111 Accounting A Level Paper 1 MCQs Topical Worked Solutions

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1.1 CALCULATION OF ADJUSTED CASH BOOK BALANCE 12
1.1 ANSWERS SECTION 15
1.2 CALCULATION OF BANK STATEMENT BALANCE 17
1.2 ANSWERS SECTION 18
1.3 CALCULATION OF OTHER INCREASING ITEM 19
1.3 ANSWERS SECTION 20
1.4 MULTIPLE TOPICS 21
1.4 ANSWERS SECTION 22
2.1 DEPRECATION THEORY 24
2.1 ANSWERS SECTION 27
2.2 STRAIGHT LINE METHOD 28
2.2 ANSWERS SECTION 30
2.3 REDUCING BALANCE METHOD 31
2.3 ANSWERS SECTION 32
2.4 DEPOSIT OF ASSETS 33
2.4 ANSWERS SECTION 37
2.5 REVALUATION METHOD 41
2.5 ANSWERS SECTION 42
2.6 MULTIPLE TOPICS 43
2.6 ANSWERS SECTION 46
3.1 BAD DEBTS & BAD DEBTS RECOVERY 50
3.1 ANSWERS SECTION 51
3.2 PROVISION FOR DOUBTFUL DEBTS 52
3.2 ANSWERS SECTION 55
3.3 BAD & DOUBTFUL DEBTS 57
3.3 ANSWERS SECTION 60
3.4 MULTIPLE TOPICS 63
3.4 ANSWERS SECTION 64
4.1 FIST IN FIST OUT (FIFO) 66
4.1 ANSWERS SECTION 69
4.2 AVERAGE COST METHOD (AVCO) 71
4.2 ANSWERS SECTION 74
4.3 LOWER OF COST AND NET REALISABLE VALUE 76
4.3 ANSWERS SECTION 79
4.4 MULTIPLE TOPICS 81
4.4 ANSWERS SECTION 82
5.1 DOUBLE ENTRY 84
5.1 ANSWERS SECTION 86
5.2 PREPAYMENT AND ACCRUALS 87
5.2 ANSWERS SECTION 89
5.3 INCOME STATEMENTS 90
5.3 ANSWERS SECTION 93
5.4 STATEMENT OF FINANCIAL POSITION 95
5.4 ANSWERS SECTION 99
5.5 MULTIPLE TOPICS 101
5.5 ANSWERS SECTION 102
6.1 ENTITY AND CONSISTENCY 104
6.1 ANSWERS SECTION 105
6.2 PRUDENCE AND MATERIALITY 106
6.2 ANSWERS SECTION 107
6.3 MATCHING AND ACCRUAL 108
6.3 ANSWERS SECTION 109
6.4 SUBSTANCE OVER FORM AND MONEY MEASUREMENT 110
6.4 ANSWERS SECTION 111
6.5 GOING CONCERN & HISTORICAL CONCEPT 112
6.5 ANSWERS SECTION 113
6.6 MULTIPLE TOPICS 114
6.6 ANSWERS SECTION 118
7.1 CAPITAL EXPENDITURES 120
7.1 ANSWERS SECTION 122
7.2 REVENUE EXPENDITURES 123
7.2 ANSWERS SECTION 124
7.3 CAPITAL AND REVENUE RECEIPT 125
7.3 ANSWERS SECTION 126
7.4 MULTIPLE TOPICS 127
7.4 ANSWERS SECTION 128
8.1 ERRORS NOT AFFECTING AGREEMENT OF TRIAL BALANCE 130
8.1 ANSWERS SECTION 131
8.2 ERRORS AFFECTING AGREEMENT OF TRIAL BALANCE 132
8.2 ANSWERS SECTION 134
8.3 MISTAKES IN TRIAL BALANCE 135
8.3 ANSWERS SECTION 138
8.4 SUSPENSE ACCOUNT 139
8.4 ANSWERS SECTION 142
8.5 CALCULATION OF CORRECT PROFIT 144
8.5 ANSWERS SECTION 147
8.6 EFFECTS OF ERROR ON PROFIT 150
8.6 ANSWERS SECTION 152
8.7 MULTIPLE TOPICS 153
8.7 ANSWERS SECTION 154
9.1 SALES LEDGER CONTROL ACCOUNT 156
9.1 ANSWERS SECTION 159
9.2 PURCHASES LEDGER CONTROL ACCOUNT 161
9.2 ANSWERS SECTION 164
9.3 CORRECTIONS IN SALES LEDGER CONTROL ACCOUNTS 166
9.3 ANSWERS SECTION 169
9.4 CORRECTIONS IN PURCHASES LEDGER CONTROL ACCOUNTS 171
9.4 ANSWERS SECTION 173
9.5 CONTROL ACCOUNTS BALANCE FOR BALANCE SHEET 174
9.5 ANSWERS SECTION 175
