Danho
ZIMSEC A Level · 9197/3 · J2010

Accounting Paper 3 June 2010

Questions
50
Total marks
100
Syllabus code
9197/3

Sit this paper online

Questions
50
Pass mark
30
Sit this paper

Answer every question in the printed order, get marked at the end, then see the answers.

The questions

Question 101

[2 marks]partnership final accounts and appropriation
A partnership paid railage of $9,600,000 during the year and a further $2,400,000 was still owing at the year end. One sixth of the railage cost was incurred in delivering goods to customers. Calculate the railage that is treated as carriage inwards and charged in the trading account.

Answer this when you sit the paper.

Question 102

[2 marks]partnership final accounts and appropriation
A partnership's opening stock was $33,000,000, its purchases were $45,000,000, air freight charges on those purchases were $6,000,000, carriage inwards was $10,000,000 and the closing stock was $63,000,000. Calculate the cost of sales for the year.

Answer this when you sit the paper.

Question 103

[1 marks]partnership final accounts and appropriation
A partnership's sales for the year were $135,000,000, its returns inwards were $3,000,000 and its cost of sales was $31,000,000. Calculate the gross profit for the year.

Answer this when you sit the paper.

Question 104

[1 marks]partnership final accounts and appropriation
A partnership's selling and distribution expenses per the trial balance are $10,800,000. Railage of $2,000,000 incurred in delivering goods to customers is also part of the selling and distribution expenses. What is the charge for selling and distribution for the year?
  1. A$10,800,000
  2. B$12,000,000
  3. C$12,800,000
  4. D$8,800,000

Question 105

[1 marks]partnership final accounts and appropriation
A partnership's establishment and administration expenses per the trial balance are $15,500,000. Included in that figure are rates of $1,100,000 which had been paid in advance at the year end. What is the charge for the year?
  1. A$13,300,000
  2. B$14,400,000
  3. C$15,500,000
  4. D$16,600,000

Question 106

[2 marks]partnership final accounts and appropriation
A partnership's debtors at the year end are $24,000,000 and the provision for doubtful debts already in the books is $900,000. A provision of 5% of debtors is to be maintained. Calculate the amount charged in the profit and loss account for the year.

Answer this when you sit the paper.

Question 107

[2 marks]partnership final accounts and appropriation
A partnership depreciates motor vehicles at 20% per annum on cost and furniture and fittings at 10% per annum on cost. The motor vehicles cost $36,000,000 and the furniture and fittings cost $21,000,000. Calculate the total depreciation charge for the year on these two classes of asset.

Answer this when you sit the paper.

Question 108

[3 marks]partnership final accounts and appropriation
A partnership's gross profit for the year is $101,000,000 and its discount received is $3,600,000. Its expenses for the year are discount allowed $4,800,000, establishment and administration $14,400,000, selling and distribution $12,800,000, depreciation of furniture and fittings $2,100,000, depreciation of motor vehicles $7,200,000, depreciation of freehold premises $1,200,000, and an increase in the provision for doubtful debts of $300,000. Calculate the net profit for the year.

Answer this when you sit the paper.

Question 109

[2 marks]partnership final accounts and appropriation
A partnership charges interest on drawings at 5% per annum. The three partners' drawings for the year were $21,600,000, $16,200,000 and $8,400,000. Calculate the total interest on drawings for the year.

Answer this when you sit the paper.

Question 110

[1 marks]partnership final accounts and appropriation
A partnership revalues its freehold premises and credits each partner with a share of the surplus, so that the capital accounts stand at $75,600,000, $60,400,000 and $42,200,000. Interest on capital is allowed at 10% per annum on those balances. Calculate the total interest on capital for the year.
  1. A$12,300,000
  2. B$17,820,000
  3. C$5,520,000
  4. D$1,782,000

Question 111

[3 marks]partnership final accounts and appropriation
A partnership's net profit for the year is $61,800,000. Interest on drawings of $2,310,000 and interest of $570,000 charged on a partner's debit current account balance are added to it. Interest on capital of $17,820,000 is allowed, interest of $2,880,000 is allowed on the partners' credit current account balances, and partnership salaries total $11,250,000. Calculate the residue of profit available for sharing between the partners.

Answer this when you sit the paper.

