Highgate College Form 4 Accounting in class test
Name: ___________________________ Date: _________________
Instructions: Answer all questions in the space provided. Show all your workings clearly.
Question 1: Incomplete Records & Final Accounts (15 Marks)
Mr. Takudzwa does not keep a complete set of accounting records for his sole proprietorship.
The following information is available for the year ended 31 December 2024:
Item 1 Jan 2024 ($) 31 Dec 2024 ($)
Cash at bank 12,000 18,000
Inventory 4,500 5,200
Accounts Receivable 3,800 4,100
Accounts Payable 2,900 3,300
Fixtures and Fittings 6,000 6,000
Additional Information:
1. Cash withdrawals for personal use during the year amounted to $2,500.
2. Additional capital of $1,000 was introduced into the business on 1 July 2024.
3. Depreciation on Fixtures and Fittings is to be charged at 10% per annum.
(a) Calculate the capital at the beginning and end of the year. (4 Marks)
Calculation of Capital
Details 1 Jan 2024 ($) 31 Dec 2024 ($)
Assets:
Cash at bank
Inventory
Accounts Receivable
Fixtures and Fittings
Total Assets
Less: Liabilities
Accounts Payable
Capital
(b) Prepare a Statement of Profit or Loss for the year ended 31 December 2024. (6
Marks)
Statement of Profit or Loss
For the year ended 31 December 2024
Details $
Capital at end
Less: Capital introduced
Add: Drawings
Less: Capital at start
Net Profit / (Net Loss)
(c) Prepare a Statement of Financial Position (Balance Sheet) as at 31 December 2024.
(5 Marks)
Statement of Financial Position
As at 31 December 2024
Details $
Non-current Assets
Fixtures and Fittings
Current Assets
Cash at bank
Inventory
Accounts Receivable
Total Assets
Capital & Liabilities
Capital
Balance as at 31 Dec 2024
Current Liabilities
Accounts Payable
Total Capital & Liabilities
Question 2: Bank Reconciliation (10 Marks)
The bank statement of Highgate Wholesalers for the month of October 2024 showed an
overdraft balance of $2,800 on 31 October 2024. The cash book, however, showed a debit
balance of $1,500 on the same date.
An investigation revealed the following discrepancies:
1. Cheque No. 001 for $400 issued to a creditor has not yet been presented for payment.
2. A direct debit payment for insurance of $250 was made by the bank but not recorded in
the cash book.
3. A cheque of $180 received from a customer was dishonoured and returned by the bank.
No entry was made in the cash book.
4. The bank charged $50 in bank charges, which has not been entered in the cash book.
5. A deposit of $600 made on 31 October 2024 did not appear on the bank statement.
6. A cheque for $750 issued by another company was mistakenly credited to Highgate
Wholesalers' account by the bank.
(a) Update the Cash Book to reflect the correct bank balance. (5 Marks)
Highgate Wholesalers – Updated Cash Book (Bank Column)
Date Details Folio Amoun Date Details Folio Amoun
t ($) t ($)
Oct 31 Balance Oct 31 Balance
b/f b/f
Balanc
e c/d
(b) Prepare a Bank Reconciliation Statement as at 31 October 2024. (5 Marks)
Highgate Wholesalers
Bank Reconciliation Statement as at 31 October 2024
Details $
Balance as per Bank Statement
Add:
Less:
Balance as per Updated Cash Book
