Principles of Accounts

Principles of Accounts

CSEC? PAST PAPERS

Macmillan Education 4 Crinan Street, London, N1 9XW A division of Macmillan Publishers Limited Companies and representatives throughout the world

macmillan-

ISBN 978-0-230-48249-4 AER ? Caribbean Examinations Council (CXC?) 2017 cxc-

The author has asserted their right to be identified as the author of this work in accordance with the Copyright, Design and Patents Act 1988.

First published 2014 This revised edition published November 2017

All rights reserved; no part of this publication may be reproduced, stored in a retrieval system, transmitted in any form, or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publishers.

Designed by Macmillan Publishers Limited Cover design by Macmillan Publishers Limited and Red Giraffe Cover photograph ? Caribbean Examinations Council (CXC?) Cover photograph by Mrs Alberta Henry With thanks to the students of the Sir Arthur Lewis Community College, St Lucia: Urnell Forde and Poornachandra Ramachandra

CSEC? Principles of Accounts Past Papers

LIST OF CONTENTS

Paper 02 (24 May 2005)

4

Paper 03/2 (24 May 2005)

15

Paper 02 (23 May 2006)

18

Paper 03/2 (23 May 2006)

30

Paper 02 (22 May 2007)

33

Paper 03/2 (22 May 2007)

42

Paper 02 (08 January 2008)

45

Paper 03/2 (08 January 2008)

56

Paper 02 (19 May 2008)

59

Paper 03/2 (19 May 2008)

68

Paper 02 (08 January 2009)

72

Paper 03/2 (08 January 2009)

81

Paper 02 (18 May 2009)

84

Paper 03/2 (18 May 2009)

93

Paper 02 (07 January 2010)

98

Paper 03/2 (07 January 2010)

107

Paper 02 (17 May 2010)

111

Paper 03/2 (17 May 2010)

123

Paper 02 (06 January 2011)

129

Paper 03/2 (06 January 2011)

139

Paper 02 (16 May 2011)

142

Paper 03/2 (16 May 2011)

153

Paper 02 (06 January 2012)

158

Paper 03/2 (06 January 2012)

167

Paper 02 (16 May 2012)

173

Paper 03/2 (16 May 2012)

182

Paper 02 (08 January 2013)

186

Paper 03/2 (January 2013)

198

Paper 02 (24 May 2013)

205

Paper 03/2 (May / June 2013)

217

Paper 02 (07 January 2014)

224

Paper 03/2 (January 2014)

237

Paper 02 (22 May 2014)

246

Paper 03/2 (May/June 2014)

255

Paper 02 (May/June 2015)

264

Paper 03/2 (May/June 2015)

300

Paper 02 (January 2016)

314

Paper 03/2 (January 2016)

346

Paper 02 (May/June 2016)

358

Paper 03/2 (May/June 2016)

386

Paper 02 (January 2017)

394

Paper 03/2 (January 2017)

426

Paper 02 (May/June 2017)

438

Paper 03/2 (May/June 2017)

462

FORM TP 2005122

TEST CODE 01239020

MAY/JUNE 2005

CARIBBEAN EXAMINATIONS COUNCIL

SECONDARY EDUCATION CERTIFICATE EXAMINATION

PRINCIPLES OF ACCOUNTS

Paper 02 - General Proficiency

3 hours

( 24 MAY 2005 (a.m.) )

1. Answer ALL the questions in Section I and TWO questions from Section II. 2. Begin EACH answer on a separate page. 3. Keep ALL parts of EACH answer together. 4. Silent electronic calculators may be used, but ALL necessa ry working should be clearly

shown. 5. Each question is worth 20 marks.

DO NOT TURN THIS PAGE UNTIL YOU ARE TOLD TO DO SO

01 239020/F 2005

Copyright ? 2004 Caribbean Examinations Council. All rights reserved.

-2-

SECTION I

Answer ALL questions in this section.

1.

(a) The following Trial Balance (including the heading) has errors.

Trial Balance for year ended December 30, 2004

Sales Purchases Carriage Drawings Rent Salaries and wages Bad debts Provision for bad debts Debtors Creditors Stock (January I, 2004) Cash at bank Provision for depreciation Equipment at cost Capital

Dr $ 69 039

3 311 15 375

65 6060

589 9500 29 000

132 939

Cr $ 41 175 2 572 3 900

438

3 235 5 963

83 827

Redraft the Trial Balance correctly and include the capital amount.

