සියලුම හිමිකම් ඇවිරිණි

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Royal College - Colombo 07

රාජකීය විද්‍යාලය - ක ොළඹ 07
60 E I
කාලය : පැය 1
Grade 11 – Second Term Test – October 2023 Time: 3 hours

Business & Accounting Studies - I

Instructions :
 Answer all questions.
 In each of the question 1 to 40, pick one of the alternatives (1), (2), (3), (4) which is correct
or most appropriate.
 Mark a cross (x) on the number corresponding to your choice in the answer sheet provided.

 Answer the questions No. 1 to 4 paying attention to the following case.

After successfully completing a degree in Business Management from Japanese University, Yasas
Edirimanna came to Sri Lanka. He expects to engage in his father’s business as a full-time manager.
Yasas’s father owns several fully equipped hostels to provide facilities for young people who come to
the city from distant areas for higher education & employment.

(01) What is the human need satisfied by hostels mentioned in the above case?
(1) Education (2) Safety (3) Shelter (4) Food

(02) An opportunity of this business is,

(1) Hostels are located in the city.
(2) Yasas having completed Business Management degree.
(3) A large number of people coming to the city for work from remote areas.
(4) A large number of students entering in to higher education.

(03) What is the environment which Yasas Edirimanna & his father belongs to ?
(1) Internal environment (2) Economic environment
(3) Global environment (4) External environment

(04) Select the answer which include stakeholders to this business.

(1) Yasas Edirimanna
(2) Father of Yasas Edirimanna
(3) Those who coming to city for employment.
(4) All of the above.

(05) Talented businessman are constantly aware of his business environment and the most unfavorable
situations that they can identify through studying the business environment will be known as,
(1) Strength & weakness
(2) Opportunity & threats
(3) Strength & opportunity
(4) Weakness & threats.

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 Following are some of the types of business. Answer the questions 6 & 7 using these information.
A - Yurens (Pvt) Ltd.
B - Suresh Grocery
C - Dilip & Dulip Stores
D - Pannala Multi purpose cooperative society.
(06) What are the business organizations belonging to the private sector from the above?
(1) A, B & C (2) A, C & D (3) B, C & D (4) A, B, C & D
(07) Select the answer which includes the business organizations having Legal Personality from the above.
(1) A & B (2) A & C (3) A & D (4) B & C
(08) Following are some characteristics of business organizations.
 Having a legal personality.
 Having continuous existence.
 Ownership & administration belong to the government.
 Commencing under a special or common parliament act.
The type of business organization to which all of the above characteristics apply.
(1) State corporations (2) State Departments
(2) Incorporated companies (4) Co-operatives.
(09) Select the correct statement.
(1) The difference between retail business & wholesale business is depends on the volume of stock.
(2) Retail price is high when compared to wholesale price.
(3) Selling goods by using mobile vans is an example of a fixed small-scale retail business.
(4) Bringing goods from a foreign country or countries to one’s own country is an export trade.
(10) Not an advantage of maintaining a current account.
(1) Receiving an interest based on the balance. (2) Ability to obtain overdraft facilities.
(3) Standing order facilities. (4) Receiving bank statement.
(1)
(11) Drawing two parallel lines across the face of the cheque is known as ........................................ and
(2)
writing the payee's name on the back of the cheque is known as ....................................
(1) endorsement & general crossing (2) endorsement & special crossing
(3) general crossing & endorsement (4) special crossing & endorsement
(12) Select the answer that includes the amount that can be obtained as compensation for the damage of
Rs. 500,000 and the related insurance principles respectively, when a car worth Rs. 2 million is insured
for the same value.
(1) Rs. 500,000/-, Contribution (2) Rs. 500,000/- , Indemnity
(3) Rs. 2 Million, Utmost good faith (4) Rs. 2 Million, Insurable interest
(13) The Following table shows some of the mediums used for communication & some methods use for
communication.
Communication medium communication method
1. Verbal A – Internet
2. Written B – Bell
3. Electronic C - Magazines
4. Sign & symbolic D - Conference
Select the correct answer when matching the communication medium with the relevant communication
method.
(1) D A B C (2) D A C B (3) D C B A (4) D C A B
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(14) Select the answer which includes the relevant element of transportation pertaining to the expansion of
Colombo Port & increase in the price of fuel.
(1) Way, mode (2) Terminal, power
(3) Terminal, mode (4) Way, power
(15) Select the activity relating to the leading function of the management process.
(1) Deciding the objectives of the business.
(2) Distributing work & delegation of authority in order to achieve set objectives.
(3) Providing required information & advice to employees while doing the job.
(4) Finding out whether the related activities are going as planned.
(16) ‘X’ column of the following table shows some business organisations & ‘Y’ column shows some target
customer groups for those businesses.
X Y
1. Public Library A – Tourists
2. ‘Nivahana’ Rest B – School children
3. Niroga Hospital C – Readers
4. ‘Sipthera’ school stationery suppliers D- Patients
Select the correct answer when matching column ‘X’ with ‘Y’
(1) A B C D (2) B D A C (3) C A D B (4) D C A B
(17) Select the transaction which records only in assets accounts.
(1) Investing Rs. 300,000/- by the owner.
(2) Paying of Rs. 7,000/- for insurance premium
(3) Depositing Rs. 20,000/- in the business current account.
(4) Paying Rs. 10 000/- for creditors.

