BUSINESS STUDIES

GRADE 8-9
REVISION QUESTIONS AND ANSWERS

CHIPO KALIMINA
 CONTENTS

MULTIPLE CHOICE QUESTIONS ..................................... 1

ANSWERS .................................... 21
SECTION B QUESTIONS .................................... 23
ANSWERS .................................... 40
BOOKS | TRIAL BALANCE | FINAL ACCOUNTS .............. 50|55|61
ANSWERS ..................................... 52|58|66

STUDY TIPS

SECTION A.
The key to doing well in multiple choice questions is going through a lot of
questions from past papers and pamphlets. Go through as many questions
as possible on each topic. Aim to get at least 15/20 in this section.

SECTION B
This sections has a variety of questions. The topics that appear in this
section are repeated every year as you can tell from past papers and this
pamphlet. Make sure you understand each topic and try to answer many
questions from this pamphlet and past papers.

SECTION C
In this section, you will find questions on Books of entry, Trial balance and
Final Accounts (Income statement and balance sheet). The easiest way to
do well in this section is by memorizing the entries. Ensure that you go
through the layout of each book and memorize where each entry should
be. A lot of practice will be helpful.

Any mistakes are ‘human error’.

ALL THE BEST!!!!

Mr 6points

Mr 6points i © Mr 6points
 PART 1 : MULTIPLE CHOICE

1 Which of the following is not an example of an office?

A Virtue office.
B Closed office.
C Virtual office.
D An open office.

2 The filling of documents according to places is known as ...

A Geographical filing.
B Chronological filing.
C Alphabetical filing.
D Subject filing.

3 A risk taker who takes advantage of a given opportunity and resourses

in order to make money is ...
A an entrepreneur.
B a receptionist.
C a Personnel manager.
D Wages clerk.

4 One of the reasons why people engage in business it to ...

A pass time.
B prevent crime.
C provide employment opportunities.
D control all peope.

5 The doubling of an A4 size paper results in an ... size paper.

A A2
B A8
C A3
D A5

1 © Mr 6points
6 Which of the following is an example of a barter transaction?
(i) Withdrew cash for private use.
(ii) Exchanged a house for a car worth the same price.
(iii) Deposited cash into bank.
(iv) Sold goods on credit to J. Bwale.

A (iv).
B (ii).
C (i).
D (ii).
7 Which document would be used when the seller wants to inform the
buyer that goods are on the way?
A Advance note.
B Advice note.
C Quotation.
D Statement of Account.
8 The ... is used as source document for the Returns Inwards Journal.
A Original Credit note
B Duplicate invoice
C Original invoice
D Duplicate Credit note
9 The ... is simply a book which we record the details of our credit
custormers.
A Sales Journal
B Purchases Journal
C Cash Book
D General Journal
10 Electricity Bill Account is an example of ...
A Real account.
B Personal account.
C Nominal account.
D Nominal Ledger.

2 © Mr 6points
11 ... Contains records of Customer’s Personal Account.
A General Ledger
B Sales Ledger
C Purchases Ledger
D Nominal Ledger

12 The business has its closing capital of K2,240, net loss value of K954 and
opening capital of K3,950. How much is the value of drawings?
A K756.
B K3,194.
C K4,904.
D K695

13 Mambwe’s housing allowance is 10% of his monthly salary of K7500. He

also gets a medical allowance of 5% of his monthly salary. Calculate his
housing allowance.
A K560
B K6 800
C K500
D K750

14 Buying of shares in a company is a good example of ...

A entrepreneurship.
B budgeting.
C investment.
D expenditure.

15 Which banking service allowas a bank customer to make a fixed

payment on a fixed date?
A Credit transfer.
B Standard Order.
C Bank loan.
D Standing Order.

3 © Mr 6points
16 A postal service which enables the organisation to share the same
information to a large audience within or outside the organisation is
called ...
A a Business Reply Service.
B a Free post.
C an Agency service.
D a Circular.

17 What do the letters UFS stand for?

A Under Flying Seal
B Under Flying Squad
C Utterances for Safety
D Under- garment For Sale.

18 Mrs Bulaya who is an employee of Kwacha Holdings was to issue

payment reminders to all outstanding debtors of a company. Which
department does she belong to?
A Purchases Department
B Personnel Department
C Maintenance Department
D Accounts Department

19 Which of the following is an example of entrepreneurial activities

found in the community?
A Persistence
B Fishing
C Loyalty
D Stealing
20 Which of the following are true about a Savings Account?
(i) Cheque book is used when making withdrawls.
(ii) A minimum balance is required in order to operate the account.
(iii) Suitable for people earning a low but regular income.
(iv) Overdraft facility is offered.
(v) Automated Teller Machine facility is available.
4 © Mr 6points
 A (i), (ii) , (iii) and (v)
B (ii), (iii) and (v)
C (iii) only
D (i), and (iv)

21 An office that is small and only allows one or two people to work from
it is ...
A an open ended office.
B a dispensary.
C a staff room.
D a closed plan office

22 Files which enable many records to be in wallets or pockets around a

central vertical pillar are ...
A pending files.
B circular rotary files.
C dead files.
D box files.

23 Hard work and innovativeness are good qualities of ...

A a receptionist.
B a family.
C an entrepreneur.
D a community.

24 Which of the following is not one of the good ways of managing

business financial resources?
A Ensuring that there are financial controls through budget
preparation and implementation.
B Ensuring that all business funds are deposited in the bank for
safe keeping and withdrawn only when required.
C Ensuring that a good and transparent financial record is
maintained.
D Ensuring that none of the business creditors are paid.

5 © Mr 6points
25 ... is used to make several copies from a stencil.
A Teleprinter
B Franking machine
C Ink duplicator
D Photocopier
26 State the type of business transaction involved when payments and
receipts are made by cheque in the exchange of goods and services.
A Bank tansaction.
B Credit transaction.
C Barter transaction.
D Bata transaction.
27 A catalogue is a good example of ...
A a quotation
B an order.
C an invoice.
D a receipt.
28 The source document for the cash book is the ...
A Invoice.
B Debit note.
C Receipt.
D Credit note.
29 A book is which we record money meant for smaller expenditure on a
day to day running of a business is called a ...
A Purchases Day Book.
B Cash Book.
C Petty Cash Book.
D Sales Day Book.
30 Motor vehicle account is an example of ...
A Real Account.
B Nominal account.
C Personal Account.
D Impersonal Account.

