ADMISSION

NUMBER

DATE

FIRST EXAMINATION - NOVEMBER 2022

GRADE 10 (EDEXCEL)

ACCOUNTING

Paper I : Introduction to Book keeping and Accounting

Duration : 2 hours

INSTRUCTION TO CANDIDATES

 Use black ink or ball-point pen.

 Answer all questions.
 Answer the questions in the spaces provided – there may be more space than you
need
 Calculators may be used.
Information
 The total mark for this paper is 100.
 The marks for each question are shown in brackets – use this as a guide as to how
much time to spend on each question.
Advice
 Read each question carefully before you start to answer it.
 Try to answer every question.
 Check your answers if you have time at the end.

Grade 10 (Edexcel) Accounting I - First Examination - November 2022

Prepared for Lyceum International School by Lyceum Assessments
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SECTION A
Answer ALL questions in this section. Write your answers in the spaces provided.
For questions 1–10, choose an answer A, B, C or D, and put a cross in the box.
If you change your mind about an answer, put a line through the box
and then mark your new answer with a cross .

1. Which type of accounts are found in the receivables ledger?

A Credit customers

B Purchases

C Sales

D Credit suppliers

(1 mark)

2. What would be recorded on the debit side a of trade receivables ledger control account?
A Cash sales

B Discount allowed

C Refunds to credit customers

D Returns outwards

(1 mark)
3. A trader purchases a new delivery van. Which item of expenditure would be classed as capital

expenditure?

A Insurance

B First tank of petrol

C Road fund licence

D Sign writing

(1 mark)

Grade 10 (Edexcel) Accounting I - First Examination - November 2022

Prepared for Lyceum International School by Lyceum Assessments
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4. A trader changes his depreciation accounting policy from the reducing balance method to the

straight line method. Which accounting concept is not being followed?

A Accruals

B Consistency

C Materiality

D Prudence

(1 mark)
5. A sales invoice for $800 less 10% trade discount was entered in the sales day book as $800
instead of $720.
What kind of error is this?
A Commission

B Original entry

C Partial omission

D Principle

(1 mark)
6. Jarrad purchases a new motor vehicle on credit from PXB Ltd.
How would this transaction be shown in Jarrad's books of account?
Account to be debited Account to be credited
A Motor vehicles Purchases
B Purchases Motor vehicles
C Motor vehicles PXB Ltd
D PXB Ltd Motor vehicles

(1 mark)
7. In which book of original entry would bad debts written off be recorded?
A Cash book 1=1

B Journal

C Purchases day book

D Sales day book

(1 mark)

Grade 10 (Edexcel) Accounting I - First Examination - November 2022

Prepared for Lyceum International School by Lyceum Assessments
 4
8. Leonid sells goods on credit to Boris for $800. Leonid's terms of trade are 25% trade discount
plus 2% cash discount for prompt settlement.
What entry will Leonid make in his books of original entry when the goods are supplied?

A $588 in the purchases day book

B $600 in the purchases day book

C $588 in the sales day book

D $600 in the sales day book

(1 mark)

9. A business purchased a new motor vehicle for $24 000. The motor vehicle had an estimated
residual value at the end of year 5 of $4 000 and was to be depreciated using the straight line
method.
What was the balance on the provision for depreciation account at the end of year 2?

A $7 200

B $8 WO

C $8 640

D $9 600

(1 mark)

10. A trade payables ledger control account contained the following entries:
$
Opening balance 9 600
Credit purchases 16 400
Interest charged on overdue accounts 300
Payment to suppliers 16 800
What was the closing balance on the control account at the end of the period?

