term test mr college - sandun

7/30/2019 Term Test MR College - Sandun

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Paper I

1. Trainee Accountant has made the following statements:

I. The profit & loss account reports the financial performance of a

business for a given period.

II. The balance sheet always indicates that a business is well

established and is a going concern.

III. Providing financial information for economic decisions ofvarious users is the objective of financial accounting.

Out of these, correct statements are:

a. (i) & (ii) only.

b. (i) & (iii) only.

c. (ii) & (iii) only.

d. All the three (i) (ii) and (iii).

2. A firm bought a machine for Rs 50000. It is expected to be used for 5 years,and residual value is Rs 5000. Depreciation rate is 20%. Using reducing

balance method, what will be the depreciation for year 2?

a. Rs 7000

b. Rs 8000

c. Rs 7500

d. Rs 6750

Sandun LiyanapathiraneB.B. Mgt (Accountancy) Sp. CC (TMI-USA).

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Mahinda Rajapakshe College -Homagama

Second Term Test March 2013

Index Number

Accounting Time: 03Hours

Grade 12

Answer All Questions

dex Number


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3. A machine costs Rs 120000 and has accumulated depreciation of Rs 72400.

The machine is sold for Rs 46500. What is the loss or profit on disposal?

a. Loss of Rs 1100

b. Loss of Rs 73500

c. Profit of Rs 1100

d. Profit of Rs 73500

4. A business has a provision for doubtful debts of Rs 300 and debtors of Rs

3600. The provision is to be made equal to 5% of debtors. What is the entry in

the profit and loss Account?

a. Credit Rs 120

b. Credit Rs 180

c. Debit Rs 120

d. Debit Rs 180

5. Which of the following transactions would affect the capital of the business?

a. Goods for resale purchased on credit

b. A receipt from a debtor of Rs 2000

c. A sale of goods, which cost Rs1500 on credit for Rs 2000

d. A purchase of a machine for Rs 3500

6. Bank Reconciliation statement is prepared by

a. Bankers

b. Accountant of the business

c. Auditors

d. Owners of the business

7. Which one of the statement is correct about Reconciliation Statement?

a. Part of the double entry accounting records

b. Not part of the double entry accounting records

c. Prepared by the firm and then sent to its bank

d. Posted to the nominal (general) ledger

8. Long term liability of a firm can be classified as:

a. An amount payable by the firm, within six months of the date of the

Balance Sheet

b. An amount payable by the firm, within nine months of the date of the

Balance Sheet

c. An amount payable by the firm, after more than one year from the

Balance Sheet date.

d. None of the above


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9. The following information relates to a retail business for the year ended 31st

December 2012

Sales of the year Rs 240000

Purchase for the year Rs 186000

Stock 1st January 2012 Rs 10300

If mark-up 33.3% what was the closing stock at 31st December 2012?

a. Rs 4300

b. Rs 26300

c. Rs 36300

d. Rs 16300

Explain the following terms, with examples

10.a. Substance Over Form

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b. Going concern

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c. Convention of conservatism

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Part II

1. Bindu Traders had fixed assets of Rs 40000, total assets of 82000 and total

Liabilities of Rs 28000 as at 1st Jan 2012, Bindu Traders maintains a gross

profit margin of 20% on sales. Bindu Traders has no credit Sales.

Bindu Traders has recorded the following transactions for the month of Jan

2012:

i. Paid for the new computer 2000ii. Sales 10000

iii. Purchases on credit 6000

iv. Cash Purchases 2000

v. Paid to creditors 8900

vi. Rent Paid 1100

vii. Goods lost 200

viii. Sales proceeds of old computer 600

ix. Repayment of loan 500

x. Drawings 300

The old computer was purchased at Rs 1500 five years ago. All the fixedassets are depreciated at 25% per annum on the straight-line basis.

You are required to:

Present the impact of each of the above transactions in the following format of the

accounting equation

Revenue - Expenses + Capital + Liabilities = Assets

Calculate the owners equity at the end of January 2012.

(20Marks)

2. The following information for the month of Jan 2013 relates to Mervin

Traders.

Debtors Credit

Sales Rs

Cash

Received

Rs

Discount

allowed

Rs

Sales

returns

Rs

Bad debts

Rs

Ranil 78000 50000 1000 17000 -

Mahinda 65000 60000 - - 5000Sarath 16000 3000 500 3500 -

159000 113000 1500 20500 5000

Required to prepare:

i. Sales journal and Sales return Journal

ii. Sales account and Debtors control account in the general ledger.

(20 Marks)


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3. From the following details, prepare a bank Reconciliation statement on 30th

June, 2012.

Bank Statement

Date Particulars Withdrawals

Rs

Deposits Dr. or

Cr

Balanc

eRs

2012

June 01 By balance b/d Cr 11500

June 04 By Bindus Cheques 750 Cr 12250

June 07 By Sindus Cheques 1000 Cr 13250

June 10 To Landu 850 Cr 12400

June 15 To cash 2400 Cr 10000

June 20 By Randu (Cash) 500 Cr 10500

June 23 To Kandu 700 Cr 9800

June 26 To insurance Premium 500 Cr 9300June 30 To Bank Charges 50 Cr 9250

June 30 By interest 110 Cr 9360

June 30 By interest on investments 640 10000

Cash Book (Bank Column only)

Date Particulars Amount

Rs

Date Particulars Amount

Rs

2012 2012

June 01 To Balance b/d 11500 June 10 By kaan 900June 01 To Bindu 750 June 12 By Landu 850

June 05 To Sindu 1000 June 15 By Cash 2400

June 18 To Saan 600 June 18 By Kandu 700

June 26 To Daan 400 June 25 By laan 440

June 28 By Maan 660

June 30 Balance c/d 8300

14250 14250

July 01 To Balance b/d 8300

(20 Marks)

4. Following trial balance after the adjustment is, as extracted from the ledger of

Lanka Traders business. As at 31st December 2012

Inventory 01.01.2012 10000

Purchases and sales 145000 176000

Debtors 20000

Creditors 17000

Cash Balance 10000

Bank Balance 5000Rates and Insurance 2000

Electricity 1500


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Bank Chargers 200

Land and Buildings at cost 200000

Furniture at cost 60000

Provision for Depreciation 01.01.2012

Lands and Buildings 20000

Furniture 15000

Drawings 1000

Salaries 1500

Wages 1700

Capital 229900

457900 457900

Additional information:

1. Stock as at 31 December 2012 was valued at Rs. 23000

2. Accrued Rates Rs 500

3. Electricity paid in advance Rs 400.4. Fixed assets should be depreciated 5% on cost.

5. Further Rs 500 should be written off as bad debts. Provision for doubtful debts

should be adjusted to 5% of the remaining debtors.

Required:

1. Income statement for the year ended 31st Dec 2012.

2. Balance Sheet as at 31st Dec 2012.

(20 Marks)


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