P.O.A Paper 02. 27 May 2003
P.O.A Paper 02. 27 May 2003
P.O.A Paper 02. 27 May 2003
FORM TP 23123
May/June 2003
CARIBBEAN
EXAMINATIONS
COUNCIL
1.
Answer ALL the questions in Section I and TWO questions from Section II.
2.
3k.
4.
Silent electronic calculators may be used, but ALL necessary working should be clearly
shown.
5.
-2SECTION I
Answer all THREE questions in this section.
1. (a) The following transactions were identified during the month of March, 2002 at William
Skills' Enterprise but they were NOT recorded in his books as he was uncertain about
the appropriate book in which to record each transaction.
(i) March 3
Sold goods on credit to George Martin
$ 6 000
(ii) March 4
$ 2 000
(iii) March 7
$60 000
(iv) March 10
$11 000
(v) March 14
$ 6 700
(vi) March 17
$10000
(vii) March 20
$ 1 000
(viii) March 22
$ 3 000
(ix) March 25
$ 200
(x) March 28
$16000
Select the appropriate books of original entry on the form provided and record EACH
transaction for the month of March.
(8 marks)
(b) Olga Lewis keeps her petty cash on the Imprest System. Her imprest amount for the
month of June 2001 is $600. Her petty cash transactions were as follows:
$
2001
May 31
Petty cash in hand
18
June 1
Petty cash restored to the imprest
June 4
Stamps bought
60
June 7
Stationery
36
June 8
Janitor's wages
45
June 14
Bought stamps
60
June 18
Stationery
84
June 19
Janitor's wages
45
June 29
Taxi fare
48
Stationery
30
June 30
Minor repairs
60
Electricity
45
Telephone
78
On the form provided, you are required to:
(i) Restore the imprest amount at June 1.
(ii) Enter the petty cash transactions in the Petty Cash Book.
(iii) Balance the Petty Cash Book for the month of June.
(iv) Reimburse the petty cash with the imprest amount.
(12 marks)
001092/F 2003
GO ON TO THE NEXT PAGE
-32.
Cain and Able are in partnership sharing profits and losses in proportion to their capital
account balances. At September 30, 2001 the balances on their capital and current accounts
were:
Cain
Able
Capital a/c
$60 000
$90 000
Current a/c
420 Dr.
3 450 Cr.
On October 1, 2001 they admitted Bratt into the partnership. Bratt brought in $20 000 cash and
a motor van valued at $10 000, as capital. The three partners agreed to share profit and losses
in proportion to their capital accounts. In the new partnership, each partner is to receive 5%
interest on capital and Cain will receive a salary equivalent to 10% of profits.
During the first year of operation Cain withdrew $6 000, Able withdrew $15 000 and Bratt
withdrew $4 000 cash. Interest on drawings is charged at 5% for a full year. At the end of the
year, the records showed:
Cain's drawings for a period of 9 months
Abie's drawings for a period of 6 months
Bratt's drawings for a period of 3 months
The profit for the year ending September 30, 2002 amounted to $90 000.
Prepare the following:
(a) The Journal entry to record the admission of Bratt.
(4 marks)
(b) The Partnership's Appropriation of Profit Account for the year ending September 30,
2002 (Use full headings).
(8 marks)
(c)
-4(a) During the month of September 2001, Batco Stores recorded the following receipts
and issues of bottled jams from its stores:
September
1
Balance in store 5 cases at $50 per case
3.
10
Issued 6 cases
16
26
Issued 8 cases
On the form provided record the receipts and issues and determine the value of closing
stock of bottled jams at the end of September 2001. (Batco Stores uses the FIFO
method of stock valuation.)
(10 marks)
(b) Fishing Sales Enterprise has prepared their simplified Final Accounts for the - year
ending October 30, 2001.
Fishing Sales Enterprise
Trading & Profit & Loss Account
Year ended October 30, 2001
$
1000
11 200
12200
800
11400
Opening Stock
Add: Purchases
Less closing stock
Cost of goods sold
Gross profit c/d
Wages and Salaries
Utilities
Insurance owing
Other expenses
Net profit
$
20000
Sales
8600
20000
3000
500
200
1300
7600
12600
20000
Gross profit b/d
Rent received
8600
4000
_____
12600
16000
Capital including net profit 10000
12 000
Long-term liability
8 000
_____
Current liabilities
10000
28 000
28 000
Average stock
(ii)
(iii)
(iv)
(v)
\Rate of turnover
(vi)
Current ratio
(vii)
Working capital
(x)
-6SECTION II
Answer any TWO questions in this section.
