ACADEMIC COLLEGE FOR EXCELLENCE

MID TERM TEST 2020

PRINCIPLES OF ACCOUNTS
FORM 4 1 ½ Hours

Answer ALL questions on this paper.

Question 1. (18 marks)

a) Clearly explain the difference between a calendar year and an accounting
year. (4 marks)

b) Describe each of the following terms associated with accounting:

i) assets ii) liabilities iii) profits iv) revenue (8marks)

c) Write the accounting equation. (3marks)

d) Identify three documents where original information can be found.

(3 marks)
Question 2. (30 marks)
Enter the following transaction in the records for H. John.
2017
July 1 Started business with $10000 in the bank
July 2 T. Copper lent us $400 in cash
July 3 Bought goods on credit from F. Jones $840 and S. Chang $3600
July 4 Sold goods for cash $200
July 6 Took $250 of cash and paid it into the bank
July 8 Sold goods on credit to C. Chin $180
July 10 Sold goods on credit to J. Newman $220
July 11 Bought goods on credit from F. Jones $370
July 12 Sold goods on credit to H. Morgan $190 and Peat $320
July 15 Bought goods for cash $ 220
July 17 Bought motor van on credit from Faster Suppliers $6000
July 18 Paid money owing to F. Jones $7500
July 20 Bought office machinery by cash $400 from Duplicated ltd.