FORM TP 2020027: Test Code J Anu Ary
FORM TP 2020027: Test Code J Anu Ary
FORM TP 2020027: Test Code J Anu Ary
PRINCIPLES OF ACCOUNT S
1. This test consists of 60 items. You will have 1 hour and 30 minutes to answer them.
3. Each item in this test has four suggested answe1s lettered ( A), ( B), ( C), (D). Read each item
you are about to answer and decide which choice is best.
4. On your answet" sheet, find 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 item below.
fuillml e Item
The best answer to this item is "cost of materials used", so (B) has been shaded.
5. If yqu 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.
1. Which of the following financial statements 5. The following information refers to the
shows the value of n business' assets? assets and liabilities of Mr J ones.
Item 8 refers to the following balances at Item 12 refers to the following balances
the end of a financial per:iod. taken from t.he books of Sherida's Ltd on
30 April 2019.
$
Motor vehicles 2 000 BALANCES
Payables 3 000 Rent owing $ 200
Receivables 2 000 Cash $3 500
Capital 11 000 Payables $1 200
Building 10 000 Prepaid insurance $ 300
Bank overdraft $ 400
s. What is the T,OTAL amount for the assets?
12. What is the current ratio of Sherida's Ltd?
(A) $12 000
(B) $13 000
(A) 1: l
( C) $14 000
(B) 1.5: I
(D) $15 000
(C) 2.1 : l
(D) 3.1 : l
$450 ,
(B) Debit sales returns account
(C) $490 Credit sales account
(D) $550
( C) Debit sales account
Credit sales returns account
(D) Debit the receivable account
10. Which of the following items are examples
Credit sales rc;t1.1rns account
of current liabilities?
Item 15 iefers to the following info1mation 17. K. Khan, a debtor of A and B Enterprises,
from the books of a company. settles his debt of $120 loss discount, by
cheque. How should tho double entry
$ be recorded in the books of A and B
Enterprises?
Cash sales IO 000
Credit sales 45 000
40 000 (A) Debit K. Khan $117
Inventory on hand
Debit discount received $ 3
Drawings 8 000 Credit bank $120
Cash purchases 12 000
Credit purchases 20 200 (B) Debit K. Khan $117
Debit discount allowed $ 3
15. From the information above, what is the Credit bank $120
conect closing total for the sales account?
(C) Debit bank $117
Debit discount allowed $ 3
(A) $47000
C1 edit K. Khan $120
(B) $49 000
(C) $55 000
(D) $59 000 (D) Debit bank $117
Credit discount received $ 3
Credit K. Khan $120
16. Which of the following entries would
NOT appear in a cash book? 18. Mr A. Jones paid $250 in cash for Lepairs to
machinery. This transaction was entered in
( A) Payment for goods $100 the cash book and posted to the ledger. The
(B) Goods sold on cred�t $100 double entry involved would be
( C) Goods sold for cheque $100
(D) Goods bought for cash $100 (A ) Debit cash account
Credit repairs account
19. In orderto avoid writing numerous cheques 21. A businessman bought a new computerfor
for small amounts, a firm may set up a $6 000. He paid $4 000 in cash and traded
in his old computer. What is the entry to
(A) bnnk draft record this transaction?
(B) petty cash fund
(C) general journal Debit Credit
(D) bank standing order
(A) Debit old computer $2 000
Debit cash $4 000
Credit new computer $6 000
ll!<!!l2Q refers to the following information
(B) Debit new computer $4 000
from the sales book ofR. Lewis.
Debit cash $2 000
Credit old computer $6 000
2019 $
(C) Debit old computer $6 000
Debit cash $4 000
'·1) 2Jan H. Rick
Credit new computer $2 ODO
30@$1.50 45
(D) Debit new computer $6 000
Credit old computer $2 000
Less 33 t% Credit cash $4 000
Trade discount li
�
22. When a proprietor withdraws cash or other
assets fiom a business, what effect does it
2 0. How would R. Lewis record t h i s have on drawings or capital?
information in his ledger?
(A) Capital is increased.
Debit H. Rick's account $45 (B) Capital is decreased.
(A)
Credit sales account $45 (C) Drawings are decreased.
./ (D) Neither drawings nor capital is
7J
l! (B) Debit H. Rick's account ,'j;30 affected.
Credit sales day book $30
Items 23-25 refer to the following Statement of Financial Position (B alance Sheet).
$ $ $ $
(A) $2 GOO
(B) $5 500
(C) $6 200
(D) $6 800
26. In calculating the gross profit pcrcentnge, gross profit should be divided by
2017 $ 2017 $
2 January Balance b/d 700 31 December Profit & Loss A/c 8 100
27. What is the amount of insurance prepaid at the end of the year?
(A) $ 600
(B) $ 700
(C) $8 000
(D) $8 100
28. Which of the following :financinl documents shows the net earnings of a business?
Amount of Accounts
Period of Debt Provision for Bnd Debts
Receivable
Over 3 years $6 000 3% of accounts receivable
Over2 years $4 000 2% of accounts receivable
Over 1 year $8 000 I% of accounts i eceivable
(A ) $180
(B) ?
