B.K FORM III

YEMEN SECONDARY SCHOOL FORM III STATUS TEST BOOK KEEPING Time 60mins INSTRUCTIONS  

This paper consists five (5) questions Attempt all questions

1. Choose the most correct answer and write its letter le tter in the space provided i. Which of the following is not an asset? (A) Buildings (B) Cash balance (C) Debtors (D) Loan from Harris ii. Which of the following is incorrect?  Assets Liabilities (A) 7,850 1,250 (B) 8,200 2,800 (C) 9,550 1,150 (D) 6,540 1,120

Capital 6,600 5,400 8,200 5,420

iii. Which of the following best describes the meaning of ‘Purchases’? (A) Items bought (B) Goods bought on credit (C) Goods bought for resale (D) Goods paid for iv. The principle that calls every debit to have equal credit in the books: (A) Single entry system (B) Three entry system (C) Double entry system (D) Book- Keeping v.

Posting the transactions in book-keeping means (A) Making the first entry of a double entry transaction (B) Entering items in a cash book (C) Making the second entry of a double do uble entry transaction (D) Something other than the above.

i

ii

Iii

iv

V

‘A’ which matches with the explanation in group 2. Choose the correct term from, group ‘A’ which ‘B’ and ‘B’ and then write it against the number of the relevant explanation. Use letters only. GROUP A GROUP B 1

A. B. C. D. E. F. G. H. I. J. K.

Book-keeping Working capital Fixed assets Carriage outwards Returns outwards Carriage inwards Trial balance Bad-debts Invoice Ledger Double entry principle L. Real Accounts

A. __________ it keeps all Accounts. B. _________ are debtors who fail to pay their debts. C. _________ a document prepared and issued to a customer whenever goods are sold on credit. D. ________ is a property of a durable nature likely to be retained for a long period such as buildings. E. ________ the excess of current assets over current liabilities.

3. Complete the following table SN Transaction (i) (ii) (iii) (iv) (v) (vi) (vii) (viii) (ix) (x)

Account to be debited

 Account to be credited

Started with capital in cash Bought furniture for cash Purchased goods from Magele Paid rent by cash Sold goods to Mong’oo Paid salary in cash Bought Buildings on credit from NHC Purchased goods for cash Paid cash to Mavunde Withdrew cash for personal use

4. Magdalena commenced business on 1st  January 2018 with capital in cash 20,000. She made the following transactions during the month. Jan. 1 Bought furniture ………………………………… ………………………………….………………………………………….… 7,500 3 Bought machinery …..…………………………………………………………....…………… …..…………………………………………………………....…………… 2,500 4 Sold goods …...……………………...…………… …...……………………...……………………………………… ……………………………..……………… …..……………… 15,000 5 Paid water bills …….…………………………………………………….…………………….. …….…………………………………………………….…………………….. 2,000 7 Paid advertising expenses ………………………………………………….……………… 3,000 7 Paid salaries ……………….……………………………………………..……………………. 10,000 8 Sold goods ………………………………………………………..…………… ………………………………………………………..………………………………. …………………. 5,000 12 Cash sales ……………………………………………………...………… ……………………………………………………...…………….……………….… ….……………….… 25,000 18 Paid wages ……………………………………………………….……….…………………….… 3,000 20 Paid electricity bills …………………………………………………………… …………………………………………………………………………... ……………... 2,000 22 Cash sales …………………….……………………………………………………………….… 12,500 25 Cash purchases ………………………………… …………………………………………………………..…………… ………………………..……………………... ………... 2,500 29 Bought goods for cash …….………………………………………..……........................… …….………………………………………..……........................… 2,000 Required Record the above transactions in Cash account and balance off respective ledger accounts at the end of the month. 2

5. From the following trial balance of Dihyah prepare Trading and profit and loss account for the year ended 31st  December 2019 and the balance sheet as at that date. Dihyah’s Trial Balance as at 31 December 2019 Dr Cr Sales 97,000 Purchases 42,600 Lighting and heating expenses 1,900 Rent 2,400 Wages 5,200 Commission received 1,300 Discount received 700 Returns inwards 1,800 Returns outwards 600 General expenses 700 Carriage inwards 1,000 Carriage outwards 1,100 Buildings 35,000 Fixtures and fittings 9,400 Debtors 27,000 Creditors 10,800 Bank 1,200 Cash 400 Drawings 9,700 Capital 32,000 st  Stock (at 1  January 2019) 3,000 142,400 142,400 Closing stock was 5,500

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