trader had an opening capital of $3 900. If his drawings were $900 and his closing capital was $4 §60, what was his net profit? ws ho ND-WD) “e(D (B) $ 960 $1 860 $3 000 ‘The purpose of electronic clock cards is to record (A) employees’ skills ‘employees’ attendance jobs done by employees ‘deductions from employees’ wages © @) ounts are kept in order to assist management in GD) cating errors BY increasing profits (©) limiting drawings (D) limiting expenditure Which of the following lists contains asset accounts only? (A) Capital, bank loans, mortgages and bank overdraft (B) Capital, bank loans, cash and inven- tory © Cash. inventory, furniture and motor vehicle (D) Cash, inventory, bank overdraft and motor vehicle 5. 1 Partnerships are formed for the purpose of 1. combining capital from different persons Il. _ benefiting from different skills and specializations Il. sharing ideas, experience and responsibilities (A) Land I only (B) Tend il only (C) Mand Ill only 1, Mand Ill In a partnership, which of the following transactions is compulsory? (A) Paying of salaries (B) _ Interest on capital Interest on drawings @ Eshani’s Cafeteria does not keep a complete sei of accounting records, The bouk-keeper provides you with the following information. Sharing of profits or losses Cash sales $ 500 Opening debtors $ 700 Credit sales $1000 Cash received from debtor $1250 ‘What is the balance on the sales ledger control account? oo 95 0 AY $ 2 JOU | | $ 450 © $ 950 ) $1250 Which ofthe foliowing formuiae represenis the correct statement of financial position equation for calculating the value of assets? (A) Assets ~ Capital (R) Assets + £. Capital — Liabilities Liabilities + Capital GO ON TO THE NEXT PAGE.gu R. Stevens, a petty cashier, receives a float of $350. He spends $320 and requests that his float be increased to $400. Ifhis request is granted, how much will he receive? 35Dt3hV 400 0-0 x @) $320 $350 $370 $400 10. Any expense which is written off entirely to the income statement is known as 13. (A) (B) Fisk Company’s accountant has nui 1e- corded rent owing for the period. Which accounting concept was violated? @ © @) a liability purchases capital expenditurey OF revenue expenditure inprole S25 i. Accrual Prudence Consistency Separate entry 2 14. P, Hawk has a manufacturing business. The cost of his raw materials is $1 900. Rates and rent total $2 000, and factory ‘wages amount to $2 500. 56 4007) $13 a Item 13 refersto the following information. Assets $ ‘Furiture 10.000 (Cash at bank’ 2.000 (Cash in hand 1.000 12000 6000 ‘The value of thel (A) $9000 (B) $20000 $42 000 (@) $51. 000 Item 14 refers to the following table which shows the zed position of Foster and Scott Limited at 6 March 2021. Current liabilit 200 000 150 000, ‘Non-current assets’ -Non-current liabilities ‘What was the capital of Foster and Scott ied at 6 March 20219 @) $ 40000 $ 90.000 $150 000 $190 000 Which of the following assets would be considered the MOST permanent? @ © @) Furniture Cash at Bank Motor Vehicles GO ON TO THE NEXT PAGE16. Whichofthefollowingarrangementsshow 20. Which of the following accounts shows the current assets in order of liquidity? Cash in hand, cash at bank, debtors Cash in hand, debtors, cash at bank (©) Cashat bank, debtors, cash in hand (D) Debtors, cash in hand, cash at bank 17. Amotor van was credited from AG Motors for use in a business. How should this be recorded? (A) Debit motor vehicle Credit bank (B) Debit motor van expense Credit bank Debit purchases Credit AG Motors @ Debit motor vehicle Credit AG Motors 48 in the statement of financiai position. expenses owing will be listed as AL current assets (B) ) current liabilities © on-current assets (D) _ non-current lisbilities 19. The total credit of the bank column of a three-column cash book is greater than the total debit. The MOST likely reason for this situation is that & there was an overdraft B) transactions were omitted from the dot (©) some figures were overstated on the credit side (D) the incorrect transactions were entered on the credit side 8B how profits and losses are shared among partners? (AY Current (B)) Appropriation (©) Profit and loss () _ Income and expenditure Which of the following entries would NOT appear in a cash book? (A) Payment for goods Goods soid on credit (©) Goods sold for cheque {D) Goods bought for cash Item 22 refers to the following summary of receipts and payments for the month of March for an NGO. s ‘Subscriptions received Rent paid i 60 Purchase ofgamesandequipment| 150 Postage of circulars Proceeds from book sale 250 Which of the foiiowing amounts isthe cash balance at 31 March? {4c (sap #250)-(WHD (A) $8 sol (B)_ $280 $720 @) $620 GO ON TO THE NEXT PAGE,23, 25. Which of the following documents