business and accounting studies i, ii three hours...
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All Right Reserved
General Certificate of Education (Ord.Level) Examination, 2018 December
Supportive Seminars For the Students
Rehearsal Paper
Business and Accounting Studies I Instructions
1. Answer all questions.
2. Select the correct or the most suitable answer from the answers 1, 2, 3 & 4 in question number
01 to 40.
3. Mark (x) in appropriate circle with matching answer you selected among the circles of each
question in the answer sheet you are provided.
4. Read and follow other instructions also in the back of the answer sheet.
Answer the questions from 1 to 4 using the following scenario.
‘Dila Travels’ is a well reputed private company that supply transport services. Sanuki who
worked at ‘Dila Travels’ was resigned and started her own company and named it as ‘Sanu
Travels’. She said that there is a new high demand for buses during the 1st term of the year as
most of the schools organizes their educational trips during these months as well as new high
way road was also opened recently.
1. According to the above scenario, select the answer which includes a need and want that supply
by ‘Sanu Travels’ respectively.
1) Entertainment-Travel 2) Health-Entertainment
3) Transportation-Travel 4) Travel-Transportation
2. Two parties interested on ‘Sanu Travels’ which indicates in the above scenario is;
1) ‘Dila Travels’ company and Students
2) Lending Institutions & Public
3) Employees and Banks
4) Bank and Government
Business and Accounting Studies I, II
Three hours
3. Select the answer which includes a strength and opportunity of ‘Sanu Travels’ respectively.
1) Sanuki has worked in ‘Dila Travels’ and construction of highway roads
2) Widening of roads and demand for buses
3) Sanuki has adequate amount of capital and the her business knowledge
4) School educational trips and capability of Sanuki
4. The factor of production which is most suitable to categorize the vehicles owned by ‘Sanu
Travels’ is;
1) Land 2) Capital
3) Labour 4) Entrepreneurship
5. Select the answer which includes only profit oriented organizations among following
organizations.
A. Companies B. Corporations of the Government C. Sole Proprietorships
D. Partnerships E. Departments of the Government
1) A,D,E 2) A,B,C
3) A,C,D 4) B,C,E
6. The act which specify the maximum number of members in a partnership is;
1) Partnership Ordinance of 1890
2) Companies Act No. 7 of 2007
3) Fraud Prevention Ordinance
4) Cooperative Society Act No. 5 of 1972
7. Nuwan Wimalasiri was advised to register the name of his business “Wimala Stores”. The reason
for this is because;
1) It is compulsory to get legal personality for the business
2) It is a qualification to get government reliefs
3) It is operates with another name other than his full name.
4) It is operates with a name which issimilar to his name.
8. Following are some benefits which can be taken from an account operate by commercial banks.
a) Receive security for cash
b) Receive an interest income
c) Can process payments through debit cards
The type of account which shows above characteristics is;
1) Current accounts 2) Fixed deposits accounts
3) Savings accounts 4) Term deposits accounts
9. Asanga has a current account in Bank of Ceylon - Ruwanwella branch. He has purchased a
machine from Sivanathan, who has a current account in Seylan Bank – Awissawella branch and
a payment for this transaction was done through a cheque. According to the above scenario,
select the answer which includes cheque drawer, drawee and the barer respectively.
1) Asanga, Bank of Ceylon – Ruwanwella, Sivanathan
2) Sivanathan, Seylan Bank – Awissawella, Asanga
3) Asanga, Seylan Bank – Awissawella, Sivanathan
4) Sivanathan, Bank of Ceylon – Ruwanwella, Asanga
10. Select the most appropriate statement regarding life insurance.
1) The principle utmost trust is not considered in life insurances
2) The value of the life insurance policy is decided by the insuree.
3) The principle indemnity is considered in life insurances.
