SUCCESS IN P.A p1 - 2016 - 2021

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EXAMINATIONS COUNCIL OF ZAMBIA

Examination for School Certificate Ordinary Level
Principles of Accounts 7110/1

Paper 1
Monday 7 NOVEMBER 2016

Time: 1 hours
Instructions to Candidates
There are 40 questions in this paper. Answer all questions.
1 The importance of accounting information is to ...

A measure the performance of the business.
B pay salaries to workers.
C test the market share.
D forecast purchases.
2 Which of the following are job opportunities for someone who has studied Accounts?
(i) Secretary
(ii) Public Relations Manager
(iii) Minister of Finance
(iv) Technician
(v) Bursar
(vi) Buyer
(vii) Stores Manager
A (i), (iv)
B (ii), (vi)
C (iii), (v)
D (V), (vii)
3 Explain the term business transaction.

A The recording of information in the books of the business.
B The exchange of goods for goods.
C A meeting for business executives.
D The exchange of goods and services for money's worth.
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4 The exchange of goods, money and services between persons is called …

A barter transaction.
B business transaction.
C trade transaction.
D selling and buying
5 A Which of the following are not included in the Sales Day Book?
A Cash Sales
B Credit sales made to overseas customers
C Credit sales made without deduction of trade discount
D Credit sales which eventually turn out to be bad debts
6 If a Debtor's Account is overcharged on the invoice, which document is sent to him to

adjust the amount due from him?
A Purchases Invoice
B Sales Invoice
C Debit Note
D Credit Note
7 The Ledger is the main book of accounts where ... are completed.
A calculations
B double entries
C transactions
D single entries
8 ... is an example of a nominal account.

A Asset
B Liability
C Expense
D Capital
9 The double entry is completed in the...

A Sales book.
B Ledger book.
C Purchases book.
D General book.
10 The personal accounts of debtors are found in the

A Sales Ledger.
B General Ledger.
C Purchases Ledger.
D Nominal Ledger.

11 A Trial Balance is prepared to check the...

A financial position of the business.
B arithmetical accuracy of the accounts.
C profitability position of the business.
D accuracy of the accounts.
12 Below isa Trial Balance prepared by an inexperienced book-keeper. You are required to
redraft it and find the correct balance. Which of the following is the correct balance?
Dr Cr
(K) (K)
Purchases returns 3 000
Carriage inwards 2000
Purchases 40 000
Sales 70 000
Debtors 20 000
Creditors 12 000
Bank overdraft 14 000
Motor vehicles 134 000
Sales Returns 15 000
Capital 112 000
274 000 148 000
A K177 000
B K218 000
C K197 500
D K211 000
13 The Balance Sheet can be defined as a ..

A list of balances after calculating net profit.
B statement of assets and liabilities.
C trial balance at different dates.
D list of balances before calculating net profit.
14 In which statement is gross profit calculated?

A Balance Sheet
B Trial Balance
C Profit and Loss Account
D Trading Account
15 Calculate the Cost of Goods sold from the following items:
Closing stock K72 400

Carriage Inwards K5 700
Purchases K213 600
Opening Stock K21 360

A K156 860
B K168 260
C K313 060
D K270 340
16 Which of these would appear as a current liability in the Balance Sheet?

A Wages due
B Rent receivable due
C Insurance premium paid in advance
D Advertising charges carried forward
17 The cost of a machine is K250 000, provision for depreciation is K60 000, depreciation
charges for the year are K19 000. In the Balance Sheet, the machine will be shown at a
net value of …
A K190 000.
B K231 000.
C K250 000.
D K171 000.
18 Which of the following errors would not affect the balancing of a Trial Balance?
A An amount not posted to E. Nyirenda.
B An amount omitted entirely from the books.
C An amount posted to the wrong side of the account.
D An amount overcast in one account.
19 Which of these errors will be revealed by the Trial Balance?

A Error on a Purchases Invoice.
B Purchases from M Sakala entered in R Sakala's account.
C Carriage outwards debited to Purchases Account.
D Overcast of total on sales account.
20 Discount received K2 000 has been posted on the debit side of Discount allowed
account. The entry to correct the error is...
A Suspense Dr K2 000 Discount received Cr K2 000
B Discount allowed Dr K2 000 Discount received Cr K2 000
C Suspense Dr K4 000 Discount allowed Cr K 2 000
Discount received Cr K2 000
D Discount allowed Dr K4 000 Discount received Cr K4 000

21 Which statement is sent by the bank to its customers to verify the balance at bank at
the end of the month?
A Bank Statement
B Statement of Account
C Cash Statement
D Bank Reconciliation Statement
22 Which one of the following does not create a difference, between the bank balance of
the firm and the balance shown by the bank statement?
A Errors made by the firm's bank.
B Cheques written by the firm which have not yet appeared on its bank statement.
C Lodgements made by the firm which have not yet appeared on its bank
statement.
D Cheques received appearing both on the bank statement and in the bank
account.
23 Why do Accountants prepare Control Accounts? To…

A calculate the sales and purchases.
B find errors quickly.
C make the Trial balance' balance.
D prevent errors quickly.
24 Which item appears on the credit side of a Purchases Ledger Control Account?
A Cheques paid
B Discount received
C Refund from suppliers
D Purchases returns
25 Which of the following is similar to a club's Receipts and Payments Account?

A Cash or Bank Account
B Income and Expenditure Account
C Profit and Loss Account
D Balance Sheet
26 Social club's records for the year show

Subscriptions K8 000
Sales of refreshments K4 000
Purchase of refreshments K2 000
Opening stock of refreshments K800
Closing stock of refreshments K600
What is the total net income for the year?

A K8 000
B K9 800
C K10 000
D K12 000
27 Which item should be treated as capital expenditure in the accounts of a Company?

A Purchase of a new computer for resale.
B Legal costs for the purchase of property.
C Renewing the electrical wiring in the office.
D Repairs to plant and machinery.
28 Which of the following is a revenue receipt for a newspaper agent?

A The proceeds of the sale of plant and equipment.
B Money received from an insurance company as a result of crashing a delivery
vehicle.
C A refund received from a supplier as Compensation for damaged stock supplied.
D Commission received from the sale of newspapers.
29 Single entry records are kept by .

A all the traders.
B partnerships.
C small traders.
D companies.
30 Which of the following is not used in the calculation of profit for incomplete records?
A Opening capital = opening assets – opening liabilities.
B Drawings = Closing capital – opening capital.
C Closing capital = closing assets – closing liabilities.
D Net profit = closing capital – opening capital + drawings – additional investment.
31 Which of the following item is used in sales calculation for single entry organisations?
A Discount allowed
B Cash payments to creditors
C Discount received
D Returns outwards
32 A partnership is formed by …
A a partnership act.
B a partnership deed.
C a verbal agreement.
D an agreement in writing.

