YEAR END EXAMINATIONS

NOVEMBER 2016
NAME

YEAR 10

ACCOUNTING (0452)

1 HOUR 45 MINS

READ THESE INSTRUCTIONS FIRST

1.
2.
3.
4.
5.
6.

Do not open this question paper/booklet until you are told to do so.
Write your answer in pen.
Read the instructions carefully before attempting each question.
Answer all questions in this paper/booklet.
Marks for each question are shown in brackets e.g. [6 marks]
Calculators are permitted during the examination.

For Examiners
use
A
B

Total

This question paper consists of 17 printed pages (including the front cover).

Th
ere
are
1

10 parts to Question 1.
For

For each of the parts (a) to (j) below there are four possible answers A, B, C and D. Choose
the one you consider correct and place a tick ( ) in the box to indicate the correct answer.

Examiners
Use

(a) Why does the owner of a business calculate profit?

A to find out how much debtors owe him
B to find out how much he owes to creditors
C to know how much money may be taken as drawings without
reducing capital
D to reconcile the cash book balance with the balance on the bank
Statement

[1]

(b) What is another name for a copy of a customers account in the sales ledger when it is
sent to the customer?
A

credit note

debit note

Invoice

Statement of account

[1]

(c) It is important to match a businesss expenses to the appropriate accounting period.

Why is this?
A

the business needs to pay the correct amount of expenses

to calculate the correct profit or loss for the period

to calculate unpaid expenses for the period

unpaid expenses cannot be carried forward to the next year

(d) Paul returns goods previously purchased on credit from Peter.

Where will this transaction be recorded in Peters accounting records?

book of prime (original) entry

nominal (general) ledger

purchases returns journal

credit purchases returns account

[1]
B

purch

sal

sal

(e) A business
made a loss
for the year.
2

What effect would this have on the statement of financial position?

A

decrease current liabilities

decrease net assets

increase capital employed

increase capital owned

For
Examiner's
Use

(f) Where are the personal accounts of customers who buy goods on credit found?
A

purchases journal

purchases ledger

sales journal

sales ledger

[1]

[1]

[1]

(g) On which basis should inventory be valued?

3

The higher of cost and net realisable value

The lower of cost and net realisable value

The higher of selling price and net realisable value

The lower of selling price and net realisable value

[1]

(h) Which would appear in an income statement?

A

Bank overdraft

Capital introduced

Motor vehicle expenses

Trade receivables

[1]

(i) Which is the current liability of a business?

A

Insurance premium prepaid

depreciation of non-current assets

five-year loan from bank

Bank overdraft

[1]

(j) Suzannes financial year ends on 31 December.

She carried forward the closing inventory on 31 December 2010 so it became the opening inventory at
the start of the following financial year.
Which accounting principle is Suzanne applying?
A

business entity

Consistency

going concern

money measurement

[1]
[Total 10]

For
Examiner's

Use

(a)
4

Give two examples of a current asset.

For

(i)

Examiner's

Use

(ii)

[2]

(b) State the accounting equation.

[1]

(c) Mikhail rents a workshop for his car repair business. In the table below, place a tick ( )
under the correct heading to show whether his expenditure is capital or revenue.
Capital expenditure Revenue expenditure
Repairs to workshop windows
Installation of alarm system
Storage shelves for tools
[3]
(d) Name the section of the ledger in which you would find the following accounts:
(i) a customers account;
(ii) sales account
(iii) motor vehicle account.
[3]

(e) (i) Susies trial balance does not balance. Give one example of an error which may have
been made.

[1]
(ii) Japo has bought inventory for $1000 but this has been entered in his books as $1100.
Name the error which has been made.

[1]
(f)

Sasha has a shop which sells fashion clothing.

She bought 50 dresses for $13.00 each and paid total carriage inwards of $50.00.

S
h
e
5

sold 30 dresses for $20.00 each.

The price at which she can sell the dresses has now fallen to $13.50 each.

For
Examiner's

At what amount will Sasha value the remaining dresses in her balance sheet?

Use

[3]

(g) There are four ways in which the quality of information in a traders financial statements
can be measured. One of them is reliability. State the other three.

[3]

(h) Tamara keeps her petty cash on the imprest system with an imprest of $150. She
expenses in the month of October of $80.50.
1

paid

(i) What was the amount of petty cash remaining at 31 October?

2 (ii) How much cash was transferred to restore the imprest at 1 November?

[4]

[Total 21]

Dalia Said is a trader. She maintains a full set of accounting records. She purchases
and sells goods on credit. The following transactions took place in March 2012.
6

March 2 Bought goods, $1950, on credit from Essam Wholesalers

8

Bought goods on credit from Ramy El Din, list price $680, subject to
a trade discount of 20%
14

Returned goods, list price $120, to Ramy El Din

21

Paid the balance owing to Essam Wholesalers by cheque, less 2% cash discount 28

Paid a cheque for $300 on account to Ramy El Din

REQUIRED
(a) Write up the purchases journal and the purchases returns journal for March 2012.
Total each journal and indicate the ledger account to which the total would be transferred.

