Accounting 0452/12 February/March 2022: question paper and mark scheme

Question

What is prepared by a book-keeper? A appropriation account B cash book C income statement D statement of financial position

Question

Which item is an asset? A an amount owing by credit customers B an amount owing to credit suppliers C interest accrued on bank loan D rent received in advance from tenant

Question

Fatima required additional finance for her business and borrowed funds from Ali. This was deposited into the business bank account. How should Fatima record this? account to be debited account to be credited A bank Ali (loan) B bank Ali (trade payable) C Ali (loan) bank D Ali (trade payable) bank

Question

On 1 March, a business owed its suppliers $9500. During March, the following transactions took place. $ goods purchased on credit 10 000 goods returned to suppliers 200 cheques paid to suppliers 8 900 cash discounts received 100 How much did the business owe its suppliers on 31 March? A $800 B $1000 C $10 300 D $10 500

Question

Which document from a supplier reduces the amount owed by a customer? A credit note B debit note C invoice D statement of account

Question

What is recorded in a petty cash book? A all cash transactions B cash purchases and expenses only C purchases of all small value items D small cash transactions

Question

Jacob settled the account of Ahmed, a credit supplier. He made the following entries on the credit side of his cash book. discount cash bank $ $ $ Ahmed 5 195 Which entries did Jacob make on the debit side of Ahmed’s account? $ A bank 195 B bank 200 C bank 195 discount allowed 5 D bank 195 discount received 5

Question

The total of the debit column of a trial balance was more than the total of the credit column. One account balance had been entered in the wrong column. Which one was it? A cash B discount received C drawings D irrecoverable debts

Question

Davi prepared the following journal entry to correct an error. debit credit $ $ Samir 40 Samuel 40 Which error was being corrected? A Cash paid to Samir had been credited to Samuel. B Cash received from Samuel had been debited to Samir. C Goods bought from Samir had been credited to Samuel. D Goods sold to Samir had been debited to Samuel.

Question

A suspense account was opened with a credit balance of $840. Which error caused this? A A cheque for $420 received from a customer was debited to his account. B Discounts allowed, $420, was debited twice in the discounts allowed account. C Goods costing $420, taken by the owner of the business for own use, were credited to his drawings account. D Rent received, $420, was credited twice in the rent receivable account.

Question

A trader calculated her profit for the year at $14 800. The following errors were then discovered. No entry had been made for $200 wages accrued. The insurance expense included a prepayment of $90. What is the correct profit for the year? A $14 510 B $14 690 C $14 910 D $15 090

Question

Jack’s cash book showed an overdrawn balance at bank of $2600. Comparing the cash book with the bank statement, it was discovered that direct debits of $200 had not yet been recorded by Jack. He then updated his cash book. What was the bank balance in Jack’s updated cash book? A $2400 credit B $2400 debit C $2800 credit D $2800 debit

Question

Which item is debited in a sales ledger control account? A cash discount B contra entry C interest on overdue account D provision for doubtful debts

Question

Leroy provided the following information for May. $ May 1 balance owing to credit suppliers 420 31 credit purchases 590 returns to credit suppliers 110 cheques paid to credit suppliers 291 discount received from credit suppliers 9 interest charged by a credit supplier 5 What was the balance on his purchases ledger control account on 1 June? A $595 B $605 C $613 D $623

Question

Which item should be treated as capital expenditure? A the annual depreciation on office premises B the cost of building an office extension C the cost of repairing office equipment D the purchase of a new computer for resale

Question

On the last day of the financial year, Khalid purchased office fittings, $900. This was incorrectly recorded as office expenses, $90. Khalid does not charge depreciation in the year of purchase. What was the effect on the profit for the year? A overstated by $810 B overstated by $990 C understated by $90 D understated by $900

Question

Aggie is a trader. She uses the following methods of depreciation for different types of non-current asset. straight-line at 20% per annum reducing balance at 25% per annum revaluation On 1 January year 1, Aggie purchased small items of equipment costing a total of $2400 and fittings costing $8000. On 31 December year 2, Aggie estimated that the equipment was worth 70% of its original cost. The statement of financial position showed the net book value of equipment as $1680 and fittings as $4800. Which depreciation methods has Aggie used? equipment fittings A reducing balance straight-line B revaluation reducing balance C revaluation straight-line D straight-line revaluation

Question

Abeo prepares financial statements to 31 December each year. Abeo bought machinery for $40 000 on 1 January year 1. He charges depreciation on machinery at 20% per annum using the reducing balance method. Depreciation is charged in the year of purchase but not in the year of disposal. On 1 January year 3, the machinery was sold for $22 000. Which journal entry records the profit or loss on disposal of the machine? debit credit $ $ A disposal of machinery 2000 income statement 2000 B disposal of machinery 3600 income statement 3600 C income statement 2000 disposal of machinery 2000 D income statement 3600 disposal of machinery 3600

Question

Why would a business record the amount owing by a credit customer as an irrecoverable debt? A The customer has gone out of business. B The customer has liquidity problems. C The customer is making a loss. D The customer is not satisfied with the goods.

