''

- ;.
• /i CSEC POA June 2006 P1 ~ 1 . (5-A
<."----.:::;:;;,
i·:~..--"-f,~.
A.~ool "G~.t'.l.S:...R.r~;..,..,
.f
c::::- --
I L V/hich ofihe i~Ho\i..•ing iterns on a baiarrce
.:.:hce.t 1,\-·o~dd differ h·10S'.f in ·jJL:e::;entation 1------------~-----·---
.:::::--=

----..
' '
\vhen ccnnparingH1ebo()ks of~tcornpzn.:_.,-- 8nd ! Stl~Ck Z1t Jan. 1, 20D6 ~; 50'.J
bouks of Et sole trader? Ii P·11·.--.1~~:r~"'..:: dli,.!~10 i'-he •11--·ip"'-h
-_'-·-~l.;'"'- ~l ::::;-·- ~ ._.l •.
~;I 2(}()
· 1Cusc-o, goocts sotd · S l :,o::;
(!\) Capital
(8) CurrentAssets
(C) CummtLiabi!ities \\fhat:s thr:: stock. at the end ofjan_uar~/?
5.
(D) Fixed.Assets
(A) $ 300
(B}-. $ 700
2. A trader bought goods worth $800 less l 0% $ 500
(C~)
trade discount. HoYVrrJuch did heJ)?-):'~~arthe ·tD) $1200
goods? ··

(A) $700 \.Vhic,h .ofthe to_!i9V<(ing would NOT be

(B) S>720 considered part of t11e prin1e eos\ of
(C) . $760 mamifadured goods?
(DJ S:sso
fA) Offi~e !1_1:~nager ',? w~ges
(B) 1v1aC;'.hine·~_p;1:.a,tOi's,Vages
3. A trader draws up a.trial -1Ja!ance. to· Ri\.v rr1atei1aiS Lise1...1 ·' ·
(C)
(D) Freig:htor:i ra\~' rn~teria!
(A) ascertain the. need for a suspense

(B) check for errors in the balance.sheet 1-he purchas1¢ of a motQr· ,v·an on credit fI·.01r1
/. -
(C) ascertain the total amounts owing to Things Carkom Mµ~o~~ Co. for use in th~
b11siness should ber~~oi~d~d as
biniand'\,yhim -
CD) test the arithn1etic. accurac·y of
double~entry postings debit ~otor V$n J3.xpense j",._ccuuir<..
(A)
qredit Ba1i.k Accqunt
(B) de~it_ PUrCl~~tSes·. _.t\_ccour1L cre.d i~
Item 4 refers to the following list ofbalances. ~rhings Cari9on1 l'vfotors c:o
Accoui1i ·

Motor vehicle
$20] (C)

(D)
debjtMotor \1 ehicleA,occ-unt, cred ii
Bartf.;Aqoot1nt
debit Motor Vehicle Account, creel it
Creditors. 3 000
Things CarTcoil1 Motors Co.
Debtors· 2 OO!J
Jl 000 Account
Capital
Building 16 o·oo.
4. What is the total oft.he asseis?

(A) $12.000
(B) $!3000
(C) $14000
(D) $15000

GOONTOTHENEXTPAGf

I~~-------__:___ __:__~-----,--------
 - _\ -

.A. photo-copying mJchine valued at$5 000 is ll \Vhich of the follo\ving is NCrl· ~t :ll!ii!i11.

·depreciated at lOo/o using the straight line 3CCOUI1t?

method. What is ifs book value after two

years? (A) Carriage Inwards
(B) Commission
(A) $4000 (C) Furniture
(B) $4050 (D) Discount Allowed
(C) $4500
(D) $4980
12. Maria purchased $1 000 worth offurniturc
for office use and entered it in the Journal as
9. The purpose of an appropriation account is to purchases. How \Vi11 this error affect her
BalanceSheet_? -
(A) changecapital expenditure asagreed
.·-,;P.;~ in the Article.;, of Association (A) Fixed Assets and Net Profit will be
(B) _show how the net profit is distributed decreased by$ I 000.
in a partnership or co-operative (B) Fixed Assets and Net Profit will be
(C) make appropriate changes related to increased by $1000.
net profit as agreed upon in the (C) Current Assets andNetProfitwill be
Articles of Association increased by $1000.
(D) enter all capital and revenue (D) Current Assets and Net Profit will
expenditure as stipulated in the not be affected.
Partnership Act

