Practice TEST Paper Bookkeeping PDF

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Bookeeping...

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How to prepare for bookkeeping test 1. 2. 3. 4.

Be prepared for the short period of time (one hour) and watch your time on each question Revise on the URL http://ameelearning.com to continue accessing the course. Use only the time permitted for each question: there are four questions of varying length All versions of the test include some multichoice and presentation of a formal set of statements 5. Other topics testing your skill in double entry could be adjusting entries, doing a set of adjusting and closing entries for a short period to demonstrate business bookkeeping competency, testing your knowledge of GAAP principles etc. as per AME learning chapters one to six

SAMPLE TEST PAPER PART I: Multiple Choice Write in your book the best answer 1.

On January 1, Sam prepaid $1,200 towards insurance for one year. After half a year, he cancelled the insurance policy and received a refund for the remaining balance. By how much did Sam’s net worth change from January to June? (a) (b) (c) (d)

Net worth decreased by $1,200 Net worth increased by $600 Net worth decreased by $600 Net worth did not change (1 mark)

2.

Examples of assets include: (a) (b) (c) (d)

cash, prepaid expenses, unearned revenue cash, accounts receivable, salaries expense cash, accounts receivable, unearned revenue, revenue cash, accounts receivable, office supplies (1 mark)

3.

A typical accounting adjustment could be: (a) (b) (c) (d)

recognizing earned revenue recognizing depreciation recognizing prepaid expenses all of the choices (1 mark)

4.

The chart of accounts: (a) (b) (c) (d)

lists the accounts being used by a business and includes their account numbers lists only the balance sheet accounts lists only the income statement accounts is a standard listing of accounts that is used by all businesses (1 mark)

MMPA 501

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5.

Owner’s Drawings: (a) (b) (c) (d)

is recorded on the income statement has no effect on Owner’s Equity increases Owner’s Equity decreases Owner’s Equity (1 mark) [TOTAL OF 5 MARKS] 7.5 minutes

PART II: Worksheet – Adjusting & Closing Below is Gidu Services’ unadjusted and adjusted trial balance at the end of December 2012. Gidu Services Worksheet December 31, 2012 Adjusted Trial Unadjusted Trial Adjustments Balance Balance Account Titles DR CR DR CR DR CR Cash $1,500 $1,500 Accounts Receivable 3,000 3,000 Prepaid Insurance 1,800 450 1,350 Office Supplies 800 560 240 Property, Plant & Equipment 6,000 6,000 Accumulated Depreciation $0 1,500 $1,500 Accounts Payable 4,000 4,000 Unearned Revenue 1,000 600 400 Bank Loan 2,500 2,500 Capital Account 2,850 2,850 Owner’s Drawings 1,200 1,200 Service Revenue 8,000 600 8,600 Depreciation Expense 0 1,500 1,500 Insurance Expense 0 450 450 Maintenance Expense 900 900 Supplies Expense 0 560 560 Rent Expense 1,900 1,900 Salaries Expense 150 150 Telephone Expense 700 700 Travel Expense 400 400 $18,350 $18,350 $3,110 $3,110 $19,850 $19,850 Total

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Required: Using the income summary for the year end, journalise: (a) the adjusting entries (b) the closing entries. Note: Ignore any consumption taxes such as NZ GST or UK VAT. [18 MARKS] 27 minutes

PART III: Formal Financial Statements Shown below is Zaroova Company financial accounting information for the year ended June 30, 2014. Assume no additional owner’s investments occurred during the year.

Cash Accounts Receivable Prepaid Insurance Property, Plant & Equipment Accounts Payable Unearned Revenue Bank Loan Capital Account Owner’s Drawings Service Revenue Insurance Expense Maintenance Expense Rent Expense Professional Fees Expense Salaries Expense Telephone Expense Travel Expense Depreciation Expense

DR $1,500 3,000 2,000 6,000

CR

$3,000 2,000 1,500 2,450 1,200 10,000 500 400 900 300 1,900 150 700 400

Required: Using this information, prepare the Income Statement, Statement of Owners’ Equity and then the Balance Sheet as at June 30, 2014. [12 MARKS] 18 minutes

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PART IV: Bank Balance and Net Worth Complete the following transactions by marking an X in the appropriate columns (an example has been provided). Bank Balance Transaction Pay miscellaneous expenses

Increase Decrease

Net Worth No Increase Decrease Change

X

No Change

X

(1) Sell jewellery for cash (sold at book value) (2) Received the phone bill, due next month (3) Prepay a magazine subscription for a year (4) Secure a student loan (5) Receive cash from a part-time job

[5 MARKS] 7.5 minutes

This sort of Table format is only useful for practice – would not be used in an exam

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