ROSINET HIGH SCHOOL
FORM 3 END OF YEAR EXAMINATION
PAPER 1
1 The document used to record goods sold on credit is
A a bank statement.
B a credit note.
C a statement of account.
D an invoice.
2 The personal accounts of suppliers are found in the
private ledger.
C purchases ledger.
D sales ledger.
3 A liability of the business to the owner is recorded in the
A capital account.
B creditor's account.
C drawings account.
D loan account.
4 Which is a computer output device?
A keyboard
B mouse
C printer
D scanner
5 An advantage of using a computerised accounting system is that
A expensive software is used.
B it is difficult to change from one system to another.
C it requires skilled personnel.
D there are less chances of arithmetical errors.
6 A credit sale of an old cabinet valued at $3000 to [Link] is recorded in a
A cashbook.
B general journal
C petty cashbook
D sales journal.
7 The double entry for the purchase of paper and envelopes on credit is
Debit
Credit
A creditor
B creditor
C stationery
D paper and envelopes
stationery.
paper and envelopes.
creditor.
creditor.
8 'The difference between cash discount and trade discount is that cash discount is
A allowed to encourage bulk buying.
B deducted on the gross price.
C not entered in the books of account.
D offered for prompt payment.
9 The monthly petty cash float of a business is $500,payments for July 2013 total $425.
How much is reimbursed to restore the imprest?
A $75
B $425
C $500
D $925
10 The entry for bad debts in a debtors account is obtained from the
A general journal,
B purchases journal
C sales journal.
D sales returns journal.
11 The sales ledger control account is debited with
A bad debts
B contra entries.
C discount allowed.
D dishonoured cheques.
12 A trader provided the following information on 31 July 2013.
Sales ledger control account balance,01 July
Credit sales
Cheques received from debtors
$5600 debit
16000
17200
What is the sales ledger control account balance on 31 July?
A $4400
$6800
C $27600
D :
$38800
13 Capital expenditure is the
A additional capital paid in by the owner of the business.
B cost of running the business on a day to day basis.
C money spent on buying non-current assets.
D money spent in selling non-current assets.
14 In the reducing balance method,the depreciation rate is applied on the
A book value of fixed assets.
B cost of the fixed asset.
C market value of the fixed asset.
D residual value of the fixed asset.
15 The balance as per adjusted cashbook is $1721 [Link] cheques amount
to $150 and bank lodgements not yet credited total $242.
The balance as per bank statement is
A $1571.
B $1629.
C $1813.
D $1871.
16 A credit balance of $600 in the rent payable account means
A $600 has been paid for rent.
B $600 has been received for rent.
C $600 is owed by the business for rent.
D $600 is owed to the business for rent.
17 The credit purchase of stationery,valued at S1500,from [Link] had been debited
to Mabasa's account and credited to stationery account.
The double entry to correct this error is
Debit
Credit
B
C
A stationery $1500
B stationery $1500
C stationery $3000
stationery $3000
Mabasa $1500.
purchases $1500.
Mabasa $3000.
purchases $3000
18 The balance on 1 January 2011 in the provision for bad debts account was $[Link]
provision for bad debts for the current year is $600.
The amount of provision for bad debts to be charged to the profit and loss account is
A $50.
B $550.
C $600.
D $1150.
19 Which error prevents the totals of a trial balance from agreeing?
A No record had been made for a computer worth $1200 brought into the
business by the owner.
B The payment of $1000 cash for rent had been debited to the electricity
account.
C The purchases account had been debited twice for goods worth $2000 bought
from [Link]
D The sale of shop fittings worth $3000 on credit to [Link] had been
credited to the sales account.
20 In the balance sheet,accrued expenses are shown as
A current assets.
B current liabilities
C non-current assets.
D non-current liabilities.
21 The following information is provided by a trader.
Inventory $5000
Bank overdraft $1200
Cash in hand $900
Creditors $1800
Stock of stationery $600
Working capital is
A $3500
$4700.
C $5300.
D $9500.
22 The current ratio of a business indicates its ability to
A buy stock.
B pay employees.
C pay off current liabilities.
D pay off non-current liabilities.
23 The double entry for closing the drawings account is
Debit
Credit
A appropriation account
capital account
C drawings account
D drawings account
drawings account.
drawings account.
appropriation account.
capital account.
24 What does a debit balance in a capital account mean?
A the business is insolvent
B the business is solvent
C the owner invested more capital
D the owner took goods for own use
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25 A manufacturer bought a machine for $[Link] estimated useful life is five years after
which its value would be $[Link] is charged on a straight line method.
What is the annual depreciation charge?
A $2400
B $5600
C $8000
D $12000
26 The following information relates to the business of [Link].
Inventory: 1 January 2010 $10000
31 Deccmber 2010 $30000
Purchases $140000
The rate of stockturn is
A 4 times.
B 6 times.
C 7 times.
D 12 times.
27 The following information is provided by a trader.
Total current assets $60000
Inventory/stock $10000
Total current liabilities $20000
The acid test ratio is
A 2:1.
B 3:1.
C 2,5:1.
D 3,5:1.
28 The main source of income for a club or socicty is
A donations.
B proceeds from dances.
C sale of refreshments.
D subscriptions.
29 Which of the following is not reorded in the recetipts and payments account?
A fixed assets bought in previous years.
B fixed assets bought in the current year.
C payments to creditors during the year.
D subscriptions received during the yeur.
30 The following information relates to a football club.
Subscriptions received during the year $12000
Subscriptions owing at start of the year $1200
Subscriptions owing at the end of the year $800
The amount of subscriptions shown in the income and expenditure account is
A S10000.
B $11600.
C $12400.
D $14000.
31 Which items are part of direct costs?
A depreciation on plant and patent fees
B machinery repairs and royalties
C manufacturing wages and factory insurance
D royalties and hire of special plant
32 A manufacturer provides the following information.
Cost of raw materials consumed $175000
Total overhead costs $151000
Manufacturing wages $90000
Royalties 10000
What is the prime cost?
A $265000
B $275000
$326000
D $426000
33 If closing stock is overvalued,there is
A a decrease in gross profit only.
a decrease in both gross profit and net profit.
C an increase in gross profit only.
D
an increase in both gross profit and net profit.
34 A disadvantage of partnerships is that partners
A earn interest on capital.
share ideas.
C share losses.
D share profits.
35 The following information relates to a partnership on 31 December 2013.
Net profit
Interest on capital:
Pida
Ndoda
Interest on drawings:Pida
Ndoda
100000
12000
15000
3000
2000
What is the balance of profit available for sharing?
A $68000
$78000
C
$12000
$132000
When the purchase price of a business is more than the value of net assets taken over the
36
difference is known as
goodwill.
retained profit.
revaluation profit.
D surplus.
10
37 In a joint stock company debentures earn a fixed rate of
A dividend.
B interest.
C loss.
D profit.
38
Ordinary shareholders
A are creditors of the company.
B are paid before debenture-holders.
C do not paricipate in the control of the business.
D eam dividends only if there is profit
The following information relates to a business for the year ended 31 March 2012.
39
Capital on 1 April 2011
Capital on 31 March 2012
Drawings for the year
16000
11350
3300
Profit or loss for the year is
A $1350 loss.
B $1350 profit.
C $7950 loss.
D $7950 profit.
A business was purchased at a price of [Link] value of assets taken over was
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S71000 and liabilities taken over were S6000.
What is the value of goodwill?
A $2000
$4000
S10000
C
D $65000