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ACCOUNTING O-LEVEL
PAPER 2 (TOPICAL & YEARLY)
All Variants (2019-20 edition)
Article# 102

Muhammad Nauman Malik

FCMA, MS Accounting (Gold Medalist), MBA (Finance), DCMA, PIPFA, B.Com (Gold Medalist)
Keynesian Institute of Management & Sciences (KIMS)
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All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted, in
any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior written
permission of the Author.
Cambridge International has not provided these questions or answers and can take no responsibility whatsoever for
their accuracy or suitability for the examinations.

Title Accounting O Level Paper 2 (Topical/Yearly) (Article# 102)

Author Muhammad Nauman Malik

Cell: 0321-8414262, 0300-8414262
E-mail: nauman.kims@gmail.com

Published by Read & Write Publications

Printed by Sadaat Printers Urdu Bazar Lahore

Composed by Sharjeel Khan, Salman Buksh, Hayat, Shahab, Waqas, M. Awais,

Usama Farooq, Ahmar, Awais Ahmad

Title designed by Rashid Mehmood, Khalid Khursheed

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Tel: 042-37236145, Fax: 042-37241367

Edition: 2019-20

Price

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PREFACE

Being in accordance with the GCE O Level – 7110 (syllabus followed in Pakistan), the book provides an opportunity
to strengthen the level of understanding and preparation for Cambridge exams.

The other books available in the market is based on Singaporean exams and does not include exams taken in
Pakistan for November session. Moreover that book includes past papers on yearly basis whereas the book under
review categorises them on topical as well as yearly basis.

In the book under review, the varying topics of the last nine years’ papers have been categorised in such a way that
one can attain optimum skills in each of these. This can be very helpful in revising the syllabus and for preparing
their final exams. In addition, the last five years’ papers at the end of the book provide compact questions with
given references.

It is, however, advised that students must supplement their studies with the textbooks recommended by their
teachers, since it is by no means a replacement for a good book.

I am indeed grateful to the students and the teachers who motivated me to undertake this task. Any further
suggestions for improvement and intimation of errors will be much appreciated and acknowledged.

Muhammad Nauman Malik

Email: nauman.kims@gmail.com
Mob: 0300-8414262
0321-8414262
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TABLE OF CONTENTS (TOPICAL)