6 © Mr 6points
31 In which ledger would the purchases account be recorded?
A Purchases Ledger.
B Sales Ledger.
C Creditors Ledger.
D Nominal Ledger.
32 Given that purchases amount to K82,000; cost of goods sold is at
K90,000; and the opening stock is valued at K45,000, calculate the
value of closing stock.
A K37 000
B K8 000
C K45 000
D K127 000
33 Mr Mwale works for Mika Company. He is entitled to an income of :
Salary K450, Housing Allowance of K45, Education Allowance of K25,
Deductions: Union fees of K30; PAYE K20. How much is his take home
pay?
A K520
B K470
C K750
D K570
34 Which one of the following is not a requirement for ensuring good
Personal Financial management?
A Savings.
B Excessive borrowing.
C Budeting.
D Investments.

35 One of the functions of the Central Bank is to ...

A issue notes and coins.
B provide ATM facilities to all customers.
C issue cheques to the members of the public.
D Iend money to members of the public.

7 © Mr 6points
36 Phones that can be carried to any place and are connected wirelessly
are ...
A Audio phones.
B Land lines.
C Text phones.
D Cell phones.
37 The abbreviation Co stands for ...
A Common operation.
B Compound.
C Company.
D Co-operative.
38 Mr Banda is in-charge of keeping a record of incoming and outgoing
files within the organisation, identify his position in the organisation.
A Accounts Clerk.
B Registry Clerk.
C Sales Clerk.
D Sales representative.

39 BM motor Company Limited has survived for a long period of time

because it keeps on coming up with improved models of motor
vehicles. In relation to this, identify the entrepreneurial trait that
can be attributed to BM Motor Company.
A Open to criticism.
B Creativity.
C Risk taker.
D Innovative.

40 Which department in an organisation is reponsible for payment of

staff salaries and wages?
A Procurement Department
B Human Resource Department
C Adminstration Department
D Accounts Department

8 © Mr 6points
41 Mr Wall wishes to obtain an overdraft from his Bank. He was advised
that this facility is only offered to certain account holders. Identify the
type account that Mr Wall should open to qualify for an overdraft.
A Current Account.
B Savings Account.
C Deposit Account.
D Investment Account.

42 The filing system where all files of a company are kept in one place is
called ...
A Alphabetical filing.
B Central filing.
C Departmental filing.
D Numerical filing.

43 Which of the following documents is not needed in the formation of

a business?
A Articles of Association
B Partnership Deed
C Statement of Account
D Trade Certificate

44 A guideline used to tabulate organisational goals and objectives for the

purpose of planning is called ...
A balance sheet.
B log book.
C management sheet.
D time card.

45 Which one of the following envelopes has an opening on a longer side?

A Airmail Envelope
B Banker Envelope
C Pocket Envelope
D Registered Envelope

9 © Mr 6points
46 Study the transactions below;
(i) Sold a motor vehicle on Credit.
(ii) Cash Sales.
(iii) Sold a Delivery Van by cheque.
(iv) Exchanged a motor vehicle for a house.
(v) Bought a house and payment deferred to a later date.
Which of these are credit transactions?
A (i) (ii) and (iv)
B (iii) (v) and (i)
C (v) (ii) and (iii)
D (i) and (v)
47 Which document is sent by the seller to the buyer as a reminder of the
amount due, for the goods supplied?
A Advice Note.
B Credit Note.
C Invoice.
D Quotaion.
48 The ... is used as a source document for the Purchases Journal.
A Original Invoice
B Original Credit Note
C Duplicate Invoice
D Duplicate Credit Note
49 Assets bought and sold on credit are first recorded in the ...
A Purchases and Sales Journal.
B Sales Journal.
C Purchases Journal.
D General Journal.
50 The machinery Account is a good example of a ...
A Personal Account.
B Real Account.
C Nominal Account.
D Real and Nominal Account.
10 © Mr 6points
51 The other name for Debtor’s ledger is ...
A Purchases Ledger.
B Creditors Ledger.
C Sales Ledger
D General Ledger.

52 Nelly Chansa’s capital at the beginning of the year was K95,000 and
K120,000 at the end of the year. She withdrew K12,000 during the
year. Calculate her net profit for the year.
A K132,000
B K37,000
C K108,000
D K13,000

53 The basic pay for a worker is K8,000 and he is charged a 2% “Pay As

You Earn” per month. Calculate the worker’s net pay.
A K7,840
B K8,160
C K8,000
D K7,680

54 Which of the following is not a reason for budget preparation in an

organisation?
A Control measure in financial matters
B It is a guide on expected income and projected expenditure
C It encourages transparency
D It shows the current cash balance of an organisation.

55 The type of Bank Account which allows a client to withdraw cash after
a specific period of time is called ...
A Fixed Deposit Account
B Current Account
C Deposit Account
D Savings Account

11 © Mr 6points
56 The postal service which allows people without permanent postal
addresses to collect mail in person at the post office is called ...
A Data post.
B Express mail service
C Free post
D Post Restante

57 The abbreviation Inc. stands for ...

A Incorporated.
B Inconvenience.
C Income.
D Include.

58 Mr Mumbi received a labour Day Award for being the most obedient
and faithful employee. Which etiquette best describes him?
A Royalty
B Courtesy
C Punctuality
D Loyalty

59 An accountant was discovered to have been altering official financial

records in the organisation. What is the effect of this activity on the
organisation? The organisation will ...
A lose resources.
B become profitable
C have good reputation
D gain resources.

60 Ben wishes to open a Bank Account which uses a cheque for

withdrawals. Which account would be suitable for Ben?
A Savings Acccount.
B Current Account.
C Deposit Account.
D Fixed Deposit Account.

12 © Mr 6points
61 The department responsible for sorting goods according to their quality
and grades is known as ... Department.
A Sales
B Stores
C Production
D Purchases

62 The filing of documents according to dates, is known as ... filing.

A alphabetical
B chronological
C geographical
D subject

63 The type of business owned and controlled by one person, is known

as a ...
A company.
B co-operative.
C partnership.
D sole trader.

