THE SCHRAM ACADEMY

TERM END EXAMINATION - 2

Candidate Name : Grade: PIGCSE/0452/22

Avehi vivek

Date: 15-0302021

ACCOUNTING MAX MARKS: 100

Structured Written Paper 1 Hour 45 minutes

READ THESE INSTRUCTIONS FIRST

Answer all questions.

Write in dark blue or black pen. You may use an HB pencil for any diagrams or
graphs. You may use an HB pencil for any diagrams or graphs.
Write your name on all the work you hand in.
Do not use an erasable pen, staples, paper clips, glue or correction fluid.
You may use a calculator.
International accounting terms and formats should be used as appropriate.
You should show your workings.
At the end of the examination, fasten all your work securely together.
The number of marks for each question or part question is shown in brackets [ ].
Where you are asked to complete a layout, you may not need all the lines for your
answer.

0452/ACC/TE 2/ MAR /2021 TOTAL MARKS:

This question paper contains 14 pages.

1
1 Ian Selkirk is a sole trader who maintains a full set of accounting records. He divides his
ledger into three sections – general ledger, purchases ledger and sales ledger.

(a) State and explain one advantage of dividing the ledger into these three sections.
As work can be shred between several people and easier reference as same
.........................................................................................................................................
types of accounts are kept together
.........................................................................................................................................

.....................................................................................................................................[2]

(b) Name two accounts which would appear in the general ledger.

(i) . . Sales
...............................................................................................................................

(ii) . . Revenue
...........................................................................................................................[2]

(c) Ian Selkirk prepares control accounts for his purchases and sales ledgers at the end of
each month.

On 1 April 2003 the balances brought down on the control accounts were –

$
Purchases Ledger Control account 1960 credit
Sales Ledger Control account 1750 debit
Sales Ledger Control account 100 credit

Totals of the journals for April 2003 were –

$
Purchases Journal 4190
Sales Journal 5150
Purchases Returns Journal 135
Sales Returns Journal 270

The Cash Book for April 2003 showed –

$
Cheques received from debtors 4990
Cheques paid to creditors 3830
Cheque paid to debtor in respect of
overpayment 100
Discount allowed 110
Discount received 180

The journal entries for April 2003 showed –

$
Bad debts written off 74

Prepare Ian Selkirk’s Purchases Ledger Control account and Sales Ledger Control account
for the month of April 2003. Bring down the balances on 1 May 2003.

2
 Purchases Ledger Control account

........................................................................................................................................................
Date Details $ Date Details $
........................................................................................................................................................
2003
2003
Apr 30 Purchase return 135
........................................................................................................................................................
3830 Apr 1 Balance b/d 1960
Bank
........................................................................................................................................................
30 Purchases 4190
Discount
180
........................................................................................................................................................
received
2005
........................................................................................................................................................
Balances c/d
6150 6150
........................................................................................................................................................
2003
........................................................................................................................................................
may 1 balance b/d 2005
....................................................................................................................................................[6]

Sales Ledger Control account

........................................................................................................................................................
Date Details $ Date Details $
........................................................................................................................................................
2003 2003
Apr 30 Purchase Apr 1 Balance b/d 100
........................................................................................................................................................
returns 135 Apr 30
Sales 5150 Sales return 270
........................................................................................................................................................
Bank 4990
Bank 100 Discount allowed 110
........................................................................................................................................................
Bad debts 74
Balance c/d 1456
........................................................................................................................................................
7000 7000
........................................................................................................................................................

........................................................................................................................................................
2003
May 1 Balance b/d 1456
........................................................................................................................................................

........................................................................................................................................................

....................................................................................................................................................[8]

3
2 The Balance Sheet of Amy Dootes is given below with some words and figures missing.

(a) Enter the missing words and figures in the boxes (i) to (vii) on the Balance Sheet.

