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T2-Y10 - Ccounting (I) - 2022-2023
T2-Y10 - Ccounting (I) - 2022-2023
Total 100
Percentage %
Grade
Second Term Examination, March 2023 Year 10 Accounting 4C01/01
SECTION A
Answer ALL questions in this section. Write your answers in the spaces provided.
Questions 1-10 must be answered with a cross in a box. If you change your mind about an
answer, put a line through the box and then mark your new answer with a cross.
1. A business buys goods for cash. What are the entries in the books of the purchaser?
(1 mark)
Account to be debited Account to be credited
Cash Supplier
Cash Purchases
Purchases Cash
Supplier Cash
3. In which book of original entry will credit notes received be recorded? (1mark)
Purchases book
Purchases return book
Sales book
Sales returns book
4. What is the main purpose of providing for depreciation on non-current assets? (1mark)
To provide funds for the replacement of the asset
To show the market value of the asset
To show when the asset should be replaced
To spread the cost of the asset over its useful life
5. A cash book has a discounts column on the credit side. Where is the total of this column
posted?
(1 mark)
Credit discount allowed account
Credit discount received account
Debit discount allowed account
Debit discount received account
6. A business keeps a petty cash book with a float of $200. During the month the total
expenses paid from petty cash were $160. What amount was required to restore the
float? (1 mark)
$40
$160
$200
$360
7. In which book of original entry should the correction of an error be made? (1 mark)
Cash book
Journal
Purchases day book
Purchases returns day book
9. The skills and knowledge of a workforce is not shown as an asset in the financial statements.
Which accounting concept is being applied? (1 mark)
Business entity
Consistency
Materiality
Money measurement
10. Identify which statement is correct. A bank reconciliation statement is: (1 mark)
a record of bank charges
part of the double entry
prepared by the bank
prepared by the trader
Question 11
……………………………………………….Note
PR Supplies
12 High Street
London
Baines 14
Stopes Road
(5marks)
Question 12
Complete the table, using a tick (√), to indicate how each item would be classified when a new motor vehicle
is purchased.
Delivery cost
Insurance
Additional shelving
Fuel
(5marks)
Question 13
On 31 March 2019 Ehab sold machinery for $16 000. The machinery had been purchased on 1 November
2016 for $24 000. He depreciates machinery at 20% per annum using the reducing balance method. A full
year’s depreciation is charged in the year of purchase but none in the year of disposal. Ehab’s financial year
end is 31 March. Prepare the disposal account.
(5marks)
Section B
Answer ALL questions in this section. Write your answers in the spaces provided.
Question 14
1. State two reasons why a business maintains a petty cash book. (2 marks)
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2. Brim maintains a petty cash book with a float of $120. The following transactions took place
in March 2022.
March 2022 Voucher number Transaction $
3 2360 Purchased postage 21.60
stamps
9 2361 Purchased stationery 32.30
18 2362 Paid travel expenses 9.20
22 2363 Paid office cleaner 20.00
29 2364 Paid taxi fare 15.00
31 Restored the petty cash float To be calculated
Prepare the petty cash book for the month ended 31 March 2022. Balance the petty cash book on
this date and bring the balance down on 1 April 2022. (11)
Question 15
Ashly owns a business selling computer accessories. He operates a full double entry system of book-
keeping.
(a) Complete the table below to show the business document and the book of original entry for
each transaction. (6 marks)
(b) The following transactions occurred during the month of August 2022.
Date Transactions
05-08-2022 Sold goods and received £ 2700 deducting cash discount 10%
Cash book
Date Detail Discount cash Bank Date Detail Discount Cash Bank
Question 16
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Cash 40 000
Purchases 150 000
Sales 365 000
Trade receivables 35 000
Trade payables 24 000
Insurance charges 6 000
Furniture 20 000
Discounts received 8 000
Discounts allowed 4 000
Motor vehicles 400 000
Rent payments 30 000
Stationery expenses 5 000
12 % Investments 50 000
Investment income 3 000
5 % Bank loan 90 000
Capital 250 000
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Question 17
1. (a) Complete the table below by placing a cross (×) to Indicate whether the following
items would be entered on debit side or credit of a cash book. (10 marks)
Debit side Credit side
Cash sales
Interest on overdraft
Cash Purchases
Bank charges
Salary payment
Rent income
Received from Trade
Receivables
Rent payment
Standing order
Payment to trade payables
(b) Following details for the year ended 31st December 2022.
01-Januaruary – 2022 allowance for irrecoverable debts £ 500
31- December – 2022 Trade receivables £ 15,000
Allowance for irrecoverable debt percentage – 5%
Prepare the following account, clearly showing the transfers to income statement as at
31st December 2022. (5marks)
Question 18
11. (a) State the possible reasons for the difference between the bank account balance and
the balance of the bank statement. (2 marks)
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Following are extracted from the bank account of Chris business and the bank statement
received from the bank as at 31.07.2022
Cash book
Date Details £ Date Details £
01-07-2022 Balance b/f 16,000 04-07-2022 Salaries 8,500
06-07-2022 Cash 20,000 09-07-2022 Trade payables 17,500
12-07-2022 Cheque deposit 14,000 18-07-2022 Rent 9,000
24-07-2022 Cheque Deposit 15,000 26-07-2022 Purchases 12,000
29-07-2022 Cheque deposit 18,000 27-07-2022 Trade payables 17,000
31-07-2022 Balance c/d 19,000
83,000 83,000
01-08-2022 Balance b/d 19,000
Bank Statement
Date Details Debit Credit Balance
01-07-2022 Balance b/f 16,000
06-07-2022 Cash deposit 20,000
10-07-2022 Cheque Payment 8,500
(b) Adjust the bank account balance(updated cash book) as at 31.07.2022. (5 marks)
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(c) Prepare the bank reconciliation statement using the adjusted bank balance (5 marks)
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