of a corporation benefit from limited liability.
20. 5(a)(ii)1 markExplain, in ONE sentence, what the Board of Directors of Aries Limited does.
21. 5(a)(iii)1 markExplain, in ONE sentence, the meaning of: The Registrar of Companies has received the documents required to start up the new corporation.
22. 5(b)(i)5 marksDraft General Journal entries to record the issue of the remaining ordinary shares at $1.50 each (narratives not required).
23. 5(b)(ii)2 marksDraft General Journal entries to record the issue of the remaining preference shares at $1.00 each (narratives not required).
24. 5(b)(iii)3 marksDraft General Journal entries to record the reduction in debentures (narratives not required).
25. 5(c)7 marksPrepare the Appropriation Account for Aries Limited for the year ended 31 May 2011, showing all working.
26. 6(a)(i)4 marksCalculate the cost of direct materials consumed.
27. 6(a)(ii)3 marksCalculate the cost of indirect materials used.
28. 6(b)11 marksPrepare the Manufacturing Account for Simon Long for the year ended 31 December 2011, showing clearly the cost of direct materials consumed, prime costs, factory overheads, and cost of production.
29. 6(c)2 marksCalculate the cost of goods sold.
30. 7(a)6 marksPrepare the Income Statement and the Appropriation Account for Liontown Co-operative for the first year ended 31 December 2010.
31. 7(b)(i)2 marksIdentify the type of co-operative under which Liontown was classified in the operation of its (a) first year, and (b) second year.
32. 7(b)(ii)1 markName ONE committee that Liontown is LIKELY to use to carry out its business.
33. 7(b)(iii)1 markState ONE purpose of the Members' Education Fund.
34. 7(c)10 marksPrepare a classified Balance Sheet for Liontown Co-operative for the year ended 31 December 2011 (second year of operation), taking the appropriation of surplus into consideration.