CANDIDAIL PLEASL NOTE

PRINT your name on the line below and return

this boklet with your answer sheet. Failore to
do so may result in diqualilication. IISI CODE O1239010
FORM TP 2022108 MAY JUNE 2022

CARIBBEAN EXAMINATIONS COUNCL

CARIBBEAN
SECONDARY EDUCATION CERrIFICATE
EXAMINATION

PRINCIPLES OF ACCOUNTS

Paper01- General Proficieney

1 hour 30 minures

09 MAY 2022 (p.m.)

READ THE FOLLOWING INSTRUCTIONS CAREFULLY.

This test consists of 60 items. You will have I hour and 30 minutes to answer them.

In addition to this test booklet. you should have an answer sheet.

. 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.

On your answer sheet. fnd 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 itenm below.

Sample Item
Prime cost is calculated by adding direct factory expenses to the
SampleAnswer
(A) cost of goods sold
(B) sale of fixed assets
(C) sale offinished goods
(D) cost of materials used

The best answer to this item is "cost of materials used", so (D) has been shaded.

5 If you 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.

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.

01239010/MJ/CSEC 2022
 the Tollowing ists ol activities
The MAIN intemal 5.
Which of o r o e r or n e stages in the
uners accounting shows the
correct
information are eycle,
Delore
nal
iccounts?
accountng

A managers Posting to ledger. Journalizing, trial

(B) (A)
ompeutTS balance
loal communities Posting 1o ledger, irial balance,
(3)
(D)governmen agencies journalizing
to ledger, trial
(C) Journalizing. posting
. balance
Dusinessman otters a discount tor Journalizing, trial dalance. posting
prompt pay ment for goods purchased. (D)
toledger
nder which column in his three-column
cash book ould this discount be entered?
Which of the following lists of current
(A) Bank 6.
assets is arranged in order of liquidity?
(B) Cash
(C) Discount allowed
(A) Accounts receivable. prepayments,
(D) Discount received
inventory. cash, bank

(B) Cash, bank. prepaymenis, accounts

Which of the following BEST describes receivable, inventory
the "double entry" system of accounting? (C) Prepayments, accounts receivable,
cash, bank, inventory
(A) A ledger account must have two (D) Inventory, accounts receivable,
Sides.
prepayments, bank, cash
(B) An account must be written twice
in the ledger.
(C) Each transaction must be written
Item 7 refers to the following balances that
in two subsidiary books.
appeared in the ledger of Mrs G. Dalton.
(D) Each transaction must have a debit
entry and a credit entry.

Machinery 4 000
During the year a company bought Inventory 3 000
stationery for $220 and used S 120 worth Purchases 000
of it. What figure would be Sales
posted to 5 000
the income statement to
represent the
expenditure for stationery?
Capital 000

What is the TOTAL of

the trial balance?
(A) Si00
(B) S20 (A) 000
(C) $220 (B) S6 000
(D) S340 C) $7 000
(D) $8 000

O1239010/MJ/CSEC 2022
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THE NEXT PAGE
 tem8 eters o the illowmg mlwmatim A
Dubness bOupht a
new compuler T
h 0000 1le paid 54 1000) in cash and traded
n old
lannary 2021
was pal In
compter Wlat is thie entry
t
e c d l i s ranslc tion?
aunt O0 Was used by ilevenber

(ADbitold conputer 2 (000

Debil casli
W hatwas the
an pyaulorale ng Cedit new commpute
at the enl ot the vear
(1)|Debi Hewcomputer $4 000
Debil ca $2 0
A) S000
redit old compute (000
O00
S6 000 |
Stoo (C)Debitold compiuter
Debit ciash $4 (000 |
D)S17000 Credil new conuputer$2 000 |

(1)) Debitnew computer|$6000

Credit old computer 2 O00
tem9 reters to the ollowing balances at
the end of a fhnancal period. Credit cash $4000|

Motor vehicles 000 lem I1 relers to the following table which

shows the sumarized position of Foster
ayables 000
and Scott L.imited at 6 March 2021.
Receinables 2000
1 000
Captal
Buildang 10000 Current liabilities
60 000
What is the 1OTALamount for the assets'? Current assets 100000
Non-current assets 200000
(A) $120000
3 000
Non-current liabilities 150 000
(1)
(O S140
000 TI. Wlhat was the capital ot Foster and Scot
(D) SI5 000 I.imited at 6 March 2021?

(A) S 40 000
(B) $90000
(C) $150 000
(D) S190 000

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01239010/MJ/CSEC 2022
 A

12. the following information.