13. Which of the following groups contains current

IO. The summarized position ofFoster and Scott assets only?
Limited at March 6, 2006 was:
(A) Vehicles, equipment, rnachinery.
$ typewriter
CurrentLiabilities 60000 (B) Debtors, stocks, creditors. cash at
Current Assets 100000 bank
Fixed Assets 200000 (C) Bank overdraft, machinery, debtors.
Long-Term Liabilities 150000 stocks
(D) Stocks, cash at bank, debtors, cash in
hand
What was the capital of Foster and Scott
Limited at March 6, 2006?
14. Ram Singh purchases goods valued at$500
(A) $ 40000 on credit. He paid off his bill within the grace
(B) $ 90000 period and so received a I Oo/o cash discount
CC) $150000 How much does he pay the firrn7
ID) $190000
(A) $ 50
(B) $450
(C) $490
(D) $550

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012390\0/F2006
.·,__--+----- ---
 15. ~-Und.e!v-.rllich ofrhe fci'll6v.'ingcoi1dllic1ris\~'Oflld
a trial bajance sri11 balanc5'(

I.
OlJt.
II. Both a clcbit PU!.d credit e.ntry 1,-;.,-'ere
overstated by the sarne arnoun:.
III. A debit entry . .~;as left out.
r·/. Both a debit and credit ·entry \:Vere
ttnderstated by the sa1nearr1ount.

(A) I, II and III oi'ily

· (B) I, IT and IV only
(C) I, III wdIVohly
(D) II, III and IVonly
...,,._ ... ·

· ....·,: O"·•.,.·

Items 16-18referto thefollowingBalancce?he"tofTLagoon:

·-.·.-·
' :;\l;.2005
'.f,Lagoon Balance Sheetas at December
.. : •..
capitai 23000 Fixtures and fi ttiJ:!gs lOQO
Add Net Profit 800 Iviotorvans 20000
., 23800 Stock 13000
Les-8'Dra":i1~gs. 2000 Debtors ;2000
21800 Cash iOO
Cr~d~tor.$ . 6300
B aitl: overdraft __£ii00
36100
---·
],6100

16. T\lhatis Lagoon's working capital? · 18 'What is Lagoon's total cuffentassets?

(A) $500 (A) $15100

(B) :JWJ (B) $2100{).
(C) $750 (C) $22500
(D). $80'J (D) $33100,.

17. \.Vhat isJ_,agoo11's totulfi?:ed.assets?

(!\) $21000
(B) $31000
{(>•
\ '--.l 533000
(D) 534000

'
i
(.

MI''
i
,,
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~~1 l ,,M
'i
' '

•
19. ,,:,=: !Jusi!1e:::s v·,'l'Uch u1,vnh·goods.vall1e-d al~500: 23. In ·,.vh!ch jrn.!r1·1:.:d ere th:.:: in\;nice.s
;;.'.lso 11·aS a vEut vah.iCd at.S:: 1 OCH}_: :it o-.ve:sS50 cuStotc1=:::rs entcr•:'.d?
ffjr g~-iod.s. If° it seil~ _out.at ti1e.s(. p1:it:eS t11e
o)Vner's ciosingcapita.1 v..1ili t){:- (!\.) Sales
(B) Purchase_;;
,,..,. Retu.rn In\va.rds
(_4) $1500 '· ,__,)
,.,..,,
(.B) \.L-j I\..etum OurvJards
'
(CJ $1450
(D) $10SO
24. jf tt buyer's invoi.ce has b:!~.n oversta[ed; thc-
seller should-se11d.h1111 a
20. vVhich of the foliowing fonnulae is used to
(A) debit'nOte
calcuiate"take home pay"?. .' co11·ected h1voice
(B)
(C) credit note
(A) Grosspaf-Netpay · (D) returns voi1cber
(B) NetPa~i +Ile'duction~
(C) drodsP'1y-J:).<0duction~
(D) ;Net
. --pay +Gross
.
- ,,_ pay -
25. '\Vhichoftbefollowing transactions should be
entered in the Petty Cash Book?