Question 112

[2 marks]partnership final accounts and appropriation
A partnership shares the residue of its profits one half, one third and one sixth. The agreement provides that if the third partner's share falls below $6,000,000 in any year, the first partner makes the difference up out of her own share. In a year in which the residue is $32,730,000, what must the first partner contribute?
  1. ANothing, because the third partner's share is $6,546,000
  2. B$1,000,000, being the shortfall on a share of $5,000,000
  3. C$545,000, being the shortfall on a share of $5,455,000
  4. DNothing, because the guarantee applies only in a year of loss

Question 113

[3 marks]partnership final accounts and appropriation
A partner's current account had a credit balance brought down of $15,600,000. During the year she was credited with interest on capital of $7,560,000, interest on her current account of $1,560,000, a salary of $3,000,000 and a share of profit of $15,820,000. Her drawings were $21,600,000 and interest on drawings of $1,080,000 was charged. Calculate the credit balance carried down on her current account.

Answer this when you sit the paper.

Question 114

[3 marks]partnership final accounts and appropriation
A partner's current account had a debit balance brought down of $5,700,000. He was credited with interest on capital of $4,220,000, a salary of $4,500,000 and a share of profit of $6,000,000. He was charged interest of $570,000 on his current account, drawings of $8,400,000 and interest on drawings of $420,000. What is the balance carried down on his current account?
  1. A$5,330,000 credit
  2. B$370,000 debit
  3. C$370,000 credit
  4. D$11,030,000 credit

Question 115

[2 marks]partnership final accounts and appropriation
A partnership's freehold premises cost $48,000,000. The provision for depreciation brought forward against them was $12,000,000, and the year's charge of $1,200,000 has been made. The premises are then revalued at $90,000,000. Calculate the surplus on revaluation to be credited to the partners' capital accounts.

Answer this when you sit the paper.

Question 201

[2 marks]correction of errors, suspense account and corrected trial balance
A creditor to whom $7,250,000 was owed was left out of the schedule of creditors, so only one side of the double entry is wrong. Which journal entry corrects this?
  1. ADebit creditors, credit suspense account
  2. BDebit purchases, credit creditors
  3. CDebit creditors, credit purchases
  4. DDebit suspense account, credit creditors

Question 202

[2 marks]correction of errors, suspense account and corrected trial balance
Discounts received of $1,000,000 were entered in the cash book but were never posted to the nominal ledger. Which journal entry corrects this?
  1. ADebit suspense account, credit discount received
  2. BDebit discount received, credit creditors
  3. CDebit discount received, credit suspense account
  4. DDebit creditors, credit discount received

Question 203

[2 marks]correction of errors, suspense account and corrected trial balance
A cheque for $700,000 received from a debtor was never entered in the cash book, although the customer's account had been correctly credited. Which journal entry corrects this?
  1. ADebit bank, credit debtors
  2. BDebit debtors, credit bank
  3. CDebit suspense account, credit bank
  4. DDebit bank, credit suspense account

Question 204

[2 marks]correction of errors, suspense account and corrected trial balance
The purchases day book was overcast by $10,000,000 and the total was posted to the purchases account only. Which journal entry corrects this?
  1. ADebit purchases, credit creditors
  2. BDebit suspense account, credit purchases
  3. CDebit purchases, credit suspense account
  4. DDebit creditors, credit purchases

Question 205

[2 marks]correction of errors, suspense account and corrected trial balance
A firm's bank balance per its own books is $40,000,000. A cheque for $700,000 received from a debtor was never entered in the cash book, and wages of $5,000,000 paid by cheque were never entered in the cash book either. Calculate the corrected bank balance.

Answer this when you sit the paper.

Question 206

[2 marks]correction of errors, suspense account and corrected trial balance
A firm's creditors per its books total $20,000,000. A creditor to whom $7,250,000 is owed was left out of the schedule of creditors. Calculate the corrected figure for creditors.

Answer this when you sit the paper.

Question 207

[2 marks]correction of errors, suspense account and corrected trial balance
A firm's discount received account shows $3,000,000 for the year. Discounts received of $1,000,000 were entered in the cash book but never posted to that account. Calculate the corrected figure for discount received.

Answer this when you sit the paper.

Question 208

[2 marks]correction of errors, suspense account and corrected trial balance
A firm's purchases account shows $60,000,000 for the year. The purchases day book had been overcast by $10,000,000, and that overcast total was posted to the purchases account. Calculate the corrected figure for purchases.

Answer this when you sit the paper.

