EDUBBA, MAMBAKKAM

GRADE 11 ACCOUNTING

Name: Date:

1. Explain the meaning of the following terms:

a) Assets
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b) Non-current assets
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c) Liability
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d) Current liability
………………………………………………………………………………………………
………………………………………………………………………………………………
e) Non-current liability
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………………………………………………………………………………………………

2. Classify the following items under the correct headings

Land 50000 Long term loan 18000
Building 40000 Goodwill 15000
Machinery 20000 Motor vehicle 14000
Office Equipment 12000 Patent 12000
Loose tools 2000 Furniture and fixtures 16000
Trade payables 6000 Cash at bank 13000
Bank overdraft 2300 Computer 17000
Short term borrowings 1700 Trade Receivables 8000
Cash in hand 5000 Inventories 9000
Current tax liability 1000 Prepaid Expenses 3000
 Assets Liabilities
Non-current assets Non-current liabilities

Current assets Current liabilities

Capital = ?
3. Liakath is in the export business. The following balances were extracted from his books on
31 December 2015.
$ $
Purchases 98000
Sales 169500
Carriage on purchases 1200
Wages and salaries 6000
Rent rates and insurance 5000
Advertising expenses 2000
Bank interest and charges 3500
Discount received 7600
Trade receivables 24000
Trade payables 35000
Cash in hand 12000
Inventory as at 1 January 2015 8000
Motor vehicles at cost 95000
Land and Building at cost 160000
Capital 209600
Drawings 7000
421700 421700

Additional information
1. Inventory at 31 December 2015 was valued at $ 6200

Required
a) Prepare statement of profit or loss for the year ended 31 December 2015
b) Prepare statement of financial position as at 31 December 2015.
4. The following balances were taken from the books of Ms. Minnie at 31 December 2018.

Dr($) Cr($)
Purchases 124 800
Revenue 236 731
Returns inwards 4 800
Returns outwards 5 370
Customs duty 6 300
Other Operating Expenses 4 020
Wages and salaries 36 000
General expenses 18 960
Insurance 6 100
Premises 70 000
Fixtures 60 200
Discount received 7 546
Trade Receivables 20 500
Trade Payables 5 989
Cash at bank 5 616
Petty cash in hand 340
Inventory on 1 January 2018 22 300
Interest received 9 100
Carriage inwards 15 700
Capital on 1 Jan 2018 74 600
Bank loan repayable in 2024 80 000
Drawings 6 200
Rent 17 500
419 336 419 336

Additional information
1. Inventory at 31 December 2018 was $9 510

Required
a) Prepare statement of profit or loss for the year ended 31 December 2018
b) Prepare statement of financial position as at 31 December 2018.