霹雳怡保培南独立中学 SM POI LAM (SUWA) IPOH FINAL EXAMINATION 2022 ACCOUNTING Paper 1 DATE: TIME : 18 NOVEMBER 2022 0845-1000 (75 minutes) NAME：______________________ REG NO:_________________ CLASS：S1AI,S1PIN INSTRUCTIONS TO CANDIDATES You may use calculator. Do not use staples, paper clips, highlighters, glue or correction fluid. There are 35 questions on this paper. Answer all questions. The total marks of the paper is 35. Do Not Turn This Page Until You Are Told To Do So This paper consists of 9 printed pages Prepared by ： ………………… (KOK KIM WAH) Checked by： ………………… ( MOGANRAJ) 1.
1. The accounts of a business are prepared on the basis that the business will continue to operate for the foreseeable future. Which accounting principle is being applied? A accruals B consistency C going concern D realisation 2. Financial statements must provide information in time for financial decisions to be made. Which accounting objective is being described ? A comparability B relevance C reliability D understandability 3. Which item would be recorded as a credit entry in a purchases ledger control account? A amounts paid to credit suppliers B contra with the sales ledger control account C discount received from credit suppliers D interest charged on late payment 4. Ahmed bought a motor vehicle and paid the following amounts. $ motor vehicle 8000 number plates 100 insurance 400 What was Ahmed’s capital expenditure? A $400 B $500 C $8000 D $8100 5. Sasha buys radios at $20 each. At the year end she has 50 radios in inventory. Of these,3 radios are damaged and will cost $17 each to repair. All the radios are expected to be sold at $30 each. What is the value of inventory in the statement of financial position? A $979 B $1000 C $1449 D $1500 2.
6. When Jack prepared his bank reconciliation statement it included an unpresented cheque.Which cheque is unpresented? A a cheque Jack received and banked but which has not appeared on his bank statement B a cheque which appears on Jack’s bank statement but which has been omitted from his cash book C a cheque which Jack has issued to a supplier who has not banked in. D a cheque debited twice in Jack’s bank statement in an error by the bank 7. Barak did not maintain a full set of accounting records in his first year of trading. How did Barak calculate his credit sales? A closing trade receivables + cash received – discount allowed B closing trade receivables + cash received + discount allowed C closing trade receivables + cash received – discount received D closing trade receivables + cash received + discount received 8. Min made a payment to Alain, a credit supplier. In error he debited the account of Alun. Which type of error did Min make? A commission B compensating C original entry D principle 9. A trader provided the following information about a non-current asset. cost $12000 accumulated depreciation at start of year $1800 method of depreciation reducing balance at 15% per annum What was the accumulated depreciation at the end of the year? A $1530 B $3330 C $3600 D $8670 3.
10. A trader compared his cash book (bank column), which had a debit balance of $70. With his bank statement,he found that bank charges, $10, had not been recorded in his books, and that a cheque for $18 which he had issued had not been presented. What was the balance on his bank statement? A $62 credit B $62 debit C $78 credit D $78 debit 11. Which statement is true? A Bad debts are deducted from trade receivables after the provision for doubtful debts is calculated. B Bad debts are deducted from trade receivables before the provision for doubtful debts is calculated. C Bad debts are only written off if there is no provision for doubtful debts. D Provision is only made for doubtful debts if no bad debts have been written off in the year. 12. Which statement is true about a sales ledger control account? A Discount allowed appears on the credit side. B Discount allowed appears on the debit side. C Discount received appears on the credit side. D Discount received appears on the debit side. 13. Agatha depreciates her fixtures and fittings at the rate of 10% per annum. On 1 January 2015 she bought new fixtures and fittings costing $800. In error she debited the repairs account with the purchase. What was the effect of this error on the profit for the year ended 31 December 2015? A $720 overstated B $720 understated C $880 overstated D $880 understated 4.
