Grade 12 Principles of Accounts 2015 Quiz

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Created on August 04, 2020

G12 Principles of Accounts 2015

1 / 40

An alternative name for a Sales Journal is ....

Sales Invoice Book.

Sales Day Book.

Daily Sales Book.

Sales Ledger Book.

2 / 40

The following information is taken from a sole trader’s accounts
K
Opening Capital 1 500
Closing Capital 1 150
Drawings 200
What is the trader’s profit/loss?

Net profit of K250

Net loss of K350

Net loss of K150

Net profit of K150

3 / 40

Which concept emphasises on the adoption and use of same accounting policies
from year to year?

Prudence Concept

Consistency Concept

Accruals Concept.

Going concern Concept

4 / 40

Machinery, typewriter and cash owned by a business are collectively called ....

Fixed assets.

Assets.

Long Term Liabilities.

Current Liabilities.

5 / 40

A Cash Transaction means that ....

cash is paid when goods are bought.

cash is received when goods are sold.

cash or cheque is paid or received when goods are bought or sold.

cheque is paid or received when goods are bought or sold.

6 / 40

If Mututwa buys goods for resale from Mabote on credit, the correct double entry in
Mututwa’s ledger would be ....

debit Purchases Account and credit Mututwa’s Account.

credit Purchases Account and debit Mututwa’s Account.

debit Purchases Account and credit Mabote’s Account.

credit Purchases Account and debit Mabote’s Account.

7 / 40

In business books, the ledger account of Kasamu, a customer, shows a debit balance
of K4 500. What does this mean?

Kasamu is a bad debtor

Kasamu owes the business K4 500.

The business has paid Kasamu K4 500.

The business owes Kasamu K4 500.

8 / 40

Which of the following is the most appropriate title?

Trial balance for the year ended 31 December 2010.

Trial balance for the month ended 31 December 2010.

Trial balance ending the month of 31 December 2010.

Trial balance as at 31 December 2010.

9 / 40

If 5 tables have been sold at K120 each with an agreed trade discount of 5% and a
cash discount of 2%, what is the total amount payable if VAT of 20% is included?

K720

K558.60

K666

K600

10 / 40

What is the best way of ascertaining closing stock of a business?

Opening stock + purchases – cost of stock sold.

) Do the physical stock taking.

Opening stock + purchases

Subtract total purchases from total sales for the year.

11 / 40

A motor van costing K100 000 is expected to have a working life of five years and a
scrap value of K10 000. Using the straight line method of depreciation, the annual
charge of depreciation will be ....

K20 000.

K10 000.

K18 000.

K22 000.

12 / 40

Ben and Bill are in partnership sharing profits and losses in the ratio 2:3. Bill receives
a salary of K12 000 per year. The firm’s net profit is K52 000. What are the amounts
to be credited to the partner’s current accounts?

Ben K16 000 : Bill K24 000.

Ben K26 000 : Bill K26 000.

Ben K20 800 : Bill K31 200.

Ben K16 000 : Bill K36 000.

13 / 40

P.K Mandona was debited for the goods sold to P.K Mandola. Which error was
commited?

Error of Origin

Error of Compensation

Error of Commission

Error of Principle

14 / 40

A business with two departments had:
Sales: Hardware K20 000 and Electrical K10 000.
Expenses: K6 000.
How much expenses would you charge to Hardware Department, if expenses are
charged on the basis of sales?

K6 000

K4 000

K10 000

K2 000

15 / 40

The following information is available for Kateule Enterprises:
Bank balance shown in the bank statement, K650;
Amounts paid in but not yet credited, K150;
Credit transfer received by the bank but not yet entered in the cash book, K100;
The cash book balance should be ....

K750.

K450.

K850.

K700.

16 / 40

On which side of the Control Account should dishonoured cheques appear?

Debit side of the Debtors’ Ledger Control Account.

Debit side of the Creditors’ Ledger Control Account.

Credit side of the Debtors’ Ledger Control Account.

Credit side of the Creditors’ Ledger Control Account.

17 / 40

Subscriptions in advance at the end of the year should be ....

credited to the Income and Expenditure Account.

debited to the Income and Expenditure Account.

credited to the Receipts and Payments Account.

included as a Current Asset in the Balance Sheet.

18 / 40

Owner’s equity refers to ....

the equality of owners.

net profit or net loss.

owner’s capital.

owner’s assets.

