ADMISSION P 0 2 8 9 1

NUMBER

DATE

FIRST SEMESTER EXAMINATION - MARCH 2022

GRADE 9 (EDEXCEL)

ACCOUNTING

Paper 1: Introduction to Book keeping and Accounting

Duration : 2 hours

INSTRUCTION TO CANDIDATES

 Use black ink or ball-point pen.

 Answer all questions.
 Answer the questions in the spaces provided – there may be more space than you
need
 Calculators may be used.
Information
 The total mark for this paper is 100.
 The marks for each question are shown in brackets – use this as a guide as to how
much time to spend on each question.
Advice
 Read each question carefully before you start to answer it.
 Try to answer every question.
 Check your answers if you have time at the end.

Grade 9 (Edexcel) Accounting - First Semester Examination - March 2022

Prepared for Lyceum International Schools by Lyceum Assessments
 2
SECTION A
Answer ALL questions in this section. Write your answers in the spaces provided.
For questions 1–10, choose an answer A, B, C or D, and put a cross in the 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. T. Song sells goods for cash. How would T Song record this transaction in his books?

Account to be debited Account to be credited

A Sales account Cash account

B Cash account Sales account
C Sales account Sales Day Book
D Sales account Trade receivables account

(1 mark)
2. Which document is sent to credit customers at the end of each month?

A Credit note

B Remittance advice

C Sales invoice

D Statement of account

(1 mark)
3. What would be recorded on the credit side of the trade payable ledger control account?

A discount received

B interest charged

C payments to credit suppliers

D returns to credit suppliers

(1 mark)

Grade 9 (Edexcel) Accounting - First Semester Examination - March 2022

Prepared for Lyceum International Schools by Lyceum Assessments
 3
4. Ben records motor vehicle expenses in the motor vehicle account in error What type of error is
this?
A Commission

B Complete reversal

C Original entry

D Principle

(1 mark)
5. What would be recorded on the credit side of the trade receivable ledger control account?

A discount allowed

B cash paid

C credit sales

D cash sales

(1 mark)
6. Which statement is incorrect?
A Assets = Liabilities + Capital

B Capital = Assets - Liabilities

C Capital - Liabilities = Assets

D Liabilities = Assets - Capital

(1 mark)
7. Which is an intangible non-current asset?
A bank loan

B debtors

C goodwill

D premises

(1 mark)

Grade 9 (Edexcel) Accounting - First Semester Examination - March 2022

Prepared for Lyceum International Schools by Lyceum Assessments
 4
8. Neha purchased stationery for her business using her own money.
What is the entry in the business’s books?
Account to be debited Account to be credited
A Cash Stationery

B Equity Stationery

C Stationery Cash

D Stationery Equity

(1 mark)
9. Which of the following best describes a trial balance?
A shows the financial position of a business

B it is special account

C shows all the entries in the books

D it is list of balances on the ledger account

(1 mark)
10. An opening credit balance of $550 in a cash book would mean which of the following?
A the firm is overdrawn at the bank by $550

B the owner’s capital is $550

C the firm’s cash balance is $550

D the firm has $550 in the bank

(1 mark)

Grade 9 (Edexcel) Accounting - First Semester Examination - March 2022

Prepared for Lyceum International Schools by Lyceum Assessments
 5
11. New Wave Clothing supplies clothing to retailers. The following document is being
prepared to send to a customer.

(W)........................................................ Note
New Wave Clothing
Market Square
Harvey Nichols
22 Alexander Terrace
London
24 April 2020
Quantity Code Description Unit price (£) Total(£)

10 KRD2 Ladies Coats 80 (X)

Trade Discount 20% (Y)

(Z)

Goods damaged in transit

(a) State the word that is missing at (W).

credit note
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(1 mark)
(b) State the figures that are missing at:
800
(X)...............................................................................................
160 (1 mark)
(Y)...............................................................................................
640 (1 mark)
(Z)................................................................................................
(2 marks)
[Total = 5 marks]
12. Complete the following table to show the book of original entry for each transaction.
Transaction Book of original entry
Purchase of goods paying by cash cash bk
Purchase of a non-current asset on credit the journal
Purchase of a postage stamp petty cash bk
Purchase of goods on credit purchases day bk
Return of goods previously purchased on credit returns outward day bk
(5 marks)

Grade 9 (Edexcel) Accounting - First Semester Examination - March 2022

Prepared for Lyceum International Schools by Lyceum Assessments
 6
13. Asus purchases goods on credit and receives from all his suppliers a trade discount of 25%.

On 1 May 2020 Asus owed Allis a credit supplier €249. During the month of May 2020 the
following transactions took place between Asus and Allis.

2020 Transaction
2 May Purchased goods on credit from Allis, list price €240
15 May Returned goods to Allis, list price €48
21 May Paid the balance owing on to Allis at 1 May 2017

Prepare the account of Allis for the month of May 2020.

Balance the account on 31 May 2020 and bring the balance down on 1 June 2020.

