ADMISSION

P 0 2 8 9 1
NUMBER

DATE

FIRST SEMESTER EXAMINATION - MARCH 2023

GRADE 9 (EDEXCEL)

ACCOUNTING
Duration : 2 hours

INSTRUCTION TO CANDIDATES

Instructions

• Use black ink or ball-point pen.

• Answer all questions.

• Answer the questions in the spaces provided

• Calculators may be used.

Information

• The total mark for this paper is 100.

• The marks for each question are shown in brackets

Grade 9 (Edexcel) Accounting - First Semester Examination - March 2023

Prepared for Lyceum International School by Lyceum Assessments
 2
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 .
(1) What is the disadvantage of being a sole trader?
A Personal control
B Easy formation
C unlimited liability
D Faster decision making

(2) Which of the following is not an advantage of a computerized accounting system?

A speed
B reliability
C training cost
D None of the above

(3) Which business document is sent when goods are sold to another business?
A Credit note.
B Purchase order.
C Invoice.
D Debit note

(4) A business maintains a full set of books of account. Where will the purchases account appear?
A purchases journal
B purchases ledger
C general journal
D general ledger

(5) A business buys goods for resale, paying cash. What are the entries in the business’s books?
account debited account credited
A purchases cash
B cash supplier
C cash purchases
D supplier cash

(6) The totals of the discount columns in a trader’s cash book were $520 debit and $160 credit.
What entry will the trader make in the discount received account?
A $520 credit
B $520 credit
C $160 debit
D $160 credit

Grade 9 (Edexcel) Accounting - First Semester Examination - March 2023

Prepared for Lyceum International School by Lyceum Assessments
 3
(7) Capital expenditure is
A cash spent on day to day running of the business.
B cash received from the sale of non current assets
C cash spent on buying non current assets
D cash contributed by the business owner.

(8) Which of the following errors would affect the balancing of the trial balance?
A reversal
B commission
C addition
D principle

(9) A sole trader has included a private house repairs bill as a business expense. Which double entry
would correct this error?
account debited account credited
A capital buildings
B drawings building repairs
C building repairs drawings
D buildings capital

(10) Which of the following is a source of information for a trade receivable control account?
A petty cash book
B purchases book
C returns outwards book
D Sales Day Book
[Total = 10 marks]

(11) A business maintains a petty cash system on the imprest system with a float of $500. During the
month total expenditure on petty cash, was $320 and $9 was received from an employee in
respect of a private phone call.
(a) How much will the petty cashier receive at the end of the month from the chief cashier?
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$320-9=$311
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(3 marks)
(b) State how the double entry for the (a) is completed.
Debit entry -
Petty cash book
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Cash book
Credit entry - ------------------------------------------------------------------------------------
(2 marks)
[Total = 5 marks]
Grade 9 (Edexcel) Accounting - First Semester Examination - March 2023
Prepared for Lyceum International School by Lyceum Assessments
 4
(12) Emerson maintains a full set of accounting records and extracts a trial balance at the end of each
month.

(a) Describe one error that could cause a trial balance not to balance.
Omission of the debit or credit entry, addition error, entering transaction
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twice on the same side
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(2 marks)
(b) At the year end of 30 September 2022 the trial balance of Emerson balanced. During the
following month the following errors were discovered.

Complete the following table to show the type of error in each case.

Error Type of error

A sale of goods on credit, $1200, to H Edward had not been
recorded in the books Omission
A cheque received from Wesley, a customer, had been entered in Transposition error
the accounts as $526, instead of the correct figure of $256.
A payment to Colton a supplier, $465, had been entered in the Commision
account of Carlton.
(3 marks)
[Total = 5 marks]
(13) Tick() the items which would be recorded on the debit side of a trade payables control
account and name the source of information for each of them.(only for the selected items)

Item √ Source of information

Credit sales
Purchases returns Purchase returns day bk.
Set off General Journal
Credit purchases
Discount allowed
Discount received Cash Book
Cash payments to suppliers Cash Book
Cash receipts from customers
[Total = 5 marks]

TOTAL FOR SECTION A=25 MARKS

Grade 9 (Edexcel) Accounting - First Semester Examination - March 2023

Prepared for Lyceum International School by Lyceum Assessments
 5
SECTION B
Answer ALL questions. Write your answers in the spaces provided.

