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Accounting - I

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0% found this document useful (0 votes)
28 views6 pages

Accounting - I

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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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LYCEUM INTERNATIONAL SCHOOL

First Examination – November 2018


Subject : Accounting ­ I
33 E I
Class : 11 (National) ..........
Duration : 1 hour Date : ...................................
Candidate's name : ................................................................ Admission no : ...................
Instructions :
● Select the correct answers for questions No 1­ 15 and write its number on the dotted line.
● Write short answers for questions No 16­25 on the dotted lines.
1. Which of the following statements is incorrect in relation to financial accounting?
(1) It provides information based on legal requirements.
(2) Its scope is narrower than the scope of management accounting.
(3) It provides information to internal stakeholders for decision making.
(4) It provides information to external stakeholders for decision making.
(5) It provides historical information.
(­­­­­­­­­)
2. The equation that could be used to calculate the profit of a business is
(1) Closing net assets – Opening net assets – Drawings – Additional capital
(2) Closing net assets – Opening net assets + Drawings + Additional capital
(3) Opening net assets – Closing net asset + Drawings – Additional capital
(4) Closing net assets – Opening net asset + Drawings – Additional capital
(5) Opening net assets – Closing net assets – Drawings + Additional capital
(­­­­­­­­­)
3. The following transactions occurred during the month of October 2018.
● Paid Rs 12000 as general expenses.
● Paid Rs 4000 for owner's personal bills.
● Received the electricity bill of Rs 2000 and paid Rs 1600.
● Cash purchases Rs 20 000. Out of this purchases goods costing Rs 14000 had been sold
for Rs 18000.
Calculate the total expenditure of this business for the month of March 2018.
(1) Rs. 53,600 (2) Rs. 33,600
(3) Rs. 34,000 (4) Rs. 20,000
(5) Rs. 28,000
(­­­­­­­­­)
4. Which of the following transactions is not recorded in the General Journal of a firm ?
(1) All credit purchases with the intention to resale.
(2) Bad debts written off.
(3) Closing adjustments
(4) Record of dishonored cheques
(5) Purchase of non current assets on credit basis
(­­­­­­­­­)
contd.....to page 2
2
Grade 11 (National) Accounting ­ I contd.....from page 1
● Use the following information to answer questions numbers 5 and 6.
Sachin sold goods with a list price of Rs. 100,000 on credit to Saman on 1/7/2018 after
allowing a trade discount of 10%. On 15/7/2018, Saman returned goods with a list price of Rs
50 000 on 31/7/2018. Saman settled the full balance outstanding with a cash discount of 10%.

5. The sequence of source documents to record these transactions in Saman's business is


(1) Purchase invoice, Credit note, Payment voucher
(2) Sales invoice, Credit note, Receipt
(3) Purchase invoice , Debit note, Payment voucher
(4) Purchase invoice, Credit note, Receipt
(5) Purchase invoice, Debit not, Journal voucher
(­­­­­­­­­)
6. What would be the cash received by Saman on 31/7/2018 ?
(1) Rs. 150,000 (2) Rs. 121,500
(3) Rs. 117,000 (4) Rs. 162,000
(5) Rs. 135,000
(­­­­­­­­­)
7. What would be an example to show that the business follows the substance over form concept?
(1) Provision for bad and doubtful debts.
(2) Matching sales with cost of sales.
(3) Provision for depreciation.
(4) Recording a land at cost value rather than recording its current market value.
(5) Recording an asset under non­current asset which was purchased under finance lease.
(­­­­­­­­­)
8. Which of the following accounting concept provides the basis to recognize debtors and
creditors in the financial statements ?
(1) Matching (2) Accruals
(3) Prudence (4) Realization
(5) Historical cost
(­­­­­­­­­)
9. Which of the following accounting concept provides the basis to recognize assets as current
assets an non­current assets ?
(1) Accrual (2) Matching
(3) Going concern (4) Prudence
(5) Realization
(­­­­­­­­­)

contd.....to page 3
3
Grade 11 (National) Accounting ­ I contd.....from page 2
● Use the following information to answer questions 10 and 11.
The cash control account balance of Bimal showed a debit balance of Rs 10 000 on
31/3/2018. On that date the balance in the bank statement did not agree with the cash control
account balance. Following are the reasons for the difference.
Rs
(i) Cheques deposited in the bank but not credited to bank account 7000
(ii) Cheques issued for payments but not debited by the bank 4000
(iii) Charges deducted by the bank for the services rendered 100
(iv) Cheque issued for payments but dishonored by the bank 2000

10. What is the adjusted cash control account balance as at 31/3/2018 ?


(1) Rs. 11,100 (2) Rs. 11,900
(3) Rs. 5,900 (4) Rs. 8,100
(5) Rs. 8,900
(­­­­­­­­­)
11. The balance as per bank statement as at 31/3/2018
(1) Rs 14,900 (2) Rs 11,100
(3) Rs. 11,900 (4) Rs. 5,100
(5) Rs. 8,900
(­­­­­­­­­)
● Use the following information to answer questions 12 and 13.
The trial balance of Rajan did not agree as at 31/3/2018. The difference was included in a
suspense account.
A ­ Payment of advertising expenses of Rs 200 000 had been recorded only in the cash
control acount.
B ­ Total of the sales journal is excess of Rs. 50 000.
C ­ Discount allowed of Rs 5000 had been credited twice to debtor's control account.
D ­ A credit note of Rs 10 000 had been omitted from the books.