 Use the following information to answer question No. 18 to 20.

Following is the accounting equation of Janani’s business as at 01. 08. 2023
Assets (Rs.) = Equity (Rs.) + Liabilities (Rs.)
150,000 = 100,000 + 50,000
Following are some transactions that took place in the first week of August 2023.
A - Receiving money from debtors Rs. 12,000/-
B - Paying Rs. 8,000/- to motor vehicle maintenance.
C - Depositing Rs. 25,000/- in a business current account.
D - Repaying Rs. 5,000/- bank loan instalment.
(18) Select the answer which includes the transactions in which the value of the total assets held for 01/08/23
does not change.
(1) A & B (2) C & D (3) A & C (4) B & D
(19) The transaction which affects the equity of this business is,
(1) A (2) B (3) C (4) D
(20) Select the answer which shows the correct values of this business as at last day of the first week.
Assets (Rs.) = Equity (Rs.) + Liability (Rs.)
1. 137,000 = 87,000 + 50,000
2. 137,000 = 92,000 + 45,000
3. 125,000 = 92,000 + 33,000
4. 137,000 = 100,000 + 37,000

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 (1)
(21) The document issued by a business to prove the payment is known as ................................ and, the
(2)
relevant source document relating to drawing done by owner is known as .................................
Select the correct answer which suit for above (1) & (2) respectively.
(1) Payment voucher, receipt (2) Payment voucher, Journal voucher
(3) Payment voucher, purchase invoice (4) Journal voucher, purchase invoice

 Use the following information to answer question No. 22 to 25.

Shahid’s business purchased a stock of goods worth Rs. 130,000/- from Gagani Traders for resale on
credit.
Shahid gets a 10% trade discount at this time of purchasing the above stock & further he received a 5%
cash discount when he paid the relevant value.
(22) Select the answer that contain the relevant prime entry book & the value that should write in it when
Shahid record above transactions.
(1) Purchase journal – Rs. 117,000 (2) Purchase journal – Rs. 130,000
(3) Sales Journal – Rs. 117,000 (4) Cash book – Rs. 130,000
(23) Select the correct double entry in relation to Gagani Traders business.
(1) Shahid’s A/C Dr Rs. 117,000 (2) Shahid’s A/C Dr Rs. 130,000
Sales A/C Cr Rs. 117,000 Sales A/C Cr Rs. 130,000
(3) Cash A/C Dr Rs. 117,000 (4) Purchase A/C Dr Rs. 130,000
Sales A/C Cr Rs. 117,000 Shahid’s A/C Cr Rs. 130,000
(24) Select the correct double entry to record the payment done on stock by Shahid business.
(1) Cash book Dr Rs. 111,150 (2) Gagani Traders A/C Dr Rs. 117,000
Discount given A/C Dr Rs. 5,850 Cash book Cr Rs. 111,150
Gagani Traders A/C Cr Rs. 117,000 Discount received A/C Cr Rs. 5,850
(2) Gagani Traders A/C Dr Rs. 130,000 (4) Cash A/C Dr Rs. 123,500
Cash book Cr Rs. 123,500 Discount given A/C Dr Rs. 6,500
Discount Received A/C Cr Rs. 6,500 Gagani Traders A/C Cr Rs. 130,000

 Use the following information to answer questions No. 25 to 27.

 Petty cash imprest of Sanduns’ Business is Rs. 6000/-
 Petty cash expenses for May 2023 – Rs. 5,800/-
 The business has decided to increase this petty cash imprest by Rs. 2,000/- from 01 June 2023.
(25) Petty cash balance as at 31. 05. 2023 is,
(1) Rs. 200 (2) Rs. 2,200 (3) Rs. 2,000 (4) Rs. 5,800
(26) Petty cash reimbursement amount as at 01. 06. 2023.
(1) Rs. 5,800 (2) Rs. 6,000 (3) Rs. 7,800 (4) Rs. 2,000
(27) The bank has informed that the Rs. 20,000/- cheque has been dishonoured, which received from Akindu
owed to Nisal’s business.
Nisal’s business record this transaction on as,
(1) Akindu’s A/C Dr. Rs. 20,000 (2) Bank A/C Dr. Rs. 20,000
Bank A/C Cr. Rs. 20,000 Akindu’s A/C Cr. Rs. 20,000
(3) Akindu’s Business Dr. Rs. 20,000 (4) Cash Book Dr. Rs. 20,000
Cash Book Cr. Rs. 20,000 Akindu’s Business Cr. Rs. 20,000