33 Which one is not an appropriation of profit?

A Partner's interest on loan
B Partner's interest on capital
C Partner's interest on drawings
D Partner's share of profits
34 In Manufacturing account, prime cost is equal to total...

A direct manufacturing costs.
B manufacturing costs.
C indirect costs.
D overhead expenses.
35 The manufacturer provides you with the following balances.

K
Raw materials (opening stock) 60 000
Direct Labour 23 000
Royalties 2 000
Factory overheads 37 000
Depreciation of plant 53 000
Sale of scrapped raw materials 5 000
What is the prime cost?

A K80 000
B K85 000
C K180 000
D K175 000
36 In manufacturing business, royalty paid on every item manufactured is regarded as …

A an indirect expense.
B a direct expense.
C part of raw materials used.
D a factory overhead expense.
37 Why is it against Accounting Ethics and Standards to value closing stock in the final
account at market value? It ...
A has double effect on profits.
B has no effect on the profits.
C Would understate the profit.
D would overstate the profits.

38 Explain the meaning of ethics in accountancy. Study of...

A how to make profits in a business
B morals, values and judgement as they apply in accountancy.
C business etiquette as they apply in accountancy.
D banking procedures in a business as they apply in accountancy.
39 The Acid Test Ratio is calculated by..

A Current Assets ÷ Current Liabilities.
B Debtors ÷ Creditors.
C Current Assets less Debtors ÷ Current Liabilities.
D Current Assets less Closing Stock and Prepayment ÷ Current Liabilities.
40 Which organization has a high Rate of Stock Turnover?

A Electrical wholesale chain
B Estate agency
C Fast food outlet
D Travel agency



Paper 1
Friday 10 NOVEMBER 2017

Time: 1 hour
1 Accounting can be defined as a process of identifying, measuring and communicating ...

information to permit informed judgment and decision by users of the information.
A accounting
B confidential
C economic
D transactional
2 What is meant by the historical cost principle?

A Each transaction must have a debit and credit of equal value.
B Reported profits are realistic and overstated.
C Similar transactions should be recorded in the same way.
D Transactions are recorded at actual cost.
3 Which one of the following is not an example of a business transaction?

A Preparing financial report.
B Borrowing from the bank.
C Sale of goods.
D Purchase of goods.
4 Keelo buys goods from Rosa paying for them by cheque. What kind of transaction is
this?
A Bank
B Barter
C Cash
D Credit

5 Which one of the following is both a book of prime entry and double entry? The
A Cash Book.
B Petty Cash Book.
C Purchases Day Book.
D Sales Day Book.
6 The Purchases Journal is the book where we record goods ...

A sold on credit to make a profit.
B sold by cheque to make: profit.
C bought on credit and are meant for resale.
D bought by cheque and are meant for resale.
7 The double entry rule states that for every

A debit entry there must be a corresponding credit entry.
B debit entry there must be a corresponding debit entry.
C credit entry there must be a corresponding credit entry.
D debit and credit balance there, must be a corresponding debit entry.
A
8 Which ones below are the correct classes of accounts?

A Fictitious, Personal and Real Accounts
B Nominal, Real and Personal Accounts
C Personal, Fictitious and Nominal Accounts
D Real, Fictitious and Nominal Accounts
9 A Which one of the following is not a Ledger?

A General Journal Ledger
B General Ledger
C Accounts Payable Ledger
D Accounts Receivable Ledger
10 The Creditors Ledger is the book in which ... are kept.

A Suppliers' Accounts
B Real Accounts
C Nominal Accounts
D Customers' Accounts
11 Which of the following are reasons for preparing the Trial Balance? To...
(i) prove the arithmetic accuracy.
(ii) show all Ledger balances.
(iii) correct all errors.
(iv) see if the double entry rule has been followed.
(v) prepare the Suspense Account.

A (i), (iii) and (V)

B (i), (ii) and (iv)
C (ii), (iii) and (iv)
D (iii), (iv) and (v)
12 The following Trial Balance was written by an unqualified Bookkeeper. Prepare the
correct one and show the totals:
Dr Cr
(K) (K)
Sales 8 000
Drawings 2 000
Sales Returns 800
Purchases 5 000
Opening Stock 1 000
Purchases Returns 1 500
Insurance 700
Totals 11 000 8 000
Dr Cr
(K) (K)
A 9 500 9 500
B 7 300 7 300
C 13 800 13 800
D 4 500 4 500
13 The following information is available for Isaac's business:

(K)
Sales 28 000
Stock 1/1/2015 10 000
Purchases 18 000
Stock 31/12/2015 15 000
Expenses 6 000
Calculate the gross profit.

A K 20 000
B K 9000
C K 15 000
D K 28 000
14 Net profit can be defined as…

A excess of sales over cost of goods sold.
B gross profit less operating expenses.
C sales less purchases.
D Cost of goods sold plus opening stock.

15 The descending order in which current assets should be shown in the Balance Sheet is …
A Stock, debtors, bank, cash.
B Cash, bank, debtors, stock.
C Debtors, stock, bank, cash.
D Stock, debtors, cash, bank.
16 Bwalya Trading bought a machine on 1 July 2016 by cheque for K4, 000 and is estimated
to last 10 years after which it will have a scrap value of K500. What is its Annual
Depreciation?
A K2 000
B K 350
C K 200
D K 430
17 Depreciation can be defined as the…

A appreciation of a fixed asset.
B appreciation of a current asset.
C value of a current asset.
D loss of value of a fixed asset.
18 An Error of Principle is made if…

A a transaction has completely been omitted.
B a transaction has been entered in both accounts with the wrong amount.
C an entry has been made in the wrong class of accounts.
D an entry has been made on the wrong side of the two accounts concerned
19 Errors corrected using the Suspense Account…

A are not exposed by the Trial Balance.
B prevent the Trial Balance from balancing.
C affect the Balance Sheet.
D are omitted in the Ledger.
20 Given that the total debit side of the Trial Balance is K18 900 and credit side is K22 000,
what will be the opening balance on the Suspense Account?
A K3 100 on the credit side of Suspense Account
B K3 100.on the debit side of Suspense Account
C K3 000 on the debit side of Suspense Account
D K3 000 on the credit side of Suspense Account
21 Why is a Bank Reconciliation Statement prepared? To…

A check the arithmetic accuracy.
B show unpresented cheques lodged with the bank.
C show uncredited cheques lodged with the bank.
D verify the Cash Book balance and the Bank Statement balance.