(14) (a) Luna, a sole trader, repairs and sells used washing machines. On 31 March 2022 her books
of account contained the following balances.

$
Equipment 25000
Motor vehicles 32500
Inventory 45000
Loan 12000
trade receivables 2600
trade payables 1400
Capital 91700
(i) State the accounting equation.
Assets=capital +liabilities
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(1 mark)
(ii) Using the figures above, state the accounting equation for Luna’s business.
Assets-2500+32500+45000+2600=105100
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Liabilities-12000+1400=13400
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Capital=91700
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105100(assets)=91700(capital)+13400(liabilities)
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(3 marks)
(b) The following transactions took place in November 2022 between Chole and her credit
customer Harper.

November Transaction
1 Harper owed Chole$1000.
4 Harper purchased goods, list price, $400, less 10% trade discount.
12 Harper returned goods with a list price of $90.
24 Harper paid the balance due on November 1 by cheque, after deducting a cash
discount of 5%.
(i) Prepare Harper’s account in Chole's ledger for the month of November 2022. Balance
the account on 30 November 2022 and bring the balance down on 1 December 2022.
Harper

date details $ date details $

1/11/22Balance b/d 1000 12/11/22 Revenue Returns 81
4/11/22 revenue 360 24/11/22 bank 950
24/11/22 Discount allowed 50
30/11/22 Balance c/d 279
1360 1360
1/12/22 Balance b/d 279
(5 marks)
Grade 9 (Edexcel) Accounting - First Semester Examination - March 2023
Prepared for Lyceum International School by Lyceum Assessments
 6
(ii) Explain the meaning of the following terms.
Trade discount
Trade discount is an allowance given to businesses in the same
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and is given either to encourage loyalty or bulk buying
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(2 marks)
Cash discount
Cash discount is given to customers as an incentive to pay their
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accounts promptly allowance given which may reduce the cash
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losses and improve the cash flow of the business
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(2 marks)
(iii) Show how the cash discount given to Harper would be recorded in Chole’s books of
account.

Account to be debited Account to be credited

Discount allowed Harper
(2 marks)
[Total = 15 marks]
(15) Logan, a sole trader, sells goods only on credit, offering all customers a trade discount of 10%.
During the month of November 2022 she made the following transactions.
November Transaction
2 Sold goods to L Homer, list price £280
3 Sold goods to M Ward, list price £540
8 L Homer returned goods, list price £70
12 Sold goods to J Courtney, list price £850
21 M Ward returned goods, list price £60
27 Sold goods to C Lion, list price £290
30 Sold goods to L Homer, list price £350

(a) Prepare Logan’s Sales Day book and Sales returns Day book for the month of November
2022, showing the totals for the month.

Sales Day Book

Date Customer $
11/22 L Homer 252
3 M ward 486
12 J Courtney 765
27 C Lion 261
30 L Homer 315
30 T Total of the month 2079
(6 marks)

Grade 9 (Edexcel) Accounting - First Semester Examination - March 2023

Prepared for Lyceum International School by Lyceum Assessments
 7
Sales Return Day Book

Date Customer $
11/22/8 L Homer 63
21 M Ward 54
Total of the month 117

(3 marks)
(b) Complete the table below to indicate which side (debit/credit) of the account the totals of
each day book would be posted.

sales account Trade receivables Control

accounts
Sales Day Book credit debit
sales returns account Trade receivables control account
Sales Return Day Book debit credit
(4 marks)
(c) Identify the source document Logan would use to record transactions in the following
books of original entry.

Book Source Document

Petty cash book Petty cash vouchers
Purchases returns day book Credit notes sent from suppliers
(2 marks)
[Total =15 marks]
(16) Keith maintains a full set of accounting books, including a three column cash book.
On 1 March 2022 Keith’s records showed that he had cash in hand of $850 and an overdraft at
the bank of $2000.
During the month of March 2022 he made the following transactions.
Date Transaction
March 2 Cash sales $1200
March 9 Received a cheque from Bruce, a customer, in settlement of his account of $300
less 3% cash discount.
March 10 Received a cheque from Colin, a customer, in full settlement of his account of
$600.
March 12 Keith withdrew $800 from the bank for his own personal use.
March 18 Paid Neil, a supplier, $564 by cheque after deducting 6% cash discount.
March 21 Paid wages and salaries by cheque, $700.
March 24 Cash sales, $2000 paid directly into the bank.
March 27 The cheque received from Colin on March 10, 2022 is returned by the bank as
‘dishonoured’.
March 28 Transferred $500 from the cash account into the bank account.

