ACADEMIC YEAR 2022

END OF FIRST TERM EXAMINATIONS

GRADE 11 – ACCOUNTS

NAME: …………………………………………………… DATE: …………………

PARENT’S SIGNATURE: …………………………….... SCORE: ………… / 80

TIME: 1 hour 30 minutes

Candidates to answer on the question paper.

Use calculator

INSTRUCTIONS

● Answer all questions.

● Use a black or dark blue pen.

● Write your name and date in the space provided at the top of the page.

● Write your answer to each question in the space provided.

● Do not use an erasable pen or correction fluid.

INFORMATION

● The total mark for this paper is 80.

● The number of marks for each question or part question is shown in brackets [ ]

Section A: Multiple choice questions

1. Which are examples of book-keeping?

1 entering details of a cheque received from a customer in a cash book

2 entering details of goods purchased on credit in a purchases journal

3 producing an income statement to calculate the profit for the year

4 recording details of credit sales in the account of a credit customer

A 1, 2 and 3 B 1, 2 and 4 C 1 and 2 only D 3 and 4

2. How does a trader use the information provided by financial statements?

A to calculate the amount of cash drawings taken

B to calculate the amount that is owed by trade receivables

C to check the balance shown on a bank statement

D to compare the business performance over a number of years

3. The income statement of a business showed a loss for the year of $16 000. On checking the books the

following errors were discovered.

1 No adjustment had been made for insurance prepaid, $480.

2 No entry had been made for bank charges, $620.

What was the correct loss for the year?

A $14 900 B $15 860 C $16 140 D $17 100

4. What would result in a cash book balance being lower than the balance showing on a bank statement?

A A cheque received from a customer was not recorded in the bank statement.

B A customer’s cheque dishonoured by the bank appeared only on the bank statement.

C Payment by a customer directly into the bank was not recorded in the cash book.

D Payment of insurance by standing order was not recorded in the cash book .

5. Thembi is preparing her sales ledger control account. She needs to know:

1 The total for goods which have been returned by credit customers.

2 The amount owed by credit customers which have been written off as irrecoverable.

Where can she obtain this information?

Goods returned Irrecoverable debts

A purchase returns account irrecoverable debts account
B purchase returns journal general journal
C sales returns account irrecoverable debts account
D sales returns journal general journal
6. What is the purpose of preparing a sales ledger control account?

A To calculate the total credit sales for the period

B To calculate the total sales for the period

C To check the arithmetical accuracy of the sales account

D To check the arithmetical accuracy of the sales account

7. What are the sources of information for entries in control accounts?

A bank statements

B books of prime entry

C ledger accounts

D sales invoices

8. Goods returned by Zeena , 100, were debited to her account as 1000

What entries are required to correct this error?

Account to be debited $ Account to be credited $

A Suspense 900 Zeena 900
B Suspense 1100 Zeena 1100
C Zeena 900 Suspense 900
D Zeena 1100 Suspense 1100

9. What are assets?

A items that are bought for long-term use by a business

B items that are expected to be turned into cash in the near future

C items that are owned by or owed by a business

D items that are owned by or owed to a business

10. What is a trial balance?

A a list of balances in a business’s books on a certain date

B a list of the assets, liabilities and capital of a business on a certain date

C a summary of all a business’s transactions for the year

D a summary of the financial position of a business at the year end

11. A sales ledger control account had a debit balance of $10 000. It was found that a $2000 contra entry
to the purchases ledger control account had been entered on the wrong side of the sales ledger control
account.

What was the correct debit balance on the sales ledger control account?

A $6000 B $8000 C $12000 D $ 14000

12. The bank column of trader’s cash book showed a debit balance of $ 952. This did not agree with the
balance on the bank statement on the same date. The following differences were found:

Cheque not yet presented 134

Bank charges 11

Rent paid by credit transfer 310

What was the balance on the bank statement?

A $765 credit B $ 765 debit C $1 139 credit D $1139

13. A trader’s purchases on credit for April amounted to $2000. These purchases were subject to a trade

discount of 10% and also a cash discount of 5% for accounts paid within 30 days.