22 Which statement is sent by the bank to its customers to verify the balance at bank at
the end of the month?
A Bank Reconciliation Statement
B Bank Statement
C Cash Statement
D Statement of Account
23 What is the purpose of the Sales Ledger Control Account? To…

A calculate the amount owed to suppliers.
B calculate total sales.
C check the accuracy of the Sales Ledger
D make the Trial Balance totals agree.
24 The Debtors Ledger Control Account is also known as …

A Sales Ledger Control Account.
B Purchases Ledger Control Account.
C Creditors Ledger Control Account.
D Total Creditors Account.
25 Which one of the following items is not entered in the Income and Expenditure Account?
A Accumulated fund
B Printing and stationery
C Profit on sale of tickets
D Subscriptions.
26 A club has a total membership of 50 and the annual subscription per member is K100. At
the end of the year, the dub's Cash Book shows that a total of K4 000 was received. How
much is transferred to the Income and Expenditure Account?
A K5 000
B K4 000
C K1 000
D K6 000
27 What is a Capital Receipt?

A Money spent when acquiring fixed assets.
B Funds generated from the sale of fixed assets.
C Funds generated from the sale of revenue expenditure
D Funds generated from the sale of purchases.
28 Which one of the following is a Revenue Expenditure?

A A purchase of filing cabinets for the office
B Illegal costs for purchase of property
C Cost of extension to buildings
D A quarterly electricity bill

29 Single entry records are mostly kept by all those who...

A do not keep double entry records.
B keep double entry records.
C are sole traders in business.
D are partners in business.
30 Which of the following items is used in sales calculation for single entry organizations?
A Cash payment to creditors
B Discount Allowed
C Discount Received
D Returns Outwards
31 Which one of the following is correct?

A Profit does not alter capital.
B Profit reduces capital.
C Capital can only come from profit.
D Profit increases capital.
32 In the absence of a partnership agreement, how should capital be contributed?

A All partners should contribute equally.
B According to financial resources of the partners.
C All partners should contribute according to sharing ratios.
D Some partners should not be allowed to contribute.
33 An Appropriation Account is an account dealing with allocation of... to partners,

A capital
B drawings
C gross profit
D net profit
34 In a manufacturing business, royalties on every item manufactured are regarded as…

A direct expenses.
B indirect expenses.
C part of raw materials used.
D factory overhead expenses.
35 What do you understand by the term "work-in-progress?

A Value of goods purchased.
B Value of finished goods on hand.
C Sales less cost of goods sold.
D Value of partly finished goods.

36 A manufacturing business extracts the following information from its books:

K
Direct Materials 2 800
Direct Labour 2 200
Indirect Expenses 800
What is the amount of Prime Cost?
A K5 000
B K3 600
C K4 200
D K5 800
37 Which of the following words best describes ethics in accountancy?

(i) Fraud
(ii) Integrity
(iii) Corruption
(iv) Discipline
(v) Embezzlement
(vi) Honest
A (i), (ii) and (V)

B (ii), (iii) and (iv)
C (ii), (iv) and (vi)
D (i), (V) and (vi)
38 Which one of the following is a danger of non-adherence to ethics in accounting?

A Accountability
B Dependence
C Money laundering
D Trust
39 The amount a trader adds to their cost price is known as ..

A margin.
B mark-up.
C net profit.
D turnover.
40 Normally goods and services are sold above cost price, the difference being...
A capital.
B loss.
C profit.
D turnover.



Paper 1
Monday 5 NOVEMBER 2018

Time: 1 hour
1 The importance of accounting in business is to …

A forecast purchase.
B forecast sales.
C measure the performance of the firm.
D measure the performance of the workers.
2 The prudence concept states that accounts should …

A include only items with a monetary value.
B change methods from year to year.
C provide for all accruals and prepayments from year to year.
D provide for all possible losses and not anticipate profits.
3 The exchange of goods, money and services between persons is called transaction.
A barter
B business
C buying
D selling
4 Goods bought and paid for immediately is an example of a ... transaction.

A barter
B business
C cash
D credit

5 What is the source document for recording transactions in the Purchases Day Book?
A Credit note
B Debit note
C Duplicate invoice
D Original invoice
6 The book of prime entry where we record the sale of old equipment is called Journal.
A Bought
B General
C Sales
D Sales returns
7 Which of the following are correct?

Account to be Account to
be debited credited
(i) Bought a computer by cheque computer Bank
(ii) Malila a debtor pays by cash cash Malila
(iii) Introduced capital by cheque capital Bank
(iv) Paid a creditor Bumba by cash Bumba cash
A (i), (ii) and (iii) only

B (ii), (iii) and (iv) only
C (i), (ii) and (iv) only
D (i) and (iv) only
8 In which class of ledger accounts is capital recorded?

A Impersonal
B Nominal
C Personal
D Real
9 The Accounts of our customers are kept in the...Ledger.

A Creditor's
B Debtor's
C General
D Sundry
10 10 The main book of Accounts where the double entry system is completed is known
as the...
A Cash Book.
B Journal.
C Ledger.
D Petty Cash Book.

11 To find out whether our double entry has been carried out correctly, we prepare a …
A Balance sheet.
B Profit and Loss Account.
C Trading Account.
D Trial balance.
12 The Trial Balance below was prepared by an incompetent Book-keeper:

TRIAL BALANCE AS AT 31ST DECEMBER 2017
Dr (K) CR (K)
Sales 40 000.00
Purchases 30 000.00
Drawings 15 000.00
Returns inwards 9 000.00
Carriages Outwards 6 000.00
Capital 20 000.00
64 000.00 56 000.000
Prepare the corrected Trial Balance and show the correct totals.
Dr(K) Cr(K)
A K60 000.00 K60 000.00
B K66 000.00 K66 000.00
C K64 000.00 K64 000.00
D K56 000.00 K56 000.00
13 Net Profit is calculated in the...

A Balance Sheet.
B Profit and Loss Account.
C Trading Account.
D Trial Balance.
14 Which of the following should be charged to the Profit and Loss Account?
A Carriage on raw materials
B Direct materials
C Office rent
D Work in progress
15 Given that current assets are K2 000.00, current liabilities K800.00, fixed assets
K1 500.00. Calculate the working capital.
A K700.00
B K1 200.00
C K2 300.00
D K2 700.00

16 Expenses which a firm has incurred but not yet paid for are called
A accrued.
B administrative.
C distribution.
D prepaid.
17 Moola bought equipment at K100 000.00 cash on 1 January 2015. He charges

depreciation at 10 percent using the straight-line method. What will be the accumulated
depreciation figure on 31s December 2017?
A K10 000.00
B K20 000.00
C K30 000.00
D K40 000.00
18 A purchase of goods at K450.00 from Jelita Mulenga was entered in error in Gerald
Mulenga's Account. What type of error is this?
A Commission
B Compensation
C Omission
D Principle
19 Which of the following errors would be revealed by the Trial Balance?

