UNIT ASSESSMENT – PRINCIPLES OF ACCOUNTS 7707 Class: 9- Cambridge

UNIT 32 & 33 – CORRECTION OF ERRORS Date: 08-02-2022

Total Marks: 25 Time Allowed: 35 Mins.

Student Name: _________________________ Class/Section: ____________________

SECTION A - OBJECTIVE

Question 1: Choose the most appropriate option from the following? [ /5]

1. Which of the following best describes the 3. Which of the following is correct?
meaning of ‘Purchases’?
(A) Profit does not Change capital
(A) Items bought
(B) Profit reduces capital
(B) Goods bought on credit
(C) Capital can only come from profit
(C) Goods bought for resale
(D) Profit increases capital
(D) Goods paid for
4. Which of the following best describes a trial
2. Which of the following should not be called balance?
‘Sales’?
(A) Shows the financial position of a business
(A) Office fixtures sold
(B) It is a special account
(B) Goods sold on credit
(C) Shows all the entries in the books
(C) Goods sold for cash
(D) It is a list of balances on the books
(D) Sale of item previously included in ‘Purchases’

5. Which error prevents a trial balance from balancing?

(A) Completely omitting an entry

(B) Debiting A. Brown instead of B. Brown

(C) Debiting Purchase instead of Motor Vehicles

(D) Making an entry in one account only

Compiled by; Usman Shaukat – Teacher – O Levels – Beaconhouse School System - Gujrat Page 1 of 3
 UNIT ASSESSMENT – PRINCIPLES OF ACCOUNTS 7707 Class: 9- Cambridge
UNIT 32 & 33 – CORRECTION OF ERRORS Date: 08-02-2022

SECTION B - SUBJECTIVE

Question 2: [ /20]

Martino’s trial balance at 30 September 2015 did not agree and a suspense account was opened.
The following errors were discovered.
1 The total of the purchases journal had been undercast by $950.
2 Discount received, $85, had been debited to the discount received account.
3 A payment of rent, $750, had been correctly entered in the cash book, but recorded in the rent account as
$570.
4 A purchase of office fixtures, $2300, had been recorded in the general expenses account.

REQUIRED:
(a) Show the entries in the general journal to correct items 1 to 4. Narratives are not required.

Compiled by; Usman Shaukat – Teacher – O Levels – Beaconhouse School System - Gujrat Page 2 of 3
 UNIT ASSESSMENT – PRINCIPLES OF ACCOUNTS 7707 Class: 9- Cambridge
UNIT 32 & 33 – CORRECTION OF ERRORS Date: 08-02-2022

Compiled by; Usman Shaukat – Teacher – O Levels – Beaconhouse School System - Gujrat Page 3 of 3