IGCSE Accounting Test 1 of 2014

Time : 45 minutes
Marks : 38 Name:_____________________

1. Give a definition of Accounting

______________________________________________________
______________________________________________________
______________________________________________________
______________________________________________________

2 marks

2. Complete the following table.

Assets Drawings Expenses Capital Liabilities Revenue

1.Jack starts business by
depositing $50000 into
business’ bank account
2. He buys new
shop equipment on
credit $10000
3.Received a bank loan
of $20000
4.Jacks buys a $5000
motor vehicle on credit
5.Jack takes $1000 for
his own personal use
6.He returns some shop
equipment valued at
$2000 & receives a
cheque
7.Goods sold on credit for
$600
8.He buys goods and
pays cash $400
9.Stationery purchased
on credit $200
10.Stationery returned to
supplier.

10 Marks
 3 Examine the items below. For each item, state whether or not it is an asset of the
organisation concerned. If it is not an asset, state why in the space below.
(a) The rent paid by a coffee shop _________________
(b) The manager of a business __________________
(c) The truck hired by a furniture movers __________________
(a)

(b)

(c)
3 Marks
4 Define the following Accounting Concepts
a) Entity Concept
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__________________________________________________
__________________________________________________

b) Duality Concept
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__________________________________________________
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2 Marks

2
5 Joan Robson’s Trial Balance as at 29 March 2009

DEBIT CREDIT
Capital 51500
Motor Vehicle l 45000
Fixtures and Fittings 10000
Trade Receivables 4000
Bank overdraft 1500
Trade Payables 3000
Wages 5000
Drawings 3000
Rent received 2500
Rates 2000
Motor expenses 750
Sales 30500
Purchases 18250
Inventory at 1 April 2008 1000
89000 89000

The following transactions occurred between 29 – 31 March. Make the necessary

adjustments and prepare a trial balance at 31 March 2009.
1. Credit Sales of $300
2. Wages of $150 were paid by cheque
3. Trade Payables were paid $1400 by cheque
4. Joan took out a bank loan of $2000
5. Inventory at 31 March 2009 is valued at $1500

12 Marks
3
6 Double Entry Question
Write up the asset, capital and liability accounts in the books of J Smith to record the following
transactions:
October
1 Started firm with $8,000 cash
2 Paid $7,500 of cash into business bank account
4 Receive a loan of $2500 from Marco Polo – money paid into the bank account
8 Purchased machinery on credit from P Jones for $6500
11 Bought motor vehicle for $3,800 paid for by cheque
15 Returned machinery valued at $2000 to Jones
16 Owner contributes furniture valued at $300 to the business
27 Paid outstanding balance to Jones by cheque
30 Purchased additional furniture for $2000 paying by cheque

Capital Account

Cash Account

Bank Account

LOAN: Marco Polo

Machinery Account

4
 Creditor Account

Motor Vehicle Account

Furniture Account

9 Marks