Accounting 0452/13 October/November 2022: question paper and mark scheme

Question

Ahmed is a trader. Why should he prepare financial statements? A to apply the principle of business entity B to monitor his business’s performance C to prepare a bank reconciliation statement D to record changes to his personal wealth

Question

Which transaction will increase both assets and capital by the same amount? A A credit customer settled his account after deducting a cash discount. B Goods were sold for cash at a price higher than their cost price. C Rent received included an amount prepaid for the next accounting period. D The owner repaid a business loan from his personal bank account.

Question

Pradip settled Amal’s account by credit transfer and received a cash discount for prompt payment. How did Pradip record this discount? debit credit A Amal discount received B cash discount received C discount allowed Amal D discount allowed cash

Question

Morgan made the following double entry in his ledgers. debit sales returns account credit Sally account Which transaction was being recorded? A goods returned by Morgan to Sally, Morgan’s credit customer B goods returned by Morgan to Sally, Morgan’s credit supplier C goods returned by Sally to Morgan, Sally’s credit customer D goods returned by Sally to Morgan, Sally’s credit supplier

Question

Abdul sells goods to Rekha on credit. Some goods were damaged in transit. Which document would Rekha send to Abdul? A credit note B debit note C invoice D statement of account

Question

Which business documents provide information for writing up the sales journal and the sales returns journal? sales journal sales returns journal A invoices issued credit notes issued B invoices issued credit notes received C invoices received credit notes issued D invoices received credit notes received

Question

On 1 September, Peter sent a cheque to his credit supplier, John. This was correctly entered in John’s books. On 10 September, the cheque was returned unpaid due to lack of funds. Which entries should be made in John’s books on 10 September? account to be debited account to be credited A bank irrecoverable debts B bank Peter C irrecoverable debts bank D Peter bank

Question

What would not be recorded in the ledgers of a business? A cash discount B irrecoverable debts C trade discount D wages accrued

Question

Which errors would be revealed by the preparation of a trial balance? 1 credit purchases, $240, entered as $420 in both the purchases account and the trade payable’s account 2 credit sales entered as $96 in the sales account and $69 in the trade receivable’s account 3 purchase of a motor vehicle, $15 000, entered in the motor vehicle repairs account 4 wages paid, $1050, debited in both the wages account and the bank account A 1 and 2 B 1 and 3 C 2 and 4 only D 2, 3 and 4

Question

Saddique’s trial balance failed to balance. The debit column totalled $12 250 and the credit column totalled $12 200. The following errors were discovered. No entry had been made for cash sales, $150. The total of the discount received account, $50, had been omitted from the trial balance. What were the totals of the trial balance after the errors had been corrected? A $12 250 B $12 300 C $12 350 D $12 400

Question

Jacob purchased a motor vehicle for business use on credit from Waheed for $20 000. This was not recorded in Jacob’s books. Which journal entry would correct this error in Jacob’s books? debit credit $ $ A Jacob 20 000 motor vehicles 20 000 B motor vehicles 20 000 Jacob 20 000 C motor vehicles 20 000 Waheed 20 000 D Waheed 20 000 motor vehicles 20 000

Question

After the preparation of her income statement, Emma discovered the following errors. A debt, $1500, should have been written off as irrecoverable. No adjustment had been made for rent prepaid by Emma of $2800. The draft profit for the year was $35 000. What was the corrected profit for the year? A $30 700 B $33 700 C $36 300 D $39 300

Question

Jamal’s bank statement on 1 September 2022 showed a bank overdraft of $1460. At that date there were unpresented cheques of $385 and uncredited deposits of $255. What was the bank balance in the cash book on 1 September 2022? A $1330 credit B $1330 debit C $1590 credit D $1590 debit

Question

A sales ledger control account included the following items. 1 discount allowed 2 dishonoured cheques 3 interest on overdue accounts 4 irrecoverable debts For which of these items was the information obtained from the general journal? A 1 and 2 B 1 and 3 C 2 and 4 D 3 and 4

Question

A sales ledger control account had a debit balance of $4000 on 1 August. During the month of August, credit sales totalled $50 000, sales returns from credit customers were $600 and discounts allowed were $400. The debit balance on the sales ledger control account on 1 September was $6000. What was the total amount received from credit customers in August? A $47 000 B $47 800 C $48 200 D $49 000

Question

Manjit depreciates her motor vehicles by $1000 at the end of each financial year. Which journal entry would Manjit make at the end of each financial year? debit credit $ $ A income statement 1000 provision for depreciation of motor vehicles 1000 B motor vehicles 1000 provision for depreciation of motor vehicles 1000 C provision for depreciation of motor vehicles 1000 income statement 1000 D provision for depreciation of motor vehicles 1000 motor vehicles 1000

Question

On the first day of his financial year, Jason purchased a new machine costing $20 000. On that date his old machine had a book value of $6000. Jason was allowed $4500 for the old machine in part exchange. He paid the balance by cheque. Machinery is depreciated at 20% per annum. How much should be charged to Jason's income statement for the year? A $1500 B $2500 C $4000 D $5500