Question 209

[2 marks]correction of errors, suspense account and corrected trial balance
Which of these balances belongs on the debit side of a trial balance?
  1. AProvision for doubtful debts
  2. BCapital
  3. CDrawings
  4. DDiscount received

Question 210

[2 marks]correction of errors, suspense account and corrected trial balance
An accounts clerk lists the closing stock among the balances in a trial balance. Why is that wrong?
  1. AClosing stock should be listed at its selling price in a trial balance, not at cost
  2. BIt is not a ledger balance at that date; it is brought in by a year end adjustment
  3. CClosing stock is a ledger balance but it belongs in the profit and loss account only
  4. DClosing stock belongs on the debit side of the trial balance and he has entered it as a credit

Question 211

[2 marks]correction of errors, suspense account and corrected trial balance
When is a suspense account opened?
  1. AAt the end of every year, to hold the balances that are carried forward
  2. BWhen the trial balance totals do not agree, to hold the difference
  3. CWhen the cash book balance does not agree with the bank statement balance
  4. DWhen a business cannot decide which ledger account an item belongs to

Question 212

[2 marks]correction of errors, suspense account and corrected trial balance
Which of these errors would leave the totals of a trial balance still in agreement?
  1. AA discount received entered in the cash book but not posted at all
  2. BThe purchases day book overcast by $1,000,000
  3. CA purchase of a machine debited to the purchases account
  4. DA cheque received from a debtor omitted from the cash book

Question 213

[3 marks]correction of errors, suspense account and corrected trial balance
Wages of $5,000,000 were correctly posted to the wages account in the nominal ledger but were never entered in the cash book. What is the effect of correcting this error?
  1. AWages expense rises by $5,000,000 and suspense is credited with the same amount
  2. BBank balance falls by $5,000,000 and the wages expense falls by the same amount
  3. CWages expense rises by $5,000,000 and the bank balance falls by the same amount
  4. DBank balance falls by $5,000,000 and suspense is debited; wages are unchanged

Question 301

[1 marks]stock valuation from a count taken after the year end
A firm's sales between its year end and a later stock count were $7,800,000. The firm makes a gross profit of 30% on cost. Calculate the cost of those goods.
  1. A$6,000,000
  2. B$7,800,000
  3. C$10,140,000
  4. D$1,800,000

Question 302

[1 marks]stock valuation from a count taken after the year end
Goods returned by customers between a firm's year end and a later stock count had been sold for $1,950,000. The firm makes a gross profit of 30% on cost. Calculate the cost of the returned goods.

Answer this when you sit the paper.

Question 303

[2 marks]stock valuation from a count taken after the year end
A stock count taken on 10 October found stock of $38,900,000. Between 1 and 10 October the cost of goods sold was $6,000,000, the cost of goods returned by customers was $1,500,000 and purchases received were $4,000,000. Calculate the stock at the year end of 30 September, before correcting the count itself.

Answer this when you sit the paper.

Question 304

[3 marks]stock valuation from a count taken after the year end
A firm's stock includes goods which had cost $1,200,000. They can now be sold only at half the normal retail price, and only after restoration work costing $200,000. The firm makes a gross profit of 30% on cost. Calculate the amount by which these goods must be written down.

Answer this when you sit the paper.

Question 305

[1 marks]stock valuation from a count taken after the year end
When a firm's stock sheets were added up, one sheet had been over-added by $800,000 and another had been under-added by $560,000. Calculate the net amount by which the stock total must be reduced.

Answer this when you sit the paper.

Question 306

[2 marks]stock valuation from a count taken after the year end
Goods costing $400,000, which a firm had sent out to a customer on a sale or return basis, were included in the firm's stock at their selling price. The firm makes a gross profit of 30% on cost. Calculate the amount by which the stock total must be reduced.

Answer this when you sit the paper.

Question 307

[2 marks]stock valuation from a count taken after the year end
A firm's stock includes goods received from a supplier on a sale or return basis, valued at the $600,000 that would be payable if they were kept. No decision to keep them has been made. How should the stock total be adjusted?
  1. AReduce it by $600,000, since the goods are not yet the firm's stock
  2. BReduce it by $600,000 and record a purchase of the same amount
  3. CLeave it unchanged, since the goods are on the firm's premises
  4. DReduce it to the cost of the goods to the supplier rather than $600,000

Question 308

[1 marks]stock valuation from a count taken after the year end
A stock sheet totalling $128,000 was carried to the summary sheet as $182,000. Calculate the amount by which the stock total must be reduced.

Answer this when you sit the paper.