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  Use the following information to answer question number 28 to 30.
The balance of the bank statement of Amaya’s business was different from the bank account balance
as at 31/08/2023. The following are the reasons for the difference.
A - Rs. 1,000 bank chargers not recorded in a bank account.
B - Direct remittance not recorded in the bank account is Rs. 25,000
C- A payment of a standing order for Rs. 12,000 not recorded in the bank account.
D - Cheques issued but not presented to the bank for encashment is Rs. 15,000
E - Cheques deposited but not realized is as 20,000/-
(28) From the above transactions, select the answer that includes the reasons for having more balance in
bank statement than bank account.
(1) C and E (2) A and C (3) A and B (4) B and D
(29) If the bank account balance of Amaya’s business was Rs. 62,000. What is the balance of adjusted bank
account at that date ?
(1) Rs. 60,000 (2) Rs. 98,000 (3) Rs. 50,000 (4) Rs. 74,000
(30) The balance of bank statement as at 31/08/2023 in Amaya’s business.
(1) Rs. 79,000 (2) Rs. 69,000 (3) Rs. 65,000 (4) Rs. 55,000
(31) Select the correct answer relating to trial balance.
(1) Trial balance means collection of all accounts.
(2) If the total of the debit column of the trial balance is equal to the total of the credit column, it is
confirmed that the accounting process is completely correct.
(3) Trial balance can be considered as a summary of the ledger.
(4) It is not necessary that the totals in the debit & credit columns of the trial balance to be equal to
ensure the correctness of the account.
 Use the following information to answer question No. 32 & 33
 The trial balance prepared by Akash business does not tally as at 31. 12. 2022.
The following errors reveled the letter.
A - Rs. 12,000/- purchase invoice completely omission from the books of accounts.
B - The balance of commission income A/C 3,000, is not extracted from trial balance.
C - A drawing of Rs. 4,000/- has been credited to both accounts.
D - Rent expenses of Rs. 15,000/- have been debited to the bank loan interest account.

(32) From the above errors select the answer that includes only the errors that do not affect the agreement
of trial balance.
(1) A & B (2) B and C (3) A & D (4) B & D
(33) Select the correct Journal entry to rectify the above error ‘C’
(1) Drawings A/C Dr Rs. 8,000 (2) Suspense A/C Dr. Rs. 8,000
Suspense A/C Cr Rs. 8,000 Drawings A/C Cr Rs. 8,000
(3) Suspense A/C Dr Rs. 4,000 (4) Drawings A/C Dr Rs. 4,000
Drawings A/C Cr. Rs. 4,000 Suspense A/C Cr. Rs. 4,000
(34) Not a disadvantage of computerized accounting.
(1) High cost involve in purchasing required software & hardware.
(2) Risk of deleting data due to technical defects.
(3) Risk of stealing data & altering the data.
(4) The labour required for business function are minimum.
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  Use the following information to answer the questions No. 35 to 40.

Following is the trial balance extracted from the Tharusha’s business as at 31. 12. 2022
Trial Balance
Description Debit (Rs.) Credit (Rs.)
Sales 480,000
Purchases 260,000
Opening stock – 01/01/22 8,000
carriage inwards 4,000
Debtors 50,000
10% - fixed deposit 150,000
Commission Income 6,000
Fixed deposit interest 5,000
Salaries 40,000
Electricity expenses 14,000
Office equipment – cost 65,000
Drawings 10,000
Bank interest 5,000
Cash Balance 55,000
Capital as at 01. 01. 2022
170,000
661,000 661,000

Additional information
1. Stock as at 31. 12. 2022 is Rs. 13,000/-
2. Write off Rs. 5,000/- as bad debits from the debtors.
3. Accrued commission income is Rs. 2,000/-

(35) The value of stock presented for sales of Tharusha’s business for the year ended 31. 12. 2022 is,
(1) Rs. 268,000 (2) Rs. 259,000 (3) Rs. 260,000 (4) Rs. 272,000

(36) Gross profit of this business for the year ended 31. 12. 2022 is,
(1) Rs. 259,000 (2) Rs. 221,000 (3) Rs. 225,000 (4) Rs. 208,000

(37) Total income of Tharusha’s business for the year ended 31. 12. 2022 is,
(1) Rs. 411,000 (2) Rs. 493,000 (3) Rs. 503,000 (4) Rs. 23,000

(38) Net profit of this business is for the year ended 31. 12. 2022 is,
(1) Rs. 185,000 (2) Rs. 180,000 (3) Rs. 164,000 (4) Rs. 218,000

(39) The total value of assets of Tharusha’s business as at 31. 12. 2022.
(1) Rs. 340,000 (2) Rs. 330,000 (3) Rs. 328,000 (4) Rs. 345,000

(40) Equity of Tharusha’s business as at 31. 12. 2022 is,

(1) Rs. 388,000 (2) Rs. 355,000 (3) Rs. 337,000 (4) Rs. 340,000

***

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