PREFACE 3
CHAPTER 1 ACCOUNTING BASICS 16
QUESTION 1 MAY 2014 P22 Q1 (E) ..................................................................................................................... 16
QUESTION 2 MAY 2017 P22 Q1 (E & F) ............................................................................................................... 16
QUESTION 3 MAY 2018 P23 Q1 (C & D) ............................................................................................................... 16
QUESTION 4 NOVEMBER 2018 P22 (A) Q1 (A) ..................................................................................................... 17
CHAPTER 1 SOLUTIONS 18
QUESTION 1 MAY 2014 P22 Q1 (E) ..................................................................................................................... 18
QUESTION 2 MAY 2017 P22 Q1 (E & F) .............................................................................................................. 18
QUESTION 3 MAY 2018 P23 Q1 (C & D) ............................................................................................................... 18
QUESTION 4 NOVEMBER 2018 P22 (A) Q1 (A) ..................................................................................................... 19
CHAPTER 2 BOOKS OF ORIGINAL ENTRY 20
QUESTION 1 MAY 2012 P21 Q1 (A TO C) ............................................................................................................... 20
QUESTION 2 MAY 2012 P22 Q1 (B & C)................................................................................................................ 20
QUESTION 3 NOVEMBER 2011 P22 Q1 (A TO D)................................................................................................... 20
QUESTION 4 NOVEMBER 2012 P21 Q1............................................................................................................... 21
QUESTION 5 NOVEMBER 2012 P22 Q1............................................................................................................... 22
QUESTION 6 MAY 2013 P21 Q1 (A TO E) ............................................................................................................... 22
QUESTION 7 MAY 2013 P21 Q2 (A & B) ............................................................................................................... 22
QUESTION 8 MAY 2013 P22 Q1 (A TO D) .............................................................................................................. 23
QUESTION 9 NOVEMBER 2013 P21 Q1............................................................................................................... 23
QUESTION 10 NOVEMBER 2013 P22 Q1 (A & B) .................................................................................................... 24
QUESTION 11 MAY 2014 P21 Q1 (D TO F) .............................................................................................................. 24
QUESTION 12 MAY 2014 P21 Q2 (A) ..................................................................................................................... 24
QUESTION 13 MAY 2014 P22 Q1 (B TO D) .............................................................................................................. 25
QUESTION 14 NOVEMBER 2014 P21 Q1 (A & B) .................................................................................................... 25
QUESTION 15 NOVEMBER 2014 P22 Q1............................................................................................................... 26
QUESTION 16 MAY 2015 P21 Q1 (C) ..................................................................................................................... 27
QUESTION 17 MAY 2015 P22 Q1 .......................................................................................................................... 27
QUESTION 18 NOVEMBER 2015 P21 Q1 (A TO C) ................................................................................................... 28
QUESTION 19 NOVEMBER 2015 P22 Q1 (C TO F) ................................................................................................... 28
QUESTION 20 MAY 2016 P21 & 22 Q1 .................................................................................................................. 29
QUESTION 21 NOVEMBER 2016 P21 Q1 (A, B & E) ................................................................................................ 29
QUESTION 22 NOVEMBER 2016 P22 Q1 (C) .......................................................................................................... 30
QUESTION 23 NOVEMBER 2016 P22 Q2 (A) .......................................................................................................... 30
QUESTION 24 MAY 2017 P21 & 22 Q1 (A TO C) ..................................................................................................... 30
QUESTION 25 MAY 2017 P22 Q1 (A TO D)............................................................................................................. 31
QUESTION 26 NOVEMBER 2017 P21 Q1............................................................................................................... 31
QUESTION 27 NOVEMBER 2017 P22 Q1............................................................................................................... 32
QUESTION 28 MAY 2018 P22 Q1 (D & E) ............................................................................................................... 33
QUESTION 29 MAY 2018 P23 Q1 (A & B) ............................................................................................................... 33
QUESTION 30 NOVEMBER 2018 P21 Q1............................................................................................................... 34
QUESTION 31 NOVEMBER 2018 P22 Q1 (B TO D) ................................................................................................... 35
QUESTION 32 MAY 2019 P21 Q1 (A TO E) .............................................................................................................. 35
QUESTION 33 MAY 2019 P22 Q1 (A TO C).............................................................................................................. 36
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CHAPTER 2 SOLUTIONS 37
QUESTION 1 MAY 2012 P21 Q1 (A TO C) ............................................................................................................... 37
QUESTION 2 MAY 2012 P22 Q1 (B & C)................................................................................................................ 37