64 A partnership business can come to an end if ...

A partners disagree.
B partners make losses.
C one partner is absent.
D one partner is sick.

65 A ... is an electronic equipment that can create, store, organise and

retrieve information.
A photocopier
B franking machine
C duplicating machine.
D computer

13 © Mr 6points
66 The exchange of goods and services where payment is made at a later
date is known as a .... transaction.
A barter
B bank
C cash
D credit

67 The business document used to start the buying process in an

organisation is known as ...
A a quotation
B an order
C an Invoice
D an enquiry

68 The source document used for a transaction requiring immediate

payment is known as ...
A a receipt.
B an invoice.
C a credit note.
D a debit note.

69 Goods sold on credit are entred in a ...

A Journal Proper
B Purchases Day Book.
C Sales Day Book.
D Sales Returns Day Book.

70 Debtors and creditors are an example of ... Accounts.

A Real
B Personal
C Nominal.
D Impersonal.

14 © Mr 6points
71 The supplier’s accounts are recorded in the ... Ledger.
A Sales
B Purchases
C General
D Debtors
72 Use the following information to calculate the value of working capital.
Stock K4 500.00, debtors K1 700.00, cash in hand K1 000.00, creditors
K2 300.00 and bank overdraft K700.00
A K7 900.00
B K7 200.00
C K4 900.00
D K4 200.00
73 Kangwa receives an annual salary of K120 000.00 and her monthly
deductions per month are as follows:-
PAYE K1 500.00, pension fund K500.00. Calculate her monthly gross
pay.
A K8 000.00
B K10 000.00
C K11 500.00
D K12 000.00
74 The buying of shares is a good example of ...
A bonds.
B budgeting.
C investment.
D saving.

75 The Financial Institution that is specifically formed to buy and sell

foreign currency to members of the public is know as ...
A Building Society.
B Bureau de Change.
C Commercial Bank.
D Central Bank.

15 © Mr 6points
76 The postal service that allows one to send small amounts of money in
fixed denomination is called ...
A money transfer.
B money order.
C postal orders.
D electronic transfer.

77 What do the letters “RTS” stand for?

A Return to supllier
B Return to sender
C Return to seller
D Refer to sender

78 Chulu is in charge of sensitising people about the goods produced by

the business. Which department does Chulu belong to?
A Purchasing
B Production
C Marketing
D Human Resource

79 Inambao wants to start running his own business but does not have
enough money to do so. How can Inambao finance his business?
A Leasing of assests
B Issuing of bonds
C Issuing of shares
D Issuing of stock

80 Three of the following are required documents during company

formation. Which one is not?
A Articles of Association
B Memorandum of Association
C Partnership deed
D Trading certificate

16 © Mr 6points
81 The type of an office which has more than one person in a room is
called ... office.
A virtue
B open.
C crossed
D closed
82 The filing equipment which allows files to be kept side by side is known
as ... filing cabinet.
A box
B horizontal
C lateral
D vertical
83 Which type of business offers training to its members?
A Company
B Co-operate
C Partnership
D Sole trader
84 A business may be closed off because of ...
A bankruptcy.
B competitors.
C investment.
D solvency
85 Paper clips are used for ...
A keeping papers together permanently.
B keeping papers together temporarily.
C separating papers permanently.
D separating papers temporarily.
86 An exchange of goods for goods is known as ... transaction.
A barter
B bank
C cash
D credit

17 © Mr 6points
87 The business document that shows pictures, prices and terms of
payment of goods for sale is known as ...
A a quotation.
B an inquiry.
C an estimate.
D a catalogue.

88 The source document that is used to start the accounting process in

both books of the buyer and seller is known as ...
A an invoice.
B a debit note.
C a credit note.
D a cheque.

89 Goods sold on credit are first recorded in the ...

A Cash Book.
B General Journal.
C Purchases Journal.
D Sales Journal.

90 The Sales Account is an example of ... Account.

A Nominal and Personal
B Nominal
C Personal
D Real

91 The type of Ledger in which Real and Nominal Accounts are recorded
is called ... Ledger.
A Sales
B Purchases
C General
D Creditors

18 © Mr 6points
92 On 31st December, 2017, the cost of Fixed Assets was K2 000.00.
Current Assets were valued at K2 000.00 and current liabilties were
K1 200.00. Calculate the value of working capital.
A K800.00
B K1 200.00
C K3 000.00.
D K3 200.00

93 Mwangala’s net pay is K10 500.00, her total deductions are K2 500.00
while her total allowances are K1 500.00. Calculate her gross pay.
A K14 500.00
B K13 000.00
C K12 000.00
D K11 500.00

94 The process of putting money aside for purposes of getting more

financial gain is called ...
A investment.
B dividend.
C budgeting.
D bonds.

95 A ... Account is a high interest earning account.

A Current
B Deposit
C Save as you earn
D Savings

96 A message sent by means of telephone is called ...

A email.
B fax.
C phonogram.
D telex.

19 © Mr 6points
97 What do the letters FIFO stand for?
A First in First Offer
B First in First Opened
C First in First Order
D First in First Out

98 Manda ensures that the right quality and quantity of goods are
maintanied in the business at a low cost. Which department is in
charge of this?
A Stores Department
B Purchases Department
C Production Department
D Maintenance Department

99 Which of the following statements describe the functions of a business

plan?
(i) Helps in training of employees of the business
(ii) Shows what type of business to set up
(iii) Helps in motivating employess of the business
(iv) Helps to check on the progress of the business
A (i) and (ii)
B (ii) and (iv)
C (iv) and (i)
D (iv) and (iii)

100 The Accountant of the company usually sends the company Cashier to
deposit cash and cheques received from customers. Which document
does the Cashier use?...
A Cheque book
B Pay slip
C Pay in slip
D Withdraw slip

