TRUST ACADEMY

HIGH SCHOOL

Principles of Accounting

Paper 1

FORM 3 ZIMSEC

Answer All questions

END OF TERM 1 2024 TIME 2 hours

Instructions to candidates

Answer all question in this paper.

Write neatly and legibly.

ANSWER ALL QUESTIONS

TIME 1HOUR

1a). Why are source documents important to a business? (2)

b. The document which is received from a seller after buying goods on credit is a___________

c. Document which is issued to a customer who has been overcharged is a_______________

d. Name the subsidiary book in which a debit note for a customer’s undercharge will be
recorded

e. An invoice for goods sold to a customer is recorded in the book of prime entry
called__________

f. A document used to authorise expenditure from a petty cash fund is a ______________

g. State one difference between a Sales Invoice and a Purchases Invoice

2. Enter the transactions below in a 2 column cash book.(15marks)

May 1 Balances brought forward for Cash $100 and Bank $2 000

May 2 Cash sales $250. paid directly into the bank

May 3 Bought motor van for cash $200

May 5 Cash sales $ 250

May 8 Paid rent by cheque $150

May 10 Paid wages by cheque $120

May 18 Received cheque of $90 from debtor B.Butler

May 19 Paid cheque $200 to creditor C. Bare.

May 22 Received cheque of $50 from debtor S.Combs

May 24 Paid cheque $30 to creditor V. Bryan

May 24 Withdrew cash from the bank $20 for personal use

May 28 Cash of $20 was deposited to the bank account

3.Complete double entry and balance off the accounts for the transactions below:

Date Details Amount ($)

2019 started business with cash at bank 8 000
April 1
April 2 Bought shop fixtures by cheque 4 000
April 3 Introduced cash into the business from personal savings 2 000
April 5 Bought goods on credit from A Murombo 6 000
April 7 Cash sales paid directly into the bank 5 000
April 8 Returned goods to A Murombo 260
April 9 Sold goods on credit to T Mujuru 3 000
April 11 T Mujuru returned goods 150
April 12 Murambiza took goods for private use 200
April 15 Credit sales to T Mujuru 800

END OF PAPER