Question

A trader provided the following information about his inventory at the end of his financial year. total number of units 500 cost price of each unit $4 net realisable value of each unit $6 80 units were damaged and could be sold for $3 per unit. What was the value of the closing inventory? A $1920 B $2000 C $2760 D $2840

Question

For which purposes would a trader use his income statement and statement of financial position? 1 to enable decisions to be made about the performance of the business 2 to show the business bank account balance at a given date 3 to show the financial position of the business at a given date 4 to show whether the business made a profit or a loss in the financial year A 1 and 4 only B 1, 3 and 4 C 2 and 3 only D 2, 3 and 4

Question

What may appear in a partnership appropriation account? A capital and current account balances B interest on drawings and interest on partners’ loans C partners’ salaries, drawings and profit for the year D partners’ salaries, interest on capital and profit shares

Question

Anne and Paul are in partnership. How would interest on Anne’s capital be recorded in the ledger accounts of the partnership? A credited to Anne’s capital account B debited to Anne’s capital account C credited to Anne’s current account D debited to Anne’s current account

Question

Which statement about the members of a limited company is correct? A Their liability is limited to the total of their investment in the company. B Their liability is limited to the total of their personal assets. C They are not liable for the debts of the company. D They have unlimited liability for the debts of the company.

Question

A limited company provided the following information. $ non-current assets 35 000 ordinary share capital 40 000 5% debentures 10 000 net current assets 30 000 What were the retained earnings? A $15 000 B $25 000 C $55 000 D $115 000

Question

A limited company raised funds by issuing ordinary shares, preference shares and debentures. Which statements are correct? 1 Debentures are part of the loan capital. 2 Ordinary shares are part of the equity. 3 Ordinary dividend is paid before debenture interest. 4 Preference shares carry a fixed rate of dividend. A 1, 2 and 3 B 1, 2 and 4 C 2, 3 and 4 D 3 and 4 only

Question

The financial year of a club ends on 30 September. During the year ended 30 September 2022, the club received an interest-free loan from a member. In which of the club’s financial statements will this appear? A income and expenditure account and statement of financial position B receipts and payments account and income and expenditure account C receipts and payments account and statement of financial position D statement of financial position only

Question

A cricket club provided the following information. $ at 1 August 2021 balance at bank 950 during the year ended 31 July 2022 net receipts from competition 1050 subscriptions received 2500 general expenses paid 1020 insurance paid 500 rent paid 1800 at 31 July 2022 subscriptions owing by members 120 insurance prepaid 20 depreciation of equipment 260 What was the balance at bank on 31 July 2022? A $920 B $1180 C $1200 D $1300

Question

A club had an accumulated fund at the start of the year of $18 000 and at the end of the year of $16 200. New equipment costing $1100 was bought during the year. Total expenses for the year were $9550. The only income came from subscriptions. How much were subscriptions for the year? A $7750 B $8850 C $11 350 D $12 450

Question

A food processing factory fills cans with vegetables. The filled cans are then sold to shops. Which wages are direct labour costs for the factory? 1 wages paid to workers who load the cans on to lorries for delivery to shops 2 wages paid to workers who operate machines that fill the cans with vegetables 3 wages paid to people working on the maintenance of the machinery in the factory 4 wages paid to people working on the assembly line putting labels on the cans A 1, 2 and 4 B 1 and 3 C 2 and 3 D 2 and 4 only

Question

Thembi manufactures wooden toys. She provided the following information for the financial year ended 31 August 2022. $ prime cost 35 000 factory overheads 17 000 work in progress: opening inventory 1 400 closing inventory 2 300 What was the cost of production of finished goods? A $49 700 B $51 100 C $52 000 D $52 900

Question

Chan provided the following information. 1 October 2021 30 September 2022 $ $ non-current assets 10 000 12 000 inventory 2 500 2 000 trade receivables 1 500 1 300 bank overdraft 800 900 trade payables 1 000 1 900 What was Chan’s profit or loss for the year? A $300 loss B $300 profit C $500 loss D $500 profit

Question

Thabo provided the following information. revenue $250 000 gross margin 20% rate of inventory turnover 5 times What was the average inventory for the year? A $10 000 B $37 500 C $40 000 D $50 000

Question

How can a trader increase her current ratio? A keep inventory at the lowest possible level B obtain a long-term bank loan C reduce the trade receivables turnover D sell goods for cash instead of on credit

Question

The application of which accounting principle makes it easier to compare financial statements year-on-year? A business entity B consistency C duality D going concern

Question

What does the principle of prudence ensure? A Assets are not understated. B Liabilities are not estimated. C Losses are not anticipated. D Profits are not overstated.

Question

Which statement is not correct about reasons for using international accounting standards? A assists when making comparisons between companies B improves the reliability of accounting information C narrows the areas of difference in financial reporting D makes the preparation of financial statements less time-consuming