20 © Mr 6points
 SUGGESTED ANSWERS
1 A 16 D 31 A 46 D

2 A 17 A 32 A 47 C

3 A 18 D 33 B 48 A

4 C 19 B 34 B 49 D

5 C 20 B 35 A 50 B

6 B 21 D 36 D 51 C

7 B 22 B 37 C 52 B

8 D 23 C 38 B 53 A

9 A 24 D 39 D 54 D

10 C 25 C 40 D 55 A

11 B 26 A 41 A 56 D

12 A 27 A 42 B 57 A

13 D 28 C 43 C 58 D

14 C 29 C 44 C 59 A

15 D 30 A 45 B 60 B

21 © Mr 6points
 SUGGESTED ANSWERS
61 C 76 C 91 C

62 B 77 B 92 A

63 D 78 C 93 C

64 A 79 A 94 A

65 D 80 D 95 D

66 D 81 B 96 C

67 D 82 C 97 D

68 A 83 B 98 C

69 C 84 A 99 B

70 B 85 B 100 C

71 B 86 A

72 D 87 D

73 B 88 A

74 C 89 D

75 B 90 B

22 © Mr 6points
 PART 2 : SECTION B QUESTIONS
Use the provided word list to answer the questions that follow:

WORD LIST:
Sales Department, Production Department, Accounts Department,
Procurement Department, Reliability, Courtesy, Loyalty, Punctuality.

(1) (i) Which department is in charge of preparing the budgets, forecasts

and statistics of the business.

(ii) The acceptable behaviour in an office that demands that workers

should work with minimum supervision and should have proper
knowledge of the work they do is...

WORD LIST:
Conference call, Courier service, Alarm call, Data post, Business Reply
Service, Philately.

(2) (i) A service that enables members of the public to reply to letters
without having to pay for a stamp is ...

(ii) A call made by the operator to wake up or remind someone of an

activity is ...

WORD LIST
Production Department, Attitude, Loyalty, Etiquette, Maintenance
Department

(3) (i) Mr Mambwe is a mechanical engineer at K. M. Company Limited.

To which department does he belong?

(ii) Socially acceptable formal relations or behaviour among employees

in a work place is termed as ...
23 © Mr 6points
WORD LIST:
Time card, flat rate, wage sheet, time rate, payslip, bonus rate, statutory
deduction, commission rate.

(4) (i) An employee is paid a fixed sum of money per each hour that is
worked.

(ii) This is based on the principle that any extra output should be
shared between the worker and the employer.

(iii) This is when an employee is paid a fixed agreed sum of money

for a week, month or a year.

(iv) This is an allowance given to an agent who does work on behalf

of someone.

WORD LIST:
Shares, Guide, Books, Bonds, Control measure, Transparency.

(5) (i) A budget acts as a ... on what and when to spend in an organisation.

(ii) The budget acts as a ... in limiting on unnecessary expenditure

in an oganisation.

(iii) A budget promotes ... to enhance openness and honesty in the

manner finances in an organisation are being spent.

WORD LIST
Registred mail, Recorded Delivery, Airmail, Railex, Mobile phone, internet,
Telephone, Facsimile.

(6) (i) ... is mail used when sending valuable items such as certificates,
Jewellery or cheques.

24 © Mr 6points
 (ii) The global system of interconnected computer networks that
interchange data is called ...

WORD LIST
Courier Service, Data Post, Postal Order, Money Order, Express Mail.

(7) (i) Musonda usually sends large sums of money to her mother in the
village by filling in a special form obtained from the Post Office.
Which Postal service does she use?

(ii) Which Postal Service does Mutinta use to deliver mail or packages
in the quickest possible way?

WORD LIST
Telex, Cash on Delivery, Internet, Poste Restante

(8) (i) Which service allows visitors to collect the mail in person while
in a different town?

(ii) Which service allows a customer to pay for goods upon collection?

(9) Arrange the following names in alphabetical order.

(i) Mrs Angels Mwelwa
(ii) Professor C.K Maluba
(iii) Catherine Kangwa
(iv) Dr Allan Banda

(10) Arrange the following names alphabetically.

(i) Sonalaji M.J.
(ii) Gondwe L.N.
(iii) Chikumbutso V.J.
(iv) Richarda A.

25 © Mr 6points
(11) Arrange the following items in numerical order:
(i) 13764165 - IT
(ii) 22116035 - BC
(iii) 10698147 - CA
(iv) 13774166 - BD

(12) Arrange the following items in numerical order:

EXAM NO. NAME
(i) 20173978 (i) Chiyaze Peter
(ii) 20173128 (ii) Hanzala Maureen
(iii) 20176204 (iii) Mwape Allan
(iv) 20172014 (iv) Kaumba Jane

(13) Arrange the following items in chronological order:

Name of child Date of birth
(i) Moonga Nelson (i) 20 June, 2017
(ii) Nyambe James (ii) 1 October, 2017
(iii) Sakala Alice (iii) 24 March, 2017
(iv) Zyambo Mercy (iv) 4 August, 2017

Match the items in A with those in B using Roman numerals.

(14) Column A Column B

(i) Keeping of finaces in the (i) Goal setting
house other than the bank

(ii) Restricting expenditure to (ii) Traditional methods

what is necessary only

(iii) An outline of what the business (iii) Control measure

wants to achieve at the end of
the activity.

26 © Mr 6points
(15) Book of Original Entry Source document
A B
(i) Sales Day Book (i) Original Credit Note

(ii) Purchases Returns Journal (ii) Cheque Counterfoil

(iii) Cash Book (Bank coulumn) (iii) Copy invoice

(16) Group A Group B

(i) Payment according to the amount (i) Time Rate
of work done.

(ii) Fixed payment plus all allowances (ii) Normal time

(iii) Fixed payment according to hours

worked. (iii) Piece rate

(iv) Number of hours that a worker is (iv) Gross salary

contracted to work per week.

(17) Column A Column B

(i) Maintenance Department (i) Organising and storing
of all business
documents and records

(ii) Adminstration Department (ii) Advising on repairing

and replacement of
equipment.

(iii) Legal department (iii) Making sure that

suppliers deliver
the current
quantities of goods.

27 © Mr 6points
 (iv) Purchasing Department (iv) Advising organisations
on procedures of dealing
with internal and external
misunderstanding.

(18) State whether the following are “True or False”.

