IGCSE ACCOUNTING 903 – SECTION TESTS

Name: Date: Passing Score: Score:

24
30 80% 30 %

Section 1 Test

1. Explain what a Trial Balance is. [2 marks each = 4 marks]

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2. What is the purpose of a trial balance?

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3. Draw up a sample Trial Balance using your examples in the space provided below:
[10 marks]
Trial Balance as at

Ledger Balance Debit Credit

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 IGCSE ACCOUNTING 903 – SECTION TESTS

4. From the following information, draw up a Trial Balance in the books of Samson

[16 marks]
as at 31 March 2017

Ledger Balance $ Ledger Balance $

Capital 500,000 Sales 195,400

Purchases 40,000 Creditors 5,000

Cash in Hand 7,000 Rent 2,000

Cash at Bank 8,500 Furniture 16,000

Electricity exp 4,800 Bank Loan 10,000

Stationery 500 Opening Stock 1,800

Office Equipment 25,400 Commission Received 3,600

Debtors 8,000

Machinery 600,000

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 IGCSE ACCOUNTING 903 – SECTION TESTS

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 IGCSE ACCOUNTING 903 – SECTION TESTS

Name: Date: Passing Score: Score:

24
30 80% 30 %

Section 2 Test

1. Explain these terms: [2 marks each = 4 marks]

a. Capital Expenditure

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b. Revenue Expenditure

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2. Refer to the details below and state whether they are Capital or Revenue
Expenditure. [1 mark each = 10 marks]

Capital or Revenue

Purchase of machinery for use in the

business
Carriage paid to bring the machinery to
the construction site
Purchase of stock of soft drinks for the
vending machine

Payment for heating expenses

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Salaries paid by contractor to his

workmen for the erection of an office in
the builder’s stockyard

Purchase of additional stock

Bought a new computer

Paid office rent

Paid office workers salary

Painted whole office

3. Refer to the details below and state whether they are Capital or Revenue Receipt.

[1 mark each = 10 marks]

Capital or Revenue

Sale of unused machinery belonging to

the business.

Received commission from third party

Sale of inventory in cash

Sale of inventory to James, a debtor

A long-term bank loan to be used for

expanding the business
Paid a creditor early and received a
discount
Sublet part of office premises and
receive monthly rent
Owner of the business banks in money
into the company bank account
Sold a vehicle that was wrongly bought
for external use.

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Sold a painting that was part of office

fixtures and received cash
4. Explain the matching concept. [3 marks each = 6 marks]

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5. Marcus runs a business selling car spare parts. For the year ended 31 December 2017,
his total cash sales are $35000 and his total credit sales are $65000. From this
amount, he managed to collect $40000 from his outstanding creditors. What are his
total sales for the year ended 31 December 2017? Give a reason for your answer.

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