Dalia Said
Purchases journal
Date

Details

[3]
Purchases returns journal
Date

Details

[2]

Write up the accounts of Essam Wholesalers and Ramy El Din as they would appear
in Dalia Saids ledger for the month of March 2012.
There was no balance on either of these accounts on 1 March 2012.
Where traditional T accounts are used they should be balanced and the balance
brought down. If there is no balance the account should be totalled.
Dalia Said
Essam Wholesalers account

[3]

Ramy El Din account

[4]

Purchases account

[2]

Purchases returns account

[2]

Name the ledger in which Dalia Said would maintain the accounts of Essam Wholesalers
and Ramy El Din.
[1]

Le
pro

(d) Explain the difference between capital expenditure and revenue expenditure.

[6]

[Tot
[2]

(e) Complete the table below, indicating with a tick how each item would be classified.
Capital expenditure Revenue expenditure
Salesmans commission
Carriage of raw materials
Purchases of goods for resale
Purchases of plant and
equipment
Payment of insurance
9

For
Examiner's

Use

Virginia depreciates motor vehicles at the rate of 25% per annum using the reducing (diminishing)
balance method. She provides a full years depreciation in the year of purchase and none in the year of
disposal. Her accounting year end is 31 December.
She purchased a motor vehicle, cost $10 000, on 1 April 2013, and sold it on 28 May 2015 for $7210
cash. On the same date she bought a new motor vehicle for $17 000, paying by cheque.
REQUIRED
(a) Calculate the depreciation which had been provided on the old motor vehicle at the date of
disposal.
...................................................................................................................................................
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...............................................................................................................................................[3]
(b) Prepare the following ledger accounts for the year ended 31 December 2015.
Virginia
Motor vehicles account
Date

Details

Date

Details

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Provision for depreciation of motor vehicles account

Date

Details

Date

Details

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10

Motor vehicle disposal account

Date

Details

Date

Details

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[14]
(c) Name the financial statement in which the provision for depreciation appears. State in which section it
appears.
Name of financial statement .....................................................................................................
Section ..................................................................................................................................[2]
(d) State how providing depreciation is an application of the accounting principle of accruals (matching).
...................................................................................................................................................
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...............................................................................................................................................[2]
(e) Name one other accounting principle which is applied when depreciation is provided.
...............................................................................................................................................[1]
(f) State the type of asset for which the revaluation method of depreciation is suitable.
...............................................................................................................................................[1]
[Total: 23]

11

Katie is a trader. She maintains a full set of accounting records. Her financial year ends on 30 April.
Katies transactions for the year ended 30 April 2016 included the following.
2015
May

12

June 16

$
95

Paid cash for stationery

Received commission by cheque

1680

July

Paid A1 Stationers, by cheque, the balance due on 1 May

Sept

10

Received commission by cheque

Nov

30

Purchased stationery on credit from A1 Stationers

Dec

1710
217

Returned damaged stationery to A1 Stationers

On 30 April 2016
Inventory of stationery
Commission receivable outstanding

53
196
1590

REQUIRED
(a) Enter the transactions in the following accounts in the ledger of Katie for the year ended 30 April
2016.
Make the transfers to the income statement. Balance the accounts and bring down the balances on
1 May 2016.
Katie
Stationery account
Date
2015
May 1

Details

Date

Details

182

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Balance

$
b/d

A1 Stationers account

.
12

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Commission receivable account

Date
2015
May 1

Details
Balance

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b/d

Date

Details

1680

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[14]

(b) Name the ledger in which the commission receivable account would appear.
...............................................................................................................................................[1]

(c) Name the section of the statement of financial position on 30 April 2016 in which the balance
on the commission receivable account would appear. Give a reason for your answer.
Section of statement of financial position ..................................................................................
Reason ......................................................................................................................................
...................................................................................................................................................
...............................................................................................................................................[2]
[Total: 17]

M
b
a
n
e
is
a
tr
a
13

der. She provided the following trial balance at 31 December 2012.

Mbane
Trial Balance at 31 December 2012
Dr
$
31 750
120 000
9 200
90

Wages
Purchases
Rates and insurance
Loan interest
Commission received
Discount received
Trade receivables
Trade payables
Bank
Capital 1 January 2012
Drawings
Long term loan-A1 Finance
Revenue (Sales)
Inventory at 1 January 2012
Premises at cost
Equipment at cost
Provision for depreciation of equipment
Motor Vehicles at cost
Provision for depreciation of motor vehicle
General expenses

Cr
$

4 000
1 950
14 400
8 940
5 790
68 000
8 480
6 000
190 000
7 000
40 000
19 000
5 700
12 000
4 320
21 200
288 910

288 910

Mbane supplied the following additional information.

1

Inventory at 31 December 2012 was valued at $8500.

At 31 December 2012 commission receivable due amounted to $200 and wages due
amounted to $2140.

The amount paid for rates, $4800, is for 15 months to 31 March 2013.

During the year ended 31 December 2012, Mbane took goods costing $940 for her own
use. This has not been entered in accounting records.

The loan from A1 Finance was obtained on 1 July 2012 and interested is charged at 6% per
annum.

Depreciation on equipment is charged at 10% per annum using the straight method and
depreciation on motor vehicles is charged at 20% per annum using the reducing balance
method.

14

(a)

Mbane
Income
Statement for
the year ended
31 December
2012

(
b
Mbane
Statement of
financial
position at 31

December
2012

[13]
[Total:24]
[Total: 24]