9.6 BOOKS OF ORIGINAL ENTRY 176
9.6 ANSWERS SECTION 177
9.7 MULTIPLE TOPICS 178
9.7 ANSWERS SECTION 179
10.1 CALCULATIONS OF SALES 182
10.1 ANSWERS SECTION 183
10.2 CALCULATIONS OF PURCHASES 184
10.2 ANSWERS SECTION 185
10.3 MARK-UP AND MARGIN 186
10.3 ANSWERS SECTION 189
10.4 PREPAYMENTS & ACCRUALS 191
10.4 ANSWERS SECTION 195
10.5 CALCULATIONS OF PROFITS THROUGH BALANCE SHEET 198
10.5 ANSWERS SECTION 201
10.6 REVERSE CALCULATIONS OF INVENTORY 203
10.6 ANSWERS SECTION 204
10.7 CALCULATION OF INVENTORY LOSSES 205
10.7 ANSWERS SECTION 207
10.8 MULTIPLE TOPICS 209
10.8 ANSWERS SECTION 211
11.1 PARTNERSHIP INCOME STATEMENT & APPROPRIATION ACCOUNT 214
11.1 ANSWERS SECTION 219
11.2 PARTNERSHIP CURRENT AND CAPITAL ACCOUNT 223
11.2 ANSWERS SECTION 225
11.3 DOUBLE ENTRY IN PARTNERSHIP ACCOUNTING 226
11.3 ANSWERS SECTION 227
11.4 MULTIPLE TOPICS 228
11.4 ANSWERS SECTION 230
12.1 GOODWILL ADJUSTMENTS 232
12.1 ANSWERS SECTION 238
12.2 REVALUATION ADJUSTMENTS 242
12.2 ANSWERS SECTION 245
12.3 GOODWILL & REVALUATION COMBINED 247
12.3 ANSWERS SECTION 249
12.4 PARTNERSHIP DISSOLUTION 251
12.4 ANSWERS SECTION 252
12.5 MULTIPLE TOPICS 253
12.5 ANSWERS SECTION 254
13.1 ORDINARY SHARES 256
13.1 ANSWERS SECTION 257
13.2 PREFERENCE SHARES & DEBENTURES 258
13.2 ANSWERS SECTION 260
13.3 REVENUE RESERVES 261
13.3 ANSWERS SECTION 262
13.4 CAPITAL RESERVES 263
13.4 ANSWERS SECTION 264
13.5 MULTIPLE TOPICS 265
13.5 ANSWERS SECTION 266
14.1 INCOME STATEMENT 268
14.1 ANSWERS SECTION 269
14.2 REVALUATION OF ASSETS 270
14.2 ANSWERS SECTION 273
14.3 STATEMENT OF CHANGES IN EQUITY 274
14.3 ANSWERS SECTION 276
14.4 BALANCE SHEET 277
14.4 ANSWERS SECTION 279
14.5 STATEMENT OF CHANGES IN EQUITY 281
14.5 ANSWERS SECTION 284
14.6 BALANCE SHEET 285
14.6 ANSWERS SECTION 287
14.7 MULTIPLE TOPICS 288
14.7 ANSWERS SECTION 289
15.1 RIGHTS AND PUBLIC ISSUE 292
15.1 ANSWERS SECTION 297
15.2 BONUS ISSUE 299
15.2 ANSWERS SECTION 302
15.3 RIGHTS & BONUS ISSUE COMBINED 304
15.3 ANSWERS SECTION 306
15.4 ISSUE OF SHARES & DEBENTURES COMBINED 308
15.4 ANSWERS SECTION 309
15.5 MULTIPLE TOPICS 310
15.5 ANSWERS SECTION 313
16.1 GROSS AND NET PROFIT RATIOS 316
16.1 ANSWERS SECTION 317
16.2 EXPENSES TO REVENUE RATIOS 318
16.2 ANSWERS SECTION 320
16.3 RETURN ON CAPITAL EMPLOYED 321
16.3 ANSWERS SECTION 326
16.4 INVENTORY TURNOVER RATIO 329
16.4 ANSWERS SECTION 332
16.5 RECEIVABLES COLLECTION PERIOD 335
16.5 ANSWERS SECTION 337
16.6 PAYABLES PAYMENT PERIOD 338
16.6 ANSWERS SECTION 340
16.7 WORKING CAPITAL AND CURRENT RATIO 341
16.7 ANSWERS SECTION 342
16.8 LIQUID QUICK RATIO 343
16.8 ANSWERS SECTION 345
16.9 NON CURRENT ASSETS TURNOVER RATIO 346
16.9 ANSWERS SECTION 347
16.10 MULTIPLE TOPICS 348
16.10 ANSWERS SECTION 349
