YEMEN SECONDARY SCHOOL

FORM III STATUS TEST

BOOK KEEPING
Time 60mins
INSTRUCTIONS
 This paper consists five (5) questions
 Attempt all questions

1. Choose the most correct answer and write its letter in the space provided
i. Which of the following is not an asset?
(A) Buildings
(B) Cash balance
(C) Debtors
(D) Loan from Harris

ii. Which of the following is incorrect?

Assets Liabilities Capital
(A) 7,850 1,250 6,600
(B) 8,200 2,800 5,400
(C) 9,550 1,150 8,200
(D) 6,540 1,120 5,420

iii. Which of the following best describes the meaning of ‘Purchases’?

(A) Items bought
(B) Goods bought on credit
(C) Goods bought for resale
(D) Goods paid for

iv. The principle that calls every debit to have equal credit in the books:
(A) Single entry system
(B) Three entry system
(C) Double entry system
(D) Book- Keeping

v. Posting the transactions in book-keeping means

(A) Making the first entry of a double entry transaction
(B) Entering items in a cash book
(C) Making the second entry of a double entry transaction
(D) Something other than the above.

i ii Iii iv V

2. Choose the correct term from, group ‘A’ which matches with the explanation in group
‘B’ and then write it against the number of the relevant explanation. Use letters only.
GROUP A GROUP B

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 A. Book-keeping A. __________ it keeps all Accounts.
B. Working capital B. _________ are debtors who fail to pay their debts.
C. Fixed assets C. _________ a document prepared and issued to a customer
D. Carriage outwards whenever goods are sold on credit.
E. Returns outwards D. ________ is a property of a durable nature likely to be
F. Carriage inwards retained for a long period such as buildings.
G. Trial balance E. ________ the excess of current assets over current liabilities.
H. Bad-debts
I. Invoice
J. Ledger
K. Double entry
principle
L. Real Accounts

3. Complete the following table

SN Transaction Account to be Account to be
debited credited
(i) Started with capital in cash
(ii) Bought furniture for cash
(iii) Purchased goods from Magele
(iv) Paid rent by cash
(v) Sold goods to Mong’oo
(vi) Paid salary in cash
(vii) Bought Buildings on credit from NHC
(viii) Purchased goods for cash
(ix) Paid cash to Mavunde
(x) Withdrew cash for personal use

4. Magdalena commenced business on 1st January 2018 with capital in cash 20,000. She
made the following transactions during the month.
Jan. 1 Bought furniture ………………………………….………………………………………….… 7,500
3 Bought machinery …..…………………………………………………………....…………… 2,500
4 Sold goods …...……………………...…………………………………………..……………… 15,000
5 Paid water bills …….…………………………………………………….…………………….. 2,000
7 Paid advertising expenses ………………………………………………….……………… 3,000
7 Paid salaries ……………….……………………………………………..……………………. 10,000
8 Sold goods ………………………………………………………..………………………………. 5,000
12 Cash sales ……………………………………………………...…………….……………….… 25,000
18 Paid wages ……………………………………………………….……….…………………….… 3,000
20 Paid electricity bills …………………………………………………………………………... 2,000
22 Cash sales …………………….……………………………………………………………….… 12,500
25 Cash purchases …………………………………………………………..……………………... 2,500
29 Bought goods for cash …….………………………………………..……........................… 2,000
Required
Record the above transactions in Cash account and balance off respective ledger accounts at
the end of the month.
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5. From the following trial balance of Dihyah prepare Trading and profit and loss account
for the year ended 31st December 2019 and the balance sheet as at that date.
Dihyah’s
Trial Balance as at 31 December 2019
Dr Cr
Sales 97,000
Purchases 42,600
Lighting and heating expenses 1,900
Rent 2,400
Wages 5,200
Commission received 1,300
Discount received 700
Returns inwards 1,800
Returns outwards 600
General expenses 700
Carriage inwards 1,000
Carriage outwards 1,100
Buildings 35,000
Fixtures and fittings 9,400
Debtors 27,000
Creditors 10,800
Bank 1,200
Cash 400
Drawings 9,700
Capital 32,000
Stock (at 1st January 2019) 3,000
142,400 142,400

Closing stock was 5,500