ADMISSION

NUMBER

MONTHLY TEST - OCTOBER 2021

GRADE 9 (CAMBRIDGE)
ACCOUNTING

Duration : 2 periods

READ THESE INSTRUCTION FIRST

Answer all the questions.

Grade 9 Cambridge Accounting Monthly Test October 2021

Prepared for Lyceum International Schools by Lyceum Assessments
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Part 1
Select the most suitable answer.
(1) Which one of the following statements is correct?
A Assets and liabilities have credit balances
B Liabilities and revenues have debit balances
C Assets and revenues have credit balances
D Assets and expenses have debit balance

(2) The correct entries needed to record the return of office equipment that had been bought on
credit from PYO, and not yet paid for, are:
Debit Credit
A Office equipment Sales
B Office equipment PYO
C PYO Office equipment
D Cash Office equipment

(3) Which of the following is the correct entry to record the purchase on credit of inventory
intended for resale?
Debit Credit
A Inventory Trade Receivable
B Inventory Trade Payable
C Purchases Trade Payable
D Trade Payable Purchases

(4) Which of these accounts has a credit balance?

A discount allowed B discount received
C purchases D sales returns

(5) A sole trader withdraws cash from the business bank account for her personal use. How would
this transaction be recorded in the ledger?
Debit Credit
A Bank Cash
B Bank Drawings
C Bank Equity
D Drawings Bank

(6) Abel purchased stationery for his business using his own money. What is the entry in the
business’s books?

Account to be debited Account to be credited

A Cash Stationery
B Capital Stationery
C Stationery Cash
D Stationery Capital

Grade 9 Cambridge Accounting Monthly Test October 2021

Prepared for Lyceum International Schools by Lyceum Assessments
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(7) Which statement is incorrect?
A Assets = Liabilities + Capital
B Capital = Assets - Liabilities
C Capital - Liabilities = Assets
D Liabilities = Assets - Capital

(8) Which is an asset?

A a credit balance on a supplier account
B a credit balance on the bank account
C a debit balance on a customer’s account
D a debit balance on the drawings account

(9) A business has the following assets and liabilities.

Motor vehicles 8500

Inventory 2200
Trade receivables 3600
Bank (debit) 4650
Trade payables 2680

The owner has now increased his capital in the business by $5500.

What is the capital now?

A $16270
B $21770
C $27130
D $17830

(10) A business maintains a full set of books of account.

Where will the sales account appear?
A Purchases Ledger
B General Ledger
C Sales journal
D Sales ledger
[Total = 10 marks]

Grade 9 Cambridge Accounting Monthly Test October 2021

Prepared for Lyceum International Schools by Lyceum Assessments
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Part 2

(1) (a) 2020 January 1 Salman set up a retail business. He opened a business bank
account and paid $50000 as capital.

2 The business purchased a premises, $30000, and paid by

cheque.
3 The business purchased inventory, $5000, on credit.
4 The business purchased inventory,$2500,paying by cheque.
5 Salman took goods costing $1000for his own use.

Show the effect to the accounting equation after each of the above transactions and
calculate the totals of assets, liabilities and capital. Copy down the table and write the
answers on it. (The first one has been completed as an example)

Date Assets = Capital + Liabilities

Jan 1 Bank +$50000 + $50000

total

(11 marks)

Salmon divides his ledger into three sections – nominal (general) ledger, sales ledger and
purchases ledger.

REQUIRED

(b) State two advantages of dividing the ledger into these three sections.

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(2 marks)

Grade 9 Cambridge Accounting Monthly Test October 2021

Prepared for Lyceum International Schools by Lyceum Assessments
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(c) Give three examples of accounts which may appear in Salmon’s nominal (general) ledger.

1 -----------------------------------------------------------
2 -----------------------------------------------------------
3 -----------------------------------------------------------
(3 marks)

(d) State two differences between book keepers and accountants.

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(4 marks)
[Total = 20 marks]

(2) (a) State two interested parties and their interests in the financial statements of a business.
The first one has been completed as an example.

Interested party Interest

Employees Security of employment

(4 marks)

(b) J Allen is starting a new business. Before actually starting to sell anything, he bought a
motor car for $7500, fixtures for $1500 and an inventory for $3250.Although he has paid in
full for the motor car and fixtures, he still owes $1800 for some of the inventory. Duncan
lent him $3000.After the above, Allen has $500 in the business bank account and $150 cash
in hand. You are required to calculate his capital.

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(4 marks)

Grade 9 Cambridge Accounting Monthly Test October 2021

Prepared for Lyceum International Schools by Lyceum Assessments
 6
(c) The table below shows a selection of financial transactions. Complete the columns to
identify the accounts and the debit/credit entries to be made in the ledger to record each of
the transactions.

Debit Credit
1) Sold goods on credit to Lomas
2) Returned office machinery to McCarthy
3) Owner’s private car brought into the
Business
4) Carriage outwards paid by cheque
5) Returned goods to PWA
6) Owner took a business machine for his
own use

(12 marks)
[Total = 20 marks]

(3) C Morgan started a business on 1 May 2021 and, during the first month, entered into the
following transactions:

1 May Morgan starts business as a sole proprietor with $20,000 in cash

2 May Pays $15,000 cash into a business bank account
4 May Purchases goods on credit from JM for $2,000
7 May Pays wages in cash $60
10 May Sells goods for cash $430
15 May Returns goods to JM,$450
30 May Withdraws $100 cash for his personal use

Required:

Prepare ledger accounts, balance them and bring down the balances on1st June 2021 to
record the above transactions in the given accounts below. You may use your own ledger
accounts.

------------------------------------------------------------------------------------account

date detail $ date detail $

Grade 9 Cambridge Accounting Monthly Test October 2021

Prepared for Lyceum International Schools by Lyceum Assessments
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------------------------------------------------------------------------------------account

date detail $ date detail $

------------------------------------------------------------------------------------account

date detail $ date detail $

------------------------------------------------------------------------------------account

date detail $ date detail $

Grade 9 Cambridge Accounting Monthly Test October 2021

Prepared for Lyceum International Schools by Lyceum Assessments
 8
------------------------------------------------------------------------------------account

date detail $ date detail $

------------------------------------------------------------------------------------account

date detail $ date detail $

------------------------------------------------------------------------------------account

date detail $ date detail $

Grade 9 Cambridge Accounting Monthly Test October 2021

Prepared for Lyceum International Schools by Lyceum Assessments
 9
------------------------------------------------------------------------------------account

date detail $ date detail $

------------------------------------------------------------------------------------account

date detail $ date detail $

[Total = 20 marks]

END

Ref:CG

Grade 9 Cambridge Accounting Monthly Test October 2021

Prepared for Lyceum International Schools by Lyceum Assessments