21. Aproprietqrw\nsarn~iOrvM vaiued$10GOO (A) Sale,rypayments

anddticiiles f4putitinto ttie business. Whibh (B) P.0:S·~a;ge,Bta.inp. .purcl1ases
of the f[}i\{,wfrigis th~.con:effrn.ti·y? . (C) Mf>r)thly'subscriptions
(D) Wage deductions
(A) DebitMotorVehicli:sli:ccount,
CreditDrawu:ig~AccounL
(13\,
'
DebitCapita~A~count, .· 26. If the value of-fixed assets is subtracted from
CreditMotor'/t;hicles A(,eount total asscts:arid.t}1e re1n::iinder"is red11ced-b_y
(C) DebitMoim \iehiclesA9coun1:, the -value of.cun-eut)iabilities. the result
CredirCapira:!"Accourii. obt'.aiiledis;referxedlo,as
(D) DebiiBankAccount,
Credit Capital Account. (.Pi) cu1re11t o.s.sets
(B) <;>Wnerequil:y
(C) .workirig capital
12. If the fo!lowinglists ofasset(fouud on:the (D) I011g-te1n1liabiHties
._ •• J?a!a!)ce Shi>etofiretiil!ttad~~arearnmged
.._in order ofliqu!dit;)h~~6qii~nce wouldb,e
·. '' :. ""; .., ·- :"; ··' :'' .- .. .. _._ ·-' :... -
.-_~\·:;~·:;_;· ' _ .

(A) .. ~Af~~~~~!~g,~~.Ft~rures,
_(B) C11sh, Fixtures De}:Jtors, Bank,
.B ui1iliiii. ivt&bi~ar! . .
(C) Cash.Bank, ,Fixtures. Debtors, Motor
van,Buildirig .
(D) Ca.sh, Ba.'llC,De;bfors, Fixtui·es, Motor
van, Buildin,;
.-.b

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01239-0loiF~
.1
I

-.
I
•
-6 -

27. 'Th::: ba1_2.11e-es of the'·c:.ssel' ::ic~:Ciunts ci'f ti1e

B::yro.::. Ciu1.! ns .:rrJtin;.:-30,:2(iDS-\vt~re:

i hc·n·1ises - - - - - - - - - - - $5 :oc I
] E-L1uiDrr1vnt $1 825 -1 (!-:..) l'-r·'.lerrio;:Ril"ldtnri
I .• ~- .~ ..-. ..,. ..., 1
i Fu.:111[\1re . $ ~oU I CB) De.benrure-Bond
i Bank & Cash $1 G40 -1 (t~) Iviortgage·Dbed
.L
I otoc.::_
-, l 01-_re_t.res~~en:
"" ' t "'.'. ?_._?.
J} -
_ .· :
\D) Sto.dc Ce1tificate
1

The air1ount of c~,e. ac_c4zj1u!atcd.fund \.vaS D~ring th~ YE'.#~ ~.(;011it>8:-1!-Y QOUghtstalioilery
for $220 ahd' u~ed ari amount
\vorth $120.
(A) $1640. How much of the stock of stationery would
(B) $4497 in
you find theB~1anceSheet?
(C) $8185
CD) $98~7 (A\··· .$100
' \'
·(B· , $120
(C) $2-20
Iten1~E_ refers to tl\e i1:itDrmation gjven in tile (D) $340
' .
table below.·

-\ T f · · I~::Jtif IPar value i

j-_ype o_:::,Sl::'":.::rr~e:.-~-+==~-+=-'-'-'-C.-- 32. The a:T101fnt -01-·;· tflc?-11Sj gi~.,en to the pett)
cashier at tb.e st;-irt_of ~:per.lod is ~:i1ov-.in as the
-1 Otdinary 1 '

L% Preference
20 000
10000
$2.00
$5.00
)
.· \A)
. (B)
dividend
imprest
.. {c;) _prer,niurn
28. Apublic lirnitedcompanyissned a prospec:tns (D) iron
offering "-the-.shates~ ·destrib6d in the tat.le
above, for sale at par Value.
33. A businessman i1icurfed the following
The issue wasfu)lycsUbscribed.: 1-rowmuch ex1)enses:
capitalclidthecompnnytaise?
·----=~-.~- -. --:--i
'PiictOry repaiis .... . $6 000 · /
(A)
(B)
$30000
$40000
.'l\1'athi11ery repairs $2000 i
.N6\,; machine $3 000 '
(C)
(D)
$50000
$90000
. µew '-Cehicole __ $~_000 _j