A Error of original entry
B Error of principle
C Single entry
D Complete reversal of entries
20 A discount allowed was recorded in the Cash B0ok, but omitted on the debtor's account.
It is corrected by:
Account to be debited Account to be credited
A Suspense Account Debtor's Account
B Discount allowed Account Suspense Account
C Debtor's Account Suspense Account
D Suspense Account Discount allowed Account
21 If the bank refuses to pay cash against a cheque then it is said to be a...Cheque.
A Cleared
B Dishonored
C Presented
D Reconciled

22 A Revised Cash Book shows the…

A profit in the bank.
B statement of affairs.
C account for the bank.
D balance at the bank.
23 Which of the following will appear on a Bank Statement?

A Payment into the bank not yet credited
B Cheques issued but not yet presented for payment
C Credit transfers received from debtors
D Bad debts written off
24 Which of the following items would not appear in the Sales Ledger Control Account?
A Discount allowed
B Interest charged on overdue accounts
C Provision for bad debts
D Sales returns
25 In a club Balance Sheet, subscriptions paid in advance are recorded as a.

A Current Asset.
B Current Liability.
C Fixed Asset.
D Long term Liability.
26 A club has a credit balance of K292.00 as its subscription. During the year subscriptions
of K2 600.00 were received, but K148.00 of this was paid in advance for the following
year. What is the amount transferred to the Income and Expenditure Account?
A K2 744.00
B K2 892.00
C K2 308.00
D K2 160.00
27 Kafue Textiles purchased an industrial sewing machine. What expenditure is this?

A Capital expenditure
B Fixed asset
C Fixed expenditure
D Revenue expenditure
28 Which of the following is Revenue Expenditure?

A Carriage paid to bring new machinery in the business
B Legal costs for acquiring land
C Painting a building for the second time
D Purchase of a new vehicle

29 In the absence of drawings and additional capital, capital at the end less capital at start
is equal to...
A Drawings.
B Gross profit.
C Net profit.
D Net worth.
30 Incomplete records are best described as records which..

A are kept based on single entry.
B have been destroyed or damaged by fire.
C show only the receipt book.
D are maintained on the double entry system.
31 Which of the following items is used in purchases calculation for single entry
organisations?
A Cash receipt
B Discount allowed
C Discount received
D Returns inwards
32 If a bonus is given to a partner then it is recorded in the...Account.

A Appropriation
B Capital
C Profit and Loss
D Trading
33 Which of the following does not appear in the Appropriation Account of a partnership?
A Drawings by partners
B Goodwill written off
C Interest on capital
D Interest on drawings
34 Total Cost of Finished Goods divided by the quantity produced gives us the.
A Cost Per Unit .
B Overhead Cost.
C Prime Cost.
D Work in Progress.
35 What is the main reason for preparing a Manufacturing Account? To calculate the
A Cost of Overheads.
B Cost of Production.
C Cost of Raw Materials.
D Prime Cost.

36 Calculate the Cost of Raw Materials used from the following: Purchase of raw materials
K600 000.00, Factory wages K100 O00.00, Opening stock of raw materials K55 000.00
and closing stock of raw materials K80 O00.00.
A K555 000.00
B K655 000.00
C K755 000.00
D K575 000.00
37 Which one of the following is a benefit to the company for adhering to ethic in
Accountancy?
A Creates investor and creditors' confidence,
B Makes a Company produce more goods and services.
C Makes a company Observe the rule of double entry.
D Allows money laundering to take place.
38 Which of the following is not one of the ethics in Accountancy?

A Consistency
B Fraud
C Objectivity
D Trust worthy
39 When goods and services are sold above Cost Price, the difference is...
A a loss.
B a profit.
C a decrease in stock.
D an increase in stock.
40 The Gros Profit Margin shows the relationship between Gross Profit and...
A Cost of Sales.
B Gross Sales.
C Net Profit.
D Turnover.



Paper 1
Thursday 21 NOVEMBER 2019

Time: 1 hour
1 What name is given to the Accounting Concept that requires the owner of the business
to be treated separate from the business?
A Accrual
B Business Entity
C Going Concern
D Prudence
2 The person who maintains books of accounts in a firm is called...

A Accounts clerk.
B Account Executive.
C Office Clerk.
D Receptionist.
3 The terms business transaction refers to the...

A exchange of goods for goods.
B exchange of goods and services for money's worth.
C meeting for business executives.
D recording of information in the books of the business.
4 … is not an example of a bank transaction.

A Depositing money
B Paying by cheque
C Receiving interest from the bank
D Selling goods for cash

5 ... note is the source document used to write up the Sales Returns Book.
A Duplicate credit
B Duplicate debit
C Original credit
D Original debit
6 Which one of the following is not a Book of Original Entry?

A Purchases Journal
B Returns Inwards Journal
C Sales Ledger Journal
D Sales Journal
7 Which one of these would be the correct double entry for this transaction? Bought
office furniture for cash from Furnishing world.
Account to be debited Account to be credited
A Cash Office furniture
B Cash Furnishing World
C Office furniture Cash
D Office furniture Furnishing World
8 ...is an example of a real account.

A Asset
B Capital
C Liability
D Drawings
9 The Sales Ledger of the business contains the ...

A Creditors accounts.
B Personal accounts of customers.
C Personal accounts of suppliers.
D Sales account.
10 …, Book is both a book of Prime Entry and the Ledger.

A Cash
B Petty cash
C Purchases
D Sales
11 Which one of the following is the reason for preparing a Trial Balance? To...
A calculate the profit or Loss for the business.
B check the cash and bank balances.
C show all ledger balances.
D show financial position of the business.

12 From the list of balances below, you are required to prepare the Trial Balance and show
the correct totals.
K N
Creditors 50 000.00
Debtors 85 000.00
Capital 65 000.00
Sales 70 000.00
Opening stock 20 000.00
Purchases 80 000.00
A K 235 000.00
B K 205 000.00
C K 185 000.00
D K 170 000.00
13 When preparing final accounts, trade expenses should be...

A credited to Profit and Loss Account.
B credited to the Trading Account.
C debited to Profit and Loss Account
D debited to the Trading Account.
14 In which final account do we reflect the warehouse wages?

