霹雳怡保培南独立中学 SM POI LAM (SUWA) IPOH MID YEAR EXAMINATION 2023 ACCOUNTING Paper 1 DATE: TIME : 12 APRIL 2023 0845-1000 (75 minutes) NAME：______________________ REG NO:_________________ CLASS：S2YI, S2ZI INSTRUCTIONS TO CANDIDATES You may use calculator. Do not use staples, paper clips, highlighters, glue or correction fluid. There are 35 questions on this paper. Answer all questions. The total marks of the paper is 35. Do Not Turn This Page Until You Are Told To Do So This paper consists of 10 printed pages Prepared by ： ………………… (KOK KIM WAH) Checked by： ………………… ( MOGANRAJ) 1.
1. Which statements about book-keeping and accounting are correct? 1 Accounting is performed periodically rather than daily. 2 Accounting relies on having accurate book-keeping records. 3 Book-keeping includes the preparation of financial statements. 4 Book-keeping involves the recording of financial transactions. A 1, 2 and 4 B 1 and 3 C 2, 3 and 4 D 2 and 4 2. A trader purchased a motor vehicle for his business using a cheque from his personal bank account. How was this recorded in the books of the business? account to be account to be debited credited A bank motor vehicles B capital motor vehicles C motor vehicles bank D motor vehicles capital 3. Zafar maintains a provision for doubtful debts of 2% of trade receivables. On 1 January 2018 the provision was $200. On 31 December 2018 the trade receivables amounted to $12 000. Which journal entry records the transfer to the income statement on 31 December 2018? A Debit income statement $40,Credit provision for doubtful debts $40 B Debit income statement $240, Credit provision for doubtful debts $240 C Debit provision for doubtful debts $40,Credit income statement $40 D Debit provision for doubtful debts $240,Credit income statement $240 2.
4.Sara and Fatima are in partnership. Sara is entitled to a partnership salary of $30 000 per annum and the balance of the profit is shared equally. The profit for the year was $180 000. What was Sara’s total income from the business? A $75 000 B $90 000 C $105 000 D $120 000 5.A statement of account issued to a customer on 31 March 2022 showed the following information. invoices $250 credit note $10 cash discount 5% if payment made within 14 days of date of statement of account The customer made payment on 12 April 2022. How much did the customer pay? A $227.50 B $228 C $237.50 D $247 6.An amount owed by Baloch was written off. Which entries were made? account debited account credited A bad debts Baloch B bad debts provision for doubtful debts C Baloch bad debts D provision for doubtful debts Baloch 7.Kamal purchases and sells goods on credit. Where does he maintain the accounts of his credit suppliers? A purchases journal B purchases ledger C sales journal D sales ledger 3.
8.Ravi’s financial year ends on 30 April. Ravi bought a motor vehicle for $8000 on 1 May 2016 and sold it for $4050 on 1 May 2018. He uses the reducing balance method of depreciation at 20% per annum. What would be recorded in the income statement for the year ended 30 April 2019 for the disposal of the motor vehicle? A $750 loss B $750 profit C $1070 loss D $1070 profit 9.What does not appear in a statement of changes in equity? A debenture interest paid B interim dividend paid on ordinary shares C issue of new ordinary shares D transfer to general reserve 10.On 30 September 2018, Ahmed’s bank statement showed a credit balance of $2500. Ahmed found that a cheque issued for $90 and a deposit of $500 had not been included on the bank statement. What was the balance at bank shown in Ahmed’s cash book on 30 September 2018? A $1910 B $2090 C $2910 D $3090 11.Leroy has an engineering business. On 31 May he received an invoice from AB Machines showing the following: cost of replacement parts for machine, cost of repairs to machine, cost of machine cost of installation of machine. Which costs are capital expenditure in Leroy’s books? A machine, installation B machine only C replacement parts, machine D replacement parts, repairs, installation 4.
12. Chris purchased a machine costing $15 000 on 1 January 2016. He depreciates the machine using the reducing balance method at 20% per annum. Which journal entry did Chris make on 31 December 2017? A Debit income statement $2400, credit provision for depreciation of machinery $2,400 B Debit income statement $3,000, Credit provision for depreciation of machinery $3,000 C Debit provision for depreciation of machinery $2,400, Credit income statement $2,400 D Debit provision for depreciation of machinery $3,000,Credit income statement $3,000 13. A manufacturing business provided the following information. prime cost $ 250 000 factory overhead expenses $ 50 000 office and selling expenses $ 25 000 work in progress at 1 January $ 1,500 work in progress at 31 December $ 2 500 What was the production cost of goods completed? A $249 000 B $299 000 C $301 000 D $324 000 14. Ann’s financial year ends on 31 August. The annual rates on her shop are $3000. On 1 September 2016 rates prepaid amounted to $750. Rates paid during the year ended 31 August 2017 amounted to $2750. What was the balance brought down on the rates account on 1 September 2017? A $250 credit B $250 debit C $500 credit D $500 debit 5.