29. The net profit of [t fin.11 \vas shov;n as $1600

. a.nd. it \-Vas later discu·vered.that discounts
received wer~ u~,dercastby $1 Cl andpnrchaBes (A) $ ooucr
1,vere under~.cat~d by $36. T·he corrected net (B) $ 700(!
profit v1as (C) $ s·ooo
iD) $10000
cs.) $1574
iB) S16JG
(C) $103'6
(D) $i646

GO ON TO TfIENTIXT P/-.GE
 -·· -,1 ·-

.:..Ct,, .S.nspenst: _A,,_~::-c_otuit. \~/asOfJC:nbd for an er!\",

~~~~:i~~~ :~:1;(~:1 ::,:1i$'/F6~iiN:!~~::;.;~i

34:
of.,b3t1_fli.d11d I:h the ti;ial ba!anCe". L~-tter it \V_as
BCf6;e adn_1it.ting ane\\p_8iltitr; y/ong,' \ ,·;-!ih 1
obs:::r_ved that-:;cles -v.,·erc undcD·;tated by $30.
-s;-10 000 -in-t,6-the ~b~Sin_Sss. th~)~_ 'agre.e¢, that
1 Thisite111 \vou1d be~Corr~cte(t in [hejournaJ t:.; 1

t}Je_-pa_I_;tii"et&l1iP_ be ":~~~~1~d at s~~ _OOQ! T·h~

gond\vill is therefcit·e .l)r. Tradis1g,
.Cr. s·usper1se
(/\.) s i . ooo (B) f)r. SttspenSe,
· · CB) .$ 2000 Cr.G·ood.s
(Q:} .· . '$13 000 '·>., ·Dr:S.-ile·s . .
(',)) $10000 Cr. Suspense
Dr. Suspense,
,;--, ....,-. . ., .. -: Cr. Sales
· 35: · ·. The,.m.1lin1·easonvi1Jya·sllieprl_}prietormay
( ·. c;ilrisl'defjoining with one'mimore persons to
·/·•: , foffi1!iFpartne1'shlpil;tha'.t •: · 39.: S.Thomaspurchaseda11rnchine;for$3 250
·• •fron1Grell & Co:iLttl:;.paying$ l 250 in cash
. (A) • · be•cfilLworkles8'~fm'a!i)(peopleiare mid.the bala.nc:eiil &O.i;Jays;•,j,Vfucb is the
. doing the sfime'J9t:·ii(H ' . . .•. : _··. cG>rrect procedure for recording this
tt'ansaction? ·
(B) 'the business would attract rnor!"
::-·;:.-.c\1st0rriers-., · ·- ·
. ····(A) ··Debitmadl1i11er.Ya/c$3250
(C) · ·. · •the-business w.quld get ,additi-0na1
C'apitalar1dtu.aiutgeiiientskilHv · Credif ca~h -a/cc.1'.2 000 ..
(BJ·. Debitpurehases'a/c $3 250
(D) thebusin<;SsWorildbcr-etognisedby
the:governrnent CreditGrellCo.Ltd.'$3250.
(C) bebitmachiiaetV-$3 250
Credit cash ale
$1 250
36. An employeeworksfor-45 hoBrseach week CreditGrell c;::t::o. Ltd. $2 000.
ar$4per hourfor a40hoi.lr weelomd $'6 per (D) Deblt:G:tell-.& Co. Ltd ,,/c $2 000
hourfor overtime. His gross weekly wageis Debiteast}.ii/c $1" 250
,·:: . Creditp;1r¢i;iasesa/c $3.250.
. £Al $~80
.. (B): .. .$l'il.()
(C) $240
. (1Qj $270
,Qn}~13ft'h), 2.006, Nl.r Arthu,.r.purchased
37. · Om!·stlv1ay, R-Bi:o.\>jn:';s.qpenilig.capital was . $6Q(l.wpi:thqfgood:;forresale. He received
$3.000; on 7Ll-iMay11ewitf),dl:e:1\14~ooandon '; :fbfo tr~d~ disc~"iiiit oi1 rhis amount. The