A Balance Sheet
B Profit and Loss Account
C Trading Account
D Trial Balance
15 Calculate the Cost of Goods Sold from the following figures:

Sales K 190 000.00
Sales Returns K 10 000,00
Opening Stock K 40 000.00
Closing Stock K 35 000,00
Purchases K 130 000.00
A K 45 000.00
B K 135 000.00
C K 170 000.00
D K 180 000.00
16 A Provision for Doubtful Debts is credited when

A debtors cease to be in businesSs.
B debtors become bankrupt.
C providing for possible bad debts
D writing off bad debts.

17 A firm bought two cars at K40 000.00 each on Credit from Muunga. Depreciation is
charged at 20% per annum on the net book value. What will be the net book value of
the cars after two years?
A K 64 000.00
B K 51 200.00
C K 40 960.00
D K 32 768.00
18 Error of Principle is an error...

A made in the cash book.
B where an entry has been omitted from the books.
C where an entry is made in a wrong class of account but correct side.
D which cancels each other.
19 Which of the errors would be revealed by the Trial Balance?

A Cheque received from B. Hanyinda debited to B. Hamooba's account.
B Credit Purchases from T. Lubinga completely omitted from the account.
C Credit sales to J. Banda entered in J. Bunda's account.
D Repairs to van debited to Van account.
20 The Trial Balance failed to agree, the debit side had K 188 100.00 while the credit side
had K 191 300.00. Find the shortage and indicate the side on which it would appear in
the Suspense Account.
A K2 300.00 on the debit side
B K3 200.00 on the credit side
C K2 300.00 on the credit side
D K3 200.00 on the debit side
21 Bank Reconciliation Statement is...

A drawn by the bank to verify the Cash Book balance with the Bank Statement.
B drawn by us to verify the Cash Book balance with the Bank Statement.
C sent by the bank when the account is overdrawn.
D sent by the bank when there is an error.
22 The bank charges on the Bank Statement did not appear in the Cash Book causing a
difference in the business books. What should be the entry to reconcile the balances?
A Credit the Cash Book
B Credit the Statement of Account
C Debit the Cash Book
D Debit the Statement of Account

23 Tumelo maintains a Control Account for his Sales Ledger. What is the purpose of this
Control Account? To...
A calculate the amount owed by suppliers.
B calculate the amount owed to suppliers.
C check the accuracy of the Sales Account.
D check the accuracy of the Sales Ledger.
24 In the Sales Ledger Control Account, the bad debts written off should be shown as a …
A balance carried down.
B balance brought forward.
C credit balance.
D debit balance.
25 Which one of the following item appears under Current assets of a Non-Profit Making
Organization?
A Bar expenses owing
B Debtors for subscription
C Subscriptions received in advance
D Transport cost owing
26 A club had a credit balance of K 146 000,00 as its subscription on 1 January 2017. During
the year subscriptions of 1 300 000.00 were received, but K 74 000.00 of this was in
advance for the succeeding year. What is the amount transferred to the Income and
Expenditure Account?
A K 1 372 000.00
B K1 446 000.00
C K1 154 000.00
D K 1 080 000.00
27 Which of the following is classified as Revenue Expenditure?

A Buying a van
B Painting outside of a new building
C Putting extra head light on a van
D Repairs to van
28 Revenue Expenditure is...

A the cost of running the business on a day-to-day basis.
B money spent on building fixed assets or adding value to them.
C money spent on selling fixed assets of the business.
D the extra capital paid in by the proprietor.

29 Profitability of a business which maintains single entry records can be found by...
A calculating capital increase at the end of the yea
B calculating the proprietor's investment at the end of the year.
C comparing creditors and debtors at the end of the year.
D comparing the assets against liabilities at the end of the year.
30 Which one of the following item is used in sales calculation for single entry
organisations?
A Cash payment to creditors
B Discount allowed
C Discount received
D Returns outwards
31 Net worth is the same as...

A Capital.
B Gross Profit.
C Net Profit.
D Net Loss.
32 The minimum number of partners in a partnership business is

A 7
B 2
C 20
D 50
33 A partnership prepares an Appropriation Account to ...

A share Gross Profit between partners
B share Net Profit between partners
C show partners' capitals
D show partners' drawings
34 In Manufacturing Accounts, when market value of goods is lower than the cost of
the product, it results in...
A a manufacturing loss.
B a manufacturing profit.
C an overvalued prime cost.
D an undervalued total overhead expense.
35 Which one of the following isa direct cost?

A Depreciation
B Insurance
C Raw materials
D Rent

36 Given the following: Purchases of raw materials K 400 O00.00, Factory wages
K 110 000.00, Closing stock of raw materials K 40 000.00, Opening stock of raw
materials, K 50 000.00 and factory power K 30 000.00. Calculate the figure for Cost of
Production.
A K 510 000.00
B K 470 000.00
C K 520 000.00
D K 550 000.00
37 Which one of the following is not a danger to non-adherence to ethics in Accountancy?

A Corruption
B Embezzlement
C Fraud
D Integrity
38 Which one of the following is not an ethical conduct of an Accountant?

A Accountability
B Objectivity
C Integrity
D Smartness
39 The ratio which assesses the ability of a business to pay its financial obligations is known
as…
A Acid test ratio.
B Current ratio,
C Gross profit
D Net profit.
Opening Stock +Closing Stock

40 The following formula: is used to calculate...
2
A Average Stock.
B Cost of sales.
C Stock taking.
D Turnover



Paper 1
2020
Time: 1 hour
1 Which of the following is not the importance of Financial Accounting? It helps …

A to calculate the tax to be paid.
B to provide proof of financial position.
C with checks and balances.
D with management of personnel in a business.
2 Which of the following is a job opportunity in the Accounting Profession?

A Burbar
B Executive Officer
C Office Clerk
D Receptionist
3 Mazuba Mazoka exchanged his laptop with a phone worth K 7 000.00. This type of
transaction is a ... Transaction.
A Barter
B Business
C Cash
D Credit
4 Which one of the following can be referred to as a Credit Transaction? Buying goods
today and paying for them...
A at a future date.
B at a reduced price.
C by cash immediately.
D by cheque immediately.

5 In the General Journal, a description and explanation of the transaction is known as the ...
A Folio.
B Journal entry.
C narrative.
D Opening Entry.
6 What is the source document for the Sales Returns Journal?

A Duplicate Credit Note
B Duplicate Debit Note
C Original Debit Note
D Original Credit Note
7 Funsani, a sole trader, took K6 000.00 from the business Bank Account for various office
Use. How would this transaction be recorded in the books?
Debit Credit
A Bank Account Drawings Account
B Bank Account Cash Account
C Cash Account Bank Account
D Drawings Account Bank Account
8 Rent Received, Sales and Returns Outwards are.. Accounts.

