Adani International School

Term 2 Examination 2023 – 24

Subject: Accounting (Multiple Choice)

Grade & Section: IX A Writing Time: 1 Hour 15 Minutes

Date: 01/05/2024 Reading Time: NA

Roll No: Name of the Candidate:

INSTRUCTIONS:

• There are thirty-five questions in this paper. Answer all questions.

• For each question there are four possible answers A, B, C and D. Choose the one you consider
correct and record your choice in soft pencil on the multiple choice answer sheet.
• Follow the instructions on the multiple choice answer sheet.
• Write in soft pencil.
• Write your name, centre number and candidate number on the multiple choice answer sheet in
the spaces provided unless this has been done for you.
• Do not use correction fluid.
• Do not write on any bar codes.
• You may use a calculator.

INFORMATION:
• The total mark for this paper is 35.
• Each correct answer will score one mark. A mark will not be deducted for a wrong answer.
• Any rough working should be done on this question paper.

Marks Obtained

Signature of the Signature of the

Maximum Marks 35
invigilator examiner

Note: This document consists of 13 printed pages and 01 blank page.

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1. Abdul started a business by transferring his own vehicle to the business at a
valuation of $9000 and introducing a sum of cash. In the first year of trading
profit was $2000. At the end of the first year the balance on his capital account
was $ 51,000. How much cash did Abdul introduce?

[1]

2. Agnes and Brian operate in similar businesses. They provide the following
information.

Which statement is true from the following?

[1]

P a g e 2 | 14
3. The following account appeared in Andrew’s ledger.

Which of the following is true?

[1]

4. In which sections of Zamir’s ledger would the following accounts be maintained?

[1]

P a g e 3 | 14
5. The following balances appeared in Hussein's books

What was the total of the liabilities?

[1]

6. The following account appeared in the books of Mary.

Which statement is correct?

[1]

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7. On 1 March 2020 the bank column of a cash book had a credit balance of $290.
During March cheques totalling $580 were received and cheques totalling $610
were paid to suppliers. Bank charges of $12 incurred in February were also entered
in the cash book. What was the balance of the bank column in the cash book on 1
April 2020?

[1]

8. Zing prepared a trial balance. The total of the debit column was $225,750 and the
total of the credit column was $225,250.
What could explain the difference?

[1]

9. Rent received from a tenant was debited to the rent receivable account and
credited to the cash book. Which type of error has been made?

[1]

10. What would not be included in a sales ledger control account?

[1]

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11. A trader uses the reducing balance method of depreciation. What effect will this
have over the life of the non-current asset?

[1]

12. Which entries did Sally make to record the following transaction?
Rashid, a credit customer, returned damaged goods.

[1]

13. How does a trader use the information provided by financial statements?

[1]

14. Ann is a trader. On 1 April Cindy’s account in Ann’s ledger showed a credit balance
of $520. The following transactions took place during April. April 2 Ann returned
goods, $30, to Cindy. 14 Ann bought goods, $210, from Cindy, and paid in cash.
Which statement about the balance on Cindy’s account in Ann’s ledger on 30 April
is correct?

[1]

P a g e 6 | 14
15. Goods bought on credit by Tumelo from Tebogo are returned before they are paid
for. Tumelo keeps a full double entry system. Where will Tumelo record the return
of goods?

[1]

16. Why is inventory valued at net realisable value when this is lower than cost?

[1]

17. Where is discount received shown?

[1]

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

[1]

P a g e 7 | 14
19. Dilip is a manufacturer. He purchased a machine on credit from Sachin. How did
Dilip record this?

[1]

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

Did Mui make the correct entries to record this transaction?

[1]

P a g e 8 | 14
21. The following account appeared in the books of Abdul.

Which statement is correct?

[1]

22. 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?

[1]

23. 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?

[1]

P a g e 9 | 14
24. A farmer sold a piece of land at market value. How should the proceeds of this
sale be treated?

[1]

25. Why should a trader provide for the depreciation of a non-current asset?

[1]

26. Which group contains only assets?

[1]

P a g e 10 | 14
27. Which items may appear on the debit side of a purchases ledger control account?

[1]

28. A trader always depreciates his motor vehicles using the reducing (diminishing)
balance method. Which accounting principle is he applying?

[1]

29. Which error does not affect the balancing of a trial balance?

[1]

P a g e 11 | 14
30. An invoice for the purchase of goods on credit, $980, was incorrectly recorded in
the purchases journal as $890. Which type of error was made?

[1]

31. Bingwa purchased premises costing $85000 in February 2018. Identical premises
to those owned by Bingwa were sold in April 2019 for $98000. No adjustment was
made in Bingwa’s accounting records in April 2019. Which accounting principle did
Bingwa apply?

[1]

32. On 1 February Ahmed purchased goods on credit from Zaffar. He returned these
goods on 8 February. How did Zaffar record the transaction of 8 February?

[1]

P a g e 12 | 14
33. Athena is both a customer and a supplier of Heidi. Athena’s account in Heidi’s
sales ledger showed a debit balance of $340 and her account in Heidi’s purchases
ledger showed a credit balance of $260. A contra between the two accounts was
agreed. Which entry would Heidi make in her sales ledger control account?

[1]

34. Amber updated her cash book after receiving her bank statement. The updated
cash book balance was an overdraft of $250. The bank statement did not include
cheques not presented, $96, and amounts not credited, $183. What was the
balance shown on the bank statement?

[1]

35. Faraz buys and sells new and used motor vehicles. He purchased a used motor
vehicle from Tahir for $7000 which he paid for by cheque. How would Faraz record
this transaction?

[1]

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(Blank Page provided for rough work)

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