4) When a life insurance cover is obtained, the total risk for insuree’slife will be
disappeared
11. Following are some communication methods.
A. Skype C. Circulars
B. Electronic mail D. Digital boards
The method/s which belongs to electronic, verbal and written media is/are;
1) A only 2) A and B only
3)B and C only 4) All of above
12. Following are some advantages and disadvantages relates to one of the mode of transport
A. Ability to carry larger volume of passengers and goods at once
B. No road traffics
C. Relatively consume less time
D. Unable to reach the end destination (
The most suitable mode of transportation belongs to the above feathers;
1) Air freight transportation 2) water transportation system
3) Road transportation 4) Railway transportation
13. The trading occurs between two or more countries is known as (1)_____________ trade and
selling rubber product to foreign countries by Sri Lankans is known as (2)
__________________ trade.
Select the answer which includes the most appropriate answers for above (1) and (2)
respectively.
1) Foreign and Import 2) Import and Export
3) Foreign and Export 4) Export and Import
Answer questions No. 14 and 15 using the following scenario.
A business produce yogurt as its product .After investigating some reasons for declining demand
of the product the business may arrange to introduce a yogurt with a new packing.
14. What is the management function which relates with identifying possible reasons for the
declining demand for yogurt and taking remedial actions?
1) Directing 2) Organizing
3) Controlling 4) Planning
15. According to the above incident, which marketing mix variable is used by the firm;
1) Price 2) Promotion
3) Product 4) Place
16. What is the investment opportunity for the individuals which can be taken capital gains;
1) Treasury bills 2) Savings deposits
3) Fixed deposits 4) Purchasing ordinary shares of a company
Followings are some of the transactions occurred in an organization. Answer questions No.17 and 18
based on that information.
A – Additional capital employed by the owner Rs.500 000
B – Purchase of goods on cash Rs. 20 000
C – Paid electricity Rs. 8 000
D – cost of stokes for Rs 8,000 sold for Rs. 10,000
17. What is value of assets at the end of transactions A,B,C, and D?
1) Rs.494 000 2) Rs.510 000
3) Rs.526 000 4) Rs.530 000
18. Transaction which causes for changes in equity is;
1) A,B and C 2) A,C and D
3) B,C and D 4) A,B,C,and D
19. As a result of purchase of machine for Rs.2 000 000;
1) Increase assets, increase liabilities 2) Increase expenses, increase assets
3) Increase equity, decrease assets 4) Increase assets, decrease assets
20. Following X, Y columns represents different types of accounts and some examples.
X Y
1. Equity A. Bank loan interest account
2. Liabilities B. Accrued expenses account
3. Income C. Drawings account
4. Expenses D. Sales account
After matching type of accounts in column X with examples in column Y respectively, it will
give the answer;
1) 1-C, 2-A, 3-B, 4-D 2) 1-C, 2-B, 3-D, 4-A
3) 1-A, 2-B, 3-C, 4-D 4) 1-A, 2-D, 3-C, 4-B
21. Following mentioned transactions recorded in the primary books in a business.
Cash sales Rs.15 000
Paid to creditors Rs.14 000
What are the source documents which use when recoding above transaction respectively
1) Sales invoice, purchase invoice 2) Receipt, purchase invoice
3) Receipt, paying voucher 4) Paying voucher, journal voucher
Saduni has taken bank overdraft facility up to Rs, 15,000.The banker paid insurance
premium for Rs. 10,000 as per the standing order. But there is favorable balance of bank
account is Rs. 6,000.
22. Value of the bank overdraft which has been taken by Sanduni
1) Rs.15 000 2) Rs.10 000 3) Rs.6 000 4) Rs.4 000
23. The journal entries to record payment of insurance premium.
1) Bank a/c Dr Rs.10 000
Insurance charges a/c Cr Rs.10 000
2) Insurance charges a/c Dr Rs.6 000
Bank a/c Cr Rs.6 000
3) Insurance charges a/c Dr Rs.4 000
Cash a/c Cr Rs.4 000
4) Insurance charges a/c Dr Rs.10 000
Bank a/c Cr Rs.10 000
24. What is the relevant regulation that record total amount of discount column in the debit side to
the discount allowed account?