17.1 GROSS AND NET PROFIT RATIOS 352
17.1 ANSWERS SECTION 355
17.2 RETURN ON CAPITAL EMPLOYED 357
17.2 ANSWERS SECTION 358
17.3 INVENTORY TURNOVER 359
17.3 ANSWERS SECTION 360
17.4 RECEIVABLES COLLECTIONS & PAYABLES PAYMENT PERIODS 361
17.4 ANSWERS SECTION 363
17.5 WORKING CAPITAL & LIQUIDITY RATIOS 364
17.5 ANSWERS SECTION 367
17.6 MULTIPLE TOPICS 369
17.6 ANSWERS SECTION 372
18.1 OPERATING ACTIVITIES 374
18.1 ANSWERS SECTION 375
18.2 INVESTING ACTIVITIES 376
18.2 ANSWERS SECTION 377
18.3 FINANCING ACTIVITIES 378
18.3 ANSWERS SECTION 379
18.4 MULTIPLE TOPICS 380
18.4 ANSWERS SECTION 381
19.1 FIXED COST 384
19.1 ANSWERS SECTION 386
19.2 VARIABLE COST 387
19.2 ANSWERS SECTION 389
19.3 MIXED COST 390
19.3 ANSWERS SECTION 391
19.4 DIRECT AND INDIRECT COSTS 392
19.4 ANSWERS SECTION 394
19.5 SUNK COST AND STEPPED COST 395
19.5 ANSWERS SECTION 396
19.6 MULTIPLE TOPICS 397
19.6 ANSWERS SECTION 398
20.1 JOB AND BATCH COSTING - CALCULATIONS 400
20.1 ANSWERS SECTION 401
20.2 JOB AND BATCH COSTING – THEORY 402
20.2 ANSWERS SECTION 404
21.1 APPORTIONMENT OF OVERHEADS 406
21.1 ANSWERS SECTION 407
21.2 CALCULATION OF OVERHEADS ABSORPTION RATE 408
21.2 ANSWERS SECTION 411
21.3 CALCULATION OF UNDER OVER ABSORPTION OF OVERHEADS 413
21.3 ANSWERS SECTION 417
21.4 CALCULATION OF PER UNIT COST AND SELLING PRICE 421
21.4 ANSWERS SECTION 423
21.5 ABSORPTION COSTING THEORY 424
21.5 ANSWERS SECTION 426
21.6 MULTIPLE TOPICS 427
21.6 ANSWERS SECTION 428
22.1 CONTRIBUTION AND CONTRIBUTION RATIO 430
22.1 ANSWERS SECTION 433
22.2 BREAK-EVEN 435
22.2 ANSWERS SECTION 442
22.3 MARGIN AND SAFETY 449
22.3 ANSWERS SECTION 451
22.4 BREAK EVEN AND PROFIT VOLUME CHART 453
22.4 ANSWERS SECTION 458
22.5 MULTIPLE TOPICS 459
22.5 ANSWERS SECTION 461
23.1 MARGINAL & ABSORPTION COSTING INCOME STATEMENTS 464
23.1 ANSWERS SECTION 467
23.2 CALCULATION OF TOTAL COST & PROFIT 469
23.2 ANSWERS SECTION 472
23.3 HIGH LOW METHOD 475
23.3 ANSWERS SECTION 479
23.4 CLOSURE OF LOSS MAKING DEPARTMENT 484
23.4 ANSWERS SECTION 485
23.5 MAKE OR BUY DECISION 486
23.5 ANSWERS SECTION 487
23.6 ACCEPTANCE OF ORDERS BELOW NORMAL PRICE 488
23.6 ANSWERS SECTION 489
24.1 IDENTIFICATION OF LIMITING FACTOR AND CALCULATION OF CONTRIBUTION RATE 492
24.1 ANSWERS SECTION 494
24.2 PRODUCTION RANKING 495
24.2 ANSWERS SECTION 498
24.3 CALCULATION OF PROFIT 500
24.3 ANSWERS SECTION 501
25.1 ADVANTAGES AND USES OF BUDGETING AND PLANNING 504
25.1 ANSWERS SECTION 507
25.2 LIMITATION OF BUSINESS PLANNING 508
25.2 ANSWERS SECTION 509
25.3 MULTIPLE TOPICS 510
25.3 ANSWERS SECTION 511
26.1 BASIC PAY 513
26.1 ANSWERS SECTION 514
26.2 BONUSES 515
26.2 ANSWERS SECTION 516
26.3 OVERTIME 517
26.3 ANSWERS SECTION 518
26.4 BONUSES & OVERTIME 519
26.4 ANSWERS SECTION 520