MONTHLYTEST - OCTOBER 2020

ACCOUNTING

9 (Cambridge) ................

Duration : 2 periods
Instructions to Candidates :
• Answer all the questions.

Candidate's name : ............................................................... Admission no : ...................

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PART ­ I

• Underline the correct answer.

(1) Which task is carried out by a book­keeper?
(a) analyzing information (b) assessing information
(c) interpreting information (d) recording information

(2) Why does the owner of a business need to measure profit?

(a) to calculate the total sales and purchases for the year.
(b) to discover if his business is doing better than in previous years.
(c) to find out how much money he has left in the bank.
(d) to know how much money is owed to suppliers.

(3) What is the accounting equation?

(a) assets + liabilities = capital (b) assets – liabilities = capital
(c) capital + assets = liabilities (d) capital – assets = liabilities

(4) Eli buys goods on credit from Mona.

What entries should Eli make in his ledgers?
General ledger Purchase ledger
(a) credit Mona debit purchases
(b) credit purchases debit Mona
(c) debit Mona credit purchases
(d) debit purchases credit Mona

(5) Peter is a customer of Paul. On 1 May Peter owed Paul $250.

Transactions during May were as follows.
$
sales 1 470
cheques received 930
Sales returns 80
Cash received 20
What was the debit balance on Peter’s account in the books of Paul on 1 June?
(a) $440 (b) $460 (c) $690 (d) $710
[Total = 5 × 2 = 10 marks]
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Grade 9 Accounting contd.....from page 1
PART ­ II
(1) Shanker is a sole trader. On 1 February 2020 he had the following transactions.
1. Took cash $ 100, to pay his personal telephone bill.
2. Paid cash, $50 into the bank
3. Transferred his private motor vehicle, value $ 2500, to the business.
4. Sent a cheque, $ 48 to Neel, a credit supplier.
5. Paid wages, $ 350, for January by cheque.
REQUIRED
(a) Complete the following table stating the double entry needed to record each transaction.
Account debited $ Account credited $
1.
2.
3.
4.
5.
(10 marks)
Shanker met the bank manager to obtain a loan for his business.
(b) State one reason why Shanker’s bank manager would be interested in his financial
statements.
­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­
­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­
­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­
(1 mark)
(c) Name two other parties who would be interested in Shanker’s financial statements.
1. ­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­
2. ­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­
(2 marks)

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Grade 9 Accounting contd.....from page 2
The following account appeared in the ledger of Shanker.
Thimothy Traders account
date detail $ date detail $
2020 2020
June 10 returns 20 June 1 Balance b/d 155
12 bank 58 9 Purchases 68
30 Balance c/d 145 –––
223 223
July 1 Balance b/d 145

(d) Explain the transactions that took place on the following dates.
(i) June 9 ­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­
­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­
­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­
(1 mark)
(ii) June 10 ­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­
­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­
­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­
(1 mark)
(iii) Name the sub division of ledger where Thimothy Traders account will appear.
­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­
(1 mark)
(iv) Name one accounting principle / concept which Shanker should follow when
recording transactions in his business.
­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­
(1 mark)
[Total = 17 marks]

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Grade 9 Accounting contd.....from page 3
(2) David started his own business and after one month of trading on 1 February 2020 he
provided the following assets and liabilities.
$
Land & building 50 000
bank loan repayable within six months 10 000
Cash at Bank 9 110
Money owed by customers 7 010
Office furniture 4 000
Bank loan repayable over 15 years 30 000
Money owed to suppliers 2 070
Goods for sale held in storage (Inventory) 8 480

(a) Complete the following table to show the category of each item by placing a tick (✔)
in the correct box.
Non current Current Non current Current
Assets Assets Liabilities Liabilities
Land & building
bank loan repayable in six months
Cash at Bank
Money owed by customers
Office furniture
Bank loan repayable over 15 years
Money owed to suppliers
Goods for sale held in storage
(8 marks)
(b) Calculate the capital as at 1 February 2020. Show your workings.
­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­
­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­
­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­
­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­
­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­
(1 mark)
The following transactions took place during the month of February.
• David bought additional office furniture worth $ 1050 and paid by cheque.
• Sold inventory $ 2000, on credit.
• Bought inventory, $ 800, on credit.
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Grade 9 Accounting contd.....from page 4
(c) Prepare the Statement of financial position of David on 28 February 2020 after the
above transactions have taken place.
David
Statement of financial position at 28 February 2020
$ $

(10 marks)
[Total = 19 marks]

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Grade 9 Accounting contd.....from page 5
(3) Florence is a trader who runs a small flower shop. The following are her transactions for the
month.
May 1 Started business by opening a business bank account for $ 22 000
May 3 Purchased a stock of flowers $ 2 180 on credit from “Chance Limited”.
May 4 Returned some of the flower stocks worth $ 300, to Chance Limited as they were
not up to the standard.
May 8 Took a bank loan, $ 8 000 and the funds were transferred to the business bank
account.
May 15 Sold flowers to a customer $ 1500 and received cash. At the same time Florence
paid the delivery cost $ 50 in cash and delivered the flowers to the customer.
May 18 Paid shop rent $ 1850 by cheque.

REQUIRED
Enter the below transactions in the ledger accounts of Florence. Balance only the bank
account and Capital account and bring down their balances as at 1 June 2020.
Bank a/c
date detail $ date detail $

Capital a/c
date detail $ date detail $

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Grade 9 Accounting contd.....from page 6
­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­ a/c
date detail $ date detail $

­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­ a/c
date detail $ date detail $

­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­ a/c
date detail $ date detail $

­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­ a/c
date detail $ date detail $

­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­ a/c
date detail $ date detail $

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Grade 9 Accounting contd.....from page 7
­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­ a/c
date detail $ date detail $

­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­ a/c
date detail $ date detail $

­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­ a/c
date detail $ date detail $

(24 marks)
[Total = 70 marks]

END

Ref : CT