DEPARTMENT FOR CURRICULUM,

LIFELONG LEARNING AND EMPLOYABILITY

Directorate for Learning and Assessment Programmes
Educational Assessment Unit
Annual Examinations for Secondary Schools 2022

YEAR 11 ACCOUNTING TIME: 2 hrs

Name:________________________________________________ Class:_____________

FOR OFFICIAL USE ONLY

MARKS

SECTION A B C D1 D2 D3 TOTAL

MARKS 10 10 35 15 15 15 100

STUDENT’S
MARK
INSTRUCTIONS TO STUDENTS
 ANSWER ALL QUESTIONS.

 THE ORDERLY PRESENTATION OF YOUR WORK IS IMPORTANT.

 CARELESS WORK WOULD BE PENALISED.

 ILLEGIBLE WORK WOULD BE WRITTEN OFF.

 SECTIONS A AND B ARE TO BE ANSWERED ON THE PAPER.

SECTIONS C AND D ARE TO BE ANSWERED ON THE FOOLSCAPS
PROVIDED.

 YOU HAVE TO MAKE THE NECESSARY RULINGS.

Accounting – Year 11 – 2022 Page 1 of 8

SECTION A [10 marks]
ANSWER ALL QUESTIONS IN THIS SECTION
Tick () the correct answer in the space provided. Each question carries
1 mark.

1. An Allowance for Doubtful Debts account is created:

(a) when trade receivables become bankrupt.
(b) to include irrecoverable debts recovered.
2
(c) to write off irrecoverable debts.
(d) to provide for possible irrecoverable debts.

2. Which of the following statements best describes a trial balance?

(a) It shows the profit of a business.
(b) It shows the financial position of a business.
(c) It shows the production cost of goods completed.
(d) It is a list of balances on the books.

3. Which of the following is not a book of prime (original) entry:

(a) General ledger.
(b) Purchases daybook.
(c) Cash book.
(d) Petty cash book.

4. The turnover of a business is €87,000 and mark up percentage is 20%. The

gross profit of the business is:
(a) €17,400.
(b) €14,500.
(c) €15,600.
(d) €18,900.

5. Which of the following best describes non-current assets?

(a) Items having a long life and not bought specifically for resale.
(b) Non-current assets include inventory and trade receivables.
(c) Expensive items bought for the business.
(d) Items having a short life.

6. Which of the following accounts should always have a debit balance, brought
down?
(a) Sales account.
(b) Trade payables account.
(c) Bank loan account
(d) Cash account

Page 2 of 8 Accounting – Year 11 – 2022

 7. Which concept is the underlying basis for double entry accounting system?
(a) Accrual concept.
(b) Consistency concept.
(c) Dual aspect concept.
(d) Going concern concept.

8. Which of the following shows the correct expression for the accounting
equation?
(a) Assets = Liabilities + Capital
(b) Liabilities = Assets - Capital
(c) Capital = Assets - Liabilities
(d) All of the above.

9. A credit balance brought down on the purchases ledger control account

represents:
(a) Total trade receivables.
2

(b) Total trade payables. .

(c) Credit purchases.

(d) Cash purchases.

10. A sales invoice is showing; ten (10) items at €50 each, less trade discount of
10% and cash discount of 2%. If the customer pays within the credit period,
then his/her payment should be:
(a) €€441
(b) €€450
(c) €€490
(d) €440

Accounting – Year 11 – 2022 Page 3 of 8

SECTION B [10 marks]
Write your answer in the space provided.

1. The business owed a trade payable €1,050. The business received a

discount of 6% from this trade payable. If the business paid by
cheque, then the amount that should be shown on the credit side of
the cash book, under the bank column should be:

2. A manufacturing business has the following production expenses:

Royalties €50,000, Factory overheads €140,000, Direct wages
€125,000, Closing inventory of work in progress €24,000 and Cost of
raw materials consumed €85,000. Calculate the prime cost.

3. A business sub-lets some of its premises. Rent received during 2021

was €2300. The tenant owed the business for rent; €300 as at
31 December 2020 and €450 as at 31 December 2021. Calculate
amount of rent receivable to be transferred to the statement of
profit or loss for the year ended 31 December 2021.

4. Find the cost of sales for a business which provides you with the
following information: Purchases Returns €20,500, Carriage In
€8,000, Closing Inventory €23,000, Purchases €250,000, Opening
Inventory €19,000 and Carriage Out €4,500.

5. A trade receivable who owes the firm €550 is also owed €330 by the
firm. The amount of set-off is:

6. A business provides you with the following information about its

assets and liabilities: Non-current assets €245,000, current assets
€87,600, non-current liabilities €100,000 and current liabilities
€23,000. You are required to calculate the business’ working capital.

7. At the beginning of May 2021, the petty cashier received €500 as

petty cash float. During the month €360 of expenses were paid by the
petty cashier. Calculate the amount needed to restore the
imprest.

8. Total costs incurred during the year by a manufacturing firm

totalled €580,000. There were €25,000 worth of works in
progress at the beginning of the year and €45,000 at the end of the
year. If the firm produced 80,000 units, the cost of 1 unit is:

9. A business spent €6,000 on machinery. The amount was used to pay

for: €600 for old machine repair, €550 to make improvements on an
existing machine, €4,500 for new machine, €300 for the installation of
new machine and €50 for the delivery of the new machine. Calculate
the total amount of capital expenditure that was spent on
machinery.