QUESTION 3 NOVEMBER 2011 P22 Q1 (A TO D)................................................................................................... 37
QUESTION 4 NOVEMBER 2012 P21 Q1............................................................................................................... 38
QUESTION 5 NOVEMBER 2012 P22 Q1............................................................................................................... 38
QUESTION 6 MAY 2013 P21 Q1 (A TO E) ............................................................................................................... 39
QUESTION 7 MAY 2013 P21 Q2 (A & B) ............................................................................................................... 39
QUESTION 8 MAY 2013 P22 Q1 (A TO D) .............................................................................................................. 39
QUESTION 9 NOVEMBER 2013 P21 Q1............................................................................................................... 40
QUESTION 10 NOVEMBER 2013 P22 Q1 (A & B) .................................................................................................... 40
QUESTION 11 MAY 2014 P21 Q1 (D TO F) .............................................................................................................. 41
QUESTION 12 MAY 2014 P21 Q2 (A) ..................................................................................................................... 41
QUESTION 13 MAY 2014 P22 Q1 (B TO D) .............................................................................................................. 41
QUESTION 14 NOVEMBER 2014 P21 Q1 (A & B) .................................................................................................... 42
QUESTION 15 NOVEMBER 2014 P22 Q1............................................................................................................... 42
QUESTION 16 MAY 2015 P21 Q1 (C) ..................................................................................................................... 43
QUESTION 17 MAY 2015 P22 Q1 .......................................................................................................................... 43
QUESTION 18 NOVEMBER 2015 P21 Q1 (A TO C) ................................................................................................... 43
QUESTION 19 NOVEMBER 2015 P22 Q1 (C TO F) ................................................................................................... 44
QUESTION 20 MAY 2016 P21 & 22 Q1 .................................................................................................................. 44
QUESTION 21 NOVEMBER 2016 P21 Q1 (A, B & E)" ............................................................................................... 45
QUESTION 22 NOVEMBER 2016 P22 Q1 (C) .......................................................................................................... 45
QUESTION 23 NOVEMBER 2016 P22 Q2 (A) .......................................................................................................... 46
QUESTION 24 MAY 2017 P21 & 22 Q1 (A TO C) ..................................................................................................... 46
QUESTION 25 MAY 2017 P22 Q1 (A TO D)............................................................................................................. 46
QUESTION 26 NOVEMBER 2017 P21 Q1............................................................................................................... 46
QUESTION 27 NOVEMBER 2017 P22 Q1............................................................................................................... 47
QUESTION 28 MAY 2018 P22 Q1 (D & E) ............................................................................................................... 48
QUESTION 29 MAY 2018 P23 Q1 (A & B) ............................................................................................................... 48
QUESTION 30 NOVEMBER 2018 P21 Q1............................................................................................................... 48
QUESTION 31 NOVEMBER 2018 P22 Q1 (B TO D) ................................................................................................... 49
QUESTION 32 MAY 2019 P21 Q1 (A TO E) .............................................................................................................. 50
QUESTION 33 MAY 2019 P22 Q1 (A TO C).............................................................................................................. 50
CHAPTER 3 BANK RECONCILIATION STATEMENTS 52
QUESTION 1 MAY 2014 P21 Q1 (A TO C) ............................................................................................................... 52
QUESTION 2 NOVEMBER 2015 P22 Q1 (A & B) .................................................................................................... 52
QUESTION 3 NOVEMBER 2016 P21 Q1 (C & D)" .................................................................................................. 53
QUESTION 4 MAY 2017 P21 Q1 (D TO F) ............................................................................................................. 53
QUESTION 5 MAY 2018 P22 Q1 (A TO C) .............................................................................................................. 54
QUESTION 6 MAY 2019 P21 Q1 (F) ..................................................................................................................... 54
CHAPTER 3 SOLUTIONS 55
QUESTION 1 MAY 2014 P21 Q1 (A TO C) ............................................................................................................... 55
QUESTION 2 NOVEMBER 2015 P22 Q1 (A & B) .................................................................................................... 55
QUESTION 3 NOVEMBER 2016 P21 Q1 (C & D)" .................................................................................................. 55
QUESTION 4 MAY 2017 P21 Q1 (D TO F) ............................................................................................................. 56
QUESTION 5 MAY 2018 P22 Q1 (A TO C) .............................................................................................................. 56
QUESTION 6 MAY 2019 P21 Q1 (F) ..................................................................................................................... 56
CHAPTER 4 ACCOUNTING CONCEPTS 58
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QUESTION 1 MAY 2012 P22 Q2 (C) ..................................................................................................................... 58