15. A trader incorrectly posted sales returns of $100 to the credit of purchases returns account. What was the effect on the gross profit? A overstated $100 B overstated $200 C understated $100 D understated $200 16. Hill Tennis Club received $32 000 in subscriptions during the year. At the year end subscriptions of $350 were owed by members and $450 had been paid in advance for the next year. How much was transferred to the income and expenditure account for subscriptions? A $31 200 B $31 900 C $32 100 D $32 800 17. A trader does not keep a full set of accounting records. How is the profit for the year calculated? A closing capital – opening capital – capital introduced + drawings B closing capital – opening capital – drawings C closing capital – opening capital + capital introduced D closing capital – opening capital + capital introduced – drawings 18. During 2014, Roger’s credit customers paid him $6200. They owed $1800 on 1 January 2014 and $4300 on 31 December 2014. Cash sales for 2014 amounted to $26 800. What were the total sales for the year? A $26 900 B $29 300 C $31 100 D $35 500 19. Which document will a customer issue to inform a supplier of an overcharge? A credit note B debit note C invoice D statement of account 6.
20. The cost of a motor vehicle was debited to the purchases account in error. What is the effect of this on the profit and assets? profit assets A overstated overstated B overstated understated C understated overstated D understated understated 21. A trader provided the following information. 1 March purchases ledger control account balance $4000 31 March purchases journal total $53000 purchases returns journal total $2000 cheques paid to suppliers $47000 discounts received $1000 What was the purchases ledger control account balance on 31 March? A $7000 B $9000 C $11000 D $13000 22. A trial balance fails to balance. Which error caused this? A A cheque, $300, received from M. Green was entered on the credit side of the cash book and on the debit side of M. Green’s account. B Motor vehicle repairs, $500, were entered in the motor vehicle account. C Purchases of goods on credit from J. Black, $750, were entered in J.Blackshaw’s account. D The sales journal was overcast by $1000 23. In which book is a credit note from a supplier entered? A purchases journal B purchases returns journal C sales journal D sales returns journal 7.
24. Zafar returned goods bought on credit from Khalid. How was this recorded in Zafar’s books? account to be debited account to be credited A Khalid purchases returns B Khalid sales returns C purchase returns Khalid D sales returns Khalid 25. Which is the accounting equation? A assets − current liabilities = owner’s equity B assets − liabilities = owner’s equity C current assets − current liabilities = owner’s equity D non-current assets − liabilities = owner’s equity 26. The discount column on the debit side of a trader’s cash book totaled $1300 and the discount column on the credit side totaled $700. How much discount did the trader receive? A $600 B $700 C $1300 D $2000 27. Jabari maintains a petty cash book using the imprest system. The imprest is restored at the end of each month. Which amount restores the imprest at the end of a month? A the amount left in petty cash less the total of vouchers received B the amount left in petty cash plus the total of vouchers received C the imprest amount less the total of vouchers received D the total of vouchers received 28. Which statement about a debts recovered account is correct? A The account is used when an amount, previously written off, is received from a customer. B The account is used when doubtful debts are recovered. C The balance of the account is debited to the income statement at the end of the year. D The balance of the account is shown in the statement of financial position. 8.
29.Wang provided the following information. revenue $32 000 cost of sales $20 000 opening inventory $7 000 closing inventory $5 000 What was the rate of inventory turnover? A 1.67 times B 2.67 times C 3.33 times D 5.33 times 30.Brian’s inventory included one item which had cost $240.The item needed repair at a cost of $30. After repair, the item could be sold for $260. At what value should the item be recorded in Brian’s inventory? A $230 B $240 C $260 D $270 31.A trader provided the following information. profit for the year $24 000 working capital $20 000 capital $120 000 non current liability $30 000 What was the return on capital employed? A 14.12% B 16.00% C 17.14% D 20.00% 32.Abdul does not keep a full set of books but was able to provide the following information. opening inventory $ 5000 closing inventory $ 7000 purchases $ 58000 Abdul applies a mark up of 20% to obtain the selling price of goods. What were Abdul’s sales for the year? A $69200 B $70000 C $72000 D $75000 9.
33.A limited company applied the accounting objective of relevance in preparing its financial statements. What is the effect of this on the interested parties? A They can be sure that information in the financial statements is up to date. B They can identify similarities with the financial statements of other businesses. C They can understand the financial statements easily. D They can use the financial statements in decision making. 34.A trader wrote off the balance on a credit customer’saccount as irrecoverable. Which accounting principle was applied? A business entity B consistency C money measurement D prudence 35.At the end of the financial year, a company did not account for the inventory stationary valued at $50. Which accounting principle did the company apply? A matching B materiality C money measurement D prudence 10.