34Theta prepares its financial statements for the year to 30 April eachyear. The company pays rent for its premises quarterly in advance on 1January, 1 April, 1 July and 1 October each year. The annual rent was$84,000 per year until 30 June 2005. It was increased from that date to$96,000 per year.
What rent expense and end of year prepayment should be included in the financial statements for the year ended 30 April 2006?
         Expense       Prepayment
A       $93,000          $8,000
B       $93,000         $16,000
C       $94,000          $8,000
D       $94,000         $16,000
(2 marks)
35 Which of the following items could appear in a company’s cash flow statement?
(1) Surplus on revaluation of non-current assets
(2) Proceeds of issue of shares
(3) Proposed dividend
(4) Dividends received
A 1 and 2
B 3 and 4
C 1 and 3
D 2 and 4
(2 marks)
36 What is the role of the International Financial Reporting Interpretations Committee?
A To create a set of global accounting standards
B To issue guidance on the application of International Financial Reporting Standards
(1 mark)

37 Q’strial balance failed to agree and a suspense account was opened for thedifference. Q does not keep receivables and payables control accounts.The following errors were found in Q’s accounting records:
(1) Inrecording an issue of shares at par, cash received of $333,000 wascredited to the ordinary share capital account as $330,000
(2) Cash $2,800 paid for plant repairs was correctly accounted for in the cash book but was credited to the plant asset account
(3) The petty cash book balance $500 had been omitted from the trial balance
(4) A cheque for $78,400 paid for the purchase of a motor car was debited to the motor vehicles account as $87,400.
Which of the errors will require an entry to the suspense account to correct them?
A 1, 2 and 4 only
B 1, 2, 3 and 4
C 1 and 4 only
D 2 and 3 only
(2 marks)
38Mountain sells goods on credit to Hill. Hill receives a 10% tradediscount from Mountain and a further 5% settlement discount if goods arepaid for within 14 days. Hill bought goods with a list price of$200,000 from Mountain. Sales tax is at 17.5%.
What amount should be included in Mountain’s receivables ledger for this transaction?
A $235,000
B $211,500
C $200,925
D $209,925
(2 marks)
39 A computerised accounting system operates using the principle of double entry accounting.
Is this statement true or false?
A False
B True
(1 mark)

40 A company receives rent from a large number of properties. The total received in the year ended 30 April 2006 was $481,200.
The following were the amounts of rent in advance and in arrears at 30 April 2005 and 2006:
                                                          30 April 2005      30 April 2006
                                                                    $                       $
Rent received in advance                             28,700               31,200
Rent in arrears (all subsequently received)    21,200               18,400
What amount of rental income should appear in the company’s income statement for the year ended 30 April 2006?
A $486,500
B $460,900
C $501,500
D $475,900
(2 marks)
41Annie is a sole trader who does not keep full accounting records. Thefollowing details relate to her transactions with credit customers andsuppliers for the year ended 30 June 2006:
                                                                                              $
Trade receivables, 1 July 2005                                   130,000
Trade payables, 1 July 2005                                        60,000
Cash received from customers                                    686,400
Cash paid to suppliers                                               302,800
Discounts allowed                                                        1,400
Discounts received                                                       2,960
Contra between payables and receivables ledgers            2,000
Trade receivables, 30 June 2006                                181,000
Trade payables, 30 June 2006                                    84,000
What figure should appear in Annie’s income statement for the year ended 30 June 2006 for purchases?
A $331,760
B $740,800
C $283,760
D $330,200
(2 marks)
42 The bookkeeper of Field made the following mistakes:
Discounts allowed $3,840 was credited to the discounts received account
Discounts received $2,960 was debited to the discounts allowed account
Which journal entry will correct the errors?
                                       DR               CR
A Discounts allowed         $7,680
Discounts received                               $5,920
Suspense account                                $1,760
B Discounts allowed          $880
Discounts received            $880
Suspense account                                $1,760
C Discounts allowed         $6,800
Discounts received                               $6,800
D Discounts allowed         $3,840
Discounts received                               $2,960
Suspense account                                  $880
(2 marks)