Allis Account

Date Details € Date Details €

15 return outwards 36 1 Balance b/d 249

21 cash 249 2 Purchases account 180

31 balance c/d 144

429 429

1 Balnce b/d 144

(5 marks)

[TOTAL FOR SECTION A = 25 MARKS]

Grade 9 (Edexcel) Accounting - First Semester Examination - March 2022

Prepared for Lyceum International Schools by Lyceum Assessments
 7
SECTION B
Answer ALL questions in this section.
Write your answers in the spaces provided.
Jonny maintains a petty cash book with a float of $150.
During January 2020 the following petty cash transactions took place.

January Voucher Transaction $

Number
2 101 Purchased postage stamps 11.50
8 102 Paid travel expenses to sales manager 22.50
15 103 Paid to John, a trade payable 35.00
22 104 Purchased coffee, tea and sugar 17.75
26 105 Purchased postage stamps 8.50
31 106 Paid cleaner’s wages 15.00
31 Restored float To be calculated

14. (a) Prepare the petty cash book for the month ended 31 January 2020.
Balance the petty cash book on that date and bring the balance down on 1 February 2020.

Grade 9 (Edexcel) Accounting - First Semester Examination - March 2022

Prepared for Lyceum International Schools by Lyceum Assessments
 Receipts Date Details Voucher Payments Cleaning Postage Refreshm Travel Ledger
ents
$ 2019 number $ $ $ $ Accounts
$
$
150.00 1 Jan Cash book

2 Jan Stamps 101 11.50 11.50

8 Jan Travel Expenses 102 22.50 22.50

15 Jan John 103 35.00

35.00

104
22 Jan Coffee,Tea,Sugar 17.75 17.75
8

26 Jan Stamp 105 8.50 8.50

31 Jan Cleaners' wage 106 15..00 15.00

Grade 9 (Edexcel) Accounting - First Semester Examination - March 2022

110.25 15.00 20.00 35.00
17.75 22.50

31 Jan Bal c/d

150.00

39.75 1 Feb Bal c/d

Prepared for Lyceum International Schools by Lyceum Assessments

(11 marks)
 9
On 1 January 2020 the balance on the Travel Account was £28.
(a) Prepare the travel account for the month of January 2020 to show the transfer from the petty
cash book. Balance the account on 31 January 2020 and bring the balance down to 1
February 2020.

Travel Account
Date Narrative £ Date Narrative £
31 Petty Cash 22.50

31 Balance c/d 22.50

22.50 22.50

1 Balance b/d 22.50

(4 marks)
[Total = 15 marks]

Grade 9 (Edexcel) Accounting - First Semester Examination - March 2022

Prepared for Lyceum International Schools by Lyceum Assessments
 10

BLANK PAGE
QUESTION 15 BEGINS ON PAGE 11.

Grade 9 (Edexcel) Accounting - First Semester Examination - March 2022

Prepared for Lyceum International Schools by Lyceum Assessments
 11
15. (a) Evaluate why a business maintains ledger control accounts.
Control accounts provide a summary of transitions
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recorded in various subsidiary
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ledger It makes possible of the division of accounting
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work among the l keepers It facilitate prompt
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preparation of income statement It provide internal
checking leading to greater accurat
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(5 marks)

Josephine provided the following information.

At 1 June 2017 $

Trade receivables ledger control account balance 44300

For the year ended 31 May 2018

Cash sales 80 100

Credit sales 255 895

Irrecoverable debts 11 500

Payables ledger set off 7 895

Receipts from credit customers 228 955

Returns inwards 4 567

Grade 9 (Edexcel) Accounting - First Semester Examination - March 2022

Prepared for Lyceum International Schools by Lyceum Assessments
 12
(b) Prepare the following account for the year ended 31 May 2018. Balance the account on that
date and bring the balance down on 1 June 2019.
Trade Receivables Ledger Control Account
Date Details $ Date Details $

1 bal b/d 44300 Irrevocable debts 11500

sales 255985 7895
set off
cash 228955
return inwards 4567
31 balance c/d 58278
300195

300195
1 balance b/d 58278
(7 marks)

(c) State three other items that may appear in a trade receivables ledger control account.
1
intreseet charged
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discount allowed
2 ---------------------------------------------------------------------------------------------------------
discount recieved
3 ---------------------------------------------------------------------------------------------------------
(3 marks)
[Total = 15 marks]

16. (a) Explain the difference between capital expenditure and revenue expenditure.

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(6 marks)

Grade 9 (Edexcel) Accounting - First Semester Examination - March 2022

Prepared for Lyceum International Schools by Lyceum Assessments
 13
(b) Complete the following table, indicating with a tick (ü) whether the transaction represents
capital expenditure, revenue expenditure or neither.
Transaction Capital Revenue Neither
expenditure expenditure
Installation costs of new
machinery
Repairs to machinery

Receipt of bank loan to pay for

machinery
(3 marks)
(c) Assess the effect on a business of the incorrect treatment of capital expenditure and revenue
expenditure.
If capital expenditure us treated as revenue expenditure, it's due to an overstatement or revenue.
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expenditure net profit will be understated. Understate the book value of non-current assets.
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(6 marks)
[Total = 15 marks]

Grade 9 (Edexcel) Accounting - First Semester Examination - March 2022

Prepared for Lyceum International Schools by Lyceum Assessments
 14
Niall Quinn’s business sells sports equipment. During March 2020, N Quinn sent the following
invoices to customers.
Mar 7 Arca Ltd, goods list price £800 less 25% trade discount (no cash discount was

offered on this transaction).

