Cxc Past Paper free essay sample

TEST CODE 01239032 CARIBBEAN EXAMINATIONS COUNCIL SECONDARY EDUCATION CERTIFICATE EXAMINATION PRINCIPLES OF ACCOUNTS PAPER 03/2 General Proficiency 1 hour 30 minutes SPECIMEN PAPER READ THE FOLLOWING INSTRUCTIONS CAREFULLY 1. 2. 3. Answer ALL questions. Answer the questions on the Answer Booklet provided and return it. Silent electronic calculators may be used, but ALL necessary working should be clearly shown. Copyright  © 2005 Caribbean Examinations Council. All rights reserved. 01239032/CSEC/SPEC 2005 1 CASE Rose Flower owns a fairly large building situated close to Trimmaine Main Road. The building is situated close to the main transportation routes and Rose feels she could do well supplying goods to small retailers. On January 2, 2005, Rose Flower started her business, â€Å"One Stop Wholesale†, selling drinks and snacks. The assets and liabilities of the business on that date were as follows: $ Building Office furniture Steel shelving Cash register Cash at bank Cash in hand 5 yr 5 per cent loan (Caribbean National Bank) Motor vehicle Stock of goods 90, 000 2, 400 12, 000 1, 300 4, 000 3, 500 30, 000 26, 000 5, 000 The steel shelving will be kept in the business for 7 years after which it will be sold for 00. We will write a custom essay sample on Cxc Past Paper or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page . 2. 3. 4. 5. 6. 7. What type of business entity is â€Å"One Stop Wholesale? (1 mark) State TWO ways in which Rose Flower could increase her capital without additional personal investment. (2 marks) Prepare the opening entries in the General Journal of â€Å"One Stop Wholesale† on January 2, 2005. (7 marks) Calculate the working capital as at January 2, 2005. For what is the working capital in a business used? (3 marks) (1 mark) Open the provision for depreciation account for the steel shelving and record the first year’s depreciation on the asset. 3 marks) Calculate the annual interest on the loan from Caribbean National Bank. (2 marks) 01239032/CSEC/SPEC 2005 2 During the month of January the following information was recorded in the accounts of â€Å"ONE STOP WHOLESALE†: $ Revenue from sale of drinks and snacks Cash purchases Credit purchases Tempco Light and Power Company sent â€Å"One Stop Wholesale† an electricity bill for 4, 500 700 300 800 Rose paid $500 of this amount Rose pays herself a monthly salary of $200 Stock on hand at the end of January 2005, was $3 000 Interest on loan accrues evenly throughout the year. The interest for January has not been paid. 8. 9. 10. 11. 12. List THREE expenses, other than those given in the case that the business may incur. (3 marks) Prepare the Trading, Profit and Loss Account for â€Å"One Stop Wholesale† for the month of January, 2005. (12 marks) Prepare the opening balance sheet of â€Å"One Stop Wholesale† as at January 31, 2005. (3 marks) List TWO methods which may be used to value the stock at the end of the year. (2 marks) Calculate the rate of stock turnover for the business. (Show your workings) (1 mark) 01239032/CSEC/SPEC 2005 3