1) Income – Increase – Debit 2) Expense - Increase – Debit
3) Income – Increase – Credit 4) Expense - Increase – Credit
25. Petty cash imprest of a business was Rs.2 500. The cash remains with petty cashier as at
31.03.2018 was Rs.500 and the re-imbursement amount on that date was Rs.3 000. What is the
increased amount in petty cash imprest for month of March?
1) Rs.500 2) Rs.1 000 3) Rs.2 000 4) Rs.2 500
26. Sales journal is a;
1) Source document 2) Ledger account
3) Prime entry book 4) Sales account
27. Following information is provided for you.
A. Rs.10 000worth of stock was sold on credit.
B. A machine worth of Rs.20 000 was purchased on credit from Sepala.
C. Rs.6 000 worth of stock was purchased on credit.
D. Rs.5 000 worth of stock was taken by owner for his personal use..
According to the above information, the transactions which are recorded in general journal are;
1) A,D 2) A,C,D 3) B,C 4) B,D
Answer question no.28 and 29 using following information.
Discount received from a creditor was Rs.1 500. This has been debited to both discount received
account and creditor account.
28. The true statement regarding the above transaction is;
1) It will not affect for the trial balance mathematically to tally
2) Rs.3 000 credit balance in suspense account
3) Rs.1 500 debit balance in suspense account
4) It has been correctly recorded in the discount received account
29. The double entry to rectify the above error is;
1) Debtor account Dr Rs.1 500
Discount received account Cr Rs.1 500
2) Suspense account Dr Rs.1 500
Discount received account Cr Rs.1 500
3) Suspense account Dr Rs.3,000
Discount received account Cr Rs.3,000
4) Creditor account Dr Rs.1 500
Discount received account Cr Rs.1 500
Answer question no.30 and 31 using following information.
Sandali started a flower pot producing business; and following information are given for the
month of January 2018.
Direct material cost Rs.80 000
Direct other expenses Rs.20 000
Indirect expenses Rs.30 000
2 000 flower pots were produced within the month of January. Labour cost per pot is Rs.35
30. Primary cost is;
1) Rs.100 000 2) Rs.130 000
3) Rs.170 000 4) Rs.200 000
31. Cost of production per flower pot will be;
1) Rs.50 2) Rs.65 3) Rs.85 4) Rs.100
32. Following transactions has occurred in Super Hero sports club during this year.
A. Purchase of sports equipment Rs. 50 000
B. Received cash donations Rs.100 000
C. Sold old newspapers Rs. 50 000
D. Received member fees Rs. 10 000
Among above items, identify the items which are considered in preparing income statement;
1) A,B,C,&D 2) B,C only 3) B,D only 4) B,C,&D only
33. Number of members in super hero sport club are 150. Annual membership fees is Rs.100. All
members except 15 members had settled the membership fee. The amount of received
subscription will be.
1) Rs. 15,000 2) Rs. 13,500
3) Rs. 1,500 4) Rs. 1,350
34. Cost of motor vehicle and accumulated depreciation as at 1/1/ 2017 were Rs. 100,000 and 20,000
respectively. Motor vehicle to be depreciated 10% on cost. What are amount of cost and carrying
value of the motor vehicle as at 31/12/2017.
1) Rs. 100,000 – Rs. 80,000 2) Rs. 100,000 – Rs. 90,000
3) Rs. 100,000 – Rs. 70,000 4) Rs. 70,000 – Rs. 100,000
35. Total sales during the year 2017 of Jayawardhana stores was Rs. 100,000 and 60 % of total sales
was credit sales. The business received 50 % cash from credit sales and 10% to be written off as
bad debt from remaing debtors balance. What is the balance of debtors as at 31/12/2017 and bad
debt amount which record in the statement of profit or loss.
1) Rs. 30,000 – Rs. 3,000 2) Rs. 6,000 – Rs. 6,000
3) Rs. 27,000 – Rs. 3,000 4) Rs. 54,000 – Rs. 6,000
Answer question no.36 to 40 using following information.