':?lsU\fay his c1osing capit:.t1.:i~;hl; $5'000. . '• im<oic.ealsostated 2$ jl) davs,r1et 30 davs.
1-Viiat was his netproi'it? . - '. f,1rAt~t~~r ~>"ttl~~ '.\i1e jUl10;mt, pajiing .by
.. cl1e{lue onMi1rch 1~-;2006. ·
(A) $8400
(B) $7400 40 .. What was the amounUVlr Artln<r received as
(C) $2400 . TnideDiscount? •
(D) $1600
(A) $16
(B). $18
(Cl $20
(D) s;····
.::..£.

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Ol2:39010!F2006
41. r .f!1e fC:\-\'i.ird ·ofp;_-.';.:f(t recei \ted:b:y.2-shgi·c:hc.i j dET
in a i,;n·i irc.:-J cc1n?i1~i1;/ i".s-ch J !ed
44 . --~~ bi.is~n.:::..~sc:)rti.~-.jlJi~d-hy t'.\"C·__orn1.-;:~~-;:; p::-;·s .)::s
· -_v/-itI-rci-1,.::lc;..v to shariqg.~)rof~t-s 1s.c.1:d !1_:,:J ;_:;
1

r (.!--\ ~)
(B)
coTDDl L~s_ion
interest
· . (,~)___
(tj.)
·j)r/ . .;~1~~-cornpany
· public1~~r1~ti:-.de·,")::1p::u~y
(C~) lh·a~,,,,;~rtgs (·(;) pa~tner~11ip
\[fj dividend (f?-J ptt>j'.nietorsl:rip

,.... \\Fhu! ¥'.··c}old be .itfie ·effect .:)f:tn.!rc:ht1si11g

' 45.
42. . Thefo_!Iov,;!q~d~;Ucti~?r~s~·lrerr.ia9e_.f1.·qrCTJ.l-J.(;. _ , .:eq_uif}"n1 e1~1ton crt::tjJl.Oltfbe B~_!_lH!lCe'She~tof
Saiar:/O.ran d~lp-rOye·e._ · · ·· a·-business?

~ .A. Sset in0r:9ascd.; L.. iabil it:V' decreased

.···

i DEDUCTIONS
I (A.)
·\_..} :i:.:\ss~i\iicr'.~?.:s~.4; .Li~~~ iljry· increased.
'l'l: :._·
I
I (C) .. :4.s~btdec1;6~~CC~iJ~ia9lI.it:y·incrbased
l
( lncon1e tO.X . ..
0
35.Y·ti ../ (D) .'As Set•neC:retised. ··Liab.iritv decrea.;;;ed
. . .• ' > .·. . ~

1·t{ari~1n~d ·,houSing 2c;.:~· ··1

I 'Edncationta~·, ,,.· .- . [D,

.';''lt~.
I \\'hid\ bfthe foJ.!owingBESTdacribes ,, trial
,.
ti'q1~i.1C.ei?

\\/·hat is.the to1c-.l an10uflt ""\:hic:f-1 should be -I. .'\ lisl' ofbaic1nc.e.s of accounts
deducted fri:Jn1 the .en}p}n~ylc::e's salary of l!. }\.financiai sta1er11ent
..Ji' J 8!)l) perrr1oi1th? TH: ·. Ar1accuun'
.' .
~-Pi.)
\
$436
f\'. ./.~... c.hecL. ·c::n1 Lhe ae.:-~1raL·y
··dotib!e.ef1Tt")·...systcrr:i
u"!" th...:~

(B) $648
(C.) $684 (!\.) Ianci Jlcn1l~/
$8-46 (B) land 1\l c1niy·
(C) 1, ·11·11i1ci 1r1 !.i11}y
\TY;
43.
I. 1\:[rs Allen iriv.est'e.d '$10 ·o.oo! r\ifrs .BrO\.Vf!
in vested $5 ODO nnd Mr Cable in vested$5 000 ~t tajj1: 4·7 ·refCrs ftJ.i.he·b·afan c:.cis ·e,~t.r~cted trorn
in t11e sarne b1.J.sipes;_:. TI1·e"·Joss ··tais{atDed J\'lrf\;1attin ~-s ledger 8.·i10 sh.o\:vn belo\.Y.
during rhe: ~year ",.;,;as· $'t·o·o~Q.~ . :.Thtt·Parrn ersh ip
