Heritage International School

Accounting Examination
March 22
Total Marks: 50

Date : ______________
Grade: 8
Time : 2 hrs 30 mins
Score :______________
INSTRUCTIONS
 Answer all questions in Section A, B and C.
 Use a black or blue pen.
 Write your name in the spaces provided.
 Write your answers in the spaces provided.
 Do not use erasable pen.
 Show all working when required.
 Make use of a calculator.
 Make sure your exam paper has 7 printed pages.
Section A
Answer all questions in this section
You are given 4 answers A, B, C and D. Circle in the correct answer.

1. Which of the following is not a liability?

A. Bank loan B. Overdraft C. Creditors D. Premises

2. State the accounting golden rule?

A. Debit the receiver, credit the giver.

B. Credit the receiver, debit the giver.

C. Debit is to give

D. None of the above.

3. Assets =

A. Capital – Liabilities B. Liabilities – Capital C. Capital + Liabilities D. Capital + Inventory

4. Debts are

A. amounts owed to the business

B. amounts the business owes to other businesses.

C. the amount of money held by the business

D. they are suppliers of the business

5. Capital can sometimes be referred to as

A. owner’s equity B. inventory C. trade payables D. capital

6.Which task is performed by a book-keeper?

A. analysing the trading results.

B. entering transactions in the ledger.

B. preparing year-end financial statement.

D. providing information for decision making.

7. What is an asset?

A. things owned by the business.

B. debts owned by the business.

C. money that is used to start a business.

D. things sold by the business.

8. Which of the following is an asset?

A. Machinery B. Bank loan C. Equipment D. Furniture

9. Assets ?? , Capital = $3000 , Liabilities = $4 000

Calculate the total assets

A. $7 000 B. $1 000 C. -$7 000 D. $8 000

10. Purchased goods worth $10 000.

Identify which account is to be debited.

A. cash B. goods C. purchases D. none of the above

Section B
This section consists of 20 marks
Answer all questions
11.What is an asset?

________________________________________________________________________________

________________________________________________________________________________

__________________________________________________________________________ [2]

13.Define capital

________________________________________________________________________________

________________________________________________________________________________

__________________________________________________________________________ [2]

14.A profit is gained when you sell at a higher price than the______________ price. [1]

15. An account used to record all cash transactions is called the_________________ [1]

11. Calculate the profit?

a) Selling price = $8 000

Buying price = $7 200

Profit =_______

b) Selling price = $807

Buying price = $702

Profit =_______

c)Madam Tea bought stationery at $ 350 and she wants to sell it at $430,How much is her profit?

Profit = ________________

d) Tinashe bought a packet of 20 sweets for $20 .She sold the sweets and got a profit of $20.How
much did she sell the sweets for?

Profit = _______________ [8]

12.Calculate the percentage profit?

a) Selling price = $28 800

Buying price = $9 600

Percentage profit =________

b) Amayah bought sofas at $18 000,he decided to sell them a 30 % profit. How much did she sell
them for?

Selling price =__________ [6]

Section C
Answer all questions in this section.
This section consists of 20 marks
There is only one question in this section
Mr Aisha runs a business. On April the following transactions took place in the business. Prepare a
cashbook using the data as given below:

1 April : Cash in hand……………………………..$1 650

2 April : Cash sales …………………………………$16 000

3 April : Paid check to creditors…………….$ 4 000

4 April : Wages …………………………………….$2 250

4 April : Cash sales ………………………………$18 000

9 April : Paid cash to Mr Luis……..…………$420

11 April : Paid salaries by cash ………………..$2 850

12 April : Credit sales……………………………….$1 000

17 April : Paid cash for repairing………………$360

19 April : Sales by cash……………………………..$11 500

21 April : Paid office expenses…………………..$180

25 April : Paid rent and rates………………………$3 600

26 April : Cash sales ……………………………………$19 900

27 April : Paid electricity bill………………………..$900

28 April : Cash collected from debtor………….$4 500

29 April : Goods purchased …………………………$2 000

Date Details Amount Date Details Amount