14. During 2015 John made a payment of $1200 for insurance for the 12 months to 30 September 2016. Which amount appeared in John’s statement of financial position at 30 June 2016? A $300 current asset B $300 current liability C $900 current asset D $900 current liability 15. An amount received from Alice, a credit customer, was credited to the account of Alison in error. Which error was made? A commission B compensating C original entry D principle 16. How do discount received and sales ledger contras appear in a purchases ledger control account? discount received contras A as a credit as a credit B as a credit as a debit C as a debit as a credit D as a debit as a debit 17. How is profit for the year calculated? A closing capital + drawings – opening capital B closing capital – drawings – opening capital C opening capital + drawings – closing capital D opening capital – drawings – closing capital 18. Which item appears on the debit side of a sales ledger control account? A discount received B dishonoured cheque from customer C provision for doubtful debts D sales returns 5.
19. Why is depreciation provided ? A to estimate the cost to the business of wear and tear B to set aside funds for future repairs to the asset C to show market values in the statement of financial position D to spread the cost of an asset over its useful life 20. A cash book shows a debit balance on the bank account of $1200. There are unpresented cheques totalling $420. Which balance appears on the bank statement? A $780 credit B $780 debit C $1620 credit D $1620 debit 21. Safir bought a machine for $10 000 and depreciated it at the rate of 30% per annum on the reducing balance basis. What was the net book value at the second year ? A $4000 B $4900 C $5100 D $6000 22. Albert maintains a provision for doubtful debts account. Where is the closing balance on the account included in the financial statements? A as an expense in the income statement B as a revenue in the income statement C in the current assets section of the statement of financial position D in the current liabilities section of the statement of financial position 23. Why is inventory valued at net realisable value when this is lower than cost? A to calculate the rate of inventory turnover B to ensure the balancing of the statement of financial position C to prevent profit being recorded before it is earned D to recognise losses as soon as they are incurred 6.
24. Carriage outwards $600 was posted as $400 to the debit side of the carriage inwards account. Which effect did the correction of this error have on the draft profit for the year? A decrease $200 B decrease $1000 C increase $200 D increase $1000 25. A bank statement showed a credit balance of $300 on 31 March. On that date unpresented cheques amounted to $120. What was the cash book balance on 31 March? A $180 credit B $180 debit C $420 credit D $420 debit 26. Peter bought a non current asset for $5000 and depreciated it at 10% per annum on the straight line basis. At the end of year 2 he sold it for $4100. What was the profit or loss on disposal? A $50 loss B $50 profit C $100 loss D $100 profit 27. A business maintains a provision for doubtful debts. Which two accounting principles are being applied? A accruals (matching) and prudence B business entity and duality C consistency and realisation D money measurement and going concern 28. After the preparation of the income statement for the year ended 31 December 2012 there was a debit balance brought down on the insurance account. What does this represent? A insurance accrued on 31 December 2012 B insurance paid during the year ended 31 December 2012 C insurance prepaid on 31 December 2012 D insurance relating to the year ended 31 December 2012 7.
29. On 1 January Omar had capital of $23000. During the year ended 31 December Omar introduced $2500 as extra capital and $1500 was paid by the business for building work to Omar's house. What was Omar's capital on 31 December? A $23000 B $24000 C $25500 D $27000 30. A trader has received a bank statement and brought his cash book up to date. Which item will be included in the trader’s bank reconciliation statement? A bank charges B bank interest C direct debits D unpresented cheques 31. What is the effect of providing for depreciation? A It increases profit. B It reduces profit. C It extends the life of non-current assets. D It increases the cash balance. 32. What are the sources of information for entries in control accounts? A bank statements B books of prime entry C ledger accounts D sales invoices 33. For which non-current assets is the revaluation method of depreciation most appropriate? A loose tools B motor vehicles C office equipment D plant and machinery 8.
34. A club was formed on 1 July 2019. During the year ended 30 June 2020 subscriptions received from members totalled $2500. This included $120 paid in advance for the next financial year. Subscriptions outstanding on 30 June 2020 amounted to $280. How much was recorded for subscriptions in the income and expenditure account for the year ended 30 June 2020? A $2100 B $2500 C $2660 D $2780 35. A sports club provided the following information: subscriptions received during the year $12 000 subscriptions owing at the start of the year $1 200 subscriptions owing at the end of the year $800 What was the amount of subscriptions shown in the income and expenditure account? A $11 600 B $12 400 C $12 800 D $13 200 9.
