BA3 Mid Mock (Mock 1)

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Nov 24, 2024

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BA3 – Mid Mock (Mock Exam 01) – Mallik De Silva 1 Mid Mock (Mock Exam 01) Accounting Equation Question 01 Which of the following statements gives the best definition of the objective of accounting? A To provide useful information to users B To record, categorise and summarise financial transactions C To calculate the taxation due to the government D To calculate the amount of dividend to pay to the shareholders Question 02 Drag and drop the following elements into the boxes below to correctly state the accounting equation. • Assets • Equity • Liabilities = + Question 03 Calculate the capital balance of Alan from the following information. $ Receivables 10,000 Motor vehicles 20,000 Payables 3,000 Fixtures 6,000 Stock of goods 9,400 Cash at bank (OD) 4,000 Question 04 Robin has an opening capital balance of $400,000 on 1 st January 2016. During the year there was an decrease in assets of $30,000 and a decrease in liabilities of $10,000. What is the capital as at 31 December 2016?

BA3 – Mid Mock (Mock Exam 01) – Mallik De Silva 2 Principles of Double Entry Question 05 Recording the capital introduced by the owner of a business will: Select the correct option A. Increase cash balance and reduce liabilities B. Increase assets and increase owners’ capital C. Increase liabilities and increase o wners’ capital D. Increase cash balance and increase assets Data for Questions 6 & 7 Bank Account B/D 1,000 Sales 8,000 Salaries 2,000 Advertising 1,000 Electricity 3,000 Question 06 What’s the closing balance in the bank account? $ Dr Cr Question 07 What ’ s the movement in the account balance? $ Dr Cr

BA3 – Mid Mock (Mock Exam 01) – Mallik De Silva 3 Question 08 State whether each of the following statements are true or false True False A debit balance will increase income A debit balance will decrease liabilities A debit balance will increase assets Question 09 On 1 January, ABC had a customer, JKL, who owed $400. During January, JKL, bought goods for $700 from ABC and returned goods valued at $250. JKL also paid $ 320 cash to ABC. Drag and drop words from the list available to compete the following statements: At 31 January ABC ’s ledger accounts included a balance for JKL of $ . This represents to ABC. Available words: debit/credit/an asset/ a liability/230/530/1170 Petty Cash Book Question 10 Which of the following best explains the imprest system of petty cash? A. Each month an equal amount of cash is transferred into petty cash B. The exact amount of petty cash expenditure is reimbursed at intervals to maintain a fixed float C. Petty cash must be kept under lock and key D. The petty cash total must never fall below the imprest amount Question 11 The petty-cash imprest is restored to $300 at the end of each week, The following amounts were paid out of petty cash during week 23: What is the amount required to restore the imprest to $300? $ …………………… ..

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BA3 – Mid Mock (Mock Exam 01) – Mallik De Silva 4 Financial Statements Question 12 The following data is available from Robin’s business for 2011. $ Sales 200,000 Sales Returns 10,000 Purchases 40,000 Purchase Returns 5,000 Gross Profit 150,000 Opening Stock 10,000 What ’s the value of the closing stock? Question 13 An entity had a gross profit for the year of $4,300, and also had the following items included in its trial balance at the end of the year: • Rent paid $1,000 • Interest paid $300 • Rent received $200 What was the entity ’s net p rofit for the year? A. $3,000 profit B. $3,200 profit C. $5,600 profit D. $5,800 profit Question 14 Where is a discount allowed recognised? A Trading account B Statement of profit or loss C Trial balance D Statement of financial position

