Name:…………………………….. DOB: ……………………………….

Group: …………………………… Test date: ……………………………….

MID-TERM TEST
(Time allowance: 50 minutes)
Exercise 1: The following details are from the book of L Travers (40 pts)
Year 5:
Sep 1 Started business with £15,000 in the bank
“ 2 Withdrew £3,000 from bank account to make cash in office
“ 3 purchased office furniture by cheque £4,500
“ 5 purchased goods by cheque £1,690
“ 8 sold goods for cash £1,750
“ 17 paid for delivery of goods bought £30 by cash
“ 20 paid office expenses by cash £125
“ 24 paid T Smith £500 by cheque
“ 25 paid wages and salaries £320 by cheque and £80 by cash
“ 27 sold goods for cash £2,460 and half of that amount was put into bank account

Required
Record the transactions into Cash and Bank accounts, balance the accounts at 30 September
Year 5 and bring the balance down
Exercise 2: (60 pts)
At 31 December Year 4, T Smith had accounts balances as below:

Stock at 1 January Year 4 £1,400 Wages & salaries £5,630

Purchases £20,400 Insurance £1,060
Sales £65,280 Carriage outwards £125
Premises £50,700 Returns inwards £1,230
Fixtures and fittings £21,000 Returns outwards £970
Motor vehicles £23,000 Cash £4,200
Drawings £1,150 Bank £17,100
Office expenses £1,410 Debtors £2,300
Creditors £5,170

Required
1. Draw up a trading and profit and loss accounts for the year ended 31 December year 4, in
case Closing stock is at £1,870 (30 pts)
2. Draw up a complete balance sheet at 31 December Year 4, including the missing item. (30
pts)