Credit notes issued for Item16refersto
a customer
goods returned by
would be FIRST entered in the
Bankac
(A) returns inward book
15 O00
Purchases
(B) returns outward boOK Balance b/d
20 000|
(C) sales returns and allowances Balance c/d 2
2 000
Sales
account
(D) purchases returns and allowances balance of the bank
16. What is the closing
account
account?

$2 000
13. In ordertoavoidwriting numerous cheques
(A)
$3 000
for small amounts. a firm may set up a
(B)
$5 000
(C)
(D) $7000
(A) bank draft
(B) petty cash fund
(C) general journal R. Stevens, a petty cashier,
r e c e i v e s a float
17.
(D) bank standing order of $350. He spends S320 and requests
to S400. If
that his float be increased
his is granted, how much will he
request
4. The acid test ratio indicates
receive?

(A) net current assets less inventory

(A) S320
available to pay current liabilities
current assets to pay current (B) $350
(B) S370
liabilities (C)
(C) non-current assets to be sold to pay (D) $400
Current liabilities

(D) an overdraft t the trader could

secure to pay his current liabilities

15. Which of the following accounts is NOT

nominal?

(A) Furniture
(B) Commission
(C) Carriage inwards

(D) Discount allowed

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01239010/MJ/CSEC 2022 THE NEXT PAG
 Item18 refers to the following table.
Amount of Accounts
Period of Debt Provision for Bad Debts
Receivable
Over 3 years $6 000 3% of ncco1unts receivable
Over2 years S4 00 2% of accounts receivable

Over I year S8 000 1% of aceounts receivable

8. What is the TOTAL provision for doubttul debts?

A) SI80
(B) S340

(C) $400
(D) S500

19. Which of the following items on a 21. In Mrs Lowe's ledger, an entry on the
statement of financial position would debit side of the drawings account and an
differ MoST in presentation when entry on the credit side of the bank account
comparing the books of a company and means that
the books of a sole trader?
(A) Mrs Lowe puts money in the
(A) Non-current assets business bank account
(B) Current liabilities (B) the bank puts money in Mrs
(C) Current assets Owe s personal account

(D) apital (C) Mrs Lowe withdrawS money from

the bank for use in the business
(D) Mrs Lowe uses money from her
20. Mr Ram, a shoemaker, bought a motor business bank account for her
van for SI1 000 cash. In recording this personal use
transaction he should

(A) Cr cash: Dr motor van account 22. The ABC Company received a cheque
(B) Dr cash; Cr motor van account from Mr Murray for $300. How must this
(C) Cr cash; Dr purchases account transaction be recorded in ABC's books?
(D) Dr cash; Cr purchases account
Credit the cash book $300.
II. Credit Mr Murray's account.
III. Debit the bank account.
V. Debit Mr Murray's account.

(A) I and Ill only

(B) I and IV only
(C) II and IIl only
(D) ilI and IV only

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01239010/MJI/CSEC 2022
 busine
a

23. Anasset In preparing

ius
tinal accounts,
purchased for $1 000 is depreciated 26.
relurns
inwards. Which the
at the rate of 10% per annun omited
using the
following items would be anected by this
reducing balance method. What is the book
value of the asset at the omission
third year?
beginning of the

Net sales
.

(A) 800 Net purchases

(B) 810 Ill. Gross profi/loss

(C) 900
(D) T90 I and II only
(A)
(B) Iand III only
Il and IIl only
(C)
Item24 reters to the following information. (D) 1, l and IM

A calculation to determine gross profit A business receives S5 O00 tor rent and
percentage is as follows. 27.
deposits this amount into its bank account.

S185530 100 35.0270 How will this transaction be recorded?

$529 800
Debit bank $5 000
(A)
Credit rent $5 000
24. What does the S529 800
represent?
(B) Debit rent $5 000
(A) Total sales
Credit bank $5 000
(B) Gross profit
(C) Cost of sales
(C) Debit cash $5 000
(D) Total purchases
Credit rent $5 000

Item25 refers to the following information. (D) Debit rent $5 000

Credit expense $5 000

Apublic limited company issued a prospectus

offering the shares described in the following
table for sale at par value.
Item28 refers to the following information.

MrsAllen invested $20000 and Mrs Brown

and Mr Cable invested $5 000
Type of Share Units
oParValue same business.
each into the
The loss sustained during the
Ordinary 200 000 yearwasS1 000. The partnershipagreement
is
5%Preference 10000 silent on the item oflosses, althoughprofits
are to be
split in the ratio 2:2:1 in favour
25. The issue was fully subscribed. How much of Allen, Brown and Cable
capital did the company raise? respectively.
28. How much of the loss
must be borne by Mr
(A) S 40 000 Cable?
(B) $ 45 000
(C) $400 000 (A) S140
(D) S450 000 (B) $200
(C) $300
(D) S400

01239010/MJ/CSEC 2022 GO ON TO THE

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 29. in terms can be 31. The following information relates to a
Depreciation
defined as the
accounting
privately managed charity.
(A) increase in value of an asset over

time
Accumulated funds 3 000
(B) money saved to replace a non-
current &asset January 2021
(C) cOst ot using a non-current asset Operating expenses 000
000
for an accounting period Incomefrom barbecue
(D) straight line method or reducing Incomefrom donations 1 000
balance method used by a business 3 000
Incomefrom garage sale
What is the charity's accumulated fund at
Item30 refers to the following informmation. the end of the year?