acknowledges a loan to a company at a fixed rate of interest? (A) Flyer (B) Stock Licence (Dy) Debenture Abusiness receives $5 000 for rent revenue and deposits this amount into its bank account. How will this transaction be recorded? (A) Debit rent $5 000 Credit bank $5 000 (B) Debit cash $5,000 Credit rent revenue $5 000 (©) Debit rengrevenue $5,000 Credit rent expense $5 000 (D) J Debit bank $5 000 Credit rent revenue $5 000 Item 25 refers to the following information for four firms in the same industry. Firm Quick/Acid Test Ratio ‘Apex 2.91: 1 Flora 3.601 Dalton 1S :1 Season’ 11031 Which firm has the BEST liquidity position? @® Flora ) Apex © Dalton (D) Season 21, 28. A businessman offers a reduction in price for prompt payment for goods purchased. Under which column in his three-column ‘cash book would this reduction be entered? (A) Bank Cash Discount allowed (D) Discount received Which of the following BEST desc the ‘double entry’ system of accou (A)__ A ledger account must have two sides. (B) — Anaccount must be written twice in the ledger. (©) Each transaction must be written in two subsidiary books. * (D) ) Each transaction must have a debit entry and a credit entry. Mr Brown owns a business. It has no have been interviewed. What type of business is it? (A)_) Sole Trader Partnership (©) Corporation (D) Non-Profit Orgenisation GO ON TO THE NEXT PAGEItem 29 refers to the following table. Period of Debt _| Accounts Receivable | Allowance for Doubtful Debts Over3 years | _—«$6.000 3% of accounts receivable Over 2 years, $4 000: 2% of accounts receivable Overtyear | 38.000 1% of accounts receivable | 29, Whatis the TOTAL allowance for doubtful debts? (AL $180 $340 © $400 @) $500 30. After careful consideration, a business decided to reduce its allowance for doubtful debts from $500. Its trade receivables at the end of the financial year owed $10 000 and the firm will decrease the amount allotted for the allowance for doubttul debts from 6% to 4%. Which entry below will reflect the change? og WODDXT. = dO 100 (A) Debit allowance for doubtful debt $61 Credit income statement $600 (B) Debit allowance for doubtful debt 3500 SOO -4007~ \ vO Credit income statement $500 (©) __ Debit allowance for doubtful debt $400 Credit income statement $400 (@) / Debit allowance for doubtful debt $100 Credit income statement $100 31. A public limited company issued a prospectus offering the shares described in the following table for sale at par value. FFsseaccaaeannae ccaenecaen| oe No. of Units | ParValue ‘S%preference The issue was fully subscribed. How much capital did the company raise? (A) $ 40000 (B) — $ 45000 (Q_ $400 000 $450 000 GO ON TO THE NEYT pace32. 33. y g 35. “7 ‘Items 32 and 33 refer to the following table which shows a trader’s operation at the end of the trading period. Sales Inventory at start Sales returns Inventory at close Discounts allowed Purchases ‘What is the cost of goods sold? AS 5 c) £3 240 _b2 > Seas =(5[11%- | 1019 © = $51415 (@) $53 103 Se DX ger @ $31 645 $33 215 BE SOGSD 2218 Expenses and rev 36, Manav Traders incurred a loss of $1 500 classified as. in 2022, The business’ closing capital was $20 000 and drawings was $4000. What (A) real is the amount of the opening capital? CED romint a) sied20000 +4000 — (D) personal @ 22500 | S OO ©. $24 000 © $25 500 The owner of a business does not keep © proper accounting records but she knows her capiiai on i January was $40000 and 37. Acredit bal tricity expense $85 000 on 31 December. She withdrew account indicates $1 000 in inventory during the year. electricity is accrued ‘What is her profit for the year? | 0 do- (B)_clectricity is prepaid (c) the firm is owed for electricity ® oe 00 4! 4o o00- (D) the amount was paid in electricity $ 46000 oe (D) $126 000 GO ON TO THE NEXT PAGE38. 39, -8- K. Antoine was charged $2 400 for electricity for the year. What figure would be recorded in the statement of financial position if $2 700 was paid for the year? @ 5,3 2700 - C40) (©) $2700 @) $5100 of 15%, A company declares a divi ‘What is the shareholder who owns 1500 $1 ordinary shares? $ 100 1SOOA ISB $ 225 © $1500 (@) $1515 of te dividend warrant sent to the 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 as (A) [Cash Rose’s capital (8) [Rose's capital ‘Cash Motor vehicle (D) 10.000 Motor vehicle Cash Mr Smith does not keep proper records ‘What is the closipg capital of the business? 