The trainee account clerk of Vihanga Ransara business has prepared the following trade, profit
and loss account for the year ended 31.12.2017.
Trade, Profit and Loss Account
Opening stock 10 000 Sales 63 000
(+) Purchases 35 000
(-) Closing stock (3 000) 32 000
Cost of sales 42 000
Gross profit (C/F) 21 000
63 000
63000
Gross profit (B/F) 21 000
Distribution expenses (+) Discount received 2 000
Bad debts 500 Investment income 3 000 5 000
Salaries 1 500
Motor vehicle depreciation 10 000
Loading charges 500
Carriage inward 800 13 300
Administrative expenses
Maintenance cost 800
Insurance cost 500 1 300
Finance and other
expenses
Bank loan interest 500 500
Net profit transfer to
capital account 10 900
26 000
26 000
36. Cost of sales in VihangaRansara business for the year ended 31.12.2017 is;
1) Rs.42 000 2) Rs.43 300 3) Rs.42 800 4) Rs.42 500
37. The correct values for distribution expenses and administrative expenses respectively;
1) Rs.2 800 – Rs.10 500 2) Rs.3300 - Rs.10 500
3) Rs.10 500 - Rs.2 800 4) Rs.10 500 - Rs.3 300
38. The answer which contains correct gross profit and other income for this business respectively;
1) Rs.21 000 – Rs.5 000 2) Rs.20 500 - Rs.5 000
3) Rs.19 700 - Rs.5 000 4) Rs.20 200 - Rs.5 000
39. If the business paid interest on bank loan during the period for Rs. 300 and received income on
investment was Rs1,800, what are the amount of accrued expenditure and accrued income
respectively?
1) Rs.500 – Rs.3 000 2) Rs.300 - Rs.1 200
3) Rs.200 - Rs.3 000 4) Rs.200 - Rs.1 200
40. Cost of motor vehicle is Rs.100 000. The accumulated depreciation as at 01.01.2017 is Rs.10000.
The caring value of motor vehicle which need to state in statement of financial position as at
31.12.2017 is;
1) Rs.20 000 2) Rs.80 000
3) Rs.90 000 4) Rs.100 000
All Right Reserved
General Certificate of Education (Ord.Level) Examination, 2018 December
Supportive Seminars For the Students
Rehearsal Paper
Business and Accounting Studies II
1. Amarasena who worked as a food taster was resigned from his job and started a business
investing Rs.150 000 on 01.01.2018. The business was named as “Food Secret” and sells spicy
products including chili powder and curry powder. The products need for “Food Secret” are
purchased from “Golden Spicy” as whole sale and the needed goraka (Garcinia gummi-gutta)
paste is purchased from Thilini, the daughter of Amarasena.
The following transactions have been occurred during the month of January in 2018.
Purchase of furniture and equipment Rs. 20 000
Purchases on cash Rs. 40 000
(Including goraka paste)
Purchases on credit Rs. 20 000
Electricity expenses Rs. 3 000
Rates on building Rs. 15 000
Miscellaneous expenses Rs. 2 800
Cash sales Rs.120 000
Closing stock as at 31.01.2018 is Rs.10 000
Furniture and equipment need to be depreciated 12% annually
Thilini, the daughter of Amarasena is studying “Spicy Production Technology” course at
Lanka Technical Development board. She produced 100g goraka paste cups ( poli cups)as an
assignment and sold those to “Food Secret”. She produced 100 goraka paste cups during the
month of January and expenses incurred during the production are as follows.
Business and Accounting Studies I, II
Instructions:
Select two questions including question number one from part I and two questions
from part II. Answer five questions only.
Answer in clear handwriting
Important: According to the given advice, answer for five question only. In the event candidates has
answered more than it & not cancelled, those answers will not be marked & Cancelled.