( 7 marks)

(b) Show the journal entries necessary to record the following items in the books of M. Ramjeet: (Suitable narrations must be used.)

April!

Office furniture bought by Rarnjeet for $3 000 was returned to the supplier, Furniture & More, as it was the wrong order.

AprilS

A water bill of $75 for Ramjeet' s home was incorrectly recorded in the books of the business. The error is now being corrected.

April 10

L. Townsend, a debtor who owed Ramjeet $300, has been declared bankrupt. The court ordered Townsend to pay $0.50 for every dollar owed.

Ramjeet received a cheque for the amount.

Aprill3

Ramjeet removed stock valuing $450 from the business for his personal use.

April20

Motor vehicle valuing $100 000 bought on credit from Y.S . Garage. A cheque for $30 000 was made to Y.S. Garage as down payment.

(9marks)

(c) State whether the error made on April 05, and each of the transactions on April 10, 13 and 20 would increase, decrease or have no effect on the profit of the business. ( 4 marks)

Total 20 marks

01239020/F 2005

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-3-

2. (a) OliverBentley maintainscontrol accounts in his general ledger. He prepareda Sales Ledger Control Account for January 2004, with information derived from his subsidiary books. The debit balance shown in the Sales Ledger Control Account at January 31, 2004, does not agree with the listofdebtors extracted from the sales ledger at that date. The value ofdebtors according to the sales ledger at January 31, 2004, was $14 872.

The following errors were subsequently discovered:

1. K. Boodraj, a bad debtor whose account had been written offin 2003, sent a cheque for $198. The amount was entered in the sales ledger.

2. In January a page of the sales returns day book had been overcast by $200.

3. Discounts received of $156 had been mistakenly entered in the discounts allowed column of the cash book in January 2004.

4.

A debit balance of $824 on S. McCalla's account in the sales ledger had been set

off against his account in the purchases ledger. This entry had not been recorded

in either control account.

5. A $58 discount allowed to Ram Sookie had been correctly entered in the cash book but had not been entered in Ram's account.

(i) Calculate the total of the debtors' balances at January 31, 2003, after the

errors have been corrected. (Show your workings.)

( 4 marks)

(ii) Calculate the total debtors' balance in Bentley's Sales Ledger Control

Account for the month of January 2004, before the errors had been

corrected.

( 8 marks)

(b) On April! , 2004, a business purchased a machine costing $224 000. The machine has a lifeexpectancyofapproximately40months. Attheendofthattimethemachineisexpected to have a trade-in value of $24 000. The financial year of the business ends on December 31, each year.

(i) Use the formula for calculating annual depreciation on the 'Straight-line Method'

to determine the annual depreciation on the machine.

( 2 marks)

(ii) Calculate the depreciation charge at the end of the first year.

( 1 mark)

(iii) Show the depreciation account for the first two years.

(Smarks)

Total 20 marks

01239020/F 2005

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-4-

3. Chris and Dorcas are in partnership. Their capital and current accounts as at January I, 2004, are as follows:

Capital Balances

$ Chris 40000 Dorcas 60 000

Current Balances

$ 5 000 (Credit) 3 000 (Credit)

Drawings

Chris Chris Dorcas Dorcas Dorcas

$ 17 000 (on June 30) 17 000 (on December 30) 12 000 (on April 30) 12 000 (on August 31) 12 000 (on December 31)

The partnership agreement provides for the following:

1.

Profits and losses are shared between Chris and Dorcas in the same ratio as their capital.

2.

Chris is to be credited with a salary of $6 000 per annum.

3.

Interest on capital at 8 per cent per annum is allowed.

4.

Interest on drawings is charged at 10 per cent per annum.

The profit for the year is $95 950.

(a) Prepare the partnership profit and loss appropriation account for the year ended December

31, 2004.

(10 marks)

(b) Prepare the partnership capital and current accounts as at December 31 , 2004. (9 marks)

(c) Explain the meaning of a debit balance on a partner's current account.

( 1 mark)

Total 20 marks

01239020/F 2005

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