Mar 21 Mc Cartney Ltd, goods value £5 000. The invoice offered a cash discount of

5% for payment within 14 days.

17. (a) Enter the above items into the sales day book for March 2020. Total the sales day book at
the end of the month.
Sales Day Book
Date Narration £

7
Arca ltd

21 mc cartney

31 transferred to the sales account.

(6 marks)
Goods were returned by customers during March and the following credit notes were sent.
Mar 16 Arca Ltd, goods list price £120 (these were some of the goods
supplied on 7 March).
Mar 28 Clark Suppliers, goods at list price £200 less a trade discount of 20%
(no cash discount had been offered on the invoice for these goods).

(b) Prepare the returns inward day book and total it at the end of the month.
Returns Inward Day Book
Date Narration £

16 aeca ktd 80

160
28 clack dupplrri

31 transffered to the returns inwards cc 240

(5 marks)

Grade 9 (Edexcel) Accounting - First Semester Examination - March 2022

Prepared for Lyceum International Schools by Lyceum Assessments
 15
As well as the information recorded in the sales and returns inward day books, the following details
are available regarding Arca Ltd.
Mar 1 1 Balance of account: £3 000 debit.

Mar 9 Cheque received in full settlement of the balance on 1 March less a cash

discount of 5%.

(c ) Prepare the account of Arca Ltd in N Quinn’s sales ledger. Balance the account on 31
March and bring the balance down.
Arca Ltd Account
Date Narration £ Date Narration £
1 balance b/d 3000 Return inwards. 80
sales 600 bank 2850
balance c/d 670
3600

31

3600
1 balance b/d 670
(4 marks)
[Total = 15 marks]

Grade 9 (Edexcel) Accounting - First Semester Examination - March 2022

Prepared for Lyceum International Schools by Lyceum Assessments
 16
The following trial balance was extracted from the books of Kevin Phillips, a retailer, which was
prepared by an apprentice accounts clerk on 31 October 2020. The suspense account was opened
when the trial balance failed to agree. The causes of the difference were discovered later and are set
out in below the trial balance.

Debit (£) Credit (£)

Cash at bank (debit balance) 14 000
Cash in hand 56
Trade receivables and trade payables 12 900 8 670
Capital 54 677
Wages of sales assistants 14 500
Vehicle expenses 5 671
Vehicles at cost 15 000
Stock at 1 November 2019 3 500
Cash discounts 420 540
Drawings 23 000
Equipment at cost 3 000
Heating and lighting 900
Insurance 890
Purchases and sales 313 000 540 000
General expenses 7 250
Premises 200 000
Rent received 600
Commission received 9000
Business rates 4 400
Suspense 4512
618243 618243

Grade 9 (Edexcel) Accounting - First Semester Examination - March 2022

Prepared for Lyceum International Schools by Lyceum Assessments
 17
18. You are required to prepare the correct version of the trial balance.
Kevin Phillips
Trial Balance as at 31 October 2020
Debit (£) Credit (£)
cash at bank 14000
cash in hand 56
trade receivables and trade payables 12900 8670
capital 54677

wages of sales assistants 14500

vehicle expenses 6671

vehicle at cost 15000

stock at November 2019 3500
cash discounts 420 540
drawings 23000

equipment cost 3000

heating and lighting 900

insurance 890

purchases and sales 313000

general expenses 7250

premises 200000
rent recieved 600
commission received 9000

business rates 4400 4400

suspense 5000
618487 618487
(8 marks)

Grade 9 (Edexcel) Accounting - First Semester Examination - March 2022

Prepared for Lyceum International Schools by Lyceum Assessments
 18
The correct version of the trial balance had also failed to agree for following reasons:
 £4 580 cash sales was correctly entered in the cash book but omitted from the sales account.
 Discount allowed had been correctly posted to the discount account from the cash book but no
entry for discount allowed had been made in the personal accounts.
(b). W#rite the journal entries to correct above errors. (Narrative are not required)
The Journal
Description Debit Credit

(4 marks)
(c). Transfer the difference in the corrected trial balance to the suspense account and enter the
correction entries in to the Suspense Account and balance of it.
Suspense Account
Date Narrative £ Date Narrative £

(3 marks)
[Total = 15 marks]
TOTAL FOR SECTION B: 75 MARKS
TOTAL FOR PAPER: 100 MARKS

END

Ref : AP

Grade 9 (Edexcel) Accounting - First Semester Examination - March 2022

Prepared for Lyceum International Schools by Lyceum Assessments