Principles of Accounts for CSEC®

2nd edition

Chapter 4: Ledgers and the trial balance

The following test paper contains four multiple-choice questions, to help you prepare for
Paper 1, and one problem question to help you prepare for Paper 2. If you decide to complete the
paper under exam conditions, you should give yourself no longer than 40 minutes to complete all
questions.

1. Identify the pair of nominal accounts from the selection below.

(A) Buildings and motor vehicles
(B) Commission received and electricity expense
(C) Trade payables and trade receivables
(D) Bank and interest accrued
(1 mark)

2. Mulligan’s Tyre Shop bought a fork lift on credit from Island Loan Co. How should this
transaction be recorded in the books of Mulligan’s Tyre Shop?
(A) Dr Fork lift, Cr Island Loan Co.
(B) Dr Fork Lift, Cr Bank
(C) Dr Purchases, Cr Island Loan Co.
(D) Dr Mulligan’s Tyre Shop, Cr Island Loan Co.
(1 mark)

3. The following information is customer T. Singh’s account for the month of November.
Balance b/d $3 000
Credit sales $9 000
Credit sales $13 000
Bank $6 000
Bank $3 000

From the information above, what is the correct closing balance to be brought down for
T. Singh’s account on 1 December?
(A) $25 000
(B) $ 9 000
(C) $ 3 000
(D) $16 000
(1 mark)

1 Principles of Accounts for CSEC®, 2nd edition © Oxford University Press 2019
Chapter 4: Ledgers and the trial balance

4. A proprietor withdrew cash from his business for personal use. What effect does this have on
drawings and capital?
(A) Neither are affected
(B) Drawings increased, capital decreased
(C) Drawings increased, capital increased
(D) Drawings decreased, capital increased
(1 mark)

5. The following list of transactions for Natasha Mohammed occurred during the month of
January 2018.
1 Started business with $20 000 in the bank
4 Bought goods on credit from Rawl & Co. for $14 000. A cash discount of 4% is offered
once debts are settled within 30 days
7 Sold goods to Kaden for $5 000. He has paid $3 000 by cheque with an agreement for
a cash discount of 3% on the remaining balance, once settled in 30 days
10 Purchased furniture and fittings on credit from Desi Enterprises Ltd for $11 000
12 Returned goods to Rawl & Co. for $4 000
14 Settled account with Rawl & Co. by cheque
20 Kaden settled his account in full by cheque
28 Sold goods for cash $4 000
30 Caribbean Bank Ltd deposited the loan proceeds of $10 000 directly to the bank account
(a) From the above transactions, analyse and record each of the transactions in appropriate
accounts in the general ledger.

2 Principles of Accounts for CSEC®, 2nd edition © Oxford University Press 2019
Chapter 4: Ledgers and the trial balance

(16 marks)

3 Principles of Accounts for CSEC®, 2nd edition © Oxford University Press 2019
Chapter 4: Ledgers and the trial balance

(b) Using the balances from the general ledger in (a), prepare a trial balance for Natasha
Mohammed at 31 January 2018.

(4 marks)
(Total 24 marks)

4 Principles of Accounts for CSEC®, 2nd edition © Oxford University Press 2019