P_greernent iS silent on the item ofll:sses, i' S'j
although ptofitS ·3re .tb·b·e:.~p·1it· i11 ih~ rRtio,
2 , 2. .L in f3,~-aur:o:·f.j.\~il~·~i;·Bro~v.n and
· JOrlenii1g.slr;ek: · • 7 OOD I
5 5 5
·.•.·1p.,;rc.h'1Ses . · 4 000 i
, 'Sales · 10 000 I'
c:abJc resJ:·ective.Jy·. I-Id'~~i n1~dh'Ofthe loss
·I· ~un~i}' expenses · l 100
rn ust be:boi;~1e by 1'·Jlr'C8.ble?
.1.-·._:i:.:_1_q_s._!l'_'g~·-st_n_c_k____~~.3 400 I
47. \\'hatv.rhs the costo fgoods sc!l d by.1\11:· !v18n in?
$2(}J
);24(1
(.4) $24:C~Q
(B) $2:600
{C.~ :.;f)40C:
(D'!
 4S. ("'..redi:tnotes issueJ. forg:)(K1~ r~ti.lni~d.by c.us:;:orner~-\,\-'!l i
be enier-0rl. first.in the
-
,.
{-!°~)

.:.CB)
~ ·,
Returns-()ur\.van..i 300:
ReturI1::; fn"varctBook
0:
-
(CJ -S.a!e·s 1'"!:.6tu_111s ~lnd Pt Uo\vances fa•. c.Gount .
(f?) f~iirc;J1ase5R_eturns and/\ llt_)\\.,.Clf!Ce-s .1\cooltrll

·r.teIIls_.49:.;;SfJ
-.----.-. . - bai~Tices taken frorn tJi~-bociksofShei:lda'
.rdfer'to-tbe. tOrIOv:ing . . -
s _L,ta_·o·n ,.;_-ptil
. -
30, 2·005.

. __l ;" ..- .. _.. ;_ . .

~BALA."~CI~
1
-
.
.
.
. . l' .
. ·. -• ;
_ . ___l
>..
·. . ---. . i
·· .•

·1
I Cash
:'-<mtOwrncr
·. -

Cre:ditors
::::;. $ 20Q.
$3 500
$].200
-
P~~paid Insllrance $ 300
I.Barik Overdraft
[
I$ 400
,
. ... . ., . I.

49. -
(_/-...)
~·s.>
(C}
S2 O_QO
$240o
$3 6(;0
(A)
(B)
(C)
j
i .5 1
2. l l
1
-
(f}) $3 800.

---·-----------,..-.-- .-.
(D) 3 1
-
_lifil115 l refetsto the f.-JJ[o,.~.,,ing .li.liorni.aiiort.

Dr Insur-.mce A/1:. Cr
2005 $. / 2005 $

.Jan. 2 Balance bid 700 J Dec. 31 Profit& Loss Ale 8 J00

• ·. ,•.· I
Jan. J 5 Bank . soqo j Dec. 31 Balance c/d 60()
. . '
lLtil\! i

S 1. What is the amount of [nsurance

Prepaid at the $!art of. the period?
-
(A) $ 700
(B) $ 600.
(C) $8000
(0) $8100

flll J-
 ·'7.-'

51. /:,. SI:i.les ln\'oic:e.sho_v.'.s l 0 itGD1.S: aI$2:10e.~:tch.

trade discount·2rf%, and CD.3h djsC.uun·~ _-'-)'}l:.·
11:o'.V rnuch should i'.l-1::·.custorner pa)' .ifht~ pays
\Vi.thin-the ::red.it period? ··

l)r. !(. }~han E~l 17 (A) $ .157.5•0

'De I)iscoulltReG6ivid s; 4
~
-.' (B) $ '159 .60"
Cr. Ba1i'k $120 lC~) s1s9o.·oo
(Dj $I 675.00
rDJ Dr K Khan . $117
Dr DiscounU~lhwed $ 3
Cr. Baiik ·The assers of a businesstm:al $3 200and the
$120
.1iabi!iti~s total$S20. What isitgcapitaJ,I

(C) Dr. Bank~ $117

Dr. DiscountAlli.~\xled $ 3
(A) .$2038
' $120 (B) '$7'"°0
-~·1'
Cr. K Khan
(C) .$4000
IT)) Dr. Bank $117 (Q) $4020