Question

Anji maintains a provision for doubtful debts at 5% of the trade receivables at the end of each financial year. At the start of the financial year, the trade receivables were $2000. At the end of the financial year, the trade receivables were $4500. Which entry would be made in the income statement for the financial year? A $125 as an expense B $125 as an income C $325 as an expense D $325 as an income

Question

Which businesses do not prepare a trading account section of an income statement? 1 furniture store 2 insurance company 3 newsagent 4 toy shop 5 window-cleaner A 1 and 2 B 2 and 5 C 3 and 4 D 3 and 5

Question

A business provided the following information. $ current assets 25 000 current liabilities 12 000 non-current assets 18 000 non-current liabilities 21 000 What was the capital of the business? A $10 000 B $22 000 C $31 000 D $43 000

Question

A trader bought a machine for use in the business. He paid a part of the cost in cash and agreed to pay the remaining part in 15 months’ time. In addition to the non-current assets, which items in the statement of financial position will increase as a result of this transaction? current current non-current assets liabilities liabilities A B C D

Question

What is the purpose of a partnership appropriation account? A to calculate partners’ salaries B to record partners’ drawings C to show the distribution of profits between partners D to show the movement on partners’ capital accounts

Question

James is a partner in a business. He made a loan to the business and received loan interest. What is the double entry in the books of the partnership for the loan interest James has received? debit credit A bank account James current account B interest on loan account bank account C interest on loan account James current account D James current account bank account

Question

A limited company whose capital consisted of ordinary shares ceased trading and was not able to pay its debts. Which statement is correct? A Shareholders would have to pay a proportion of the debt based on the number of shares owned. B Shareholders would have to pay a proportion of the debt based on the value of shares owned. C Shareholders would have to sell their personal possessions to pay the debts of the company. D Shareholders would lose the money that was paid when the shares were first purchased.

Question

A limited company was formed on 1 June 2021. On that date, the company issued 500 000 $1 shares. Shareholders were asked to pay 60% of the cost immediately, with the remainder being payable by 1 June 2022. By 1 August 2021, all shareholders had paid what was due at that date. What was the share capital of the company on 1 August 2021? called-up capital paid-up capital $ $ A 200 000 300 000 B 300 000 300 000 C 500 000 300 000 D 500 000 500 000

Question

There are 120 members of a sports club. The annual subscription is $60. At the beginning of the year, no members had paid in advance and no members had subscriptions outstanding. At the end of the year, 7 members had not paid and 3 members had paid in advance. Which amount was shown for subscriptions in the income and expenditure account? A $6600 B $6960 C $7200 D $7800

Question

What is shown in a manufacturing account? 1 cost of material consumed 2 purchases of finished goods 3 cost of production 4 cost of sales A 1 and 2 only B 1 and 3 only C 1, 2 and 3 only D 1, 2, 3 and 4

Question

Tarek produced a statement of affairs at 31 December year 1 and at 31 December year 2. During year 2, his long-term loan increased by $3000 and his net current assets decreased by $1000. Depreciation for the year was $500. By how much did the total of Tarek’s capital decrease? A $2500 B $3500 C $4000 D $4500

Question

Wayne provided the following information. $ $ revenue 12 800 opening inventory 1 000 purchases 10 500 11 500 closing inventory 1 600 9 900 gross profit 2 900 What was Wayne’s gross profit margin? A 22.66% B 25.22% C 27.62% D 29.29%

Question

A trader provided the following information for the year ended 31 December. $ total cash and credit purchases of goods for re-sale 150 000 cash purchases of goods for re-sale 17 000 credit purchases of non-current assets 25 000 His trade payables at that date were $8000. What was the trade payables turnover? A 17 days B 20 days C 22 days D 24 days

Question

A trader decided to reduce her level of inventory in order to reduce the storage costs. Sales quantity and selling price were not affected. How did this affect profit for the year and the rate of inventory turnover? profit for rate of inventory the year turnover A decreased decreased B decreased increased C increased decreased D increased increased

Question

Azim and Bashir are both sole traders. They provided the following information. Azim Bashir $ $ profit for the year ended 31 December before interest 17 200 15 000 long-term loan at 31 December – 12 500 capital at 31 December 86 000 25 000 What was Azim’s return on capital employed? A double Bashir’s B half of Bashir’s C one-third of Bashir’s D three times Bashir’s

Question

Stephanie’s major competitor has invested in a new machine for making goods more cheaply. Stephanie knows this will affect her sales but did not record this in her accounting records. Which accounting principle is Stephanie applying? A going concern B materiality C money measurement D prudence