(a) Enter these transactions in the three column cash book given below. Balance the cash book
on 31 March 2022 and bring the balance down on 1 April 2022.

Grade 9 (Edexcel) Accounting - First Semester Examination - March 2023

Prepared for Lyceum International School by Lyceum Assessments
 8

Cash Book

Date details Discount Cash Bank date details Discount Cash Bank
allowed $ $ received $ $
$ $

1 bal b/d 850 2000

bal b/d
2 sales 1200 drawings 800
9 bruce 9 29 neil 564
10 colin 600 wages 700
&salaries
24 sales 2000 colin 600
28 cash 500 bank 500

31 bal c/d 1273 bal c/d 1550

2050 4664 36 2050 4664
9
1/4 bal b/d 1500 bal b/d

(13 marks)

Grade 9 (Edexcel) Accounting - First Semester Examination - March 2023

Prepared for Lyceum International School by Lyceum Assessments
 9
(b) Explain the meaning of the term ‘dishonoured cheque’.
A dishonoured cheque is a cheque received by a business which the
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customer’s bank refuses topay
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(2 marks)
[Total= 15 marks]

(17) The trainee accountant of Oliver and Son produced a trial balance for the year ended 31
November 2022.
During the following month several errors and omissions were identified. These were:
1. The cost of repairs to a delivery van of $550 had been debited to the motor vehicles
account.
2. The sales day book had been undercast by $290.
3. A payment of $460 for insurance had been completely omitted from the accounts.
4. A cheque for $700 received from T Jones, a customer, had been credited to the account
of T Bones.
5. Discount received of $130 had been credited to the discount allowed accounts as
$310.Correct entry was made on the trade payables account.
6. A payment of $200 for rates had been debited to the rent account.

(a) Prepare journal entries to correct these errors and omissions. Narratives are not required.

General Journal

number Debit Credit

$ $
Repairs to deliver van 550
Motor vehicles 550

suspense 290
sales 290

insurance 460
cash 460
t bones 700
t jones 700
discount allowed 310
(12 marks)

Grade 9 (Edexcel) Accounting - First Semester Examination - March 2023

Prepared for Lyceum International School by Lyceum Assessments
 10
(b) Prepare the suspense account, clearly showing the opening balance.

Suspense Account

$ $
sales 290 difference of the trial 110
balance
discount allowed. 180
290
290
(3 marks)
[Total = 15 marks]

(18) Christabel maintains a full set of accounting records and provides the following information for
the month of March 2022.

$
Total trade receivables on 1 March 2022 22000
Totals for the month of March 2022
Credit sales 35000
Credit purchases 13000
Returns from credit customers 5600
Returns to credit suppliers 2800
Dishonoured cheque 450
Receipts from credit customers 18500
Payments to credit suppliers 9500
Discount allowed 980
Discount received 560
Contra entry (set off) 1700

(a) Select the relevant figures and prepare the sales ledger control account for the month of
March 2022. Balance the account and bring down the balance on 1 April 2022.

Sales Ledger Control Account

$ $
bal bd 220000 sales returns 5600
sales 350000 cash/bank 18500
dishonoured cheques 450 discount allowed 980
set off 1700
57450 balance cd 30670
57450
balance bd 30670
(8 marks)

Grade 9 (Edexcel) Accounting - First Semester Examination - March 2023

Prepared for Lyceum International School by Lyceum Assessments
 11

(b) Explain how a contra entry (set off) between the sales ledger and purchases ledger can arise.
A contra entry can arise when a customer is also a supplier of the
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business Instead of the customer paying us for goods supplied their
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balance is offset against the amount owing to them for good or services
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supplied..
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(3 marks)
(c) State three advantages of preparing a sales ledger control account.
Advantage 1
Assists in the prevention of fraud
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Advantage 2
Provides management with total debtors
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Advantage 3
Helps in the preparation of the balance sheet
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(3 marks)
(d) State one limitation of control account.
Errors of commission will not be received
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(1 mark)
[Total = 15 marks]
TOTAL FOR SECTION B = 75 MARKS

END

Ref : AP

Grade 9 (Edexcel) Accounting - First Semester Examination - March 2023

Prepared for Lyceum International School by Lyceum Assessments