Sample Paper (8 Questions)

Question 1

Which one of the following correctly identifies the accounting equation?

Question 2

Which two of the following would appear on the credit side of a receivables ledger control account?

Question 3

Classify each of the following items as either capital income, revenue income, capital expenditure or revenue expenditure by matching the transaction to the classification.

Transaction Classification
Receipt of a loan to be used to expand the business <-->
Revenue income
Payment for a 3-month marketing campaign <-->
Capital income
Interest received on the bank deposit account <-->
Revenue expenditure
Purchase of a computer for use in the admin office <-->
Capital expenditure

Question 4

The following two errors have been identified, fill in the blanks to identify each type of error.

(a) A bank payment for vehicle fuel has been entered in the vehicles at cost account in error.

This is an error of

(b) Bank interest received amounting to $32 has been entered in the accounting records as $23 in error.

This is an error of

Question 5

Bobby purchased a machine for use in his business on 1 April at a cost of $18,600. The machine has a residual value of $1,100 and an expected life of 5 years.

What is the annual depreciation charge on this machine using the straight-line method of depreciation?

$

Question 6

Classify each of the following items as either a non-current asset, a current asset, a current liability, or a non-current liability using the drag and drop options provided below.

Classification

Bank deposit account

Prepayment of expenses

Bank loan

Trade payables


Non-current asset
Current asset
Current liability
Non-current liability

Question 7

The following information was extracted from the books of Peter, a sole trader, at the close of business on 30 September 2024.

Debit ($) Credit ($)

Inventory 1 October 2023

1,380

Purchases and revenue

6,580

10,670

Rent, rates and insurance

330

Sales and purchases returns

410

280

Carriage inwards

80

Carriage outwards

180

Notes

Inventory 30 September 2024 - $1,420

Calculate and select the correct answer from the drop down list

Net revenue $

Cost of sales $

Gross profit $

Question 8

You have been provided with the following list of balances by Mary Haston.

She trades as a sole trader under the name of MH Company and has a financial year end date of 31st December 2026.

Task: Prepare a trial balance as at 31st December 2026 by inserting each balance in the table

below in either the debit or credit column and total the trial balance. The trial balance should balance.

Please enter the value only and do not use any symbols, commas or full stops in your answer.

Account name

Account balance

Debit

Credit

$ 

$ 

$ 

Opening equity (as at 01.01.2026) 

5000 

Drawings 

12250 

Plant and equipment  

29380 

Acc. Dep. - Plant and equipment (31.12.2026) 

11750 

Trade receivables  

8510 

Trade payables 

6130 

Bank  

4230 

Depreciation charge – Plant and equipment 

1750 

Sales revenue 

68750 

Office expenses 

5110 

Wages and salaries 

16630 

Discounts received 

180 

Purchases 

28650 

Loan interest 

300 

Bank charges 

150 

Loan (repayable 31 December 2035) 

15000 

Returns outwards 

790 

Returns inwards 

640 

Totals