(i) Railex refers to mail sent by train.

(ii) Facsimile is used for sending only typed work from one location
to another.

(iii) Exchange of 5 goats for 1 cow is a Barter Transaction.

(iv) Receiving a cheque from Peggy for payment for goods sold
to her is a Credit transaction.

(v) A business plan is used for sourcing loans from lending institutions.

(vi) A business plan helps to start up the business.

(vii) A company is not required to submit the Memorandum of Association

to the Registrar of Companies before registering the business.

(viii) A partnership business is required to submit an Airtcle of Association

to the Registrar of Companies.

(ix) An entrepreneur is not a risk taker.

(x) Late - coming is one of the acceptable office etiquettes expected

from a worker.

28 © Mr 6points
(19) Study the document below and answer the questions that follow:

Discount

(i) How many books were ordered.

(ii) Calculate the value of books ordered.

(iii) If a buyer was given a discount, how much is he supposed to pay?

(20) The following Ledger Account appears in the books of Mwila Kabanda.

29 © Mr 6points
 (i) What was the balance (a) on September 30, 2021?

(ii) In which ledger would Mbaza’s appear?

(iii) What were the totals (b) on Mbaza’s Account?

(21) The following Account appeared in L. Hamooya’s Ledger in the month

of December, 2014

(i) Is Binga a Debtor or Creditor?

(ii) Calculate the missing figure of ‘Returns inward’ on December

20, 2014, in (a).

(iii) What are the totals for Binga’s Ledger Account in (b)?

(iv) In which ledger would Binga’s Account be found?

30 © Mr 6points
(22) Study the document below and answer the questions that follow:
Statement of Account

(i) How much was the closing balance on 6/05/09 (a).

(ii) How much was the balance on 20/05/09 (b).

(iii) Calculate the value of the credit entry (c).

(23) Study the diagram below and answer the questions that follow:

(i) Identify the Drawer and Drawee in the diagram above.

31 © Mr 6points
(24) Study the document below and answer the questions that follow:

(i) What is the unit price for the reams of paper?

(ii) Calculate the quantity of the box files?

(iii) What is the total amount for the reams of paper and the
box files?

(25) Study the diagram below and answer the questions that follow:

(i) Identify the parties to the cheque above.

(ii) The following is a bank statement for the month of June 2015.
32 © Mr 6points
 Calculate the bank balances on the 10th and 15th of June 2015.

(26) Banda Dalitso an Accountant holder with BML Bank, paid K3 500.00
on 7th February 2017 to Mudenda Joshua for goods supplied.
Required to:
Fill in a cheque

(27) George Phiri bought 100 tins of Milo at K24.00 each, paying by cheque
No. 0000471. Money was received by C. Bwembya on 3rd February,
2018.
Required to:
Fill in the receipt.

(28) Richard Zuze, whose bank account number is 004151, withdrew two
thousand five hundred kwacha from the bank on 25th June, 2017
Required to:
Fill in a withdraw slip.

(29) Nchimunya, a procurement Officer for J.M. Company Limited of Mongu,

wishes to buy 20 camp chairs at K120.00 each from Munalula General
Dealers of Kaoma. The document was prepared on 24th April, 2017.
Required to:
Fill in an order form.

33 © Mr 6points
(30) On 10 March, 2017, a customer went into JMK Stores to buy 1 bag of
mealie meal at K100.00 and a 5 litre container of cooking oil at K90.00.
The customer gave the store cashier a K200.00 to settle the bill for the
two items at 14:30 hours.
Required to:
Fill in a Cash Sales Slip.

(31) Cephas Zimba, a Savings Account holder of account number 06451

requested for a debit card for the newly opened account at Bank WXZ,
Solwezi Branch.The card was issued on 1st April, 2015 and would expire
on 31st March, 2020.
Required to:
Fill in the details on the Debit Card.

(32) Draw a withdraw slip and fill in the information given below.

Name of Account holder - Mr Gondwe Sydney

Account to be withdrawn - K 500

Use the current date

Account number - 02004102

(33) (i) Use the following information to prepare Mwitwa’s budget for the
month of July 2017.
K
Income 10 200.00
Groceries 1 200.00
Cleaning expenses 3 500.00
Stationery 1 500.00

(ii) Give any example through which Mwitwa can save her money.

34 © Mr 6points
(34) Match the items in Group A with those in Group B
Account Name Heading
A B

(i) Mr 6points Ltd Account (i) Nominal

(ii) Furniture Account (ii) Personal
(iii) Depreciation Account (iii) Real

(35) What does the abbreviation “Chq” stand for ...

(36) Classify the following Accounts under the correct heading (Real,
Nominal and Personal).
(i) Mwiinga Investment Company Account.
(ii) Office Furniture Account.
(iii) Motor Expenses Account.

(37) Classify the following Financial instituitions under the correct heading

S/N Financial Instituition Commercial Bank Central Bank

(i) Indo Zambia Bank

(ii) Bank of Zambia
(iii) Finance bank

(38) Classify the following into voluntary or statutory deductions.

(i) Loan repayments
(ii) Pension contributions
(iii) Pay As You Earn (PAYE)
(v) Club subscriptions

35 © Mr 6points
(39) What do the letters C.C stand for?

(40) Classify the following items into Real, Personal or Nominal Accounts.
(i) Motor Expenses Account.
(ii) Zesco Limited Account.
(iii) Fixtures and Fittings.
(iv) Malakata’s Account.

(41) Njekwa gets K4 650 per month, he spends 3 (three quarters) of his
4
total salary per month. How much is his total budget of expenses
per month.

(42) Classify the following accounts accounts under the correct heading
(Real, Nominal and personal).
(i) Wages Account
(ii) Machinery Account
(iii) Fred Chikwanda’s Account
(iv) Cash Account

(43) Complete the table below.

S/N Transaction Account to be Account to be
Debited Credited

(i) Bought goods and

paid by cheque.
(ii) Sold goods on
credit to C. Chanda
(iii) Withdraw cash from
the bank for private
use.
(iv) J. Zulu returned
goods to us.

36 © Mr 6points
(44) (a) Explain any three desirable business ethics.
(b) (i) Mention any two reason why budgeting is nesessary.