Cr.DisconntReceived $ 3
Cr. K Khan '$120
57. f 1 arrick is [0 .JOU1. De11~1is arid To"ny in
Part11ership·. Panicl::hrings to tl1e partnerst1ir<
TC h
.1:.l t .. eclosi.ng
_ •
stockio.unde:rvaJ.ued, -~\/hi0.h·-of . -'as-capital~ furriiture valued at ·$3··ooo a11d ~
the fo]lDVVi.11 o· V 1 iJlf"'"'"1~
..:> ......Ir'/
;:::; y ....... ~.
n1o.to.t=\,-aD: YJ011.h $5 Odo. In 3.ddition, h_e· is fO
pa:r· a pren1itun of$1 000 to be share.:1 betV.'<!e!!
(A.) Dennis arid 1"'011y. HoV,: n~_uch is I)-atric.i;:' ~­
r~er profit over.1 alued.~,gr'oss profit
under\1aJued capital?
(B) c...:c s'tbfgoods seildoverval tt:5d; :zross
1

pmfit undervalued ~ (Aj $4000

(C) Gross· profit overva1ued~ net o.rofiI (B) $6000
urrderva1ued - (CJ". $80G-O
,.,,. (D) $9000
1./)
i .. Goods avai.lablefor sale Ui1dervalued;
gro8s profitovei-valued

SS. V\'hich of thefoi-lo~ih~g_wnu.ld be P~epared _iu

54 I1t an efforl w raisec~piu!I~ a cpm:pan}'ofi~ered order toTe.,v'ecJ ·fue.i1et.e~:in gS rif-B;·bu.siness?
for subscriiJhon tv.to·hundred 5 o/o-deberlttlr~s
of$100e.a,_-::h. . (A) 1~radlf~gi~Ccou~t
(B) Balance Sheet
~· .. .. . (CJ Trial Balanee
,. .._, ttar 1s t.t1e s1gni.ficance of the 5 ~)l; '?
(D). PrOfilandLossl\ccounl
Thecon1pany'scapit8.i "'in increase.
by5%.
(B) The compa(ly w-ill receive 5CJb of
$20000ascapiraL
The co111r>any \.V~ll ret-eive ·-5·q{;. of
i~20 000 iD interest from the
debenture hoJder.
Th~.-c0n1;)::.tn\'V/i!J'
~ - p".lv.:::; , - c,·r~?O
~·_, - q:;:, ·- .... _ Qf)''
,p_
in interesrto the debenture hoicter.

GO ONTO Th'ENE:h.'T PAGE

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~.:_
 Ite.rn ·t59 re-fcr.s to the: folio\1..-'ing info~:nati:)fL /-,_ firn1' s Ca:.: i1 Bulik sho\V~d ~l ba1~k b:tlanr:t:
. . .- ' ,_

I of J, 1-750. Tt1e ba;-!l:: statc;11~nt Sho'.vt:d ba.!11:

!
J
I
D2btori'\ at ~re.rt of
u'lc ye.ar g 200
$I' ci1arges of $33, arid .$77 interest rec.eive.d.
\•.!hich \Vere not enr:ert9 in the (-~ash Book.
\\it;2r \.\'2.S the 11a.nk. s~aterrient balance?
II! Ca.sh .n.x::::i.ved fT01n
ciebtots durin.g year 17 400 !
I

(~A.) S!.706
Dehtcrs at end of
e2.I 9 300 I
'
(B)
(C)
$1750
$1794
(D) $1860 -
59. The above inforniation W<(S pr<•vided by a
trader: How trntch w~re hi.1icred!t saies for
the yew-'!

(A) $163()0
(B) $18500
(C) $25600
(D)
.$26700

!F YOU FINISH BEFORE TIME .IS CALLED,. CHECK

. YOUR \VORK ON
. THIS_ TEST

0 ! '.'39010/F200i:i
.1- I