2nd Semester Accounting

1 Which task would be carried out by a book-keeper but not an accountant?

• A comparing one year’s results with those of previous years

• B interpreting the accounting records

• C preparing financial statements

• D recording transactions in the ledgers and cash book

2 The business made a profit of $10 000 for the year ended 31 January 2020. The owner did not make any drawings during the year. What was the capital on 31 January 2020?

• A $35 000

• B $50 000

• C $70 000

• D $100 000

3 Dilip is a manufacturer. He purchased a machine on credit from Sachin. How did Dilip record this?

• A

• B

• C

• D

4 Mui owns a household appliance store. He took home a washing machine for his personal use. Mui recorded this transaction as follows.

account debited : drawings

account credited : sales

Did Mui make the correct entries to record this transaction?

• A

• B

• C

• D

5 The following account appeared in the books of Abdul.

Which statement is correct?

• A On 1 January Abdul owed Hanif $400.

• B On 4 January Hanif purchased goods, $250, from Abdul.

• C On 31 January Abdul allowed Hanif $8 trade discount.

• D On 31 January Hanif owed Abdul $150.

6 Which business document contains details of purchases, returns and payments occurring during a trading period?

• A credit note

• B debit note

• C invoice

• D statement of account

7 Rashida sells goods on credit and allows her customers a trade discount. Which statements are correct?

1 A debit entry is made in the customer’s account in the sales ledger for the net value of the goods sold.

2 The date of sale, name of the customer, cost price and trade discount are entered in the sales journal.

3 The trade discount is debited to the customer’s account and credited to the discount allowed account.

• A 1 and 2

• B 1 and 3

• C 2 only

• D 2 and 3

8 The totals of a trial balance agreed but it was found that the purchase of office equipment had been debited to office expenses account. Which type of error has been made?

• A commission

• B compensating

• C original entry

• D principle

9 On 31 January, Somraj’s bank statement showed a credit balance of $740. Comparing the bank statement with the cash book he found the following.

Somraj updated his cash book as required. What was the updated cash book balance on 31 January?

• A $590

• B $620

• C $860

• D $890

10 When Mark started a car repair business, he purchased premises and equipment. Two years later he spent $5000 on building an extension, $600 on new equipment and $750 on repainting the original premises. By how much will the non-current assets increase because of these transactions?

• A $5000

• B $5600

• C $5750

• D $6350