To purchase goraka Rs.2 500
Electricity charges Rs.1 500
Wages for helpers Rs.3 000
Packaging Rs. 200
Thilini purchased a grinding machine which worth of Rs.37,500 and its useful lifetime is 10
years and residual value has been estimated as Rs.1,500.
Amarasena provided his own vehicle which worth Rs.500,000 to the business on 31.01.2018 to
deliver these products to hotels and canteens in surrounding cities with the aim of increasing
sales of “Food Secret” products by 10% in the next month. Also he decided to hire an employee
for this task.
i. (a) Write down a service supply by the business mentioned in the above scenario.
(b) Write down a government sector organization in the above scenario.
ii. Name the type of business under which “Food Secret” business can be classified and write two
advantages and disadvantages of that.
iii. (a) Name two interested parties of “Food Secret” which has been mentioned in the above scenario with
examples.
(b) Identify the management functions that relevant for the decision to increase sales by 10%.
iv. According to the above case the product of “Food Secret” that sells to the hotel and to the
canteens. The selling system is known as retail business. Do you agree with this statement?
Justify your answer.
v. (a) Write down the accounting equation for the business as at 01.01.2018 including values.
(b) How much is the purchases of the business during the month of January.
vi. Write down the journal entry relevant to state the motor vehicle provided by Amarasena
including values.
vii. (a) What is the fair value of non-current assets of “Food Secret” business as at 31.01.2018?
(b) Name two source documents and two prime entry books which are used by “Food Secret”
business.
viii. Calculate the cash balance as at 31.01.2018.
ix. Prepare the trade account for “Food Secret” business for the month ended 31.01.2018 and
calculate cost of sales and gross profit.
x. (a) Calculate per cup production cost of goraka paste.
(b) If Thilini sells her products by keeping 20% profit margin, how much is the total profit she
gained?
(02 x10 = TOTAL MARKS)
Part 1
Business studies
(Answer for two questions only)
2.
I. (a ) Define needs and wants separately
(b) Write two objectives of profit oriented organizations.
(02 MARKS)
II. State whether the following statements are true or false.
(a) It is compulsory to fulfill wants for to live.
(b) The physical and mentality contribution to a business to be identify as entrepreneurship.
(c) Can be identified opportunities and threats from external environment of the business.
(d) A business can take own identity When registering the name of the sole traders
(02 MARKS)
III. Shahan carry on a business producing school ties and badges by using few modern machines
according to the schools requirements.
(a) What is the basic need which fulfill by the Shahan’s business.
(b) Write two examples for factors of production of this business.
(02 MARKS)
IV. Mishaal who is a diploma holder, carry on a nursery school and day care center near the
housing complex of government. In which another two female workers are working.
(a) Write two interest groups in the internal environment base on above event.
(b) State a strength and an opportunity of Mishaal’s traders. (02 MARKS)
(08TOTALMARKS)
3.
I. (a) State two documents which need to open a savings account.
(b) Write two parties of a cheque
(02 MARKS)
II. State whether the following statements are true or false
(a) Life insurance policy cannot be transferred.
(b) Symbols, which are used as road signals to be identify as electronic communication
medium
(c) Most heave items can be transported. It is a special advantage of water transportation
system.
(d) Unit cost is low comparatively, that is a one of features of whole sale businesses.
(02 MARKS)
III. (a) State main two networks for credit cards which are uses international level.
(b)Yassasi Weerasinghe purchaser a stock for Rs. 50,000 from Gagani Dharmasena on
10/08/2018 and issued a cheque for the amount.
How to use the cheque counterfoil to record above information.
(02 MARKS)
IV. (a) Few items of export and import by Sri lanka are given below
Gems, wheat flour, desiccated coconuts, motor vehicle, cement, black-lead
Classified above items as export and import separately.
(b) Kasun who is studying in grade six class and is faced an accident suddenly when plying at
school time. Immediately the class teacher informed this incident to his mother over the phone.
State examples in each components of process of communication are given below base on above
case.
Sender ..........
Massage ............
Medium ..............
