BLOOMFIELD HALL SCHOOLS

FIRST TERM EXAMINATION

Session 2022 - 2023

Maximum Marks
Subject: Accounting Q.
Marks Obtained

Class: FIII Duration: 1 hour 30 min

Section A
Name: _________________________________ MCQs 15

Date: _________________________________ Section B

Section: _________________________________ 1. 30

2. 10
READ THESE INSTRUCTIONS FIRST
3. 10
 Do not open this booklet until your teacher tells you.
 Please work neatly and carefully. 4. 15
 Cross out any mistake with one neat line. Erasers are not allowed.
 Write in dark blue or black pen in the spaces provided on the Question Paper. Total: 80
 You may use a soft pencil for rough working.
 Answer all questions. Total Percentage %
 The number of marks is given in brackets [ ] at the end of each question or
part question.
 Where layouts are to be completed, you may not need all the lines for your answer.
 The businesses mentioned in this question paper are fictitious.

Invigilator’s name: _______________________________________________

Invigilator’s signature: ___________________________________

Teacher’s name: ___________________________________

Teacher’s signature: ___________________________________

Monitor’s name: ___________________________________

Monitor’s signature: ___________________________________

Page 1 of 13
UFIII Accounting 1st Term Examination, 2022-2023
 Section A
Multiple Choice Questions
Answer all questions

1 The owner of a business takes inventory for her own use.

What are the ledger account entries to record this?

A. debit drawings , credit purchases

B. debit drawings , credit inventory
C. debit capital , credit sales
D. debit inventory , credit drawings

2 Bob returns goods bought on credit from Tariq.

Which ledger account entries record this in Tariq’s books?

debit credit
A Bob sales returns
B Bob purchases returns
C sales returns Bob
D purchases returns Bob

3 Which ledger entries record the purchases of a machine bought on credit?

A. debit trade payables , credit machinery

B. debit machinery , credit trade payables
C. debit trade payables , credit purchases
D. debit purchases , credit trade payables

4 A business bought a computer for the office and paid by cheque. How will the
business record this transaction?

debit credit
A bank account office equipment account
B office equipment account bank account
C bank account purchases account
D purchases account bank account

5 Which entry records a cheque paid to a supplier for goods bought on credit?

debit credit
A bank trade payable
B bank purchases
C trade payables bank
D purchases bank

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UFIII Accounting 1st Term Examination, 2022-2023
6 What is the correct entry for office furniture bought on credit from X.

debit credit
A bank office furniture
B office furniture bank
C office furniture X
D X office furniture

7 X invoice goods to Y. They are found to be damaged.

Which document will X then send to Y.

A. Copy invoice
B. Credit note
C. Debit note
D. Statement of account

8 Y returns goods to X.
Which document will Y send to X.

A. Credit note
B. Debit note
C. Invoice
D. receipt

9 X buys goods on credit from Y.

What is the name of the document used by X to settle the liability to Y?

A. cheque
B. credit note
C. receipt
D. statement of account

10 Which account usually has a debit balance?

A. Capital account
B. Purchases account
C. Purchases returns account
D. Sales account

11 Which of the following accounts normally has a credit balance?

A. Capital account
B. Motor vehicles account
C. Purchases account
D. Returns inwards account

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UFIII Accounting 1st Term Examination, 2022-2023
12 Why does a business prepare a trial balance?

A. To calculate the profit and loss

B. To show the financial position
C. To check the arithmetical accuracy of the ledger
D. To check the cash and bank balance

13 Which account could have a credit balance?

A. Bank
B. Carriage inwards
C. Carriage outwards
D. Cash

14 Which account will have a credit balance?

A. Carriage inwards
B. Carriage outwards
C. Discount allowed
D. Discount received

15 At the end of his first year a trader provides the following information.

$
sales 90 000
purchases 60 000
closing inventory 10 000
carriage inwards 5 000
carriage outwards 8 000

What is the gross profit?

A. $ 27 000
B. $ 32 000
C. $ 35 000
D. $ 40 000

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UFIII Accounting 1st Term Examination, 2022-2023
 Section B
1 Franco is in business as a sole trader. The following balances were extracted from his
books on 31 January 2021.

$
Land and buildings 150 000
Fixtures and fittings 30 000
Computer equipment 70 000
Bank loan 100 000
Bank 17 430 Dr
Trade receivables 45 000
Trade payables 37 650
Revenue 362 500
Purchases 172 400
Returns inwards 7 200
Returns outwards 8 800
Inventory at 1 February 2020 17 970
Distribution expenses 16 300
Insurance 5 900
Light and heat 7 850
Wages and salaries 69 500
Marketing expenses 31 000
General expenses 9 200
Commission received 11 400
Drawings 20 000
Capital 149 400

Inventory at the close of business was valued at $15 600.

(a) Prepare the income statement for the year ended 31 January 2021. [16]
(b) Prepare the statement of financial position at 31 January 2021. [14]

[Total: 30]

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UFIII Accounting 1st Term Examination, 2022-2023
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UFIII Accounting 1st Term Examination, 2022-2023
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UFIII Accounting 1st Term Examination, 2022-2023
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UFIII Accounting 1st Term Examination, 2022-2023
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--

2
a) State the formula for calculating gross profit.

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b) State the formula for calculating cost of sales.

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c) List four business expenses.
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d) State the formula for calculating profit for the year.

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e) List four items of information shown on an invoice.

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f) Karnail sells goods on credit to Harbhajan and issues an invoice.
Name the account to be debited and the account to be credited in Karnail’s books.

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g) State two reasons why a supplier may send a credit note to a customer.

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Page 9 of 13
UFIII Accounting 1st Term Examination, 2022-2023
 [Total: 10]

Page 10 of 13
UFIII Accounting 1st Term Examination, 2022-2023
3

Date Source document Effect on owner’s capital

August 2

August 5

August 7

August 9
[6]

[Total: 10]

Page 11 of 13
UFIII Accounting 1st Term Examination, 2022-2023
4

a. State in which ledger each of the following accounts would appear. 6

i. rent account ________________________

ii. AB Finance Co. loan account ________________________

iii. XY Store account (a supplier) ________________________

iv. capital account ________________________

v. sales returns account ________________________

vi. Gee Tee Traders account (a customer) ________________________

b Abdul is a wholesaler and he trades with Red who is a retailer. They exchanged the
following documents during the month:

cheque, credit note, debit note, invoice, statement of account and receipt.

Complete the table below to show the order in which the documents are likely to be issued
and name the person issuing each document. 6

Documents Name of person issuing the

document
i.

ii.

iii.

iv.

v.

vi.

Page 12 of 13
UFIII Accounting 1st Term Examination, 2022-2023
c) A trade provides the following information about his stock at 30 November
2008.

Stock code Number of Cost per unit Selling price per unit
number units in stock $ $
BD20 300 1.50 2.30
BD23 119 0.95 0.80
BD29 410 1.78 1.85

The trader had to pay carriage inwards on Stock Code Number BD20 at the rate of $5 per 100
units (not included in the cost per unit shown above).

Calculate the total value of inventory which should appear in the trader’s statement of financial
position on 30 November 2008. Show your calculation.

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[Total: 15]

Page 13 of 13
UFIII Accounting 1st Term Examination, 2022-2023