(ii) From the fowing information, prepare the budget for Bwale,
for the month of June 2015:
Income Expenses

Salary K3,500 Groceries and food K4,000

Rent received K2,200 Transport K300

(45) AMB Company employs two types of workers, they are paid by
either a wage or a salary. Explain the meaning of the following:
(i) A wage
(ii) A salary

(46) What type of business transactions are shown below?

(i) Buying of goods using an ATM card.
(ii) Selling a car and receiving payment after a week.

(47) What does the abbreviation B.O.D stand for?

(48) Classify the following accounts under the correct heading (Nominal,
Real and personal)
(i) Mwango and Sons Account
(ii) Light and Heating Account
(iii) Plant and Machinery Account
(iv) Delivery Expenses Account

(49) Using the following information, prepare Nchimunya’s Account, a

Debtor to the business for the month of September, 2017.
September 1 Balance brought forward K800.00
September 4 Sold goods on credit K1 000.00
September 20 Received a cheque worth K1 500.00
37 © Mr 6points
(50) Describes the following qualities of a good Entrepreneur.
(i) Self confidence.
(ii) Open minded and flexible.
(iii) Passionate

(51) (a) What is a National Budget?

(b) Use the following information to prepare a budget for Bunda, for
the month of August, 2017.

Monthly salary 10 500.00

Gift from a friend 2 250.00
Lighting and heating expense 1 000.00
Food and transport 6 500.00

(52) Naymbe wishes to withdraw cash from the bank at midnight, to solve
an emergency issue. Which banking service would Nyambe use?

(53) From the following deductions on Natasha’s pay-slip identify the

statutory deductions.
(i) Pension contributions
(ii) Lay bye payments
(iii) Personal levy
(iv) Pay as You Earn
(v) Standing Order - water bills
(vi) Insurance premiums
(vii) National Pension Scheme Authority (NAPSA)

(54) What type of business transactions are shown below?

(i) Payment of workers salary using credit transfer.

(ii) Payment made for five chairs after 1 month.

38 © Mr 6points
(55) Classify the following accounts into Real, Personal or Nominal Accounts.

(i) Sales Account

(ii) Purchases Account

(iii) Car Account

(iv) ABZ Crafts Limited Account

(56) List at least five parts of a Business Plan.

(57) Complete the table below.

S/N Transaction Account to be Account to be

Debited Credited

(i) Paid E Banda by

cheque.
(ii) Sold goods by cash

(iii) Bought motor van

on credit from M.K
Motors Limited.

(iv) Paid cash into bank

39 © Mr 6points
 SECTION B ANSWERS
(1) (i) Accounts Department (ii) Reliability

(2) (i) Business Reply Service (ii) Alarm call

(3) (i) Maintenance Department (ii) Etiquette

(4) (i) Time rate (ii) Bonus rate

(iii) Flat rate (iv) Commission rate

(5) (i) Guide (ii) Control measure

(iii) Transparency

(6) (i) Recorded Delivery (ii) Internet

(7) (i) Money Order (ii) Courier Service

(8) (i) Recorded Delivery (ii) Cash on Delivery

(9) (i) Dr Allan Banda

(ii) Catherine Kangwa
(iii) Professor C.K Maluba
(iv) Mrs Angels Mwelwa

(10) (i) Chikumbutso V.J

(ii) Gondwe L.N.
(iii) Richarda A.
(iv) Sonalaji M.J.

40 © Mr 6points
(11) (i) 10,698,147 - CA
(ii) 13,764,165 - IT
(iii) 13,774,166 - BD
(iv) 22,116,035 - BC

(12) (i) 20172014 Kaumba Jane

(ii) 20173128 Hanzala Maureen
(iii) 20173978 Chiyaze Peter
(iv) 20176204 Mwape Allan

(13) (i) 24th March, 2017 Sakala Alice

(ii) 20th June, 2017 Moonga Nelson
(iii) 4th August, 2017 Zyambo Mercy
(iv) 1st October, 2017 Nyambe James

(14) i ii
ii iii
iii i

(15) i iii
ii i
iii ii

(16) i iii
ii iv
iii i
iv ii

(17) i ii
ii i
iii iv
iv iii

41 © Mr 6points
(18) (i) True (ii) True (iii) True (iv) False (v) True

(vi)True (vii) False (viii) True (ix) False (x) False

(19) (i) 70 books

(ii) K100 + K500 = K600
(iii) K600 - K60 = K540

(20) (i) K850

(ii) Sales Ledger
(iii) 2700

(21) (i) Debtor

(ii) K5 570
(iii) K48 610
(iv) Sales Ledger

(22) (i) K2 950.00

(ii) K2 100.00
(iii) K680.00

(23) Drawee - Maddi Bank Zambia Limited

Drawer - L Mweetwa

(24) (i) K85

(ii) 20 boxes
(iii) K8,620

(25) Payee - Mapalo Goodson

Drawer - E Daka
Drawee - XYZ Bnak Ltd

Balance on 10th - K18 000

Balance on 15th - K16 500
42 © Mr 6points
(26) Cheque

(27) Receipt

(28) Withdraw slip

43 © Mr 6points
(29) Order

(30) Cash Sales Slip

(31) Debit Card

44 © Mr 6points
(32) Withdraw Slip

(33) (i) Mwitwa’s Budget

(ii) By Opening a Personal Bank Account or using Traditional methods.

45 © Mr 6points
(34) (i) Personal Account
(ii) Real Account
(iii) Nominal Account

(35) Cheque

(36) (i) Personal Account

(ii) Real Account
(iii) Nominal Account

(37) (i) Commercial Bank

(ii) Central Bank
(iii) Commercial Bank

(38) (i) Voluntary deduction

(ii) Statutory deduction
(iii) Statutory deduction
(iv) Voluntary deduction

(39) Carbon Copy

(40) (i) Nominal Account

(ii) Personal Account
(iii) Real Account
(iv) Personal Account

(41) K3,487.5

(42) (i) Nominal Account

(ii) Real Account
(iii) Personal Account
(iv) Real Account

46 © Mr 6points
(43) Account debited Account Credited
(i) Purchases Bank
(ii) C.Chanda Sales
(iii) Cash Bank
(iv) Sales J. Zulu

(44) (a) - Integrity : Adherence to laws and regulations of the business.