Receiver ...........
(02 MARKS)
(08TOTAL MARKS)
4.
I. (a) Briefly explain the meaning of treasury bills.
(b) State two factors which consider when selecting an investment (02 MARKS)
II. State whether the following statements are true or false.
(a) Can get the ownership when purchasing ordinary shares from an incorporate company.
(b) Certificate of ordinary shares cannot be used as a security paper when Appling a loan.
(c) Owner of a business decided to purchase a motor vehicle to expand his business broadly.
This is includes the planning process of the business.
(d) The meaning of “Productivity “is explain that the maximum usage of limited resources.
(02 MARKS)
III. Some activities of a commerce day in a school are as follows
(a) To decide how to do the event and how to collect the funds to the event.
(b) To provide relevant information guidance to the leaders in each committee.
(c) Supervise the commerce day events according to the plan and if not use strategies to
do the event successfully.
(d) Nominate and appoint the leaders to the relent committees.
State the management activities base above process.
(02 MARKS)
IV. A biscuits manufacturing business sells their biscuits by using so attractive packing with
maintaining high quality of products for hotels and other shops surrounding the town area
of the business. Price per biscuit packet is Rs.78/= .The business advertised about product
to aware the customers by using some posters over the town area.
State variables of marketing mix and write two examples base on above case.
(02 MARKS)
(08TOTAL MARKS)
Part 11
Accounting
Answer for only two questions
5. (1)
(a) Following items of Yasasi Pahesara Traders, should be classifies under Assets and Labilities
A - Bank Loan B – Motor vehicle C – Creditors
D – Debtors E – Building F – Bank overdraft
G – Fixed Deposit H – Payable expenses
(b) There are few features to identify assets and liabilities. What is the common feature to
identify assets and liabilities?
(02 MARKS)
(11). The effect of few transactions of a business has given through the accounting equation as
follows.
Date Assets = Capital / Equity + Liability
January 01 Increase Increase .......
January 05 Increase
Decrease
....... ........
January 10 Increase ........ Increase
January 15 Decrease Decrease Decrease
You are required, to write most suitable transaction with values which was occurred in each day.
(02 MARKS)
(111). Following cash book was given for the month of January 2018 related to the business of
Gagani punsara traders.
Debit Cash Book Credit
Date Rec
. No
Descrip
tion
Leg.
folio
Disc
ount.
Rs.
Cash
Rs.
Date V
o.
N
o
Descriptio
n
Leg
folio
Disco
nt
Cash
1/1
1/8
1/15
1/18
b/f/b
Sales
Vihaga
(debtor)
Bank
loan
1000
1000
30000
12000
10000
15000
67000
1/10
1/12
1/16
1/20
1/25
1/31
Purchase
Hasarel
(creditor)
Electricity
Drawings
Motor
vehicle
c/f/b
500
500
8000
4500
500
10000
30000
14000
67000
You are required to,
Write four Journal entries (including discount) to post above cash book transactions to the
ledger.
(04 MARKS)
(IV.) Following information extracted from Hasarel traders.
Imprest of petty cash Rs. 2,000
Total payment of petty cash for the month of January 2018 was Rs. 1,850
Reimbursement date of petty cash was 01 of February 2018
Petty cash expenses for the month of February 2018 as follows.
Date Description Rs
Feb 02 Travelling 80 Voucher no 01 Feb 03 Salary advance to Kapila 200 Voucher no 02
Feb 10 For pens and pencil 100 Voucher no 03 Feb 12 Tea goods 120 Voucher no 04 Feb 15 Bus fair 100 Voucher no 05
Feb 17 Two book - CR 160 Voucher no 06 Feb 20 Soft drinks 100 Voucher no 07
(a) Prepare petty cash book with analysis columns of travelling, refreshment, stationery, and
reimburse petty cash for next petty cash period.