Question 309

[3 marks]stock valuation from a count taken after the year end
A firm's stock at 30 September, before correcting the count itself, is $39,400,000. These reductions are then needed: a write down of damaged goods $620,000, a net over-addition of the stock sheets $240,000, goods sent out on sale or return included at selling price instead of cost $120,000, goods held on sale or return from a supplier $600,000, and a sheet carried to the summary at $54,000 more than its true total. Calculate the value of stock at cost at 30 September.

Answer this when you sit the paper.

Question 310

[2 marks]stock valuation from a count taken after the year end
What is a real advantage of a computerised stock control system over a manual one?
  1. AIt is cheaper to install and to maintain than a set of manual stock records
  2. BIt removes any need to count the stock physically at any point during the year
  3. CIt guarantees that the figures are right whatever is keyed into the system
  4. DRecords update as goods move, so reorder decisions use today's figures

Question 311

[2 marks]stock valuation from a count taken after the year end
What is a real disadvantage of a computerised stock control system?
  1. AIt cannot value stock on a first in first out or weighted average basis
  2. BWrong or missing input produces confident figures that are still wrong
  3. CIt cannot produce a stock figure between one physical count and the next
  4. DIt cannot restrict access to the stock records to authorised staff only

Question 401

[1 marks]cost-volume-profit and break-even analysis
A product sells for $168 per unit. Its direct materials cost $30 per unit, direct labour $45, variable production overheads $25 and direct selling expenses $20. Calculate the contribution per unit.

Answer this when you sit the paper.

Question 402

[2 marks]cost-volume-profit and break-even analysis
A product earns a contribution of $48 per unit and the fixed costs of making it are $288,000 per annum. Calculate the break-even point in units.

Answer this when you sit the paper.

Question 403

[2 marks]cost-volume-profit and break-even analysis
A product sells for $168 per unit and its break-even point is 6,000 units per annum. Calculate the break-even point in sales revenue.
  1. A$2,184,000
  2. B$288,000
  3. C$720,000
  4. D$1,008,000

Question 404

[2 marks]cost-volume-profit and break-even analysis
A product sells for $168 per unit and its variable costs are $120 per unit. Calculate the contribution to sales ratio.
  1. A28.57%
  2. B40.00%
  3. C71.43%
  4. D140.00%

Question 405

[2 marks]cost-volume-profit and break-even analysis
A product earns a contribution of $48 per unit and the fixed costs of making it are $288,000 per annum. Calculate the profit if 13,000 units are made and sold in a year.

Answer this when you sit the paper.

Question 406

[3 marks]cost-volume-profit and break-even analysis
A firm budgets to sell 13,000 units a year and its break-even point is 6,000 units. Calculate the margin of safety as a percentage of budgeted sales.
  1. A46.15%
  2. B53.85%
  3. C116.67%
  4. D216.67%

Question 407

[3 marks]cost-volume-profit and break-even analysis
A product's variable costs are $120 per unit and the fixed costs of making it are $288,000 per annum. A firm makes and sells 13,000 units a year and wants a profit of $1,402,000. Calculate the selling price per unit it needs to charge.

Answer this when you sit the paper.

Question 408

[2 marks]cost-volume-profit and break-even analysis
A product's selling price is to rise from $168 per unit to $250 per unit. Calculate the percentage increase in the selling price, correct to two decimal places.

Answer this when you sit the paper.

Question 409

[2 marks]cost-volume-profit and break-even analysis
Which of these is an assumption underlying break-even analysis?
  1. AFixed costs rise in direct proportion to the level of activity
  2. BProduction volume is always greater than the volume that is sold
  3. CThe selling price per unit stays the same at every level of activity
  4. DThe variable cost per unit falls steadily as the level of activity increases

Question 410

[2 marks]cost-volume-profit and break-even analysis
In break-even analysis, how are total fixed costs assumed to behave as output changes?
  1. AThey stay constant in total over the relevant range
  2. BThey vary with the selling price rather than with the output
  3. CThey rise in direct proportion to the number of units produced
  4. DThey fall per unit and in total as more units are produced

Question 411

[2 marks]cost-volume-profit and break-even analysis
A firm's annual fixed costs rise while its selling price and its variable cost per unit stay the same. What happens to the break-even point in units?
  1. AIt rises or falls according to the number of units actually sold
  2. BIt rises, since more contribution is needed to cover the fixed costs
  3. CIt falls, because the contribution per unit is unchanged
  4. DIt stays the same, because the contribution per unit is unchanged

More sittings of this paper

The answers, and why they are the answers

Sit the paper here to see which ones you got right. Danho explains every question, keeps your score, and works without a connection.

Get it on Google PlayDownload on the App Store