A Nominal
B Personal
C Real
D Suspense
9 Incomes and expenses are recorded in the... Ledger.

A General
B Main
C Purchases
D Sales
10 What do we call the Principle Book of Accounts in which transactions are recorded on
double entry basis?... book.
A Ledger
B Purchases
C Sales
D Subsidiary
11 A Trial Balance is made up of ... extracted from the Ledger.

A credit balances
B debit and credit balances
C debit balances
D debit totals and credit totals

12 The following Trial Balance was prepared by an inexperienced Book-keeper:

Dr (K) CR (K)
Buildings 150 000.00
Cash at bank 120 000.00
Debtors 12 484.50
Creditors 72 000.00
Fixtures 40 015.50
Motor Vehicles 140 000.00
Capital 204 500.00
Sales 186 000.00
378 500.00 546 500.00
Redraft the Trial Balance and show the correct totals.

A K462 500.00
B K450 000.00
C K422 525.50
D K412 000.00
13 A business makes a Net Loss at the end of the year. How would this be treated in the
Balance Sheet of the business?
A Added to capital
B Added to liabilities
C Subtracted from capital
D Subtracted from liabilities
14 Which items below relate to the Balance Sheet?

A Assets, Capital, Liabilities
B Capital, Incomes, Liabilities
C Expenses, Assets, Capital
D Liabilities, Capital, Expenses
15 A firm's Opening Capital is K20 600.00 and the Net Profit is K6 800. 00. How much is the
Closing Capital?
A K27 400.00
B K23 800.0o
C K20 600.00
D K20 400.00
16 Buumba bought a truck on 1 January 2019 at a cost of K90 000.00. He decided to use
the reducing balance method for depreciating the truck at the rate of 5% per annum.
Calculate the depreciation charge for 2019.
A K2 500.00 B K4 000.00
C K4 275.00 D K4 500.00

17 Rent accrued means that rent was.

A a prepayment.
B in arrears.
C paid in advance.
D prepaid.
18 A reduction in the provision for bad debts is.

A credited to the Profit and Loss Account.
B credited to the Trading Account.
C debited to the Profit and Loss Account.
D debited to the Trading Account.
19 A Purchase Invoice for a delivery van K40 000.00 was debited to the Purchases Account.
This is an error of . ...
A Compensation.
B Original entry.
C Overcast.
D Principle.
20 Which of the following errors would not be disclosed by the Trial Balance?
A Sales Account was over cast by K30.00.
B Purchases Account was under cast by K20.00.
C Discount allowed, K300.00 was recorded in the Debtor's Account only.
D Cash sales were completely omitted from the books of accounts.
21 If the Sales Account is under cast by K400.00, to correct this mistake, the entries will be …
Debit Credit
A Suspense K400.00 Sales K400.00
B Sales K400.00. Suspense K400.00.
C Sales K400.00 Cash K400.00.
D Cash K400.00 Sales K400.00.
22 What do we call a cheque paid to us by a customer but not yet passed through the
banking system?
A A Bank Overdraft.
B A dishonored Cheque.
C An uncredited Cheque.
D An unpresented Cheque.
23 Which of the following items may be missing in the Cash Book but appear on the Bank Statement?
A Credit transfer, Standing Order, Bank Charges
B Credit transfer, Bank Charges, Uncredited cheques,
C Uncredited cheques, Bank Charges, Standing Order.
D Uncredited cheques, Credit transfer, Standing Order.

24 The total of credit sales for the month should be entered on the …
A credit side of the Purchases Ledger Control Account.
B credit side of the Sales Ledger Control Account.
C debit side of the Purchases Ledger Control Account.
D debit side of the Sales Ledger Control Account.
25 Mundia charged Mwangelwa interest on an overdue account. How will the interest be
treated in Mundia's Control Account?
A Debit Purchases
B Debit Sales
C Credit Purchases
D Credit Sales
26 In Club Accounts, Capital is referred to as…

A accumulated fund.
B donations.
C subscription fees.
D surplus.
27 The treasurer of Lusaka Golf Club received K56 680,00 during the year. At the beginning
of the year K3 250.00 subscription was owing and K5540.00 subscription was owing at
the end of the year. What is the amount of subscription to be transferred to the Income
and Expenditure Account?
A K47 890.00
B K54 390.00
C K58 970.00
D K62 220.00
28 Which ones are examples of Revenue Receipts from the transactions given below?
(i) A cheque received from the sale of machinery at the book value.
(ii) A profit made on the sale of non-current assets.
(iii) A loan from Absa Bank repayable by 2030.
(iv) A discount received from a credit supplier for prompt payment
A (i) and (iii)
B (i) and (iv)
C (ii) and (iii)
D (ii) and (iv)
29 Amount realised from sale of old furniture is…

A Capital Expenditure.
B Capital Receipt.
C Revenue Expenditure.
D Revenue Receipt,

30 Most small traders maintain their books on... entry.

A business
B contra
C double
D single
31 In single entry, profit is calculated by.

A Closing Capital + Opening Capital.
B Closing Capital - Drawings +Opening Capital.
C Closing Capital - Opening Capital + Drawings.
D Closing Capital + Drawings +Opening Capital.
32 What document governs the relationship between partners?

A Articles of Association
B Articles of Partnership
C Business Act of Partnership
D Memorandum of Association
33 What item would be added to the Net Profit in the Profit and Loss Appropriation
Account for a partnership?
A drawing by partners
B interest on capital
C interest on drawings
D salary to a partner
34 Royalties are classified as ... costs.

A administrative
B direct
C distribution
D overhead
35 A manufacturing business has the following information:

Direct material K56 000.00; direct labour K44 000.00; indirect expenses
K16 000.00. What is the cost of production?
A K 72 000.00
B K 84 000.00
C K100 000.00
D K116 000.00

36 Which of the following is not part of the inventory in manufacturing business?

A Finished goods
B Overhead cost
C Raw materials
D Work in progress
37 Embezzlement is one of the effects on non-adherence to Accounting Ethics.

What does this mean?
A Asking for bribes
B Discriminating other
C Misapplication of funds
D Misappropriation of funds
38 Which of the following is a result of non-adherence to ethics in Accountancy?

A Discipline
B Honesty
C Imprisonment
D Integrity
39 What is included in the Working Capital, but not in the Quick Ratio?
A Cash
B Inventory
C Trade Receivables
D Trade Payables
40 What is the formula for calculating working capital?