QUESTION 2 NOVEMBER 2013 P21 Q2 (C) .......................................................................................................... 58
QUESTION 3 MAY 2014 P22 Q1 (A) ..................................................................................................................... 58
QUESTION 4 NOVEMBER 2014 P22 Q2 (E) .......................................................................................................... 58
QUESTION 5 MAY 2015 P21 Q4 (D) ..................................................................................................................... 58
QUESTION 6 MAY 2015 P22 Q2 (E) ...................................................................................................................... 59
QUESTION 7 NOVEMBER 2015 P21 Q3 (D).......................................................................................................... 59
QUESTION 8 MAY 2016 P21 & 22 Q2 (H) ............................................................................................................. 59
QUESTION 9 NOVEMBER 2016 P22 Q4 (C) .......................................................................................................... 59
QUESTION 10 MAY 2017 P22 Q2 (D) ................................................................................................................... 59
QUESTION 11 MAY 2017 P22 Q4 (D) .................................................................................................................... 59
QUESTION 12 MAY 2018 P22 Q4 (E) ..................................................................................................................... 60
QUESTION 13 MAY 2018 P23 Q4 (B TO D) .............................................................................................................. 60
QUESTION 14 NOVEMBER 2018 P22 Q3 (D).......................................................................................................... 60
CHAPTER 4 SOLUTIONS 61
QUESTION 1 MAY 2012 P22 Q2 (C) ..................................................................................................................... 61
QUESTION 2 NOVEMBER 2013 P21 Q2 (C) .......................................................................................................... 61
QUESTION 3 MAY 2014 P22 Q1 (A) ..................................................................................................................... 61
QUESTION 4 NOVEMBER 2014 P22 Q2 (E) .......................................................................................................... 61
QUESTION 5 MAY 2015 P21 Q4 (D) ..................................................................................................................... 61
QUESTION 6 MAY 2015 P22 Q2 (E) ...................................................................................................................... 61
QUESTION 7 NOVEMBER 2015 P21 Q3 (D).......................................................................................................... 61
QUESTION 8 MAY 2016 P21 & 22 Q2 (H) ............................................................................................................. 62
QUESTION 9 NOVEMBER 2016 P22 Q4 (C) .......................................................................................................... 62
QUESTION 10 MAY 2017 P22 Q2 (D) ................................................................................................................... 62
QUESTION 11 MAY 2017 P22 Q4 (D) ..................................................................................................................... 62
QUESTION 12 MAY 2018 P22 Q4 (E) ..................................................................................................................... 62
QUESTION 13 MAY 2018 P23 Q4 (A) ..................................................................................................................... 62
QUESTION 14 NOVEMBER 2018 P22 Q3 (D).......................................................................................................... 62
CHAPTER 5 ACCOUNTING FOR DEPRECIATION 63
QUESTION 1 NOVEMBER 2012 P21 Q2............................................................................................................... 63
QUESTION 2 MAY 2013 P21 Q4 .......................................................................................................................... 63
QUESTION 3 NOVEMBER 2013 P22 Q1 (C & D) .................................................................................................... 64
QUESTION 4 NOVEMBER 2014 P21 Q2 (A TO E) ................................................................................................... 64
QUESTION 5 NOVEMBER 2014 P22 Q2 (A TO D)................................................................................................... 64
QUESTION 6 MAY 2015 P22 Q2 (A TO D) .............................................................................................................. 65
QUESTION 7 MAY 2016 P21 & 22 Q2 (A TO D) ...................................................................................................... 65
QUESTION 8 NOVEMBER 2017 P21 Q2 (A TO D)................................................................................................... 66
QUESTION 9 NOVEMBER 2017 P22 Q3 (D).......................................................................................................... 66
QUESTION 10 MAY 2018 P23 Q2 (A TO E & G) ........................................................................................................ 67
CHAPTER 5 SOLUTIONS 68
QUESTION 1 NOVEMBER 2012 P21 Q2............................................................................................................... 68
QUESTION 2 MAY 2013 P21 Q4 .......................................................................................................................... 68
QUESTION 3 NOVEMBER 2013 P22 Q1 (C & D) .................................................................................................... 69
QUESTION 4 NOVEMBER 2014 P21 Q2 (A TO E) ................................................................................................... 69
QUESTION 5 NOVEMBER 2014 P22 Q2 (A TO D)................................................................................................... 70
QUESTION 6 MAY 2015 P22 Q2 (A TO D) .............................................................................................................. 70
QUESTION 7 MAY 2016 P21 & 22 Q2 (A TO D) ...................................................................................................... 71
QUESTION 8 NOVEMBER 2017 P21 Q2 (A TO D)................................................................................................... 71
QUESTION 9 NOVEMBER 2017 P22 Q3 (D).......................................................................................................... 72
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QUESTION 10 MAY 2018 P23 Q2 (A TO E & G) ........................................................................................................ 72