$ 40
(C) $400
(D) $500
Item 36 refers to the following information. 38. MrGreen andMrsBlack agreed to establish
a partnership, Green and Black Co. and
$ each of them deposited $5 000 into a bank
Inventoryat1January2019 l 500 account. How should this be iecorded in
Purchasesduringthcmonth 1 200 the books of the pa1tnership?
Cost of goods sold 1 400
(A) Credit cash $10 000
Debit capital $10 000
36. What is theinventory attbe end ofJanuary?
(B) DebitGreen andBlack.Co.$1O000
(A) $ 300 Cl'edit bank $10 000 each
(B) $ 500
$ 700 (C) Debit partnership bank account
(C)
$10 000
(D) $1 300
Credit partners' current accounts
$5 000 each
37. MrsAllen invested $20 000 andMrsBrown
and Mr Cable invested $5 000 each into (D) Debit partnership bank account
(A) $140
$200 (A) $ 900
(B)
(C) $300 (B) $ 960
(C) $1 860
(D) $400
(D) $3 000
40. Rose contributed $7 000 in cash and a motor vehicle worth $3 000 to a partnership. Rose's
contribution to the partnership would be recorded in the journal a s
Debit Credit
$ $
(A) Cash 10 000
Rose's capital 10 000
41. In a cooperative society, 1he daily affairs are 44. According to the Partnership Act, if there
administered by is no Deed of Partnership, the amount of
profitto be received by EACHpartncrwould
(A) nil membets be
(B) a majority of shareholders
(C) the chaim1an of the board only ( A) divided equally
(D) pe1sons elected or appointed to do (B) calculated at 5% of net profit
so ( C) calculated nt5% on capital invested
(D) divided in proportion to capital
invested
42. The owner of a business paid a pe1sonal
medical bill from the bank account of the
business. The amount was debited to the 45. Which of the following items on a State
miscellaneous expenses account. Which ment of Financial Position would differ
of the following concepts wa& violated? MOST in presentation when comparing
the books of a company and the books of
(A) Matching a sole trader?
(B) Prudence
(C) Consistency ( A) Non-cunent assets
(D) Business entity (B) Current liabilities
(C) Current assets
(D) Capital
43. A photocopying machine valued at $5 000
is depreciated at 10% using the straight line
method. What is its book value after TWO 46. The reward of profit received by a
years? shareholder in a limited company is called
47. How does an increase in bad debts affect a 51. The purpose of an appropriation account is
sole trader's financial statements? to
(A) Decreases the gross profit (A) show howthenet profit is distTibuted
(B) Increases the gross profit in a partnership or co-operative
(C) Decreases the net profit (B) change capital expenditure as
(D) Increases the net profit agreed upon in the Articles of
Association
(C) enter all capital and revenue
48. Which of the following accounts are expendih1re as stipulated in the
nominal? Partnership Act
(D) make appropriate changes related
(A) Wages and Rent to net profit as agreed upon in the
(B) Machinery and Plant Articles of Association
(C) Payables and Fixtures
(D) Inventory and Receivables
52. If revenue expenditure is overstated, which
of the following items will be affected?
49. Which of the following terms BEST
dcscdbes the final accounts of a non-profit (A) Sales
organization? (B) Surplus
(C) Inventory
I. Income Statement (D) Working capitnl
II. Receipts and Payments Account
ill. Statement ofFinancial Position J
53. When writing up the books ofa partnership,
(A) I and II only which account must EACH partner have?
(B) I and ill only
(C) II and ID only (A) Bank
(D) I, II and III (B) Current
(C) Savings
(D) Fixed deposit
50. An example of a capital expenditure ls
money spent for
$ $
Inventory of raw materials 1 January 2017 800
Purchases of raw materials during year 4 500 Balance cnnied forward 6 800
5 300
Less closing inventory ofrnw
materials 31 December 2017 I 400
3 900
Productive wages 1 300
Fuel and power 900
Lubricants 100
Rent and rates 400
Insurance 200
6 800 6 800
(A) $ 800
(B) $1 200
(C) $3 900
(D) $4 500
ltem 55 refers to the following table which shows balances of the asset accounts of the Bayroe
Club as at 30 June 2019.
Assets $
Premises 5400
Equipment 1 825
Furniture 960
Bank and cash 1 640
Inventory and refreshments 72
(A) $1 640
(B) $4 497
(C) $8 185
(D) $9 897
56. Salaries paid to the administrative staff in Item 59 refers to the following list of
a factory would be classified as which of balances.
the following types of cost?
$
(A) Manufacturin g Work in progress 1 January 1 600
(B) Indirect Work in progress 31 December 1 700
(C) Direct Cost of materials used 3 000
(D) Prime Indirect expenses 3 200
Factory wages s 000
'
(A) $ 8 000
(A)-. $ 100
8 700
$ 225 (B) $
�) (C) $ 11 100
(G) - - $1 500
(D) $ 11 200
(D) ..
-J ��.....
$1 515
-.
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END OFTEST
IF YOU FINISH BEFORE T IME IS CALLED, CHECK YOUR WORK ON TIDS TEST.
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01239010/J/CSEC 2020