A Assets – Liabilities
B Fixed Assets – Current Liabilities
C Total Current Assets + Total Current Liabilities
D Total Current Assets – Total Current Liabilities



Paper 1
Friday 19 NOVEMBER 2021

Time: 1 hour
1 Which one of the following statements is not true about accounting? It provides
information…
A about assets and liabilities of the business.
B about the types of goods and services sold by the business.
C to debtors and creditors of the business.
D to managers for them to make decisions.
2 Which one of the following is not a career prospect in accounting?

A Auditor
B Bursar
C Cashier
D Receptionist
3 A business transaction ...

A involves the exchange of goods or services for money's worth.
B involves the recording of business transactions.
C is the amount of money used in the business.
D is the recording of money received or paid by the business.
4 Which one of the following is a credit transaction? Sold goods ...

A and received payment K300.50 through Airtel money.
B and received payment K10 000.00 by credit transfer.
C by cheque K4 000.00.
D to Mukube investments for K25 000.00 to be paid after 7 days.

5 Which statement would constitute a contra entry in the Cash Book?

A A transfer of cash by a debtor into the Bank Account.
B Introducing Capital in the business by depositing cash into the Bank Account
C Withdrawing cash from the bank for office use.
D Withdrawing cash from the bank for personal use.
6 The purpose of sending a Credit Note is to ...

A increase the amount owed by the buyer.
B inform the buyer about goods available.
C inform the buyer of the amount he owes the seller.
D reduce the amount the buyer owes the seller.
7 According to the double entry rule, credit entry is made when there is …
A an increase in the amount of an expense.
B an increase in the amount of a liability.
C a decrease in the amount of a liability.
D a decrease in the amount of an income
8 The account of a proprietor for stock Withdrawn from the business for private use
belongs to … Accounts.
A Nominal
B Personal
C Real
D Stock
9 The General Ledger is also known as the ... Ledger.

A Nominal
B Private
C Purchases
D Sales
10 The double entry is completed in the ... Ledger.

A General
B Creditors
C Main
D Debtors
11 A ... is prepared from the list of ledger balances as at a particular date.

A Balance Sheet
B Statement of Accounts
C Statement of Affairs
D Trial Balance

12 The following information relates to the business of Sikacheya Traders:

K N
Purchases 4 982.20
Sales 8 000.00
Returns inwards 854.50
Returns outwards 1 500.00
Opening inventory 7 945.50
Insurance 517.80
Drawings 2 200.00
Capital 7 000.00
What are the totals for the Trial Balance?

A K15 300.0o
B K15 500.00
C K16 300.00
D K16 500.00
13 The Balance Sheet is a report on the firm's ... at a specific date.

A financial position
B profitability
C debtors and creditors
D cash flow
14 Net profit is transferred to the... Account.

A Bank and Cash
B Capital
C Profit and Loss
D Trading
15 The following information was extracted from the books of Mwaandu Boutique:
K N
Sales 19 500.00
Purchases 8 500.00
Opening stock 4 200.00
Closing stock 2 000.00
Returns Outwards 500.00
Calculate the Gross Profit.

A K9 300.00
B K9 500.00
C K10 300.00
D K10 500.00

16 A firm bought equipment costing K30 000.00 on 1 January, 2018. Depreciation is

charged at the rate of 5% per annum using the reducing balance method. Calculate
depreciation for the year 2019.
A K 1 425.00
B K 1500.00
C K27 075.00
D K28 500.00
17 Mwiza declared John Paul as a bad debtor. How would this be recorded in Mwiza's books?
Debit Credit
A Bad Debts Account Mwiza's Account
B Bad Debts Account John Paul's Account
C Mwiza's Account Bad Debts Account
D John Paul's Account Mwiza's Account
18 Rent received in advance by the business is a ...

A Current Asset.
B Current Liability.
C Fixed Asset.
D Long term Liability.
19 A purchase of goods on credit from Rosa General Dealers was wrongly debited in the
books and credited in Purchases Account. What type of an error is this?
A Complete reversal
B Compensating error
C Double entry
D Original entry
20 The error that would be corrected through the Suspense Account is an error of …
A Commission.
B Compensation.
C Double entry
D Single entry
21 The sales figure from the sales journal was entered as K56 500.00 in the Sales Account
instead of K65 500.00. To correct this error.
Debit Credit
A Sales Account K9 000.00 Suspense Account K9 000.00.
B Suspense Account K9 000.00 Sales Account K9 000.00.
C Sales Account K56 500.00 Suspense Account K56 500.00.
D Suspense Account K65 500.00 Sales Account K65 500.00.

22 In the Bank Statement ... will be shown as a credit entry.

A bank charges
B credit transfer
C direct debit
D standing order
23 What is a Bank Reconciliation Statement? A statement used to reconcile the ... balances.
A Bank Account and Cash Book
B Bank Account and Bank Statement
C Cash Account and Bank Statement
D Cash Account and Bank Reconciliation Statemen
24 When preparing a control account, the total of credit sales for the month should be
entered on the ...
A credit side of the Purchases Ledger Control Account.
B credit side of the Sales Ledger Control Account.
C debit side of the Purchases Ledger Control Account.
D debit side of the Sales Ledger Control Account.
25 The other name for Total Creditors' Account is ... Ledger Account.
A Personal
B Purchases Control
C Purchases
D Sales Control
26 In the Club Accounts an Income Statement is referred to as.

A Accumulated Fund.
B Income and Expenditure Account.
C Profit and Loss Account.
D Receipts and Payments Account.
27 Given the following information:

K N
Rent paid during the year 12 000.00
Rent owing at start of the year 1 190.00
Rent prepaid at end of the year 809.50,
What is the amount of Rent to be transferred to the Income and Expenditure Account?
A K10 000.00
B K10 809.550
C K13 190.00
D K14 000.00

28 An example of Capital Expenditure is …

A cost of building extension to factory.
B cost of repairs to machines
C cost of purchase of fuel for an old van.
D maintenance costs for vehicles,
29 Discount received in a business is ... Receipt.

A Revenue
B Income
C Capital
D Business
30 A statement of affairs shows

A amounts owing by the business.
B amounts owed to the business.
C assets and liabilities at the end of period only.
D assets and liabilities at the start and end of the period.
31 What items below would increase capital in single entry business?

A Loan and working capital
B Profit and loan
C Profit and additional capital
D Working capital and profit
32 When Partners' Capital is fixed, drawings are... Account

A debited to Capital
B debited to Current
C credited to Capital
D credited to Current
33 The agreement between partners is recorded in a document known as

A Articles of Association.
B Memorandum of Association.
C Partnership Act
D Partnership Deed.
34 A Manufacturing Account is prepared to calculate.

A cost of goods produced.
B loss on goods produced.
C profit on production.
D value of goods produced.

