Poa Specimen For Csec
Poa Specimen For Csec
Poa Specimen For Csec
TEST CODE 0 1 2 3 9 0 2 0
PROFICIENCY GENERAL
REGISTRATION NUMBER
SCHOOL/CENTRE NUMBER
NAME OF SCHOOL/CENTRE
DATE OF BIRTH D D M M Y Y Y Y
*Barcode Area*
Current Bar Code
SIGNATURE __________________________________________________
*Barcode Area*
Sequential Bar Code
TEST CODE 01239020
FORM TP 01239020/SPEC 2013
CARIBBEAN E XAM I NAT I O N S COUNCIL
PRINCIPLES OF ACCOUNTS
3 hours
INSTRUCTIONS TO CANDIDATES
1. Answer ALL questions in Section I and TWO questions from Section II.
2. Write your answers in the spaces provided in the booklet and return it.
3. Silent electronic calculators may be used, but ALL necessary workings should be
clearly shown.
6. If you need to re-write any answer and there is not enough space to do so on the original
page, you must request extra lined pages from the invigilator. Remember to draw
a line through your original answer and correctly number your new answer in
the box provided.
7. If you use extra pages you MUST write your registration number and question
number clearly in the boxes provided at the top of EVERY extra page.
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SECTION I
(a) (i) Identify the MOST liquid current asset of the business.
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(1 mark)
(ii) Prepare Peter Jones classified Balance Sheet as at March 31, 2010, using the order
of permanence.
(10 marks)
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(b) The following transactions which occurred during the year were not recorded by
Mr Jones.
2. The proprietor paid $600 from the cash account for insurance on his sons car.
On the work sheet below, show the effect of the above transactions on the accounts.
(i)
The first transaction has been done for you.
(7 marks)
(2 marks)
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2. (a) Angel and Karissa are in partnership, sharing profits and losses in the ratio 3:2. Interest
on drawings is charged at the rate of 5% per annum and interest on capital is 10% per
annum. Angel and Karissa receive salaries of $15 000 and $8 000 respectively. Some of
the Current Account entries for the partners for the period ended December 31, 2009 are
set out below.
Angel and Karissa
Current Accounts
(i) Calculate and enter the interest on drawings to be charged to EACH partner.
(3 marks)
(ii) Balance the Current Accounts of the partners. (Show workings.) (2 marks)
(iii) State the significance of EACH partner's balance as at December 31, 2009.
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(2 marks)
(iv) State ONE possible reason why Angel and Karissa earn different salaries.
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(1 mark )
(b) From the information in your 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 marks)
(2 marks)
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3. (a) Khalel, the owner of Khalels Gardening Centre, kept only single entries of his transactions.
On January 31, 2010, he provided his bank manager with the following information but
could not answer a number of questions.
The bank manager gave several reasons why this method was not very helpful. He also
advised Khalel about using different methods to convert his records to double entry records.
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(2 marks)
(ii) Prepare a Statement of Affairs as at February 01, 2009, to convert Khalels Gardening
Centres single entry records.
(5 marks)
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(b) Khalel also provided the following information:
1. All sales were made on credit. Debtors paid $32 600 by cheque during the year.
The account of one debtor for $75 had been written off as bad debt.
3. In addition to other liabilities, Khalel borrowed $2 000 from his sister on February
01, 2009. This is to be paid by June 30, 2010. The interest rate was 5% per annum,
but neither the loan nor the interest due had been recorded.
4. All other expenses (including water rates and electricity) totalled $6 115 for the year.
(i) Prepare a Sales Total (Control) Account for Khalels Gardening Centre to calculate
the total Credit Sales for the period ended January 31, 2010.
(3 marks)
(ii) Prepare an Income Statement for Khalels Gardening Centre for the year ended
January 31, 2010.
(9 marks)
(iii) In which classification section of the Balance Sheet should Khalel record the loan
from his sister?
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(1 mark )
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SECTION II
4. Cancun Guest House Limited rents comfortable rooms and serves breakfast to its guests. The
company was started through the issue of the following:
The following information was provided for the year ended November 30, 2009.