A $8 900

B $9 500

C $9 700

D $10 300

(1 mark)

Grade 10 (Edexcel) Accounting I - First Examination - November 2022

Prepared for Lyceum International School by Lyceum Assessments
 5
11. On 1 December 2017 Ling's rent expense account had a balance of $6 900. On 10 December
2017 Ling paid by cheque rent of $900 for the three months ending 28 February 2018.
Prepare the rent expense account for the year ended 31 December 2017. Balance the account on
31 December 2017 and bring the balance down on 1 January 2018.
Rent expense account
Date Details $ Date Details $

(5 marks)
12. (a) State one characteristic of a public sector organisation.
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(1 mark)
(b) State two examples of public sector organisations.
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(2 marks)
(c) State two characteristics of a partnership.
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(2 marks)
[Total = 5 marks]

Grade 10 (Edexcel) Accounting I - First Examination - November 2022

Prepared for Lyceum International School by Lyceum Assessments
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13. Evaluate the effect that the introduction of a computerised bookkeeping system may have on a
business.
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[Total = 5 marks]
Section A Total = 25 marks

Grade 10 (Edexcel) Accounting I - First Examination - November 2022

Prepared for Lyceum International School by Lyceum Assessments
 7

SECTION B
Answer ALL questions in this section. Write your answers in the spaces provided.
14. On 1 January 2017 Chan's trade receivables ledger control account showed a balance of $16 465.
Chan provided the following information for the year ended 31 December 2017.

$
Cash sales 13 200
Credit sales 128 000
Returns from credit customers 4 300
Receipts from credit customers 116 800
Discount allowed 8 500
Irrecoverable debts 1 100
Payables ledger set-off I 700

(a) Prepare the trade receivables ledger control account for the year ended 31 December 2017.
Balance the account on 31 December 2017 and bring the balance down on 1 January 2018.
Trade receivables ledger control account

Date Details $ Date Details $

(8 marks)

Grade 10 (Edexcel) Accounting I - First Examination - November 2022

Prepared for Lyceum International School by Lyceum Assessments
 8
On 1 January 2017 Chan's provision for irrecoverable debts was $650. On 31 December 201/ he
increased the provision to $900.
(b) Prepare the provision for irrecoverable debts account for the year ended 31 December 2017.
Balance the account on 31 December 2017 and bring the balance down on 1 January 2018.
Provision for irrecoverable debts account

Date Details $ Date Details $

(3 marks)

(c) State the section of the statement of financial position where the closing balance of the
provision for irrecoverable debts is shown.
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(1 mark)
(d) Explain, with reference to an accounting concept, why it may be necessary to make a
provision for irrecoverable debts.
Concept
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Explain
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(3 marks)

[Total = 15 marks]

Grade 10 (Edexcel) Accounting I - First Examination - November 2022

Prepared for Lyceum International School by Lyceum Assessments
 9
15. The following balances appeared in the books of account of Sariah at 1 January 2016.

Motor vehicle
Cost $24 000
Provision for depreciation $8 640
Depreciation policy 20% per annum using the reducing balance
method. A full year's depreciation is charged in
the year of purchase but none in the year of sale.

On 31 December 2017 Sariah sold the motor vehicle for $9 000. (a) Prepare the provision for
depreciation account for the years ending 31 December 2016 and 31 December 2017.

Provision for depreciation account - Motor vehicle

Date Details $ Date Details $

(4 marks)
(b) Prepare the asset disposal account for the year ended 31 December 2017.
Asset disposal account

Date Details $ Date Details $

(4 marks)

(c) State two causes of depreciation of non-current assets.

1. ---------------------------------------------------------------------------------------------------------
2. ---------------------------------------------------------------------------------------------------------
(2 marks)
(d) State two accounting concepts applied in providing for depreciation of non current assets.
1. ---------------------------------------------------------------------------------------------------------
2. ---------------------------------------------------------------------------------------------------------
(2 marks)

Grade 10 (Edexcel) Accounting I - First Examination - November 2022

Prepared for Lyceum International School by Lyceum Assessments
 10
On 1 January 2018 Sarah purchased on credit from Bob's Motors a motor vehicle, cost $15 000.
(e) Prepare the journal entry to record the purchase of the new motor vehicle. A narrative is
required.
Journal

Date Account Debit ($) Credit ($)

(3 marks)
[Total = 15 marks]

16. Alan owns a business selling electrical goods. He operates a full double entry system of
bookkeeping.
(a) Complete the table below to show the business document and the book of original entry for
each transaction.

