Zimbabwe School Examinations Council: Accounts 7112/1
Zimbabwe School Examinations Council: Accounts 7112/1
Zimbabwe School Examinations Council: Accounts 7112/1
ACCOUNTS 7112/1
PAPER 1
1. A. Mpala and W. Nkomo are in partnership and their agreement has the following:
- Profits and losses are to be shared between Mpala and Nkomo in the ration 3:2
respectively.
- Interest on capital is to be allowed at 10% per annum.
- Mpala is to receive an annual salary of $36 000.
- Interest on drawings is to be charged at 5% per annum.
- Capital accounts are to remain fixed.
Debit Credit
$ $
(i) Interest on loan at the rate of 10% per annum is owing on 31 December 2005.
(ii) Furniture is to be depreciated by 15% per annum on the reducing balance method.
(a) the Partnership Profit and Loss Appropriation Account for the year ended 31
December 2005. [11]
2. For each of the following transactions given below, name the subsidiary book
used, the account debited, the account credited and the source document.
Your answer should be in the form of a table as given below. An example has
been done for you.
Example: bought a motor van for $200 on credit from J.J Motors
(i)
(ii)
(iii)
(ii) Gumai Transport Operators charged the business $600 for carriage on
purchases.
(ix) Received spoiled goods from B. Banda $2 000 in respect of goods sold to
him on (v) above. [18]
3. T. Tsuro prepared the following Trial Balance from her ledger balances on 30
June 2004. Unfortunately, the totals disagreed and she had to open a Suspense
Account for the difference.
Debit Credit
$ $
Subsequently, investigations were carried out and the following errors were
discovered.
(i) A sale to M. Muleya of $394 was correctly entered in the Sales Day Book
but was wrongly posted to M. Muleya account as $349.
(ii) Tsuro’s private expenses $600 had been debited to general expenses
account.
(iii) A standing order for $300 for payment of electricity bill had been posted
to the wrong side of the bank account but correctly posted to the general
exspenses account.
(iv) The Purchases Day Book had been undercast by $400.
(v) A Purchases ledger credit balance of $360 for Z. Zano had been omitted
from the trial balance figure.
(b) The Suspense Account starting with the difference from the Trial Balance.
[3]
(c) The Trial Balance as it would appear after the correction of all errors. [6]
4. Write down the word(s) or figure(s) required to complete each of the following
sentences. Do not write the whole sentence.
(a) Carriage inwards is charged to the (i) _____________ Account, and carriage
outwards is debited to the (ii) ______________ Account.
(b) Loans that are going to be repaid in full within the next six months are shown
under (i) ____________ liabilities, and goodwill is classified as (ii)
____________ asset.
(c) Stock of stationery at the close of business is shown in the Stationery Account
as a _____________ balance.
(d) The accounting equation that shows how a business is being financed is stated
as (i) ______________ = (ii) _______________ + liabilities.
(e) The provision for bad debts on 1 January 2004 was $6 500. the sundry debtors
on 31 December 2004 were $150 000. the provision for bad debts was
maintained at 5% of debtors. The provision transferred to the Profit and Loss
Account is (i) ___________ and the net debtors amount to (ii) $ _________.
(f) Given that the total fixed assets are $600 000, current assets $280 000, long-
term liabilities $80 000, and current liabilities $100 000. The working capital
is equal to $ ___________.
(g) The opening stock of a business is valued at $75 000 and its closing stock at
$25 000. the business cost of sales total $250 000. the rate of stock turnover is
__________ times. [11]
Section B
2005
Mar 3 Sold goods to Mutema for $20 000 less 20% trade discount.
9 Mutema was charged $1 500 interest for late payment.
15 Mutema paid $16 500 by cheque.
18 a credit note for defective goods was issued to Mutema in respect
of one quarter of the goods sold to him on 3 March.
20 Supplied further goods to Mutema valued at $30 000.
22 Mutema paid $11 500 cash in full settlement of the amount owing
on the goods sold to him on 3 March.
25 Mutema received a debit note in respect of an undercharge of $3
000 on the invoice of 20 March.
28 Mutema paid $18 000 by cheque and was allowed a discount of
$800.
You are required to prepare Mutema’s Account and balance it on 31 March 2005.
$
(i) Creditors at 1 November 2004 14 100
(a) Prepare and balance the Purchases Ledger Control Account for the month
of November 2004. [7]
(b) Name the books o original entry from which each of the erntries (i) to (vii)
would be obtained. [6]
7. M. Maushe, a retailer, did not keep his books on the double entry principle but his
valuation of assets and liabilities on the dates shown were as follows:
2004 2004
1 January 31 December
$ $
Motor vehicles, at cost 175 000 175 000
Fixtures, at cost 131 000 131 000
Debtors 82 500 97 600
Creditors 64 000 56 700
Bank overdraft 18 900
Stock 43 840 49 260
Cash at bank - 19 400
Prepaid expenses 9 620 3 170
(b) a statement showing clearly Maushe’s Net Profit or Loss for the year
ended 31 December 2004, taking into account the following additional
information obtained from Maushe on 31 December 2004:
(iii) Maushe had withdrawn $15 750 from the bank for private purposes
during the year.
(iv) During the year Maushe sold his private vehicle for $28 000 and
deposited the amount into the business bank account. [10]