DASIMO PRIMARY AND SECONDARY SCHOOL

BUSINESS STUDIES GRADE 9 MID-TERM TEST, MARCH 2024

NAME:……………………………………………………………. CLASS:………..
SECTION A. Cross(x) or circle your best answer.
1. Which of the following is NOT an asset?
[A] Business buildings
[B] Cash balance in a business account
[C] Business debtors
[D] Loan from Mr. Tembo
2. Which of the following best describes the meaning of ‘Purchases’?
[A] Expenses incurred by the business
[B] Goods bought on credit
[C] Goods paid for
[D] Goods bought for resale
3. What are drawings?
[A] Money from goods sold on credit.
[B] Owner’s withdraws out of the business used to buy goods for sale.
[C] Money from goods sold on cash.
[D] Owner’s withdraws out of the business account for their private use.
4. Sales on credit are recorded in a day book called……
[A] Purchases day book
[B] Cash receipt day book
[C] Cash payment day book
[D] Sales day book
5. Which of the following should NOT be called ‘Sales’?
[A] Sale of item previously included in ‘Purchases’
[B] Goods sold on credit
[C] Goods sold for cash
[D] Office fixtures sold
6. A credit balance of K10, 000 on the bank columns of the cash book would mean….
[A] The business spent K10, 000 more than it received
[B] The business has K10, 000 cash in hand
 [C] Someone stole K10, 000 cash from the business.
[D] The bookkeeper made a mistake.
7. Which of the following is TRUE about Debit and Credit entries?

Debit Credit

A Purchases, Sales, Liabilities Income, Sales, Wine

B Purchases, Assets, Liabilities Money, Sales, Buildings
C Purchases, Expenses, Assets Revenue, Loans, Sales
D Purchases, Expenses, Assets Revenue, Liabilities, Sales

8. What are the double entry rules for CAPITAL and DRAWINGS?
[A] Debit an increase in capital and credit an increase in drawings.
[B] Debit an increase in capital and credit an increase in drawings.
[C] Credit a decrease in capital and debit a decrease in drawings.
[D] Credit an increase in capital and debit an increase in drawings.
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SECTION B. Write your answers in the spaces provided below each question.
9. Use the table to classify the following items into liabilities, income, expenses and assets.
The first one is done for you as an example.
(a) Loan from Moses Pakamwa (f) Stock(goods for sale)
(b) Motor vehicles (g) Bank overdraft
(c) Discount allowed (i) Machinery
(d) Cash in hand (j) Rent paid
10. Popoka Beauty shop had the following transactions in the month ended 29 th February 2024.
Date Details
February 1 Started business with K1,500 in the bank and K5600 cash
February 2 Purchased goods to the value of K1,750 from Fishala by cash.
February 6 Bought goods from Sicecani for K9150 cash and K8400 cheque.
February 8 Sold wigs and powder worth K800 on credit to Lombe Byubyu.
February 12 Bought stationery – cash book and invoices – for K750 – paying by cash.
February 14 Sold goods by cheque, valued at K1250, to Mbuzi Bwalya.
February 20 Bought old truck for deliveries K2,600 by cheque from Crocodile Mwansa.
February 29 Paid salaries of K4500 net for the month by cheque.
Prepare a two column cash book for Popoka Beauty Shop at 29 th february, 2024.