CHAPTER 6 BAD AND DOUBTFUL DEBTS 73
QUESTION 1 NOVEMBER 2013 P21 Q2 ( A & B) ................................................................................................... 73
QUESTION 2 NOVEMBER 2013 P22 Q2 (D & E) .................................................................................................... 73
QUESTION 3 MAY 2016 P21 & 22 Q2 (E TO G) ...................................................................................................... 73
QUESTION 4 MAY 2017 P22 Q2 (C & E) .............................................................................................................. 74
QUESTION 5 MAY 2019 P22 Q2(A & E) ............................................................................................................... 74
CHAPTER 6 SOLUTIONS 75
QUESTION 1 NOVEMBER 2013 P21 Q2 ( A & B) ................................................................................................... 75
QUESTION 2 NOVEMBER 2013 P22 Q2 (D & E) .................................................................................................... 75
QUESTION 3 MAY 2016 P21 & 22 Q2 (E TO G) ...................................................................................................... 75
QUESTION 4 MAY 2017 P22 Q2 (C & E) .............................................................................................................. 75
QUESTION 5 MAY 2019 P22 Q2(A & E) ............................................................................................................... 76
CHAPTER 7 FINANCIAL STATEMENTS OF SOLE TRADERS 77
QUESTION 1 MAY 2012 P21 Q1 (D) ..................................................................................................................... 77
QUESTION 2 MAY 2012 P21 Q5 .......................................................................................................................... 77
QUESTION 3 MAY 2012 P22 Q1 (A & D) ............................................................................................................... 78
QUESTION 4 NOVEMBER 2012 P21 Q4............................................................................................................... 78
QUESTION 5 MAY 2013 P22 Q5 .......................................................................................................................... 79
QUESTION 6 MAY 2014 P22 5 ............................................................................................................................. 80
QUESTION 7 NOVEMBER 2015 P21 Q5............................................................................................................... 81
QUESTION 8 NOVEMBER 2015 P22 Q5............................................................................................................... 82
QUESTION 9 MAY 2016 P21 & 22 Q5 .................................................................................................................. 83
QUESTION 10 MAY 2017 P21 Q5......................................................................................................................... 84
QUESTION 11 NOVEMBER 2017 P21 Q5............................................................................................................... 85
QUESTION 12 MAY 2018 P22 Q5 .......................................................................................................................... 86
QUESTION 13 NOVEMBER 2018 P22 Q5............................................................................................................... 87
QUESTION 14 MAY 2019 P21 Q5 ......................................................................................................................... 87
CHAPTER 7 SOLUTIONS 89
QUESTION 1 MAY 2012 P21 Q1 (D) ..................................................................................................................... 89
QUESTION 2 MAY 2012 P21 Q5 .......................................................................................................................... 89
QUESTION 3 MAY 2012 P22 Q1 (A & D) ............................................................................................................... 90
QUESTION 4 NOVEMBER 2012 P21 Q4............................................................................................................... 90
QUESTION 5 MAY 2013 P22 Q5 .......................................................................................................................... 91
QUESTION 6 MAY 2014 P22 5 ............................................................................................................................. 92
QUESTION 7 NOVEMBER 2015 P21 Q5............................................................................................................... 93
QUESTION 8 NOVEMBER 2015 P22 Q5............................................................................................................... 94
QUESTION 9 MAY 2016 P21 & 22 Q5 .................................................................................................................. 95
QUESTION 10 MAY 2017 P21 Q5......................................................................................................................... 96
QUESTION 11 NOVEMBER 2017 P21 Q5............................................................................................................... 98
QUESTION 12 MAY 2018 P22 Q5 .......................................................................................................................... 99
QUESTION 13 NOVEMBER 2018 P22 Q5............................................................................................................. 100
QUESTION 14 MAY 2019 P21 Q5 ....................................................................................................................... 101
CHAPTER 8 PARTNERSHIP ACCOUNTS 103
QUESTION 1 MAY 2012 P22 Q5 ........................................................................................................................ 103
QUESTION 2 NOVEMBER 2013 P21 Q5............................................................................................................. 104
QUESTION 3 NOVEMBER 2013 P22 Q5............................................................................................................. 105
QUESTION 4 MAY 2014 P21 Q5 ........................................................................................................................ 106
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QUESTION 5 NOVEMBER 2014 P22 Q5............................................................................................................. 107