12. Which of the above errors have contributed to the balance in the suspense account ?
(1) A only (2) A, B and C only
(3) B and D only (4) A and C only
(5) B, C and D only
(­­­­­­­­­)
13. What is the net impact to debtors outstanding balance as at 31/3/2018 after rectification of the errors ?
(1) Decreased by Rs 5000 (2) Decreased by Rs 60 000
(3) Decreased by Rs 55 000 (4) Increased by Rs 5000
(5) Increased by Rs 45000
(­­­­­­­­­)
contd.....to page 4
4
Grade 11 (National) Accounting ­ I contd.....from page 3
14. Following information had been extracted from the books of Nihal Enterprises for the month
of July 2018.
Rs('000)
Debtors balance as at 1/7/2018 ­­­­­­­­­­­­­­­­­­­­­­ 1 500 Dr / 500cr
Total sales ­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­ 10 000 (out of which 40% is on credit)
Cash received from debtors after deduction
10% cash discount } ­­­­­ 2 700
Bad debts written off ­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­ 1 200
Total of debit notes ­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­ 600
Total of credit notes ­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­ 750
What would be the total balance of debtors as at 31/7/2018 after adjusting the above
(Rs'000)?
(1) Rs. 50 (2) Rs. 750
(3) Rs. 550 (4) Rs. 850
(5) Rs. 6500
(­­­­­­­­­)
15. The balance of the debtors control account as at 31/3/2018 was Rs 100,000. The total balance
of the debtors ledger had a different balance as at the same date. Following are the reasons for
the difference.
(A) Total of the sales journal is under casted by Rs 2000.
(B) A credit sale invoice of Rs. 20 000 has been recorded as Rs 2000 in the sales journal.
(C) Credit sales to debtor Roshan Rs 4500 had been recorded as Rs 5400 in his personal account.
(D) A discount allowed of Rs. 500 has been omitted in debtor Nihal's personal account.
The balance to be showing in the statements of financial position as at 31/3/2018 is
(1) Rs. 99 100 (2) Rs. 108 600
(3) Rs. 118 000 (4) Rs. 118 600
(5) Rs. 120 000
(­­­­­­­­­)
● Write short answer for questions 16­25 on the dotted line.
16. Jehan purchased goods for Rs 100 000 on credit under a trade discount of 10% on the same
day these goods were sold for Rs 125000 on credit.
Show the net effect of these transactions in the accounting equation using the following format.
Assets (Rs) ­­­­­­­­­­­­­­­­­­­­­ = Liabilities (Rs ­­­­­­­­­­­­­­­­­­­­ + Equily (Rs­­­­­­­­­­­­­­
17. Categorize the following accounts into assets,liabilities, income, expeses and equity
Account Classification
(A) Drawings ­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­
(B) Purchases ­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­
(C) Closing stock ­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­
(D) Bank overdraft ­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­
contd.....to page 5
5
Grade 11 (National) Accounting ­ I contd.....from page 4
18. Write the related source document to the relevant prime entry book.
Prime entry book Source document
(A) Cash receipt journal ­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­
(B) Petty cash payment journal ­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­
(C) Sales return journal ­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­
(D) General journal ­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­

19. The petty cashier of a business is provided with Rs 5000 as petty cash imprest as at 1/3/2018.
On 31/3/2018 petty cashier reported that his total spending are Rs 4530.
(a) What is the petty cash in hand as at 31/3/2018 (Rs) ­­­­­­­­­­­­­­­­­­­
(b) Write down the journal entry to record the reimbursement (Narration is not required).
­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­
­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­
20. Write down one example for following concepts.
(a) Business entity concept
­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­
(b) Prudence concept
­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­
21. State three characteristics of a liability as per conceptual framework for financial reporting
followed in Sri Lanka.
­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­
­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­
­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­

22. Following information is related Gihan Traders for the month of March 2018.
Rs ('000)
● Balance as per bank statement 1600 Debit
● Total unrepresented cheques 2500
● Direct deposits 1400
● Total unrealized cheques 1700
● Cheques deposited but dishonoured by the bank 800
What would be the balance as per cash control account as at 1/3/2018 (before adjustments) ?
State your answer with debit or credit.
­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­
contd.....to page 6
6
Grade 11 (National) Accounting ­ I contd.....from page 5
23. Discount allowed of Rs 3500 had been treated as a discount received in the books.
(a) Writ down the journal entry to rectify the above error. (Narration is not required)
­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­
­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­
(b) What is the net impact on profit after the rectification. (State your answer with increase
/ decrease / No change with the value)
­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­
­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­

● Use the following information to answer questions 24 and 25.


As at 31/3/2018 the balance of the debtors control account of next PLe was Rs 920,000.
While the total of debtor's ledger balance did not agree with it. The subsequent investigation
revealed the following.
● Rs 20,000 worth of bad debts written off had been omitted from the control account.
● A sales invoice of Rs 12 000 had been recorded as Rs 21 000 in the sales journal.
● A return inwards journal cut of Rs 2000 had been recorded as Rs 4000 in debtors
personal account.

24. What is the correct balance of the debtors control account as at 31/3/2018 ?
­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­

25. What is the balance as per debtor's ledger ?


­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­
[Total = 25 marks]

END

Ref : NR

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