IGCSE Accounting : Test 3 June 2015

Time : 50 Minutes
Marks : 35

Name : ……………………………………………..
Q1. Iok Chan’s trial balance prepared on 31 March 20X4 did not balance.
The debit side was too big by $1830. Iok entered this in a suspense account
and then prepared a draft Trading and Profit and Loss account.

The following errors were later discovered.

1) The sales journal was overcast by $140.

2) Advertising was undercast by $80.
3) Cash received from K. Bloom $100 was entered in the Cash Book only.
4) A credit sale of $95 is entered in the books, debit and credit entries as
$59.
5) A cheque for $1 200 received from Min Min was debited to her account.
6) Payment of $250 made to Kelvin was credited to his account as $200.

A. Prepare the entries in Iok Chan’s journal to

correct the above errors.
JOURNAL Dr ($) Cr ($)
 B. Prepare the Suspense account in Iok Chan’s ledger
to show the correction of errors.

SUSPENSE ACCOUNT

($) ($)

C. For each error 1-4, state how the draft net profit will be affected when
the errors are corrected.

If the error does not affect the draft net profit, write ‘No Effect’.

Error 1 ------------------------------------------------------

Error 2 ------------------------------------------------------

Error 3 ------------------------------------------------------

Error 4 ------------------------------------------------------

Marks : 15
Q2. The balance shown in the bank column in Kenny Bees cash book at 30 April 2013
was a debit of $620.

He compares his cash book with the bank statement at 30 April. He finds the
following items were included on the bank statement but are not yet in the cash
book.
$
Bank charges 15
Direct debit paid for insurance 40
Bank interest received 20
Bank (credit) transfer from customer, Aisha 130
Dishonoured cheque, Yanni 65

REQUIRED

(a) Write up the cash book at 30 April 2013 and bring down the updated
balance.

Kenny Bee
Cash Book (bank columns)

At 30 April 2013 Kenny Bee discovers the following:

1. He has recorded a receipt in his cash book of $310 but has not yet deposited the
money at the bank

2. He has written a cheque for $250 and entered it in the cash book but it has not
yet been paid by the bank.
 3. A receipt on the bank statement for $65 does not belong to him. It is a deposit
for another customer of the bank.

(b) Prepare the bank reconciliation statement at 30 April 2013.

Kenny Bee
Bank reconciliation statement at 30 April 2013

Kenny Bee’s bank statement shows a balance which is different from the bank reconciliation
statement.

(c) Suggest two errors which would cause the bank statement balance and the cash
book balance to not agree.

(i) ........................................................................................................................................

........................................................................................................................................

(ii) ........................................................................................................................................

........................................................................................................................................

Marks : 12
Q3. Prepare Kelly Powders balance sheet as at 31 March 2015, using the balances below (Hint
The net profit is a balancing figure)

Land and Buildings 250 000 Trade Payables 7 700

Drawings 34 000 Equipment 41 700
Trade Receivables 8 900 Mortgage 150 000
Net profit for the year 46 000 Fixtures and fittings 26 000
Capital at 1 April 2014 172 600 Cash at bank 4 100
Inventory as at 1 April 2014 13 600 Inventory at 31 March 2015 11 600
Loan 10000 Petty Cash 500
(Note: The loan is repayable in equal annual instalments over the next 10 years)
Marks 8