QUESTION 6 MAY 2015 P22 Q5 ........................................................................................................................ 108
QUESTION 7 NOVEMBER 2015 P21 Q3 (A TO C) ................................................................................................. 109
QUESTION 8 NOVEMBER 2016 P21 Q5............................................................................................................. 110
QUESTION 9 NOVEMBER 2017 P22 Q5............................................................................................................. 111
QUESTION 10 MAY 2018 P23 Q5 ........................................................................................................................ 112
QUESTION 11 NOVEMBER 2018 P21 Q5............................................................................................................. 113
QUESTION 12 MAY 2019 P22 Q5 ....................................................................................................................... 115
CHAPTER 8 SOLUTIONS 117
QUESTION 1 MAY 2012 P22 Q5 ........................................................................................................................ 117
QUESTION 2 NOVEMBER 2013 P21 Q5............................................................................................................. 118
QUESTION 3 NOVEMBER 2013 P22 Q5............................................................................................................. 119
QUESTION 4 MAY 2014 P21 Q5 ........................................................................................................................ 121
QUESTION 5 NOVEMBER 2014 P22 Q5............................................................................................................. 122
QUESTION 6 MAY 2015 P22 Q5 ........................................................................................................................ 124
QUESTION 7 NOVEMBER 2015 P21 Q3 (A TO C) ................................................................................................. 125
QUESTION 8 NOVEMBER 2016 P21 Q5............................................................................................................. 125
QUESTION 9 NOVEMBER 2017 P22 Q5............................................................................................................. 127
QUESTION 10 MAY 2018 P23 Q5 ........................................................................................................................ 128
QUESTION 11 NOVEMBER 2018 P21 Q5............................................................................................................. 130
QUESTION 12 MAY 2019 P22 Q5 ....................................................................................................................... 131
CHAPTER 9 CAPITAL & REVENUE 133
QUESTION 1 MAY 2013 P21 Q1 (F & G).............................................................................................................. 133
QUESTION 2 MAY 2013 P22 Q1 (E & F) .............................................................................................................. 133
QUESTION 3 NOVEMBER 2014 P21 Q2 (F) ........................................................................................................ 133
QUESTION 4 NOVEMBER 2014 P22 Q2 (F) ........................................................................................................ 133
QUESTION 5 NOVEMBER 2015 P21 Q1 (D & E) .................................................................................................. 133
QUESTION 6 NOVEMBER 2016 P22 Q2 (C & D) .................................................................................................. 134
QUESTION 7 NOVEMBER 2017 P21 (E & F) Q2 (E & F) ........................................................................................ 134
QUESTION 8 MAY 2018 P23 Q2 (F) ................................................................................................................... 134
QUESTION 9 MAY 2019 P21 Q2 (D) .................................................................................................................. 134
CHAPTER 9 SOLUTIONS 135
QUESTION 1 MAY 2013 P21 Q1 (F & G).............................................................................................................. 135
QUESTION 2 MAY 2013 P22 Q1 (E & F) .............................................................................................................. 135
QUESTION 3 NOVEMBER 2014 P21 Q2 (F) ........................................................................................................ 135
QUESTION 4 NOVEMBER 2014 P22 Q2 (F) ........................................................................................................ 135
QUESTION 5 NOVEMBER 2015 P21 Q1 (D & E) .................................................................................................. 135
QUESTION 6 NOVEMBER 2016 P22 Q2 (C & D) .................................................................................................. 136
QUESTION 7 NOVEMBER 2017 P21 (E & F) Q2 (E & F) ........................................................................................ 136
QUESTION 8 MAY 2018 P23 Q2 (F) ................................................................................................................... 136
QUESTION 9 MAY 2019 P21 Q2 (D) .................................................................................................................. 136
CHAPTER 10 CORRECTION OF ERRORS 137
QUESTION 1 MAY 2012 P21 Q1 (E & F) .............................................................................................................. 137
QUESTION 2 MAY 2012 P22 Q2 (A & B) ............................................................................................................. 137
QUESTION 3 NOVEMBER 2012 P22) Q2 ........................................................................................................... 137
QUESTION 4 MAY 2013 P22 Q2 ........................................................................................................................ 138
QUESTION 5 NOVEMBER 2013 P21 Q3............................................................................................................. 138
QUESTION 6 MAY 2014 P21 Q2 (B & C) ) ............................................................................................................ 138
QUESTION 7 MAY 2014 P22 Q2 (B TO D) )........................................................................................................... 139
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QUESTION 8 NOVEMBER 2014 P21 Q1 (C) ) ...................................................................................................... 139