Stock of sheets, towels etc. at cost (purchased December 01, 2008) 22 000
Provision for depreciation Property and tools (at 1 Dec. 2008) 109 500
Petty cash 1 200
Bank 20 480
Additional information:
2. The stock of sheets, towels and similar items are depreciated over two years before they are
replaced.
(a) Prepare the Appropriation Account of the company for the year ended November 30, 2009.
(Show all workings)
(7 marks)
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(b) Prepare a classified Balance Sheet as at November 30, 2009, for Cancun Guest House
Limited.
(13 marks)
01239020/SPEC 2013
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5. Jeans and Things is a medium-sized factory which makes teens clothing. At the end of the
accounting year, December 31, 2009, the following information was available.
$
Stocks at January 01, 2009:
Raw materials 33 500
Work in progress 7 300
Finished goods 82 770
Rent and rates 12 300
Machinery at cost 500 000
Administrative expenses 25 230
Factory wages 135 000
Factory salaries 72 500
Selling and distribution expenses 43 820
Purchases of raw materials 247 330
Carriage inwards on raw materials 1 500
Returns outwards 3 000
Carriage outwards 1 000
Factory insurance 15 000
Sales 725 650
Stocks at December 31, 2009:
Raw materials 13 220
Work in progress 6 900
Finished goods 95 240
The following additional information was provided:
2. Rent and rates are to be shared equally between factory and office.
(a) Prepare a Manufacturing Account for the year ended December 31, 2009, showing clearly:
Factory overheads
(13 marks)
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(b) Prepare the Income Statement for the year ended December 31, 2009.
(7 marks)
6. Joe Mukram owns and operates a tyre shop in Fast Town. During the month of October 2009 he
recorded the following information:
(a) Using the stock form below, determine the value of the tyres remaining in stock at October
31, 2009. Joe Mukram uses the LIFO method of stock valuation.
Joe Mukram
Stock Form (LIFO method)
(13 marks)
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(b) Prepare a Trading Account for the month ending October 31, 2009.
(7 marks)
7. (a) (i) Identify ONE internal user of accounting information and state how this information
is used by that user.
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(2 marks)
(ii) Identify ONE external user of accounting information and state how this information
is used by that user.
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(2 marks)
(b) Identify the type of business organisation described in EACH situation below:
(i) Several employees are employed in a large organisation owned by a single person.
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(1 mark)
(ii) Three brothers operating a business where the action of one brother is binding on
the other two brothers.
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(1 mark)
(iii) Shareholders cannot sell their shares in the company on the stock market.
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(1 mark)
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(1 mark)
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(1 mark)
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(c) Each of the transactions below violates an accounting concept or principle. State the
concept or principle that is being violated.
(i) Credit sales made in March of 2010 were not recorded until the money was received
in May 2010.
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(1 mark)
(ii) Due to the bankruptcy of Mr Dragon, a debtor, the business is likely to lose
$20 000. Management refuses to write off this amount as a bad debt or to create
a provision for bad debts.
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(1 mark)
(iii) In order to report higher profits for the financial year, management has changed
from the straight line method of depreciation to the reducing balance method.
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(1 mark)
(iv)
Mr Lumberjack paid the insurance for his private house and recorded it as a business
expense.
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(1 mark)
(d) Draw a labelled diagram of the six (6) stages of the accounting cycle.
(7 marks)
END OF TEST
01239020/SPEC 2013
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CANDIDATES RECEIPT
INSTRUCTIONS TO CANDIDATE:
TEST CODE: 0 1 2 3 9 0 2 0
PROFICIENCY: GENERAL
REGISTRATION NUMBER:
Signature: ____________________________________________________________________
Date: ________________________________________________________________________
2. Ensure that this slip is detached by the Supervisor or Invigilator and given to you when you
hand in this booklet.
INSTRUCTION TO SUPERVISOR/INVIGILATOR:
Sign the declaration below, detach this slip and hand it to the candidate as his/her receipt for this booklet
collected by you.
I hereby acknowledge receipt of the candidates booklet for the examination stated above.
Signature: _____________________________
Supervisor/Invigilator
Date: _________________________________