Balance Sheet as at 31 March 2004

Cost Depreciation Net book

to date value
$ $ $
Fixed Assets 75 000 (i) 25000 50 000

Current (ii) Assets

Stock 24 000
Trade debtors 8 000
Bank 5 000
Prepayments (iii) 3000 40 000
–––––––
Less
Current Liabilities
Trade (iv) Creditors 16 000
Accrued expenses 4 000 20 000
–––––– ––––––
Working (v) Capital 20 000
––––––
70 000
––––––
Financed by:
Capital at 1 April 2003 60 000
Add Net profit for year (vi) 20000
––––––
80 000
Less (vii) Drawings for year 10 000
––––––
70 000
––––––
[7]

4
3 Ahmed is a sole trader who keeps full accounting records for all his purchases and sales on
credit. Entries are posted monthly from prime (original) entry books to ledger accounts, but
the entries for April 2004 have not yet been made.

(a) (i) From the following information, make the entries required on 30 April 2004 in the
ledger accounts below.

Total for April 2004

($)
Purchases journal 50 000
Sales journal 85 000
Purchases returns journal 6 000
Sales returns journal 8 000

Purchases account
Date Details $ Date Details $
..........................................................................................................................................
2004
Apr 30 Purchases
..........................................................................................................................................
for the
month 50000
..........................................................................................................................................

Purchases returns account

Date Details $ Date Details $
..........................................................................................................................................
2004
Apr 30 Return for the
..........................................................................................................................................
month 65000
..........................................................................................................................................

Sales account
Date Details $ Date Details $
..........................................................................................................................................
2004
Apr 30 Sales for the
..........................................................................................................................................
Month 85000
..........................................................................................................................................

Sales returns account

Date Details $ Date Details $
..........................................................................................................................................
2004
Apr 30 Return for the 8000
..........................................................................................................................................
month
......................................................................................................................................[4]

(ii) In which of Ahmed’s ledgers are the above accounts kept?

Nominal ledger
......................................................................................................................................[1]

5
2 Philo is in business and keeps his petty cash on the imprest system with a balance of $200.

On 31 March 2009 there was $129.00 in the petty cash box and on 1 April 2009 Philo’s
cashier made a transfer from the business bank account to restore the imprest balance. All
the petty cash vouchers for March related to expenses incurred in that month.

REQUIRED

(a) What were the total expenses paid from petty cash in the month of March 2009?

$200-$129=$71

[1]

When the cash was counted on 30 April 2009, there was $117.50 in the petty cash box and
the following petty cash vouchers were found.

$
April 5 Postage stamps 20.00
10 Refreshments 17.00
13 Menon – loan 100.00
17 Flowers for office 21.00
24 Stationery 14.50

Menon had repaid his loan in cash on 29 April.

REQUIRED

(b) What were the total expenses paid from petty cash in the month of April 2009?

$20+17+21+14.50=$72.50

[1]

(c) Calculate the amount of cash which should be in the petty cash box on 30 April.

$200-$72.50=$127.50

[2]

6
(d) Suggest two reasons for the difference in the actual amount of cash in the petty cash
box and the amount which should be there.

(i) Error or fraud

(ii) Missing or stolen cash

[2]

The petty cashier remembered a further petty cash payment of $10.00 was made on
28 April for cleaning the office windows.

REQUIRED

(e) Advise Philo’s petty cashier about the importance of keeping a record of business
expenditure.

Always get a completed petty cash voucher with an invoice for expenditure

and record all petty cash transactions.

[2]

(f) Make the necessary entries for the month of April in the petty cash book as set out on
the following page.

Balance the book and carry down the balance. Show the entry on 1 May to restore the
imprest balance to the correct amount.

7
 Philo
Petty Cash Book
Date Date Postage and
Details Total Details Total Refreshments Flowers Cleaning Other
April April Stationery

$ $ $ $ $ $ $

1 Balance b/d 129 5 Postage 20 20

Bank 71 10 Refreshments 17 17

29 Menon loan 100 13 Menon loan 100 100

17 Flowers 21 21
8

24 Stationary 14.50 14.50

28 Cleaning 10 10

30 Balance b/d 117.50

300
300 34.50 17 21 10 100
May

1 Balance b/d 117

1 Bank 82.50
[12]
5 (a) Name the book of prime (original) entry used to record purchases.

Purchase journal [1]

Tom Charter received an invoice from the Office Supply Company.

REQUIRED

(b) Complete the missing items (words or figures) (i) to (vi) shown on the invoice.

