BTB School

Revision work sheet

Name : Date:

Class : Grade 9 Mark: 50

Subject : Accounting
Topic : Final accounts with adjustments

Multiple Choice Questions

Q. 1 The excess of net sales over the cost of goods sold in a particular period is called:
(a) gross profit (b) gross loss (c) trading a/c (d) none of these.

Q. 2 When the Gross profit is more than the total business expenses, the difference is called:
(a) net loss (b) net Profit (c) cost of goods sold (d) none of these.

Q. 3 At the end of the year, the net profit should be credited in the
(a) drawings a/c (b) profit and loss a/c (c) balance sheet (d) capital a/c

Q. 4 Carriage on goods out of the firm is called:

(a) carriage inwards (b) carriage outwards (c) carriage on purchase (d) none of
these.
Q. 5 Bank overdraft is an example of a
(a) current asset (b) current liability (c) long term liability (d) non-current asset

Q.6 The cost of putting goods into a saleable condition should be charged to the
(a) trading a/c (b) profit & loss a/c (c) balance sheet
(d) manufacturing a/c

Q.7 The net profit is added to capital by:

(a) debiting in the capital a/c (b) crediting in the Trial balance
(c) crediting in the capital a/c (d) debiting in the cash a/c

Q. 8 Which of the following is correct?

(a) Profit increases the drawings (b) Profit reduces the capital
(c) Profit does not affect any item (d)Profit increases capital

Q. 9 Name the account which should not be included in the Profit & Loss a/c:
 (a) Sales office expenses (b) Wages and Salaries
(c) Carriage on Purchase (d) Carriage on sales
Q. 10 Net profit is calculated in the:
(a) Trial balance (b) profit & loss a/c (c) trading a/c
(d) balance sheet

Q. 11 The transportation cost for bringing the goods into the business is:
(a) travelling expenses (b) carriage inwards
(c) carriage outwards (d) motor expenses

Q. 14 A trader’s Turnover for the year were $ 3, 56,000, and his purchases were $ 2,68,000. The stock at
the beginning of the year was $ 31,400 and the stock at the end was $ 34,600. He had returned goods to his
suppliers for $ 2,600
What is his gross profit for the year?
(a) $ 86,200(b)$ 90,600 ($ ) 91,200 ($) 93,800

15. Carriage in wards is charged to trading A/c because:

A It should not go the Balance sheet
B. It is not part of motor expenses
C. Carriage outwards goes in the Profit and Loss A/c
D. It’s an expense connected with buying good

16. What is true about cash discount received?

They are recorded in cash book They increase the Net Profit
A. √ √
B. √ ×
C. × √
D. × ×
17. Following information is available for Mr,Jumpy’s business

Sales 50, 000

Stock at 1st Jan 2005 2, 000
Purchases 48, 000
st
Stock at 31 Dec 2005 1, 000
Expenses 5, 000
Incomes 2, 000
 What is the result for the year 2005?
A Net profit of $ 2000 B. Net loss of $ 2000
C. Net profit of $ 8000 D. Net loss of $ 8000

18. Closing stock of $ 1550 was recorded at 31st December 2004. What is the opening stock of 2005?
A $ 500B. $ 1000 C. $ 1550D. None of the above

19. A business has the following assets and liabilities at 31st December 2005
$

Premises 80000
stock 15000
debtors 28000
creditors 19000

Bank overdraft 5000

What is the amount of working capital?

A. $ 11000 B.$ 19000 C. $ 81000 D.$ 91000

20. The following trial balance had been taken from the books of a sole trader for the year ended 31st
Dec 2003:-
Account balances Debit $ Credit $
Purchases & sales 70 000 1 46 000
Returns in & out 1 500 1 600
Carriage inwards 6 000
Carriage outwards 3 000
Discount received 6 100
Telephone charges 2 000
Rent paid 700
Advertisement 1 100
Debtors & Creditors 7 700 2 000
Bank loan 10 000
Cash in hand 3 250
Bad debts 500
Power charges 1 000
Salaries & wages 12 000
Premises at cost 40 000
Plant at cost 35 000
Machinery at cost 15 000
Provision for depreciation-Machinery 2250
Motor car at cost 38 000
Capital 73 550
 Drawings 1 250
Stock on 1-1-2013 3 500
Total 2 41 500 2 41 500

Additional information:-
1. The stock on 31st Dec 2003 was valued at $ 4 750
2. Depreciate Machinery 10% as reducing balance method
3. Telephone charge prepaid $200
4. Rent due but not paid 300
5. Advertisement paid in advance 100
6. Bad debts written off 600
7. Goods drawings by the owner $400

From the above , you are required to prepare:-

The Income statement (trading and profit & loss account) for the year ended
31st Dec 2013 and a Statement of financial position as on 31st dec,2013

Answer
Multiple choices
1. A
2. B
3. C
4. B
5. B
6. A
7. C
8. D
9. D
10. B
11. B
12. B
13. D
14. A
15. B
16. C
17. B
Q20
Income statement for the year ended….
$ $ $
sales 146000
Sales return 1500 144 500

Opening stock 3500

purchases 70000
Carriage inwards 6000 79500

Purchase return 1600

Closing stock 4750 6350 73150
Gross profit 71350

Other income:
Discount received 6100 6100

Indirect expense:
Telephone charges 2000
less: prepaid 200 1800
rent 700
Add; accrued 300 1000
advertisement 1100
Less; prepaid 100 1000
Bad debts (500+600) 1100
Prov. For machinery 1275
Salaries&wages 12000
Power charges 1000
Carriage outward 3000 22175
Net profit 55275

Statement of financial position as at…..

Cost Depreciation NBV
$ $ $
Fixed asset:
premises 40 000 40 000
plant 35000 35000
machinery 15000 3525 11475
Motor car 38000 38000

Current asset:
Prepaid telephone 200
Prepaid advertisement 100
Trade receivable (7700-600)
6900
Closing stock 4750
Cash in hand 3250

Total asset 139675

Short term liability:
Accrued rent 300
Trade payables 2000

Long term liability:

Bank loan 10000

Owners equity
capital 73 550
Net profit 55275
drawings (1250+400) 127175
1650

Total liability+capital 139475