QUESTION 9 MAY 2015 P21 Q1 (A & B) ............................................................................................................. 140
QUESTION 10 NOVEMBER 2015 P21 Q2............................................................................................................. 140
QUESTION 11 NOVEMBER 2015 P22 Q2 (B TO D) ................................................................................................. 140
QUESTION 12 NOVEMBER 2016 P21 Q2 (C & D) ................................................................................................. 141
QUESTION 13 NOVEMBER 2016 P22 Q1 (A & B) .................................................................................................. 141
QUESTION 14 NOVEMBER 2016 P22 Q2 (B) ........................................................................................................ 141
QUESTION 15 MAY 2017 P21 Q2....................................................................................................................... 142
QUESTION 16 NOVEMBER 2017 P22 Q2............................................................................................................. 142
QUESTION 17 MAY 2018 P22 Q2 ........................................................................................................................ 143
QUESTION 18 NOVEMBER 2018 P21 (C & D) Q2 (C & D) ...................................................................................... 144
QUESTION 19 NOVEMBER 2018 P22 Q2 (A & B) .................................................................................................. 144
QUESTION 20 MAY 2019 P21 Q2 (A TO C)............................................................................................................ 144
QUESTION 21 MAY 2019 P22 Q1 (D TO F) ............................................................................................................ 144
CHAPTER 10 SOLUTIONS 146
QUESTION 1 MAY 2012 P21 Q1 (E & F) .............................................................................................................. 146
QUESTION 2 MAY 2012 P22 Q2 (A & B) ............................................................................................................. 146
QUESTION 3 NOVEMBER 2012 P22) Q2 ........................................................................................................... 146
QUESTION 4 MAY 2013 P22 Q2 ........................................................................................................................ 147
QUESTION 5 NOVEMBER 2013 P21) Q3 ........................................................................................................... 147
QUESTION 6 MAY 2014 P21 Q2 (B & C) ) ............................................................................................................ 148
QUESTION 7 MAY 2014 P22 Q2 (B TO D) )........................................................................................................... 148
QUESTION 8 NOVEMBER 2014 P21 Q1 (C) ) ...................................................................................................... 149
QUESTION 9 MAY 2015 P21 Q1 (A & B) ............................................................................................................. 149
QUESTION 10 NOVEMBER 2015 P21 Q2............................................................................................................. 149
QUESTION 11 NOVEMBER 2015 P22 Q2 (B TO D) ................................................................................................. 150
QUESTION 12 NOVEMBER 2016 P21 Q2 (C & D) ................................................................................................. 150
QUESTION 13 NOVEMBER 2016 P22 Q1 (A & B) .................................................................................................. 151
QUESTION 14 NOVEMBER 2016 P22 Q2 (B) ........................................................................................................ 151
QUESTION 15 MAY 2017 P21 Q2....................................................................................................................... 151
QUESTION 16 NOVEMBER 2017 P22 Q2............................................................................................................. 152
