DIRECTORATE FOR QUALITY AND STANDARDS IN EDUCATION

Department of Curriculum Management

Educational Assessment Unit

Annual Examinations 2017

YEAR 9 ACCOUNTING TIME: 2 hrs

Name: ______________________________________ Class: _____________

FOR OFFICIAL USE ONLY

MARKS

SECTION A B C D1 D2 D3 TOTAL

MARKS 10 10 10 25 25 20 100

STUDENT’S
MARK

INSTRUCTIONS TO STUDENTS
 ANSWER ALL QUESTIONS.
 THE ORDERLY PRESENTATION OF YOUR WORK IS
IMPORTANT.
 ILLEGIBLE WORK WOULD BE WRITTEN OFF.
 SECTIONS A, B AND C ARE TO BE ANSWERED ON THE PAPER.
SECTION D IS TO BE ANSWERED ON THE FOOLSCAPS
PROVIDED.

Accounting – Year 9 – 2017 Page 1 of 7

  YOU HAVE TO MAKE THE NECESSARY RULINGS.
SECTION A [10 marks]

Tick () the correct answer in the space provided. Each question carries 1 mark.

1. Which of the following should NOT be called sales?

(a) Furniture and fittings sold.
(b) Goods sold on credit.
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(c) Goods sold for cash.
(d) Sale of items previously included in ‘purchases’.

2. If the total assets of a business are €100,000 and total liabilities are €70,000. Then
the capital of the business should be:
(a) €170,000
(b) €80,000
(c) €30,000
(d) €100,000

3. Drawings refer to:

(a) the process of recording and analysing financial information.
(b) any money or goods, taken out from the business by the owner.
(c) goods returned to suppliers.
(d) goods returned by the customers to a business.

4. Suppliers’ personal accounts are found in the:

(a) Private ledger.
(b) General ledger.
(c) Sales ledger.
(d) Purchases ledger.

5. In the sales daybook, we write:

(a) credit sales.
(b) cash sales.
(c) total sales.
(d) the sale of assets.

6. Gross Profit is calculated by:

(a) Net sales added to cost of sales
(b) Net sales less cost of sales.
(c) Cost of sales less expenses.
(d) Net sales less expenses.

Accounting – Year 9 – 2017 Page 2 of 7

 7. Which of the following should always have a debit balance?
(a) Sales Account.
(b) Returns Out Account.
(c) Cash Account.
(d) Bank Account.

8. A cash discount is best described as a reduction in the sum to be paid if:

(a) Payment is made within a previously agreed time.
(b) Payment is made by cash, not cheque.
(c) Payment is made either by cheque or cash.
(d) Purchases are made for cash, not on credit.

9. A petty cash book is prepared to record

(a) all bank transactions.
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(b) all small cash transactions. .

(c) all returns of goods bought on credit.

(d) all credit sales.

10. Which of the following is NOT an example of capital expenditure?

(a) Buying a cash register.
(b) Installing a burglar alarm system in the business.
(c) Roof repairs.
(d) Building extension to the business.

SECTION B [10 marks]

Answer the following questions in the spaces provided.

1. What is the difference between

a. real accounts and nominal accounts? (2 marks)

b. a trial balance and a statement of financial position? (2 marks)

Accounting – Year 9 – 2017 Page 3 of 7

 2. Complete the Accounting Equation:
Assets = + (1 mark)

3. Give one example for each of the following. (2 marks)

Non Current Current Assets Non Current Current

Assets Liabilities Liabilities

4. Show the effect of the following transactions on assets, liabilities or capital. One of
them is already done for you. (2 marks)

Assets Liabilities Capital

Bought furniture on credit from Increase (+) Increase (+)
Furniture Ltd.
a. The owner invested cash in
business.
b. Paid a trade payable by cheque.

5. Explain the accrual concept (matching principle). (1 mark)

SECTION C [10 marks]

Complete the following table. One of them is already done for you. Each question
carries 1 mark.

Account to Account to be
be debited credited
0. Started business with €10,000 deposited in Bank a/c Capital a/c
bank.

1. Bought 3 computers on credit from C. Apap.

2. Borrowed €5,000 from A. Gauci in cash.

3. Paid wages by cheque.

4. Bought goods on credit from A. Mallia.

5. Sold goods on credit to B. Borg.

Accounting – Year 9 – 2017 Page 4 of 7

 Account to Account to be
be debited credited
6. One of the computers bought was returned to
C. Apap.
7. Returned unsuitable goods to A. Mallia.

8. Commission was received in cash by the firm.

9. The owner withdrew money from the business

bank for personal use.
10. B. Borg returned some of the goods bought, to
the business.

SECTION D – Answer all questions in this section. [70 marks]

Question 1

On 1st February 2017, Claire Attard started in business. She deposited €15,000 in a bank
account and started trading. The following transactions were recorded in the first week of
operation.

2017
February 1  Purchased a small van for €6,000 paying by cheque.
February 2  Cash sales amounted to €2,800.
 Bought €100 of stationery and paid in cash.
February 3  Paid the following accounts by cheque in each case deducting 5%
cash discount: T. Zammit €340; G. Cauchi €680.
 Deposited €1,200 cash into the business bank account.
February 4  Bought office equipment paying in cash €1,000.
 Cash sales amounted to €900.
 The following paid their accounts by cheque in each case
deducting 3% cash discount: T. Vella €400; I. Cauchi €1,100.
February 5  The owner withdrew €400 from the business bank account for
personal use.
February 6  Received a cheque of €260 from A. Calleja in settlement of his
account of €280.

Required:
Draw up a three column cash book to record the above transactions and close the cash
book, balancing where necessary, at 6 February 2017. (25 marks)

Accounting – Year 9 – 2017 Page 5 of 7

 Question 2

The following trial balance was extracted from the books of M. Zammit on 30 April,
2017.

Debit Credit
€ €
Sales 108,000
Purchases 82,190
Carriage inwards 555
Carriage outwards 490
Wages 9,255
Insurance 542
Returns inwards 180
Returns outwards 212
Drawings 4,600
Premises 34,000
Delivery van 8,600
Trade receivables 4,850
Trade payables 3,433
Bank 3,250
Cash in hand 123
Maintenance 500
Inventory as at 1 May 2016 7,950
Rent 1,200
Rates 860
Capital as at 1 May 2016 47,500
159,145 159,145

Inventory at 30 April, 2017 was valued at €8,990.

Required:
a. Prepare the Statement for Profit or Loss for the year ended 30 April, 2017.
(18 marks)
b. From the above information, find the total of the below items as at 30 April,
2017.
i. Non Current Assets. (2 marks)
ii. Current Assets. (4 marks)
iii. Current Liabilities. (1 mark)
[Total for Question 2: 25 marks]

Accounting – Year 9 – 2017 Page 6 of 7

 Question 3

The following is a summary of the petty cash transactions of Champion Ltd. for June
2016.

2016
June 1 Received from petty cashier €400 as petty cash float

€
June 2 Gozo ferry fares 20
June 4 Petrol for delivery van 9
June 8 Tippex 3
June 10 Cleaning materials 15
June 11 Bus fares 3
June 15 Photocopier paper 8
June 18 Repair of delivery van 25
June 21 Mop and broom 17
June 22 Bus fares 4
June 25 Detergents 23
June 28 Pens 5
June 30 Tyre puncture repair 5

(a) Rule up a petty cashbook with analysis columns for expenditure on cleaning,
travelling and motor expenses and stationery.
(b) Enter the month’s transactions.
(c) Enter the receipt of the amount necessary to restore the imprest and carry down the
balance for the commencement of the following month.
(20 marks)

End of Paper

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