BA3 – Mid Mock (Mock Exam 01) – Mallik De Silva 5 Accruals and Prepayments Data for Question 15 & 16 NOP commenced business on 1 May 2010 and is charged rent at the rate of $24,000 per annum. During the period to 31 December 2010 he actually paid $13,800. Question 15 What should his charge in the statement of profit or loss be in respect of rent? Question 16 Prepare the relevant year end journal entry for the Accrual / Prepayment. Question 17 At 30 June 2000, an electricity ledger account had an accrual of $300 and a credit balance was brought down at 1 July 2000. During the financial year, electricity invoices totaling $4,000 were paid, including an invoice for $600 for the quarter ended 31 May 2001. What is the profit and loss account charge for electricity payable for the year ended 30 June 2001? A. $3,700 B. $3,900 C. $4,000 D. $4,100 Non Current Assets and Depreciation Question 18 Which of the following statements explains what is meant by capital expenditure? A Expenditure on non-current assets, including repairs and maintenance B Expenditure on any type of asset C Expenditure relating to amounts withdrawn from the business entity D Expenditure relating to the acquisition or improvement of non-current assets

BA3 – Mid Mock (Mock Exam 01) – Mallik De Silva 6 Question 19 Tick the correct boxes in the table below to show whether the following non-current assets would be recognised as tangible or intangible non-current assets. Question 20 Drag and drop the correct options from the list below into the appropriate method of depreciation to fit the asset type. Straight-line depreciation Reducing-balance depreciation A. Useful for assets which provide equal benefit each year e.g. machinery. B. Useful for assets which provide more benefit in earlier years, e.g. cars, IT equipment. Question 21 N plc purchased a machine for $15,000. The transportation costs were $1,500 and installation costs were $750. Staff training cost was $1,000. The machine broke down at the end of the first month in use and cost $400 to repair. N plc depreciates machinery at 10% each year on cost, assuming no residual value. What is the net book value of the machine after one year, to the nearest dollar? A $13,500 B $14,850 C $15,525 D $16,425

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BA3 – Mid Mock (Mock Exam 01) – Mallik De Silva 7 Bad Debts and Allowance for Receivables Question 22 Drag and drop words from the available list to complete the following two statements regarding irrecoverable debts and allowance for receivable. would be recognised when information comes to light to suggest that a customer is unwilling or unable to pay their debt in full, or even at all would be recognised when there is some doubt as to whether some of the entity's receivables may fail to pay their debts in full. Available words: An irrecoverable debt/An allowance for receivables Question 23 At 31 December 2018 ABC had a receivables balance of $50,000 and an allowance for receivables of $5,000. Following a review of receivables, ABC wishes to write off an irrecoverable debt of $10,000 and adjust his allowance to $20% What will be the charge to the statement of profit or loss for the year ended 31 December 2018? Working Capital Question 24 From the following data you are required to calculate the working capital of X Ltd. $ Inventory 60,000 Trade Receivables 40,000 Bank & Cash 20,000 Trade Payables 10,000 Allowance for Receivables 8,000

BA3 – Mid Mock (Mock Exam 01) – Mallik De Silva 8 Question 25 If an entity had increase in receivables of $5,000, a decrease in the bank overdraft of $500, a decrease in payables of $2,000 and an increase in inventories of $4,000, what would be the change in working capital?: increase/decrease of $ Manufacturing Accounts Question 26 The cost of royalties paid on goods manufactured is included in: A factory overheads B selling and distribution expenses C prime cost D trading account Question 27 The following information relates to MLK as at 30 September: 2011 2010 $ $ Inventory of raw materials 75,000 45,000 Work in progress inventory 60,000 70,000 Inventory of finished goods 100,000 90,000 For the year ended 30th September 2011 Purchases of raw materials 150,000 Manufacturing wages 50,000 Factory overheads 40,000 Required: What was the prime cost of production in the manufacturing account the year ended 30 September 2011? $ ………………………………

BA3 – Mid Mock (Mock Exam 01) – Mallik De Silva 9 Question 28 The following information related to Q plc for the year ended 28 February 2003: $ Prime cost 122,000 Factory overheads 185,000 Opening work-in-progress at 1 March 2002 40,000 Factory cost of goods completed 300,000 The closing work-in-progress at 28 February 2003 was A $33,000 B $40,000 C $47,000 D $54,000 Salaries & Wages Data for Q29 – 30 $ Gross Salary 40,000 Employer’s NI 4,000 Employees NI 6,000 PAYE Tax 5,000 Question 29 What is the wages expense? Question 30 What is the net salary?

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