)
43 Which of the following statements are correct?
(1) Materiality means that only items having a physical existence may be recognised as assets.
(2)The substance over form convention means that the legal form of atransaction must always be shown in financial statements even if thisdiffers from the commercial effect.
(3) The money measurement conceptis that only items capable of being measured in monetary terms can berecognised in financial statements.
A 2 only
B 1, 2 and 3
C 1 only
D 3 only
(2 marks)
44The total of the list of balances in Valley’s payables ledger was$438,900 at 30 June 2006. This balance did not agree with Valley’spayables ledger control account balance. The following errors werediscovered:
1 A contra entry of $980 was recorded in the payables ledger control account, but not in the payables ledger.
2 The total of the purchase returns daybook was undercast by $1,000.
3 An invoice for $4,344 was posted to the supplier’s account as $4,434.
What amount should Valley report in its balance sheet as accounts payable at 30 June 2006?
A $436,830
B $438,010
C $439,790
D $437,830
(2 marks)
45 Which of the following statements are correct?
(1)A cash flow statement prepared using the direct method produces adifferent figure for operating cash flow from that produced if theindirect method is used.
(2) Rights issues of shares do not feature in cash flow statements.
(3) A surplus on revaluation of a non-current asset will not appear as an item in a cash flow statement
(4)A profit on the sale of a non-current asset will appear as an itemunder Cash Flows from Investing Activities in a cash flow statement.
A 1 and 4
B 2 and 3
C 3 only
D 2 and 4
(2 marks)

46Gareth, a sales tax registered trader purchased a computer for use inhis business. The invoice for the computer showed the following costsrelated to the purchase:
                                                     $
Computer                                     890
Additional memory                         95
Delivery                                         10
Installation                                     20
Maintenance (1 year)                       25
                                                 1,040
Sales tax (17.5%)                          182
Total                                          1,222
How much should Gareth capitalise as a non-current asset in relation to the purchase?
A $1,222
B $1,040
C $890
D $1,015
(2 marks)
47 Aand B are in partnership sharing profits and losses in the ratio 3:2respectively. Profit for the year was $86,500. The partners’ capital andcurrent account balances at the beginning of the year were as follows:
                                       A                 B
                                       $                 $
Current accounts          5,750CR      1,200CR
Capital accounts          10,000CR      8,000CR
A’s drawings during the year were $4,300, and B’s were $2,430.
What should A’s current account balance be at the end of the year?
A $57,650
B $51,900
C $61,950
D $53,350
(2 marks)

48 What is the correct double entry to record the depreciation charge for a period?
A      DR Depreciation expense
             CR Accumulated depreciation
B      DR Accumulated depreciation
             CR Depreciation expense
(1 mark)
49A company values its inventory using the first in, first out (FIFO)method. At 1 May 2005 the company had 700 engines in inventory, valuedat $190 each.
During the year ended 30 April 2006 the following transactions took place:
2005
1 July              Purchased        500 engines      at $220 each
1 November     Sold                400 engines      for $160,000
2006
1 February       Purchased        300 engines      at $230 each
15 April           Sold                250 engines      for $125,000
What is the value of the company’s closing inventory of engines at 30 April 2006?
A $188,500
B $195,500
C $166,000
D $106,000
(2 marks)

50 A company’s motor vehicles at cost account at 30 June 2006 is as follows:

图片：1.jpg

What opening balance should be included in the following period’s trial balance for motor vehicles – cost at 1 July 2006?
A $36,750 DR
B $48,750 DR
C $36,750 CR
D $48,750 CR
(2 marks)
 

11 D

图片：1.jpg

12 B 1,000,000/40years = 25,000; 1,000,000 – (800,000 – (800,000*2%*10years)) = 360,000
13 B ((300,000 + 30,000) / 2 * ½ ) + (300,000 + 30,000) / 2 * 1/3) – (30,000 * ½ ) = 122,500
14 A
15 D
16 B
17 B
18 C
19 B
20 A

21 D
22 D (240,000*20%) + (6/12*160,000*20%) – (9/12*60,000*20%) = 55,000
23 C
24 A
25 D (318,000 + 412,000 – 214,000) – (612,000*75%) = 57,000
26 B 125,000 + (500,000*1/2*25c) + (750,000*1/5*25c) = 225,000; 100,000 + (500,000*1/2*75c) –
(750,000*1/5*25c) = 250,000
27 A 836,200 – 8,600 + (14,000*70%) + 700 = 838,100
28 B
29 B 12,000 + (12,000*2%) + (9,000*8/12) + 4,000 = 22,240
30 B