35 The cost of production for a manufacturing firm is K 115 000.00 and the market value
for similar goods is K135 000.00. Calculate the profit or loss on manufacturing.
A Loss K20 000.00
B Loss K250 000.00
C Profit K20 000.00
D Profit K250 000.00
36 Costs that cannot easily be traced to items being manufactured are …

A cost of purchases.
B cost of sales.
C direct costs.
D indirect costs.
37 An example of an accounting ethic is..

A courtesy.
B honesty.
C respect.
D perseverance.
38 Which of the following does not constitute unethical behaviour?

A Changing jobs
B Committing fraud
C Money laundering
D Receiving bribes
39 The rate of stock turn is the number of times stock is ...

A bought in a year.
B counted in a year.
C sold in a year.
D transferred between branches5
40 What is the formula for calculating Return On Capital Employed (ROCE)?
Capital Employed
A
Sales
Sales
B
Capital Employed
Net Profit
C × 100
Capital Employed
Capital Employed
D × 100
Net Profit

ANSWERS FOR PRINCIPLES OF ACCOUNTS PAPER 1 (2016 – 2021)

ANSWERS FOR PRINCIPLES OF ACCOUNTS PAPER 1 – 2016 INTERNAL
1. A 6. D 11. B 16. A 21. A 26. B 31. A 36. B
2. C 7. B 12. D 17. D 22. D 27. B 32. B 37. D
3. D 8. C 13. B 18. B 23. D 28. D 33. A 38. B
4. B 9. B 14. D 19. D 24. C 29. C 34. A 39. D
5. A 10. A 15. D 20. A 25. A 30. B 35. B 40. C

1. A 6. C 11. B 16. B 21. D 26. A 31. D 36. A
2. D 7. A 12. A 17. D 22. B 27. B 32. A 37. C
3. D 8. B 13. C 18. C 23. C 28. D 33. D 38. C
4. B 9. A 14. B 19. B 24. A 29. A 34. A 39. B
5. A 10. A 15. A 20. B 25. A 30. B 35. D 40. C

1. C 6. B 11. D 16. A 21. B 26. A 31. C 36. D
2. D 7. C 12. A 17. C 22. D 27. A 32. A 37. A
3. B 8. B 13. B 18. A 23. C 28. C 33. A 38. B
4. C 9. B 14. C 19. C 24. C 29. C 34. A 39. B
5. D 10. C 15. D 20. A 25. B 30. A 35. B 40. A

1. B 6. C 11. C 16. C 21. B 26. A 31. A 36. D
2. A 7. C 12. C 17. B 22. A 27. D 32. B 37. D
3. B 8. A 13. C 18. C 23. D 28. A 33. B 38. D
4. D 9. B 14. C 19. A 24. D 29. D 34. A 39. A
5. A 10. A 15. B 20. D 25. B 30. B 35. C 40. A

1. C 6. A 11. B 16. D 21. A 26. A 31. C 36. B
2. A 7. C 12. A 17. B 22. C 27. C 32. B 37. D
3. A 8. A 13. C 18. A 23. A 28. D 33. C 38. C
4. A 9. A 14. A 19. D 24. D 29. B 34. B 39. B
5. C 10. A 15. A 20. D 25. B 30. D 35. D 40. D

1. B 6. C 11. D 16. A 21. B 26. B 31. C 36. D
2. D 7. A 12. D 17. A 22. B 27. B 32. B 37. B
3. A 8. A 13. A 18. B 23. B 28. A 33. D 38. A
4. D 9. A 14. B 19. A 24. D 29. A 34. A 39. C
5. C 10. C 15. A 20. D 25. B 30. C 35. C 40. C


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THIS PRINCIPLES OF ACCOUNTS BOOKLET WILL HELP YOU TO:

EXAMINATIONS COUNCIL OF ZAMBIA

Principles of Accounts 7110/1

Monday 7 NOVEMBER 2016

1 The importance of accounting information is to ...

3 Explain the term business transaction.

Page 2 of 45 LAURENT MUSONDA – laurentmsnd@gmail.com

4 The exchange of goods, money and services between persons is called …

6 If a Debtor's Account is overcharged on the invoice, which document is sent to him to

8 ... is an example of a nominal account.

9 The double entry is completed in the...

10 The personal accounts of debtors are found in the

Page 3 of 45 LAURENT MUSONDA – laurentmsnd@gmail.com

11 A Trial Balance is prepared to check the...

13 The Balance Sheet can be defined as a ..

14 In which statement is gross profit calculated?

15 Calculate the Cost of Goods sold from the following items:

Closing stock K72 400

Page 4 of 45 LAURENT MUSONDA – laurentmsnd@gmail.com

16 Which of these would appear as a current liability in the Balance Sheet?

19 Which of these errors will be revealed by the Trial Balance?

Page 5 of 45 LAURENT MUSONDA – laurentmsnd@gmail.com

23 Why do Accountants prepare Control Accounts? To…

25 Which of the following is similar to a club's Receipts and Payments Account?

26 Social club's records for the year show

What is the total net income for the year?

Page 6 of 45 LAURENT MUSONDA – laurentmsnd@gmail.com

27 Which item should be treated as capital expenditure in the accounts of a Company?

28 Which of the following is a revenue receipt for a newspaper agent?

29 Single entry records are kept by .

Page 7 of 45 LAURENT MUSONDA – laurentmsnd@gmail.com

33 Which one is not an appropriation of profit?

34 In Manufacturing account, prime cost is equal to total...

35 The manufacturer provides you with the following balances.

What is the prime cost?

36 In manufacturing business, royalty paid on every item manufactured is regarded as …

Page 8 of 45 LAURENT MUSONDA – laurentmsnd@gmail.com

38 Explain the meaning of ethics in accountancy. Study of...

39 The Acid Test Ratio is calculated by..

40 Which organization has a high Rate of Stock Turnover?

Page 9 of 45 LAURENT MUSONDA – laurentmsnd@gmail.com

EXAMINATIONS COUNCIL OF ZAMBIA

Principles of Accounts 7110/1

Friday 10 NOVEMBER 2017

1 Accounting can be defined as a process of identifying, measuring and communicating ...

2 What is meant by the historical cost principle?

3 Which one of the following is not an example of a business transaction?

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6 The Purchases Journal is the book where we record goods ...

7 The double entry rule states that for every

8 Which ones below are the correct classes of accounts?

9 A Which one of the following is not a Ledger?

10 The Creditors Ledger is the book in which ... are kept.

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A (i), (iii) and (V)

13 The following information is available for Isaac's business:

Calculate the gross profit.

14 Net profit can be defined as…

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17 Depreciation can be defined as the…

18 An Error of Principle is made if…

19 Errors corrected using the Suspense Account…