How much was entered in the purchases journal?

A $1700 B $1800 C $1900 D $2000

14. Peter’s bank statement showed a debit balance of $600 on 1 April. The following transactions

took place in April.

total cheque deposits 7400

total cheque payments 6200

direct debit for insurance premium 180

credit transfer from customer 450

What was the bank statement balance on 30 April?

A $870 credit

B $870 debit

C $2070 credit
 D $2070 debit

15. Which items are deducted from the gross profit when calculating the profit for the year?

1 balance on the provision for doubtful debts account

2 carriage paid on goods supplied to customers

3 drawings made by the owner during the year

4 wages paid to employees during the year

A 1, 2 and 3 B 1 and 4 C 2 and 3 only D 2 and 4

Section B
16. Ame provided the following balances from his books at 31 March 2020.
$

Capital 10 369
Drawings 4 000
Equipment at cost 15 500
Provision for depreciation of equipment 3 100
Inventory at 1 April 2019 1 765
Trade receivables 1 290
Bank overdraft 475
Trade payables 1 600
Sales 31 250
Purchases 18 330
Purchases returns 910
Carriage inwards 640
Discount received 815
Commission receivable 1 500
Rent and insurance 5 700
Office expenses 2 425

REQUIRED
(a) Prepare Ame’s trial balance at 31 March 2020.
Show the difference in the trial balance totals as a suspense account balance.

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Ame later discovered several errors had been made in the accounting records.

1 No entry had been made for cash sales, $60.

2 Office expenses, $240, had been credited to the wages account. No debit entry had been made.
3 The purchases journal total for March 2020 was $2165. This amount was incorrectly recorded in the
purchases account as $2651.
4. An insurance payment, $375, had been correctly recorded in the cash book but no other entry had
been made.
5. The purchase of equipment, $800, was correctly recorded in the cash book but debited to the office
expenses account.
REQUIRED
b) Prepare the necessary journal entries to correct these errors.
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c) Prepare the suspense account. Start with the difference on the trial balance prepared in Part (a).
Balance or total the account as necessary.

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d) State two purposes of preparing a trial balance.

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e) Explain why it is necessary to open a suspense account.
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2. Frank provided the following information for the month of September 2020.
$
2020
September 1 Sales ledger control account debit balance 1850
Sales ledger control account credit balance 115
Purchases ledger control account credit balance 2118
31 Totals for the month
Sales journal 5360
Purchases journal 5110
Sales returns journal 134
Purchases returns journal 216
Cheques and cash received from credit customers 4965
Cheques and bank transfers paid to credit suppliers 4508
Discount received 92
Bad debts 102
Contra entry 190
Interest charged by credit supplier’s on overdue account 15

October 1

Sales ledger control account debit balance ?

Purchases ledger control account credit balance ?

Purchases ledger control account debit balance 135

REQUIRED
a) Prepare Frank’s sales ledger control account for the month of September 2020.

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b) Prepare Frank’s purchases ledger control account for the month of September 2020.

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c) State the source of information for each of the following:

(i) Purchases returns _____________________________________________

(ii) Discount allowed ______________________________________________

(iii) Bad debts ______________________________________________

(iv) Discount received _____________________________________________ [4]

3. On July 2017 the bank account in John’s account showed a balance of $2834. On the same date his
bank statement showed a balance of $3092.

When comparing the cash book and the bank statement it was found that the following items appeared
only in the cash book:

1. Cheque received from ABC stores amounting $217 on 26 July.

2. Cash sales amounting to $ 1460 paid into the bank.

3. A cheque paid to David Co for $1372 on 29 July.

4. Another cheque paid to Bosch Co for $ 517 on 30 July.

The following items appeared only on the bank statement and not in the cash book.

1. Bank charges of $104

2. Credit transfer (dividend) of $150

REQUIRED
a) Write up John’s cash book , including all relevant entries , for July 2017. Balance the cash book and
bring down the balances on 1 August 2017.

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b) Prepare a bank reconciliation statement at 31 July 2017 showing the balance on the bank statement at
that date.
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c) State any three advantages of preparing a bank reconciliation account.

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