LYCEUM INTERNATIONAL SCHOOL

MONTHLY TEST - OCTOBER 2017

PRINCIPLES OF ACCOUNTS

9 (Cambridge) .........
Duration : 2 periods

Instructions to Candidates : Answer all the questions.

Candidate's name : ............................................................... Admission no : ...................

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PART – A

• Multiple choice questions.

• Circle the correct answer.

1. A trader provided the following information.

$
equipment 12 000
inventory 3 000
trade receivables 1 500
trade payables 4 500
bank overdraft 2 500

What was the total of the assets ?

(A) $ 16 500 (B) $ 21 000
(C) $ 23 500 (D) $ 12 000

2. Mel provided the following information.

$
non-current assets 16 000
amount owing by credit customers 1 350
amount owing to credit suppliers 900
inventory 1 275
bank overdraft 364

What was Mel’s capital?

(A) $ 16000 (B) $ 18 089

(C) $ 118 625 (D) $ 17 361

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Grade 9 Principles of Accounting contd.....from page 1
3. Jake bought goods from Simon, paying in cash.
How would Jamal record this transaction ?

account to be debited account to be credited

(A) cash purchases
(B) cash Simon
(C) purchases cash
(D) Simon cash

4. Weiman sold goods on credit to Lilly.

Which entries should Weiman make in his ledgers ?

sales ledger general ledger

(A) credit Lilly account debit sales account
(B) credit sales account debit Lilly account
(C) debit Lilly account credit sales account
(D) debit sales account credit Lilly account

5. Which item would be recorded by a credit entry in an account ?

(A) a decrease in capital
(B) a decrease in liabilities
(C) an increase in assets
(D) an increase in capital

6. A trader purchased a motor vehicle for his business using a cheque from his personal bank
account. How is this recorded in the books of the business ?

account to be debited account to be credited

(A) bank motor vehicles
(B) capital motor vehicles
(C) motor vehicles bank
(D) motor vehicles capital

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Grade 9 Principles of Accounting contd.....from page 2
7. In which sub-ledger is a trade receivable’s account found ?
(A) general ledger
(B) sales ledger
(C) purchases ledger
(D) sales account

8. Arnold purchased a motor vehicle on credit from Claude Motor Company.

How would Claude Motor Company record this ?

account to be debited account to be credited

(A) Arnold motor vehicle
(B) Arnold sales
(C) motor vehicle Arnold
(D) sales Arnold

9. A trader took goods at cost price for his own use.

In which account would he make a credit entry ?
(A) drawings (B) inventory
(C) purchases (D) sales

10. Which is a liability of a business ?

(A) amount owing by credit customers
(B) amount owing to credit suppliers
(C) long term loan to employee
(D) cash in hand
[Total = 2 × 10 = 20 marks]

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Grade 9 Principles of Accounting contd.....from page 3
PART – B

1. Complete the following table by stating for each transaction the account to be debited
and the account to be credited. The following transaction were taken from a trader
selling books.

Transaction Account to be Account to be

debited credited
(i) Rent paid with cash
(ii) Books for resale purchased for cash
(iii) Sold books for cash
(iv) Wages paid by cheque
(v) Purchase of a motor vehicle by cheque
(vi) Bought books from Penguin Publishers on credit
(vii) Owner withdrew cash for personal use
(viii) Damaged books were returned to Penguin Publishers.
(ix) Books sold on credit to Peter, were returned.
(x) Owner took some books for personal use

[Total = 2 × 10 = 20 marks]

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Grade 9 Principles of Accounting contd.....from page 4
2. Betty owns and runs a supermarket. The following transactions have taken place in January
2017.
01 January 2017 started business with $ 10,500 cash
03 January 2017 withdrew $ 9000 of the cash and deposited into the bank
05 January 2017 bought inventory an credit from Grocery Supplies Ltd $ 550
10 January 2017 sold goods for cash $ 400
12 January 2017 returned some inventory to Grocery Supplies Ltd worth $ 200
Prepare the ledger accounts. Balance the accounts and bring down the balance 01 February
2017.

Capital Account
Date Details $ Date Details $

Cash Account
Date Details $ Date Details $

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Grade 9 Principles of Accounting contd.....from page 5
Bank Account
Date Details $ Date Details $

Grocery Supplies Ltd Account

Date Details $ Date Details $

Sales Account
Date Details $ Date Details $

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Grade 9 Principles of Accounting contd.....from page 6
Purchases Account
Date Details $ Date Details $

Purchases Returns Account

Date Details $ Date Details $

[Total = 14 marks]

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Grade 9 Principles of Accounting contd.....from page 7
3. Classify the following into Non-current assets and current asset, by placing a tick (✔).

Non-current asset Current asset

Delivery Van
Land and building
Money owed by customers
Money in cash till
Fixtures and fittings
Plant and equipment
[Total = 6 marks]

4. The following balances have been extracted from the ledgers of James on 31 December
2017. Prepare a trial balance as at 31 December 2017.

Buildings $ 120,000
Fixtures and fittings $ 45,000
Van $ 14,000
Motor expenses $ 4160
Rent $ 7,000
Rates $ 2,400
Insurance $ 2,100
Cash in hand $ 120
Cash balance at bank $ 3,670
Trade receivables $ 850
Trade payables $ 1,200
Sales $ 260,000
Purchases $ 140,000
Capital $ 78,100

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Grade 9 Principles of Accounting contd.....from page 8

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[Total = 15 marks]

END

Ref : CH