Sample Paper (15 Questions)

Question 1/30

( 2 )

Sophia’s bank account on 1st June showed a positive balance of $230. She has an overdraft facility on the account with a limit of $1000.

On 2nd June, she paid expenses amounting to $620 and deposited $560 in cash into the account.

Which one of the following correctly identifies the balance on Sophia’s bank account at the close of business on 2nd June?

Question 2/30

( 2 )

The following general ledger extract for an income account has been provided for the month of October.

What would be the balance carried down on the account as at 31 October?

Question 3/30

( 2 )

A sole trader introduces a large sum of money into the business bank account to fund a business expansion. This is to be treated as capital introduced.

Which one of the following identifies the dual effect of the above transaction?

Question 4/30

( 4 )

Classify each of the following transactions as either capital income, revenue income, capital expenditure or revenue expenditure by using the drop-down options provided below. 

TransactionClassification
Purchase of a van for use in the business

Interest received on a bank deposit account

Repairs to office roof caused by a storm (not covered by insurance)

An injection of funds into the business for long term use via a bank loan

Question 5/30

( 4 )

Identify the business document being described in each of the following statements using the drop-down options provided below. 

Statement Business document
A document which accompanies items being sent back to a supplier which have been found to be defective. 

A document which records all the financial transactions between two businesses within a specific time period.

A document issued by a supplier to a customer identifying goods purchased in a single transaction requesting payment.

A document issued by a customer to a supplier when making payment to confirm which invoices are being paid.

Question 6/30

( 4 )

The following transactions have passed through the account of a credit supplier:

What amount would appear on a Statement of Account from this supplier if it was produced at the end of March, assuming there is no opening balance?

Enter your answer in whole $ only and do not use any commas (,) or full stops(.).

$

Question 7/30

( 4 )

Henry operates a business as a sole trader. 

He has withdrawn some money from the business bank account to use to purchase some new furniture for use in the business. The bookkeeper has made the following entries in the general ledger:

Debit: Drawings 
Credit: Bank

Answer the following questions using the drop-down options provided below.

Question Answer
Which accounting concept has the bookkeeper applied when recording the transaction?

Which element(s) of the transaction have been recorded incorrectly?

How should the bookkeeper correct the error?

If the error is not fixed, what will be the impact on the balance on the furniture account?

Question 8/30

( 4 )

The following four errors have been identified.

Use the drop-down options provided below to identify the type of error.

ErrorType of error
Goods taken for personal use by the owner were debited to the cash account in error. The opposite entry was correct.

An invoice for vehicle repairs amounting to $780 has been posted to property maintenance in error.

An invoice for software subscriptions has not been received from the supplier and so has not been entered in the accounting records.

Bank interest received has been entered in the accounting records as a debit to bank interest received and a credit to the bank account.

Question 9/30

( 4 )

Identify the accounting concept being applied in each situation below using the drop-down options provided. 

Situation Accounting concept
A business maintains the same method of inventory valuation

It is assumed the business will continue to trade for the foreseeable future

A business should not overstate profits but must account for future losses

A business’s transactions must be kept separate from those of its owners

Question 10/30

( 4 )

A company’s petty cash book is operated using the imprest system. The imprest amount is $100. At the end of a week, the petty cash remaining was made up as follows:

Assuming there were no errors or discrepancies, what is the amount which should be withdrawn from the bank account to restore the petty cash balance?

Enter your answer to 2 decimal places.

$

Question 11/30

( 4 )

Classify each of the following items as an asset or a liability using the drop-down options provided below.

ItemAsset or Liability
Equipment

Money owed to trade payables

Bank overdraft

Inventory

Question 12/30

( 4 )

Identify whether each of the following accounts would appear on the debit or credit side of a trial balance using the drop-down options provided below.

AccountsDebit or Credit
Drawings 

Motor vehicles

Trade payables

Bank (overdrawn balance)

Question 13/30

( 2 )

Zara works as a production worker in a factory. For each unit that Zara produces, she is paid $1.50.  If she produces more than 180 in a week, she is also paid a bonus of $0.30 per unit for each unit above 180 units.

Maggie produced 215 units in a week. What is her gross pay for the period?

Question 14/30

( 2 )

Which one of the following statements regarding accounting for payroll is true? 

Question 15/30

( 4 )

Identify whether each of the following statements are true or false using the drop-down options provided below.

Statements True or False
When accounting for payroll, gross wages appear as a credit entry in the general ledger as a business expense.

Deductions from employees for subscriptions to a corporate gym membership scheme are classed as voluntary deductions.

An employer does not need permission from an employee to deduct voluntary deductions from pay.

Deductions from employees for tax are classed as statutory deductions.