7.000 10.000 3.000 7000 Uses his vehicle and building, worth $6 000 and $15 000 respectively, as part of his tux Customers owe him $4,000. He withdrew $1 500 for personal use and owen nro usiness. ith $10 000 He He wed suppliers $2 000. A) 255 IKADO HOOO+ SOOO $28 S01 GP BB IOOQ-/ SOO 0123901 0/VCSEC 2024 GO ON TO THE NEXT PAGE42, 43, Which of the following items would be used to adjust the cash book balance before preparing a bank reconciliation statement? (A) Direct transfers and dishonoured cheques ®B) Direct transfers and bank fodgements (©) Dishonoured cheques and unpresented cheques (D) _ Bank lodgements and unpresented cheques Elvin starts his bank reconciliation statement with the bank statement balance. How would unpresented cheques be treated? ‘Added to the baiance GD Subtracted from the balance (C)__ Has no effect on the balance (D) Doubled and then added to the balance. In preparing its final accounts, a business omitted to include returns inwards. Which of the following items will be affected by this omission? I. Netsales Il. Net purchases Ill, Gross profit/loss Tond B only Tand III only (©) Mand itt only (@) = 1, Mand tt 45, 47, Mr Ram, a shoemaker, bought a motor van for $11 000 cash. In recording this transaction he should @) creash; Dr motor van account “B) —Drcash; Cr motor van account (©) Crash; Dr purchases account () —_Drcash; Cr purchases account An article is subject to a 20% trade discount. Its list price is $600. What is its sale price? “aoe? - lo cd $480 @ ) $580 (D) $720 $120 Items 47 and 48 refer to the following information. P. George buys $120 of inventory from T. Singh on credit. The terms of payment are 5%, 30 days. If P, George pays in 12 days time, how much should he pay? A 36 noxs Za!) @) $60 suid (D) = $120 The double entry for recording the credit transaction in T. Singh’s accounting books (A) debit purchases credit P. George (B) debit purchases credit T. Singh (©) debit sales eredit P. George debit P. George credit sales An oxen tur evr DARE-16- Items 49 and 50 refer to following information. Aand B Partnership reports the following year-end results. Net profit b/d Interest on drawings A 1000, B 1500 si Interest on capital A 3.000 B 4000 000 Share of remaining profit A(75%) —_? BQ5%) 3.873 ail qgaie _{S= ate 48. What is the share of remaining profil received by A? wie 2673 <2 (D) $15.619 50, Whatisthe net prot ba? O2VB - \suh (A) $ 992 [ol St3 492 $29 992 $33 865 Is 492 a TUS 117 000- B42. oT ae LD Ga ©)51. ile A trade receivable is unable to pay their outstanding debt of $450. However, an agreement was made that they would pay $0.30 on every dollar owed. How will this payment be recorded? svable $135 ¢SDXO D =\25° (A) Debit rece’ Credit cash $135 Debit casli $135 Credit receivable $135 (©) Debit receivable $450 Credit cash $450 (D) _ Debit cash $450 Credit receivable $450 Item referstothe followinginformation. $4. Bank Account $ Balanceb/d 20000] Purchases 15 00 ~ uy Sales 2008 |Balance ld? 22000 ‘What is the closing balance of the bank account? (A) $2000 (B) $3.00 $5000 (Dy) $7000 ‘Item 52 refers to the following information. 3 Prime cost Z 50.000 Factory overhead 25 000 ‘Opening workin progress_| 10 000 Closing work in progres 5000 ‘The TOTAL cost of goods manufactured $55,000 $60 000 $80 000 $90 000 © A vehicle costing $80 000 is expected to depreciate ata rate of 10% per year. What is the total depreciation on the vehicle after 3 years using the straight line ney $ 8000 ¥DOLOX!D. (So A (B) $16. 000 —' 3 $24 000 =RO00% (Dy $42,000 : SOCOO+950Wt, OO-600) Item 55 refers to the following information for KD Ltd. 3 ‘Opening capital 3.000 Drawings 300 Net loss 1500 What is the closing capital of KD Ltd? @® s1000 30D0-S0O i S00 (B) $2000 (C) $4000 (D) $5,000 Portap bought inventory for $500 on credit. In which book of prime entry will this be recorded? (A) Cash book (B) Sales journal (QA, General journal > Purchases journal GO ON TO THE NEXT PAGE-12- $7. Karen and Garth, partners in a business, share profits and losses in the ratio 2:1. What is their respective share if the business makes a net profit of $3 600? 2)% Karen $2.400 : Garth $1 200 Blo dD x ) Karen $1 800 : Garth $1 800 (©) Karen $1 200 : Garth $2 400 Z2(00* 3 () Karen $1 200: Garth $1 200 ‘V & R are partners who share profit anc losses in the ratio 30% : 70% . Below are the partners” g balances at the end of the year. v R TOTAL CAPITAL, $30 000 540.000 $70 000 DRAWING $ 2.000 $ 1.000 $ 3.000 Net profit including interest on drawings and capital $20 000 NOTE: V & R pays interest on drawings and capital at 2% and 5% respectively. ‘What are the interest on drawings paid by V & R at the end of the year? GO ON TO THE NEXT PAGE59. Items 59 and 60 refer to the following information from the records of LT Ltd. s Sales 45 000 Purchases 10.000 Closing Inventory: FIFO 5.000 LIFO valuation 21 000 ‘AVCO valuation 3.000 ‘The gross profit under FIFO is S000 a SpodoO (A) $35.000 DOOD-SD OU= (B) $37 100 $38 000 ()_) 840 000 remem arp = TOO HSODY (BY $37 100 $38 000 $40 000 END OF TEST IF YOU FINISH BEFORE TIME IS CALLED, CHECK YOUR WORK ON THIS TES!