(A) 9 000
Cost ofraw materialconsumed 7800 (B) STT 000 5000+1000+3000-1000
(C) $12 000 +3000=11000
Manufacturing wages 21 000
(D) $13 000
Rent and taxes
1000
Indirect wages 9 000
Royalties 200 refers to the following balances
Item 32
taken from the books of Sherida's Ltd as
Machinery depreciation 400
at 30 April 2020.
600
General factory expenses
30. What is the production cost of goods Balances
manufactured?

$29 000
Rent owing 200
(A) 500
(B) $30 000
Cash
1 200
(C) $39 000 Creditors
$40 000 Prepaid insurance 300
(D)
| Bank overdraft 400

32. What is the working capital of Sherida's

Ltd?

(A) $2 000
(B) $2 400
(C) $2 600
(D) S2 800
 sales were nol cntered in the
cash
ltemJJ reters to the llow ing nlomation I of
his would be a n c r r o r
pertamng to hie hmamcial yea a hooks,
business
OmissO
(A)
(19) principle
()ConnissoO
penmg aptal 000 (D) complete reversal

\ukditional capual 000

O00
shows the balances of
sng capitat SO 000 7. The lollowing table
Club
he asset accounts of the Bayroe
as at

The amont of draw ngs is 30 June 2021.

(A) S000
5 400
(B) S20 0 Premises
Ss0 O00 825
(C) Equipment
960
D) 000 Furniture
Bank and cash I 640
Inventory of refreshments

34. Peter Smith worked for 44 hours last week.

The rates ar S3.50 per hour for a 40-hour The club's accumulated fund
was

week and time and a halt for overtime. What

was his gross incomeC? (A) SI 640
40 X 3.50= 140 (B) $4 497
A) S147.00 4 X 5.25= 21 C) $8 185
B) Si54.00 (D) 39 897
C) S161.00 140+21=161
(D) $231.

A company s rent account had an opening

35.
debit balance of $2 O00. During the year
$6 000 was paid for rent. At the end of the
balance of
year there was a closing debit
SI 500 in the account.

What was the rent expense recorded for the

year?

(A) 6 000
(B) S00
(C) $7 500
(D) 00

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01239010/MJICSEC 2022
 tens s8 and 39 refer to the following table wlhich shows
trading period. a trader's operation at the end of ihe

Sales
N8
868 Inventory al start
Sales returns 9850
I570 lventory nl closc
Discounts allowed 11 075
911
Purchases 52 640
Purchases returns 762
8. What is the cost
of goods sold?
A) S49 742
(B) 653
(C) SSI 415
(D SS3| 103

39 What is thhe gross profit?

(A) $3I 645

(B) $33 215
C) $34 023
(D) S80 025

40. MrA. Jones paid $250 in cash for

repairs to Item 41 refers to the following table.
machinery. This transaction was entered in
the cash book and
posted to the ledger. The Number
double entry involved would be Invoice Price|
Items Per Unit (S)_
(A) debit cash account T00 60
credit repairs account B0 100
50 84
(B) debit cash account 84
credit machinery account
41. What is the value of the
inventory?
(C) debit repairs account
credit cash account (A) $23 100
(8) $23 700
(D) debit A. Jones account (C) $24 100
credit cash account (D) $24 500

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01239010/MJ/CSEC 2022
 -10

42. Mr
Miguel's capilal T
on
January wass 45. Which of the following items are examples
S40 000 and on 31 December.
$85 000. of current liabilities?
He withdrew SI 000 in
the year.
inventory during
Mortgages
Accounts payable
What is his protit for the
year iI. Accrued wages

A ) S S 000 (A) I and II only

85000-40000+1000
(B) S 46 000 (B) I and Ill only
(C) SI25 000 (C) II and Il only
(D) S126 000 (D) I, II and III