Transaction Business document Book of original entry

Paid cash for postage
stamps
Credit customer
returned goods
Bought goods on
credit

The following transactions occurred during June 2017.

Date Transaction
4 June Received a cheque from D Cook in payment of
an invoice,$1 600. The customertook a 5% cash
discount.
12 June Paid, by cheque, AB Electrics an invoice for $2
400. Alan took a 3% cash discount.
16 June Sold goods for cash $1 850
18 June Banked cash $800
26 June Paid wages by cash $960

(6 marks)

(b) Prepare the cash book for the month of June 2017 , balance the cash book on 30 June
2017and bring the balanced down on 1st July 2017.

Grade 10 (Edexcel) Accounting I - First Examination - November 2022

Prepared for Lyceum International School by Lyceum Assessments
 11

Bank
$
Cash
$
Received
Discount

$
Details
Date
Bank
$
Cash
$
Discount
allowed

Balances b/d
Details

1 June
Date

(9 marks)
Grade 10 (Edexcel) Accounting I - First Examination - November 2022
Prepared for Lyceum International School by Lyceum Assessments
 12
[Total = 15 marks]
17. Kalou provided the following balances at 30 November 2017.
(a) Prepare a trial balance at 30 November 2017.
Trial balance at 30 November 2017
$ Debit $ Credit $
Bank overdraft 650
Drawings 24 200
Equity 9 160
General Expenses 9 150
Loan 6000
Loan interest 400
Motor expences 3100
Motor vehicle - cost 13000
Motor vehicle provinsion for depreciation 5120
purchases 53 860
Rent expense 6 500
Revenue 96 580
Trade payables ledger control account 5 400
Trade receivable ledger control account 12 700
Total
(8 marks)

Grade 10 (Edexcel) Accounting I - First Examination - November 2022

Prepared for Lyceum International School by Lyceum Assessments
 13

(b) Complete the table.

Error Type of error Account to be debited Account to be credited

A sale
invoice, $380
had not been
entered in the
books
Motor
repairs,
$ 200 had
been entered
in the motor
vehicles cost
account
(6 marks)

(c) State the effect of profit for the year after correcting both errors.
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(1 mark)
[Total = 15 marks]

18. On 30 November 2017 the bank column of Lily's cash book showed a balance of $2 640 Cr and
her bank statement showed a balance of $2 SSO Dr.
She identified the following:
• cheques, $510, paid to suppliers had not yet been presented to the bank for payment
• cash banked, $890, had not yet appeared on the bank statement.
The following had not been entered in the cash book:
• a standing order, $210
• a dishonoured cheque, $80.

(a) Calculate the updated bank balance in Lily's cash book at 30 November 2017.
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Grade 10 (Edexcel) Accounting I - First Examination - November 2022

Prepared for Lyceum International School by Lyceum Assessments
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(2 marks)

(b) Prepare a bank reconciliation statement at 30 November 2017.

Lily - Bank reconciliation statement at 30 November 2017

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(6 marks)

(c) Explain one difference between a standing order and a direct debit.
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(2 marks)

Grade 10 (Edexcel) Accounting I - First Examination - November 2022

Prepared for Lyceum International School by Lyceum Assessments
 15
(d) State two reasons why a cheque may be dishonoured.
1. --------------------------------------------------------------------------------------------------------
2. --------------------------------------------------------------------------------------------------------
(2 marks)
(e) (i) I xplain to I ily the meaning of the debit balance on the hank statement at 30 November
2017.
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(2 marks)
(ii) State in which section of the statement of financial position the cash book balance on
30 November 2017 would appear.
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(1 mark)
[Total = 15 marks]
SECTION B = 75 MARKS
TOTAL FOR PAPER = 100 MARKS
END

Grade 10 (Edexcel) Accounting I - First Examination - November 2022

Prepared for Lyceum International School by Lyceum Assessments