Principles of Accounting Paper 1 June 2012

D. Mwase runs a retail business with two departments, Furniture and Electrical. For the year ended 31 December 2010, Furniture department sales were $706 000 and cost of sales $376 000; Electrical department sales (net of returns inwards) were $889 000 and cost of sales $534 000. What was the gross profit of the Electrical department?

D. Mwase's combined Profit and Loss Account for the year ended 31 December 2010 showed a gross profit of $685 000, income (discount received and decrease in provision for bad debts) of $9 380, and total expenses of $485 740. What was the net profit for the year?

In S. Tawana's Balance Sheet (Statement of Financial Position) as at 31 December 2010, under which heading would the credit balance on the Rent Received Account be shown?

B. Wiseman's original net profit for the half year ended 30 June 2010 was $5 500, before correcting five errors discovered after a Suspense Account was opened. After correcting for an undercast of $200 in the Purchases Day Book, private rent of $100 wrongly debited to the Rent Account, and Returns Outwards understated by $150 (with$40 of discount errors netting to zero effect on profit), what was the corrected net profit?

In accounting, when a transaction is completely omitted from the books, or is entered on both the correct side of the correct accounts but with the wrong amount on both sides, so that the trial balance still balances, the error is known as an error of what?

What is the name of the statement drawn up to reconcile the balance shown in the cash book with the balance shown on the bank statement?

J.B Khumalo Ltd has 200 000 8% Preference shares of $1 each, fully paid. The directors recommended a full year's preference dividend be paid for the year ended 31 December 2010. What was the total preference dividend for the year?

Kuwirirana Social Club's Receipts and Payments Account for the year ended 31 December 2010 showed subscriptions received $3 000 and donations $10 500; $1 900 of subscriptions was still owing at year end and there was no subscription owing at the start of the year. What subscription income should be reported in the Income and Expenditure Account for the year?

G. Ngulube's Sales Ledger (debtors) Control Account for August 2010 opened with a debit balance of $5 600 and recorded credit sales of $40 000, dishonoured cheques of $2 500 and interest charged of $130 on the debit side; the credit side recorded returns inwards $100, discount allowed $400, contra settlements $2 300, bad debts $800 and cheques/cash received from debtors $37 000, leaving a $70 credit balance carried down. What was the debit balance carried down on the Sales Ledger Control Account at 31 August 2010?