ACCOUNTING MIDTERM TEST
There are 6 Multiple choices questions and 4 Fil in the blanks questions. It is
better to print it out. Total marks is 40. . Read the questions carefully. Typing
Marks with disqualified you. Only writings on exercise paper/book is accept. Use
pen not pencil.
1 HR AND 30 MINS
6 MCQ – 6X1-6 MARKS
4 Fill in the blanks -34 Marks
7. Kuda Maposa maintains a petty cash book using the imprest system.
REQUIRED
(a) State one advantage of the imprest system of petty cash. [1]
_____________________________________________________________________________
_____________________________________________________________________________
On 1 March 2015 the balance of Kuda Maposa’s petty cash book was $100 which was equal to the
amount of the imprest. Her transactions for the month of March 2015 were as follows.
March 6 Paid for postage costs
11 Bought tea and coffee
14 Purchased stationery
18 Paid T Masuka, a credit supplier
21 Received refund for damaged stationery
26 Paid window cleaner
29 Paid P Zhonga, a credit supplier
REQUIRED
$
13
5
27
15
10
12
16
(b) Enter these transactions in Kuda Maposa’s petty cash book on the page opposite. Balance the
petty cash book and bring down the balance on 1 April 2015 [9]
(c) (i) State the amount required to restore the imprest on 1 April 2015. [1]
___________________________________________________________________
(d) (ii) Name the account which would be credited with this amount. [1]
__________________________________________________________________
(e) (iii) Name the ledger account in which the transaction of 21 March would be recorded. [1]
__________________________________________________________________
8. Kuda Maposa had the following transactions on 31 March 2015.
1 Took goods costing $300 for personal use.
2 Purchased a motor vehicle, $12 000, for business use, using a cheque drawn on her personal
bank account.
3 Received an invoice from Valley Machines for $990. This included $865 for a new machine.
The balance was for repairs to existing machine.
REQUIRED
(a) Prepare journal entries to record the above transactions. Narratives are required. See next page
[6]
9 (a) Insert the missing figures in the following document. [3]
(b) Name the person who issued the credit note. [1]
(c) Suggest one reason for the issue of the credit note. [1]
(d) Name the document which would have been issued to request a credit note. [1]
(e) Complete the following table to show where the credit note would be recorded. [4]
10. Neel started a business on 1 June. The following transactions took place in June.
1 Opened a business bank account with $8000 of his own money.
2 Received a bank loan, $2000.
3 Bought a delivery van, $5200, from A1 Motors on credit.
4 Bought inventory, $3700, paying by cheque.
5 Paid shop rent, $1000, by standing order.
6 Withdrew cash, $100, to start up an imprest system.
REQUIRED
(a) Complete the following table showing how these transactions were recorded. The first has been
completed as an example. [5]