- Honesty : Truthful in all business dealings.
- Law Abiding: Abide by laws, rules and regulations relating to
business activities.
- Courtesy: Display of good manners in all aspects of the business.

(b)(i) - Allocation of resources

- Control measure
- Performance evaluation
- Used as a guide

(ii) Bwale’s Budget

(45) (i) A wage is a payment for work done. It is earned by unskilled workers.

(ii) A salary is a fixed amount of money paid to skilled workers every

month.

47 © Mr 6points
(46) (i) Bank transaction
(ii) Credit Transaction

(47) Board of Directors

(48) (i) Personal Account

(ii) Nominal Account
(iii) Real Account
(iv) Nominal Account

(49) Nchimunya’s Account

(50) (i) Self-confidence - One must believe in themselves to achieve the

desired goals and objectives.

(ii) Open minded and flexiblilty - One should be able to receive advice
and be able to decide what type of adivce to take seriously. One
should be flexible or willing to change their decisions given the
circumstances.

(iii) Passionate - One must love and be committed to the business.

(51) (a) National Budget - This is a plan prepared every financial year showing
a governments projected income and expenditure.

48 © Mr 6points
 (b) Bunda’s Budget

(52) Automated Teller Machine (ATM)

(53) (i) Pension contribution

(ii) Personal levy
(iii) Pay as you earn
(iv) National Pensions Schemes Authority (NAPSA)

(54) (i) Bank Transaction

(ii) Credit Transaction

(55) (i) Nominal Account

(ii) Nominal Account
(iii) Real Account
(iv) Personal Account
(56) - Executive Summary - Revenue Projections - Business Objectives
- Market Analysis - Company Summary - Type of Business

(57) Account debited Account Credited

(i) E. Banda Bank
(ii) Cash Sales
(iii) Motor Van M.K. Motors
(iv) Bank Cash

49 © Mr 6points
 PART 3 : SECTION C QUESTIONS
BOOKS
(1) Prepare a Sales Journal for Kasutu Shinka from the invoices on 31st July,
2012.
July 2012.
2 Sold on credit to Gemba the following:
4 cases of milk at K35.00 each
15 crates of soft drinks at K96.00 each
12 pockets of potatoes at K30.00 each
6 boxes of boom at K65.00 per box
8 containers of 5 litres cooking oil at K65.00 each
All were subject to 20% Trade Discount

(2) Enter the following information into E. Hamankolo’s cash account for
the month of January, 2014 and balance off the account.

January 1 Started a business with K9 000 cash in hand

January 3 Bought goods for cash K2 000
January 8 Paid rent by cash K1 500
January 10 Sold goods at K3 000 cash
January 17 Paid Sundry Expenses by cash K550
January 25 Cash purchases K1 500
January 31 Bought motor vehicle by cash K2 000

(3) Natasha trades in office machinery and on 1st April 2016, her financial
position was as follows:
K
Freehold land and buildings K2,500
Cash at bank 120
Grade debtors 250
Grade creditors 200
Fixtures and fittings 400
Stock 140
50 © Mr 6points
 Required to:
Enter the above items in Natasha’s Journal Proper, showing the capital
figure as at this date.
(4) Mukuma Enterprise Limited maintains a petty cash book, using the
imprest system. A monthly cash float of K2 500.00 was received on 1st
January, 2018 from the main cashier.
The company made the following payments in the month of January:-
K N
JAN 2 Bought stamps 200.00
10 Paid for a bus fare 220.00
12 Bought envelopes 130.00
13 Paid for taxi fare 140.00
15 Bought toilet disinfectants 120.00
‘ 16 Bought hand sanitizers 180.00
30 Bought reams of paper 600.00
Required to:
Prepare the Petty Cash Book and balance it up using the imprest
system. Use the following analysis columns: Postage, transport,
stationery and cleaning.
(5) The following transactions were available in the books of Simukonda, in
the month of February, 2017:-
K
February 1 Cash in hand 480.00
Cash at bank 150.00
5 Received cash from Moyo less
2% cash discount 250.00
8 Paid for wages by cheque 110.00
10 Paid cash into bank 250.00
20 Cash sales 120.00
28 Paid Bwalya by cheque K10.00,
having already deducted K2.00
cash discount.
Required to:
Prepare Simukonda’s three column Cash Book.
51 © Mr 6points
 BOOKS ANSWERS
(1) KASUTU SHINKA’S SALES JOURNAL

1 440.00

(2) E. HAMANKOLO’S CASH ACCOUNT

52 © Mr 6points
(3) NATASHA’S JOURNAL PROPER

(4) MUKUMA ENTERPRISE LIMITED’S PETTY CASH BOOK

53 © Mr 6points
(5) SIMUKONDA’S THREE COLUMN CASH BOOK

54 © Mr 6points
 TRIAL BALANCE
(1) The following information was extracted from the books of Kazawala .J
You are required to prepare a Trial Balance as at 30th September, 2018
K
Capital 7 000
Sales 870
Wages 840
Purchases 46
Fixtures 500
Creditors 584
Debtors 95
Motor Van 4 000
Stationery 225
General expenses 1 400
Rent and rates 350
Heating and Lighting 550
Drawings 504
Stock 140
Returns outwards 500
Returns inwards 304

(2) The following information was extracted from the books of N. Tembo
on 30th November, 2017.
K N
Sales 11 800.00
Machinery 15 400.00
Debtors 4 200.00
Creditors 6 200.00
Insurance 8 000.00
Carriage outwards 5 000.00
Purchases 2 500.00
Capital 10 000.00
Bank overdraft 7 100.00

55 © Mr 6points
 Required:
Prepare Tembo’s Trial balance showing the correct heading.

(3) The following Trial Balance was extracted by Hampeyo on 31st December,
2014, failed to agree.
Trail balance as at 31st December, 2014’

Required
Re-draft a corrected version of Hampeyo’s Trial Balance as at 31st
December, 2014.

