MAZ International School

Term 3- Mid Term Examination

Accounting – Form 3
Name: …………..………………
Date: 08-02-23 Time Allowed: 1 hr 10 mins
Total Marks: 50
1. Chose the correct option and write your answer on the test pad.

a) Fatima required additional finance for her business and borrowed funds from Ali. This was
deposited into the business bank account. How should Fatima record this? (1)

b) On 1 March, a business owed its suppliers $9500. During March, the following transactions
took place.

How much did the business owe its suppliers on 31 March? (1)
A $800 B $1000 C $10 300 D $10 500

c) Which item should be treated as capital expenditure? (1)

A cost of repairing office premises B the cost of building an office extension
C the cost of repairing office equipment D the purchase of a new computer for resale
d) William paid $500 in cash to Sonia for rent. How did Sonia record this? (1)

e) Zaha is a consultant who receives fees from clients. How would Zaha calculate his profit for
the year? (1)
A fees received – cost of sales B fees received – cost of sales + expenses
C fees received + expenses D fees received – expenses

2. Fill in the blanks, write your answer on the test pad.

(a) When goods are bought, debit the …………….. (1) account.
(b) When goods bought are paid for by cash, credit the ………account (1)
(c) When goods bought are paid by bank transfer/cheque , ……. (1) the ……… (1) account.
(d) A trade payable is a ……… (1) to the business.
(e) Goods can be sold by …… (1) or by …….. (1).
(f) A trade receivable is a ……… to the business (1).
(g) Good bought when returned by the business are called …………… (1) or ………… (1).

3. Enter the following transactions into the books of Sabelo for the month of March 2022 (20)
2022 $
March 1 Started business with cash in bank 10,000
Cash in hand 5,000
2 Bought goods from Kenneth 1000
5 Paid Kenneth with cash 580
8 Sold goods to Elijah list price $300, less 5% discount ?
10 Cash Sales 700
15 Elijah paid a cheque to settle his account ?
18 Paid cash for Taxi Fare 15
20 Received rent from tenant in the bank account 250
25 Paid a cheque for office equipment 300
4. (a) What is a credit note? (1)
(b) Identify 3 occasions when a trader might send a credit note (3)
5. (a) Define expenses (1)
(b) Why stationery is an expense and not a current asset? Explain. (3)
6. (a) Define revenue (1)
(b) Differentiate between sales revenue and other revenues (2).
7. The following information is available for Sabelo, calculate gross profit and profit for the year.
Show your workings. (4)
$

Sales Revenue 150,000

Purchases 83,000
Commission Received 400
Discount Received 1,100
Wages & Salaries 12,000
Heating & Lighting 2,500
Repairs 700
Insurance 800
Advertising 600
Interest 200

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