3. W. X. Y and Z are partners sharing profits 46. Which of the following entries in a three
column cash book are contra entries?
and losses in proportion to their capital.
The capital of each partner is shown below.
Debit cash, Credit bank
(A)
(B) Debit cash, Credit cash
Partners Capital (C) Credit cash, Credit bank
(S) Debit bank, Credit bank
(D)
300
200
100 47. K. Khan, a debtor ofA and B Enterprises,
300 settles his debt of S120 less a discount of
S3 by cheque. How should the double
What would be Z's share of a profit of entry be recorded in the books of A and B
$7 200? Enterprises?
300/900X7200
(A) 2 400
(B) SI 800 (A) Debit K. Khan $117
SI 200 Debit discount received 3
()
S 800 Credit bank $120
(D)

(B)| Debit K. Khan

Debit discount allowed
SI17
44. Which of the following accounts shows
how profits and losses are shared among Credit bank $120
partners?
(C)Debitbank $117
Debit discount allowed S 3
(A) Current

(B) Appropriation Credit K. Khan S120

(C) Profit and loss
(D) Income and expenditure
(D) |Debit bank S117
Credit discount received 3
Credit K. Khan SI20

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01239010/MJJCSEC 2022
 8. Accordng to the P'artnership Act, if there
len4relers to the lollowing mlormation.
is no Deed of
P'artnership. the amount of
prolit to be receiNed by TACTT partner
would t
nventory at 1 January 2019 | 500
Purchases during the nmonth 200
I cqual share
400
o t net rolit Cost of g00ds sold
(C) So capital invested
49. Wat is the inventory at the endof January?
()) proportan to capital invested

(A) S300
(1) 500
C) 700
(D) 300

50. Rose contributed S7 000 in cash and a motor vehicle worth $3 000 to a partnership. Rose s
contribution to the partnership would be recorded in the journal as

Debit Credit
S
(A) Cash 10 000
Rose's capital 10000
(B) Rose's capital 7 000
Cash 7 000
(C)Cash 7 000
Motor vehicle 3 000

Rose's capital 10 000

(D) Rose's capital 10 000
Motor vehicle 3 000
Cash 7 000

51. When company declares dividend 52. Aphotocopying machine valued at $5 000
a a
of
15%, the dividend warrant of a shareholder is depreciated at 10% using the straight line
owning 1 500 one dollar ordinary shares is method. Whal is its book value after TWO
years?
(A) ST00

(B) (A) 000

(C) 500 (B) 54 050
(D) SI 515 (C) $4 500
(D) 54 980

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01239010/MJ/CSEC 2022
 12-
relers to the following balances
53. An nerease in the provision for doubttul ltem 57 bookS OT S h e r i d a s Ltd as at
debts w ill be taken from Ilhe
30 April 2022.

(A) addedto sales in the trading account

() Subtracted Irom sales in the trading Balances
ilCcount
Rent owing
200
C) ineluded as revenue in the prolit
and loss account 500
Cash
1 200
() ineluded as an espense in the profit Payables
and loss account Prepaid insurance 300
400
Bank overdralt
54. What is the maximum capital a company What is the current ratio of Sherida's Ltd?
57.
can raise trom selling shares to the publie?

(A)
(A) Issued capital (B) 1.5:
(B) Paid-up capital (C) 2.1:|
(C) Authorized capital 3.1:1
(D)
(D) Subseribed capital

58. Which of the following items is NOT

55. Which of the following entries would considered a source document for payroll'?
NOT appear in a cash book?
(A) Clock card
(A) Payment for goods SI00 (B) Medical certificate
(B) Goods sold on credit STO0 (C) Attendance register
(C) Goods sold for cheque $100 (D) Electronic timecard
(D) Goods bought for cash STOO

59. A standing order of $25 for insurance

appears in the debit column of the bank
56. Which of the following will result
statement. This amount does not
of raw materials
when opening inventories in the cash book. How is
appear
are added to net purchases of raw materials? this item treated
in order to
update the cash book?
(A) Prime ost

(B) Production cost (A) Credit the bank account with $25.
(C) Raw materials used (B) Debit the bank account with $25.
(D) Raw materials available for use (C) Add $25 to the bank statement
balance.
(D) Subtract $25 from the bank
statement balance.

01239010/MJ/CSEC2022 GO ON TO
THE NEXT PAGE
 Item od lers i he lvllm ing inlrmation

. n y nes Nanulactving Accuunt or le P'erind Ended S December 2041

KO0
lnv cntiy
tan natetials 1 Jamary
2021|
'unvhases oT tan a t e i a s d i n g ycar
00 Silance caricd lorward KO

300

materials il December 2021 400

900
Phlictive wages 300

Fucl and ower 900

100
ic ants
Rent and rates A00

Insurahec 200
6800 6 800

What is the cost of the raw malerials consumed?

A) S 800
(B) 200
() 900
(D) S00

END OFTEST

IF YOU FINIsH BEPORE. TIME IS CALL.ED, CHECK YOUR WORK ON THIS TEST.

01239010/MJ/CSEC 2022