Fazaia Education School System

Mid-term Examinations 2019

Name: ________________ Subject: Accounting

Class: O1 Time Allowed: 2 hours 15 minutes
Structured Questions
Total marks: 75

READ THESE INSTRUCTIONS FIRST

Answer all questions

The number of marks is given in brackets [ ] at the end of each question or part question.

Fazaia Education School System/Mid-term Exams 2019/O1/Accounting

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Question 1

On 31 May 2010, Leung extracted the following balances from his books.

$ Gross profit 6 650

Inventory 4 600

Bank loan 3 500

Trade Receivables 1 200

Trade Payables 2 100

Office equipment 4 000

Bank (Dr) 1 750

Discount received 150

Rent and expenses 3 850

Capital ?

REQUIRED:

Prepare the trial balance at 31 May 2010. (10 marks)

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Question 2 (10 marks)

(a) Explain the difference between book-keeping and accounting. [3]

(b) Define Accounting. [2]

(c) The following balances were extracted from the books of Fashran on 30 April 2014.

$ Trade payables 6 450

Trade receivables 9 230

Revenue 68 400

Purchases 29 800

Inventory 1 May 2013 5 100

Expenses 22 350

Bank overdraft 830

Non-current assets 24 000

Short term loan 7800

Capital 7000

REQUIRED

Prepare the trial balance showing Fashran’s capital at 30 April 2014. [5]

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Question 3 (15 marks)

a) Explain what is an asset? (3)

b) Explain the difference between non-current and current assets? (5)

c) State what is meant by a liability and also give an example? (2)

d) Define Capital? (2)

e) State the Accounting Equation? (3)

Question 4 (15)

Enter the following transactions of an antiques shop in the accounts and extract a trial
balance as at 31 March 2018.

1 Started in business with £8,000 in the bank.

2 Bought goods on credit from the following persons: L Frank £550; G Byers £290; P Lee
£610.

5 Cash sales £510.

6 Paid wages in cash £110

7 Sold goods on credit to: J Snow £295; K Park £360; B Tyler £640

9 Bought goods for cash £120

10 Bought goods on credit from: G Byers £410; P Lee £1,240

12 Paid wages in cash £110

13 Sold goods on credit to: K Park £610; B Tyler £205

15 Bought shop fixtures on credit from Stop Ltd £740

17 Paid G Byers by cheque £700

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18 We returned goods to P Lee £83

21 Paid Stop Ltd a cheque for £740

24 B Tyler paid us his account by cheque £845

27 We returned goods to L Frank £18

30 G Prince lent us £1,000 by cash

31 Bought a van paying by cheque £6,250.

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Question 5 (25 marks)

Andrew commenced business on 1 January 2003. Following is his trial balance

Prepare an income statement and balance sheet to the date.

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