(b) Post, total amount of analysis column to the ledger (04 MARKS)
(12 TOTAL MARKS)
6. (1) (a) State four example for non- current assets of a business
(b) Write two transactions which should be recorded in the journal (02 MARKS)
(11) Mr. Kapila makes chairs for school children’s and there are two carpenters and one security
are working in the business.
Following information is given relating to the production of chairs for children’s for the month
of January 2018 as follows.
For wood
For steel
Salary for a carpenter
Rent for factory
Salary for security
Machinery depreciation
Other ( paint, nuts, sand papers)
Rs.80,000
Rs.150,000 Rs.20,000
Rs.12,000
Rs.15,000 Rs.20,000
Rs. 8,000
During the period the business manufactured number of 100 chairs and selling price is decided as
20 % on cost .
You are required to calculate
a. Prime cost
b. Total cost
c. Cost per unit ( cost per chair )
d. Selling price per chair (02 MARKS)
(111) Following items were extracted from Punsara’s traders when comparing
bank account which prepared by the business for the month of January 2018 and bank statement
of the same month.
Realized cheques for the month Rs. 20,000
Presented cheques for payment Rs. 14,000
Deposit but not realized cheques for the month Rs. 15,000
Issued but not presented cheques for the month Rs 10,000
Bank and cheques book charges were Rs. 3,000 and Rs. 1,200 respectively.
Dividend and direct remittances were Rs. 10,000 and Rs. 30,000 respectively.
You are required to prepare
(a) The factors to decrease the balance of bank statement then the balance of bank account.
(b) The factors to prepare adjusted cash book.
(04 MARKS)
(1V) The credit balance of the trial balance which prepared by Pahesar traders was understated
by Rs. 500. The Account clack of the business found out following errors.
Payment for insurance Rs. 1,000 has been recorded two times of the books.
Sales on credit for Rs. 5,500 has been recorded in the sales account as Rs.5,000
A purchase invoice for Rs. 5,000 totally omitted from the books.
You are required
(a) Journal entries to rectify above errors
(b) Suspense account
(04 MARKS)
(12 TOTAL MARKS)
7.(1)(a) What are the main two objectives of non-profit motive organization?
(b) What is the main source of income of non – profit motive organization?
(02 MARKS)
(11) Following receipt & payment account was prepared by “Super Hiro” sport club for the year
of 2017
Receipt and payment account
Cash Balance
Subscription fee
Donation
B/F/B
Rs.
2,000
4,000
1,000
Purchase of sport equipment
Salary for security
Telephone expense
C/F/B
Rs.
4,000
1,000
500
1,500
7,000 7,000
1,500
Additional information
There are 50 Members of the society and membership fee per head per annum is Rs.100.
You are required to prepare,
Income statement of “Super Hiro” sport club for the year ended 31/12/2017 (02 MARKS)
(111).Following trial balance is extracted from Vihanga Ransara Traders as at 31/12/2017
Additional information
1. Closing stock as a 31/12/2017 was Rs. 3,000
2. Building to be depreciated 5% on cost.
3. Bad debt to be written of 10% from debtor
You are required to prepare
a. Statement of profit or loss for the year ended 31/12/2017
b. Statement of financial position as at 31/12/2017
(08 MARKS)
(12 TOTAL MARKS)
Description Dr. Cr.
Sales ………………………………………………………..
Purchase ……………………………………………………
Stocks as at 01/01/2017…………………………………….
Land ……………………………………………………….
Building at cost …………………………………………….
Salaries ……………………………………………………..
Discount Received………………………………………….
Discount allowed …………………………………………..
8% Bank Loan ……………………………………………..
Debtors …………………………………………………….
Creditors ……………………………………………………
Interest on loan……………………………………………..
Insurance …………………………………………………..
Provision for depreciation – Building on 01/01/2017 ……..
Cash ……………………………………………………….
Loading charges ……………………………………………
Capital ……………………………………………………..
30,000
5,000
50,000
100,000
5,000
1,000
10,000
1,000
500
3,000
1,000
100,000
4,000
20,000
12,000
20,000
50,500
206,500 206,500