(4) The following Trial Balance was extracted by an inexperienced Book-

keeper on 31st October, 2017.
TRIAL BALANCE AS AT 31st OCTOBER, 2017

56 © Mr 6points
 Required:
Re-draft the Trial Balance correctly. Show the correct details and date.

(5) The following trial Balance was taken from the books of Z.Temba, an
incomplete Bookkeper, on 31st December, 2014.

TRIAL BALANCE AS AT 31st DECEMBER, 2014

Required:
Re draft the Trial Balance correctly.

57 © Mr 6points
 TRIAL BALANCE ANSWERS
(1) KAZAWALA .J’S TRIAL BALANCE AS AT 30th SEPTEMBER, 2018

(2) N. TEMBO’S TRIAL BALANCE AS AT 30th NOVEMBER, 2017

58 © Mr 6points
(3) HAMPEYO’S TRIAL BALANCE AS AT 31st DECEMBER , 2014

(4) TRIAL BALANCE AS AT 31st OCTOBER, 2017

59 © Mr 6points
(5) Z TEMBA’S TRIAL BALANCE AS AT 31st DECEMBER, 2014.

60 © Mr 6points
 FINAL ACCOUNTS
(1) The following balances were taken from the books of Chibwe Nkandu
as at 30th June, 2015.
K
Stock (30,06,14) 550
Stock (30,06,15) 1,110
Motor vehicles 4,500
Debtors 3,500
Insurance 2,500
Sundry expenses 1,100
Sales 25,042
Purchases 9,568
Furniture 3,790
Stationery expenses 250
Rates 180
Cash at bank 950
Cash in hand 1,095
Returns inwards 190
Returns outwards 107
Creditors 1,600
Carriage outwards 215
Carriage inwards 184
Drawings 1,835
Capital 3,658

Required

(a) Prepare Chibwe Nkandu’s Trading and Profit and Loss Account for the
year ending 30th June, 2015.

(b) Draw up his Balance Sheet as at 30th June, 2015.

61 © Mr 6points
(2) The following balances were taken from the books of Mvunga as at
31st December 2014.
K
Bank loan 1,000
Capital 5,167
Debtors 2,160
Creditors 1,285
Wages and salaries 450
Buildings 1,953
Stock on 31st December, 2014 1,950
Discount Allowed 95
Discount Received 81
Drawings 980
Gross profit 3785
Cash in hand and at Bank 1372
Equipment 549
Commission Received 65
Plant and machinery 1540
Bad debts 64
Carriage outwards 96
Rent received 170
Stationery 127
Advertising expenses 217

You are required to prepare

(a) The profit and Loss Account for the year ending 31 December 2014.

(b) A balance Sheet as at 31 December 2014.

62 © Mr 6points
(3) The following balances were taken from the books of R. Chocha as at
31st December, 2015.
K
Sales 42,830
Purchases 16,740
Stock (01,01,2015) 4,790
Returns inwards 220
Returns outwards 410
Carriage inwards 60
Stock (31.12.2015) 3,030
Carriage outwards 240
Debtors 3,240
Drawings 8,360
Premises 48,000
Buildings 20,500
Wages and salaries 10,310
Loan from ZANACO 6,020
Rent received 640
Avertising 2,180
Bank 3,010
Creditors 2,870
Capital 64,950
Cash in hand 70

Required to prepare:

(a) R.Chocha’s Trading and Profit and Loss Account for the year ending
31st December 2015.

(b) Draw up a Balance Sheet as at 31st December, 2015.

63 © Mr 6points
(4) The following balances were taken from the books of B.Siame on 31st
December, 2017.
K N
Stock (01/01/17) 4 000.00
Stock (31/12/17) 1 500.00
Buildings 3 900.00
Cash in hand 600.00
Creditors 1 100.00
Machinery 4 300.00
Bank overdraft 700.00
Bad debt written off 300.00
Stationery expenses 200.00
Printing expenses 400.00
Sales 8 400.00
Purchases 2 600.00
Purchases returns 600.00
Sales returns 400.00
Advertising 1 200.00
Insurance 800.00
Capital 10 800.00
Rent 500.00
Drawings 1 000.00
Debtors 1 400.00

Required to:

(a) Prepare the Trading, Profit and Loss Account.

(b) Prepare a Balance Sheet.

64 © Mr 6points
(5) The following balances were taken from the books of M Silumbu on
31st December, 2016.
K N
Net profit 11 988.00
Machinery 19 500.00
Stock (31.12.2016) 2 500.00
Debtors 9 300.00
Office equipment 12 650.00
Bank overdraft 1 100.00
Drawings 9 800.00
Creditors 7 250.00
Furniture 16 500.00
Cash in hand 2 438.00
Capital 65 900.00
Fixtures aand fittings 13 550.00

Required to

Draw up the Balance Sheet. Show the correct heading.

65 © Mr 6points
 FINAL ACCOUNTS ANSWERS
(1)(a) CHIBWE NKANDU’S TRADING, PROFIT AND LOSS ACCOUNT FOR
THE YEAR ENDED 30th ,JUNE 2015.

66 © Mr 6points
(b) CHIBWE NKANDU’S BALANCE SHEET AS AT 30th JUNE, 2015.

67 © Mr 6points
(2) (a) MVUNGA’S PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED
31st DECEMBER, 2014.

68 © Mr 6points
(B) MVUNGA’S BALANCE SHEET AS AT 31st DECEMBER, 2014.

69 © Mr 6points
(3) (a) R.CHOLA’S TRADING, PROFIT AND LOSS ACCOUNT FOR THE YEAR
ENDING 31st DECEMBER, 2015.

70 © Mr 6points
(b) R.CHOLA’S BALANCE SHEET AS AT 31st DECEMBER 2015.

71 © Mr 6points
(4) (a) B.SIAME’S TRADING, PROFIT AND LOSS ACCOUNT FOR THE YEAR
ENDED 31st DECEMBER, 2017.

72 © Mr 6points
(b) B.SIAME’S BALANCE SHEET AS AT 31st DECEMBER, 2017.

73 © Mr 6points
(5) M SILUMBU’S BALANCE SHEET AS AT 31st DECEMBER, 2016.

74 © Mr 6points
ALL THE BEST!!

Mr 6points

75 © Mr 6points