OFFICE SUPPLY COMPANY INVOICE

Tom Charter 15 April 2009

3 Mountain Close

Tobermore

Item Quantity Price per unit Total

$ $

Boxes of staples 20 7.50 150 (i)

Packets of 25 (ii) 14.00 350.00

envelopes

500.00

Less Trade (iii) discount @ 3 % 15 (iv)

Net amount 485 (v)

______

Terms: 2 ½ % Cash (vi) discount for settlement within 14 days

[6]

9
6 (a) State which accounting document would show the amount of:

(i) trade discount

Invoice
[2]
(ii) cash discount

Statement of account [2]

Chen makes the following sales on credit in the week ending 16 October 2009.

October Customer Reference $

12 Artelis A4 230
14 Brook B1 300
15 Chadri C7 55

He writes up his sales journal at the end of the week as shown below.

Chen
Sales journal

October Reference $

12 Artelis A4 250

14 Brook B1 300

16 Total sales for week 550

REQUIRED

(b) From the entries in the sales journal, write up the accounts in Chen’s ledger shown on
the next page to record the transactions for the month.

Sales account
date Details $ Date Details $
2009 [2]
12 oct Total sales 550
Artelis account
Date Details $ Date Details $
2009
October 12 Sales 250
[2]

Brook account

Date Details $ Date Details $

2009
october12 Sales 300 [2]

10
7 Jonah is a sole trader who keeps full double entry accounting records including a three
column cash book. All cheques received are banked on the same day.

On 30 June 2004 balances in his books included the following.

Debtors $
H Syde 500
B Sharp 800
M Yaveli 630
Creditors
J Teime 400
P Mulder 1000
Cash 600
Bank (Dr) 2500

Jonah’s transactions for the month of July 2004 included the following.
$
July 3 H Syde paid the amount he owed by cheque after deducting
cash discount of $10.
7 Cash was withdrawn from bank for office use. 200
10 Paid J Teime by cheque after deducting $15 cash discount.
12 Paid wages in cash. 400
14 B Sharp paid the amount he owed by cheque after deducting
cash discount of $20.
17 Paid P Mulder by cheque after deducting cash discount of $25.
20 Cash sales paid directly into bank. 350
21 M Yaveli paid the amount he owed by cheque.
24 Paid wages in cash. 250
Paid electricity bill by cheque. 600
29 Jonah’s bank returned M Yaveli’s cheque for $630 as
dishonoured.

(a) Enter the transactions shown on the next page in Jonah’s cash book on the page
provided (the cash and bank balances on 1 July 2004 have already been entered for
you).

Balance the cash book at 31 July and bring down the balances on 1 August 2004. [21]

11
 7 (a) Jonah

Cash Book
Date details Discount Cash Bank Date Details Discount Cash Bank
2004 $ $ $ 2003 $ $ $
July 1 Balances b/d 600 2500 July 7 Cash 200
3 H syde 10 490 J teime
10 15 385
7 Bank 200
12 Wages 400
20 780 17 P mulder 25 975
14 B sharp
350 24 Wages 250
20 Cash sales
21 M yaveli 630 Electricity 600
12

29 M yaveli
630
31 Balances b/d 150 1960
30 800 4750 800 4750
40

Aug 1 Balances b/d 150 1960

(b) Make the entries required in the discounts accounts on 31 July 2004.

Discounts allowed account

Date Details $ Date Details $

..........................................................................................................................................
2004
..........................................................................................................................................
July 31 Total 30
For july
..........................................................................................................................................

..........................................................................................................................................

Discounts received account

Date Details $ Date Details $

..........................................................................................................................................
2004
..........................................................................................................................................
July 31 Total for 40
July
..........................................................................................................................................

......................................................................................................................................[4]

[TOTAL: 25]

13
8 (a) Explain the difference between capital expenditure and revenue expenditure.

Capital expenditure Revenue expenditure

Purchase of non-current asset Day-to-day running expense

Appears in statement of financial Appears in income statement

position
[3]

(b) Complete the table below, indicating with a tick (
) how each item would be classified. The
first has been completed as an example.

Capital expenditure Revenue expenditure

Salesman’s commission

Carriage of raw materials

Purchases of goods for resale

Purchases of plant and

equipment

Payment of insurance

Legal fees on purchase of

property
[5]

14