Heritage International School

Accounting Examination
March 22
Total Marks: 50

Date : ______________
Grade: 9
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
You are given 4 answers A, B, C and D. Circle in the correct answer.

1. What is an asset.

A. debts owed by the business.

B. money that is used to start a business

C. property owned by the business.

D. income returned through investment

2. Which of the following is not a liability?

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

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 revenue?

A. income returned by investment.

B. is money that is kept in the business for precautionary reasons.

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. A sole trader business is a business

A. in which 2 or more people work together as owners with a view of making profit.

B. which is run and controlled by one individual.

C. which is controlled and run by family members.

D. in which two companies join to form one.

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
Answer all questions in this section

1. Define i) accounting.[2]

ii) an asset [2]

i)_________________________________________________________________________________

__________________________________________________________________________________

__________________________________________________________________________________

ii)________________________________________________________________________________

__________________________________________________________________________________

__________________________________________________________________________________

2.Fill in the correct answer. Show if we are supposed to debit or credit.

Tick in the correct answer

Details Debit Credit

Discount received

Cash in hand

Mortgage loan

[3]

3.List the three errors which are revealed by a trial balance.[3]

__________________________________________________________________________________

__________________________________________________________________________________

__________________________________________________________________________________

4.Explain any one of the errors you have listed above.

__________________________________________________________________________________

__________________________________________________________________________________

__________________________________________________________________________________

________________________________________________ [2]
5.Identify the following accounts.

An example has been done for you

Example; Goods purchased for cash

Answer; Purchase account and cash account

i) Goods sold for cash

__________________account and __________________account

ii )Purchased goods from Mr Sam

__________________account and __________________account

iii ) Cash withdrawn from the bank for office use

__________________account and __________________account [6]

6.Calculate percentage profit, If the selling price is $12 000 and the buying price is $10 000.

Show all working.

Percentage profit = ________________ [2]

Section C
This section consists of only one question.

20) Prepare Trial Balance as on 30.07.2010 from the following balances of Ms. XYZ. The
balances are given below

Cash at hand $10 000

Inventory $40 000
Vehicle $30 000
Fixtures and fittings $32 000
Account receivable $15 000
Credit cards payable $12 000
Account payable $15 000
Bank loan $50 000
Sales $175 000
Purchases $60 000
Advertising $5 000
Wages $65 000
Rent $15 000
Electricity $5 000
Owners capital $25 000

Prepare a trial balance. [20

marks]
Trial balance as at 30.07.2010

Details Debit Credit

Total