ROOTS IVY INTERNATIONAL SCHOOL
Cambridge Ordinary Level – FINAL EXAM
*2846520525*
PRINCIPLES OF ACCOUNTS
2 hours
Subject Teacher : Syed Ahmad Hashmi
Additional Sheets are required.
READ THESE INSTRUCTIONS FIRST
Write in dark blue or black pen.
You may use an HB pencil for any diagrams, graphs or rough working.
Do not use staples, paper clips, glue or correction fluid.
.
Answer all questions.
At the end of the examination, fasten all your work securely together.
The number of marks is given in brackets [ ] at the end of each question or part question.
The total number of marks for this paper is 100.
1. Solve in Table: #1 has been solved as an example. (2 Marks Each)
Transaction Effect
(1) Owner pays capital into the bank (EXAMPLE) Increase asset Increase capital
(Bank)
(2) Buy goods by cheque
(3) Buy goods on credit
(4) Sale of goods on credit
(5) Sale of goods for cash (cheque)
(6) Pay creditor
(7) Debtor pays money owing by cheque
(8) Owner takes money out of the business
bank account for own use
(9) Owner pays creditor from private money
outside the firm
2. Solve in Table: #1 has been solved as an example. (2 Marks Each)
Transactions Effect Action
20X8
May 1 Started a domestic Increases asset of bank. Debit bank account.
machines business
putting £25,000 into a Increases capital Credit capital account.
business bank account. of owner.
== 3 Bought equipment on
credit from House
Supplies £12,000.
== 4 Withdrew £150 cash from
the bank and placed it
in the cash box.
‘ Transactions Effect Action
20X8
May 7 Bought a van paying by
cheque, £6,800.
== 10 Sold some equipment that
was not needed at cost of
£1,100 on credit to J Rose.
== 21 Returned some of the
equipment costing £2,300
to House Supplies.
== 28 J Rose pays the firm the
amount owing, £1,100, by
cheque.
== 30 Bought another van
paying by cheque £4,300.
== 31 Paid £9,700 to House
Supplies by cheque.
Record the following transactions for the month of January of a small finishing retailer,
balance off all the accounts, and then extract a trial balance as at 31 January 20X8:
20X8
Jan 1 Started in business with £10,500 cash.
2 Put £9,000 of the cash into a bank account.
3 Bought goods for cash £550.
4 Bought goods on credit from: T Dry £800; F Hood £930; M Smith £160; G Low £510.
5 Bought stationery on credit from Buttons Ltd £89.
6 Sold goods on credit to: R Tong £170; L Fish £240; M Singh £326; A Tom £204.
8 Paid rent by cheque £220.
10 Bought fixtures on credit from Chiefs Ltd £610.
11 Paid salaries in cash £790.
14 Returned goods to: F Hood £30; M Smith £42.
15 Bought van by cheque £6,500.
16 Received loan from B Barclay by cheque £2,000.
18 Goods returned to us by: R Tong £5; M Singh £20.
21 Cash sales £145.
24 Sold goods on credit to: L Fish £130; A Tom £410; R Pleat £158.
26 We paid the following by cheque: F Hood £900; M Smith £118.
29 Received cheques from: R Pleat £158; L Fish £370.
30 Received a further loan from B Barclay by cash £500.
30 Received £614 cash from A Tom.
[66 Marks]