4.
The following Trial Balance for Halliday Company Ltd relates to the year ending December
31,2001.
. $
$
Sales
185000
Purchases
9400
Salaries
19 600
Insurance
8 400
Electricity
3500
Telephone
4 200
Auditor's fees
900
Director's remuneration
3100
Interest on debentures
1 600
Interest on bank overdraft
700
Miscellaneous expenses
2 400
Ordinary dividend paid
3 000
Building at cost
109400
Accumulated depreciation on building
4 100
Machinery at cost
19300
Accumulated depreciation on machinery
2 300
Debtors
27 300
Cash
1 800
Creditors
13 700
Bank overdraft
8 600
8% debenture
20 000
Ordinary share capital 20 000 at 50 cents
10 000
Profit and Loss a/c at Jan. 1, 2001
73 000
Opening stock January 1,2001
17500
_____
316700
316700
Other Information
-
Prepare the company's Trading and Profit and Loss and Appropriation Account for the year
ending December 31, 2001 and a Balance Sheet as at December 31, 2001. (Use complete
headings on your statements.)
(20 marks)
GO ON TO THE NEXT PAGE
001092/F2003
-75. George Giscombe does NOT maintain a complete set of accounting records. However, he
provided you with the following information:
George Giscombe
Summarised Bank Account for the year ending Dec. 31, 2001
2001
Jan 1 Bal b/f
Receipts from debtors
$
20000
190 000
210000
Creditors
Prepaid telephone
Debtors
Insurance owing
Stock
General expenses owing
Motor van at cost
$
35000
4650
12000
6000
900
92500
15000
8000
35950
210000
Dec. 31,2000
$
28000
1400
21000
8000
27000
3000
35000
Provision for Depreciation on motor van is to be based on 10% on the straight line method.
Prepare for George Giscombe the following:
(a) Trading and Profit and Loss Account for the year ending December 31, 2001.
(12 marks)
(b) Balance Sheet as at December 31, 2001.
(Use full headings on your statements.)
(8 marks)
(a)
(5 marks)
(b) The bank transactions of Ruby Brown for the month of July 2001 were recorded in her
Cash Book as shown below. The Bank Statement for the month of July, 2001 is also
shown on page 9.
Cash Book
Date
Particulars
Bank
Date
Particulars
Cheque #
Bank
2001
$
2001
$
July 1
Balance b/d
10
Cash
17
July 5
V. Enterprise
671
400
250
Water Works
672
200
G. Thompson
75
19
Y. Gillbert
673
50
22
G. Coombs
75
23
C. Camper
674
125
27
Y. Davis
110
25
General Stores
675
100
29
E. Ellis
65
27
Gents Supplies
676
175
29
Gas Supplies
677
205
31
Balance c/d
Aug. 1
Balance b/d
1000
1575
320
320
1575
(b) cont'd
Date
Description
2001
July l
17
250
19
75
23
25
27
29
30
Balance
10
28
Balance
1000
CR
1250
CR
1325
CR
673
50
1275
CR
674
125
1150
CR
675
100
1050
CR
676
175
875
CR
1075
CR
100
975
CR
50
925
CR
200
Bank charges
(5 marks)
(ii) Prepare the Bank Reconciliation Statement starting with the Bank Statement
Balance and ending with the updated Cash Book Balance.
(8 marks)
(iii) What Bank Balance would appear on the Balance Sheet of Ruby Brown as at
July 31,2001?
(8 mark)
(iv) What is the change in Ruby Brown's bank balance between July 1 and July 31,
2001 ?
(8 mark)
001092/F2003
-107.
2 000
5 000
1 800
2 000
60 000
3 000
24 000
15000
5 000
2 000
3 800
4 000
12 000
(14 marks)
( 1 mark)
( 1 mark)
(d) Show the total revenue from benches if the local authority pays $400 per bench.
( 1 mark)
(e) What is the six month profit on the production of benches?
(f) Distinguish between direct cost and indirect cost.
END OF TEST
001092/F2003
( 1 mark)
( 2 marks)