10. A business has two departments; Department A and Department B. It

is decided to apportion rent in proportion of the total floor area
occupied by each department, which is: Department A: two-fifths and
Department B: three-fifths. If the Rent expense for the year is
€8,250, the amount of rent to be apportioned to Department B
is:

Page 4 of 8 Accounting – Year 11 – 2022

SECTION C [35 marks]

Answer this question on the foolscaps provided.

The following trial balance was extracted from the ledger accounts of Charmaine
Grech on 31 December 2021:

Trial Balance as on 31 December 2021

Dr Cr
€ €
Capital (1/1/2021) 227,000
Drawings 14,500
Purchases and Sales 450,000 645,000
Trade receivables 14,800
Trade payables 15,400
Inventory (1/1/2021) 17,000
Returns 1,800 2,670
Carriage on purchases 1,200
Carriage on sales 1,500
Cash 1,550
Bank 22,400
Buildings, at cost 250,000
Office Equipment, at cost 40,000
Motor vehicles, at cost 60,000
Depreciation: Office equipment (1/1/2021) 8,000
Motor vehicles (1/1/2021) 21,600
7% Loan 30,000
Rent receivable 7,500
Discounts 920 600
Allowance for doubtful debts 1,020
Irrecoverable debts recovered 850
Irrecoverable debts 900
Water and electricity 15,070
General administrative expenses 8,550
Advertising 12,500
Communication expenses 14,000
Insurance 8,700
Interest on loan 1,050
Wages and salaries 23,200
959,640 959,640

Notes at 31 December 2021:

(i) The inventory on 31 December 2021 was valued at €18,500.
(ii) Water and electricity bills €480 for the year were still unpaid at the year end.
(iii) The interest on loan is payable every six months. The payment for the six
months ended 31 December 2021 is still due.
(iv) The allowance for doubtful debts is kept at 10% of trade receivables at the end
of the year.
(v) Prepayments comprise; Advertising of €860 and Insurance of €320.

Accounting – Year 11 – 2022 Page 5 of 8

 (vi) Provide for depreciation on non-current assets as follows:
Motor vehicles: 20% reducing balance method
Office equipment: 10% straight line method.

You are required to prepare:

a. The Statement of Profit or Loss for the year ended 31 December 2021.
(20 marks)
b. The Statement of Financial Position as at 31 December 2021.
(15 marks)

SECTION D [45 marks]

Answer all questions in this section on foolscaps provided. Each question
carries 15 marks.

1. Maria Borg did not keep proper books of accounts for her business. Her business
capital at 1 January 2021 was €250,000. The following information shows the
business’ records for the year ended 31 December 2021:
€
Premises 260,000
Office equipment 20,000
Trade receivables 15,500
Trade payables 13,400
Bank overdraft 1,600
Insurance prepaid 560
Inventory 8,460

During the year, Maria Borg paid private expenses of €1,500 out of the business bank
account. She had taken drawings in cash amounting to €8,300 and inventory valued
€600. Maria introduced a further €18,000 in her business.

Required
a. Calculate the business’ capital at 31 December 2021. (9 marks)
b. Calculate the business’ profit for the year ended 31 December 2021. (6 marks)

Page 6 of 8 Accounting – Year 11 – 2022

 2. The following is the cash book summary (bank column only) of Jessica Cassar for
the month of March 2022:

Cash Book
2022 € 2022 €
Mar 1 Balance b/d 8,100 Mar 8 Communication expenses 800
Mar 6 P.Cilia 1,840 Mar 10 Water and electricity 320
Mar 18 R. Grima 2,530 Mar 13 Salaries 6,000
Mar 26 J. Gatt 230 Mar 21 J. Borg 480
Mar 23 J. Xuereb 140
Mar 28 C. Gauci 610
Mar 31 Balance c/d 4,350
12,700 12,700

Bank Statement
2022 Debit Credit Balance
€ € €
Mar 1 Balance b/f 8,100 CR
Mar 8 Deposits 1,840 9,940 CR
Mar 10 Cheque (Communication expenses) 800 9,140 CR
Mar 12 Cheque (Water and Electricity) 320 8,820 CR
Mar 14 Cheque (Salaries) 6,000 2,820 CR
Mar 18 Standing order: P. Cassar Ltd 80 2,740 CR
Mar 28 Direct debit: IRD 150 2,590 CR
Mar 29 Cheque (C. Gauci) 610 ?
Mar 30 Credit transfer: P. Zammit 120 ?
Mar 31 Bank charges 20 ?

Required:
a. Update the cash book as at 31 March 2022. (6 marks)
b. Calculate the missing bank balance in the bank statement as on 31 March
2022, indicating if it is a credit (CR) or debit (DR) balance. (3 marks)
c. Prepare a bank reconciliation statement for the month of March 2022, starting
with balance as per updated cash book. (6 marks)

Accounting – Year 11 – 2022 Page 7 of 8

3. The following information relates to Altavita Ltd for the years ending 2020 and
2021:
2020 2021
€ €
Sales 300,000 400,000
Net profit 60,000 100,000
Inventory 25,000 45,000
Capital employed 500,000 625,000
Current assets (including inventory) 150,000 180,000
Current liabilities 100,000 225,000

Required:
a. Write down the formula which is used to calculate the capital employed and hence
find the non-current assets of Altavita Ltd. for the years 2020 and 2021.
(3 marks)
b. Calculate the following ratios for the years 2020 and 2021:
i. Net profit as a percentage of sales.
ii. Return on capital employed (ROCE).
iii. Current ratio.
iv. Acid test ratio. (8 marks)
c. By comparing the results obtained in question (b), for years 2020 and 2021,
comment on the profitability and liquidity position of Altavita Ltd. (4 marks)

END OF PAPER

Page 8 of 8 Accounting – Year 11 – 2022