19 / 40

Which of the following is not a Revenue Account?

Wages Account

Commission Received Account

Sales Account

Rent Received Account

20 / 40

The books of a business show the following:
K
Sales 90 000
Cost of Sales 50 000
Expenses 10 000
What is the Net Profit as a Percentage of Sales?

20.0%

33.3%

44.4%

66.6%

21 / 40

The Balance Sheet may be defined as a list of ....

assets, liabilities and capital of a business at any given time.

purchased assets and liabilities of a business at any given time.

liabilities and capital of a business at any given time.

22 / 40

The Double Entry for Gross Loss is ....

debit Trading Account and credit Profit and Loss Account.

debit Capital Account and credit Trading Account.

debit Profit and Loss Account and credit Trading Account.

debit Trading Account and credit Capital Account.

23 / 40

If Opening Stock is K6 000; closing stock K10 000; Sales K40 000; Gross Profit
K8 000, then purchases is ....

K48 000.

K56 000.

K36 000.

K45 000.

24 / 40

Tabo PLC has advertised its Ordinary Shares of 10 000 at K650 each.
What document does the company use for this purpose?

The Memorandum of Association

The Certificate of Incorporation

The Articles of Associations

25 / 40

Tabo PLC has advertised its Ordinary Shares of 10 000 at K650 each.
What document does the company use for this purpose?

The Memorandum of Association

The Certificate of Incorporation

The Prospectus

26 / 40

Which book of prime entry is part of the double entry system?

Cash Book

Returns Outwards Book

Purchases Day Book

Sales Day Book

27 / 40

Which of the following errors would be detected by the Trial Balance?

Error of Original Entry.

Error of Principle.

Error of Complete Reversal.

A Single Entry of a transaction.

28 / 40

Cost of Goods Sold is equal to ....

Sales less Purchases.

Purchases less Closing Stock, less Purchases Returns.

Purchases less Returns Outwards.

Opening stock plus Purchases, less Returns Outwards, less Closing stock.

29 / 40

The cost of goods sold for the business was K80 000 and the gross loss was
K10 000. What was the figure for sales?

K90 000

K70 000

K60 000

K75 000

30 / 40

What is the best method of calculating depreciation for loose tools and livestock at a
farm?

Diminishing Balance Method

Revaluation Method

Straight Line Method

Reducing Balance Method

31 / 40

What is the effect on the assets and liabilities when a firm pays its creditors by
cheque?

Reduce Bank; Increase Creditors.

Increase Bank; Reduce Creditors.

Reduce Bank; Reduce Creditors.

Increase Bank; Increase Creditors.

32 / 40

A wholesaler sold 100 cases Chicco biscuits at K20 a case; 50 cases Vanilla biscuits
at K40 a case, both subject to 20% trade discount. What was the invoice price?

K4 000

K4 800

K800

33 / 40

Carriage inwards usually increases the  of the business.

profitability

cost of goods

gross profit

net profit

34 / 40

An example of Real Account is ....

Drawings Account.

Makaya Account.

Cash Account.

Electricity Account.

35 / 40

The Mark-Up is the gross profit’s relationship with the

Capital.

Turnover.

Cost of goods.

Average stock.

36 / 40

In the books of Tambulukani the Discount Received of K400 was posted to the
Discount Allowed account. What would be the entry in the Suspense Account to
correct the error?

Credit suspense with K400

Debit suspense with K400

Credit suspense with K800

Debit suspense with K800

37 / 40

The Mark-Up is the gross profit’s relationship with the

Capital.

Turnover.

Cost of goods.

Average stock.

38 / 40

A Sole Proprietorship business is best described as ....

a manufacturing business.

a business that buys and sells goods at a profit.

a one man business.

a non-profit making organisation.

39 / 40

The total amount of Credit Purchases is recorded on the ....

debit side of the Creditors Ledger Control Account.

credit side of the Creditors Ledger Control Account.

debit side of the Debtors Ledger Control Account.

credit side of the Debtors Ledger Control Account.

40 / 40

in a Limited Company which of the following are shown in the Appropriation
Account?
(i) Directors remuneration.
(ii) Proposed dividends
(iii) Debenture interest
(iv) Transfer to reserves

(i) and (ii)

(iii) and (iv)

(ii) and (iv)

(i) and (iii)

Your score is

The average score is 43%