QUESTION 17 MAY 2018 P22 Q2 ........................................................................................................................ 153
QUESTION 18 NOVEMBER 2018 P21 (C & D) Q2 (C & D) ...................................................................................... 153
QUESTION 19 NOVEMBER 2018 P22 Q2 (A & B) .................................................................................................. 154
QUESTION 20 MAY 2019 P21 Q2 (A TO C)............................................................................................................ 154
QUESTION 21 MAY 2019 P22 Q1 (D TO F) ............................................................................................................ 154
CHAPTER 11 CONTROL ACCOUNTS 156
QUESTION 1 MAY 2012 P21 Q2 (A & B) ............................................................................................................. 156
QUESTION 2 NOVEMBER 2013 P22 Q2 (A TO C) ................................................................................................. 156
QUESTION 3 MAY 2014 P22 Q2 (A) ................................................................................................................... 156
QUESTION 4 NOVEMBER 2015 P22 Q2 (A) ........................................................................................................ 157
QUESTION 5 NOVEMBER 2016 P21 Q2 (A & B) ................................................................................................. 157
QUESTION 6 MAY 2017 P22 Q2 (A & B) ............................................................................................................ 157
QUESTION 7 NOVEMBER 2018 P21 Q2 (A & B) ................................................................................................. 158
QUESTION 8 MAY 2019 P22 Q2 (B TO D) ........................................................................................................... 158
CHAPTER 11 SOLUTIONS 160
QUESTION 1 MAY 2012 P21 Q2 (A & B) ............................................................................................................. 160
QUESTION 2 NOVEMBER 2013 P22 Q2 (A TO C) ................................................................................................. 160
QUESTION 3 MAY 2014 P22 Q2 (A) ................................................................................................................... 160
QUESTION 4 NOVEMBER 2015 P22 Q2 (A) ........................................................................................................ 160
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QUESTION 5 NOVEMBER 2016 P21 Q2 (A & B) ................................................................................................. 160

QUESTION 6 MAY 2017 P22 Q2 (A & B) ............................................................................................................ 161
QUESTION 7 NOVEMBER 2018 P21 Q2 (A & B) ................................................................................................. 161
QUESTION 8 MAY 2019 P22 Q2 (B TO D) ........................................................................................................... 162
CHAPTER 12 ACCOUNTS FROM INCOMPLETE RECORDS 163
QUESTION 1 NOVEMBER 2012 P22) Q3 (A TO C) ................................................................................................ 163
QUESTION 2 NOVEMBER 2014 P22 Q3............................................................................................................. 163
QUESTION 3 MAY 2015 P21 Q2 (A TO C) ............................................................................................................. 164
QUESTION 4 MAY 2016 P21 & 22 Q3 ................................................................................................................ 164
QUESTION 5 MAY 2018 P23 Q3 (A TO D) ............................................................................................................ 165
CHAPTER 12 SOLUTIONS 166
QUESTION 1 NOVEMBER 2012 P22) Q3 (A TO C) ................................................................................................ 166
QUESTION 2 NOVEMBER 2014 P22 Q3............................................................................................................. 166
QUESTION 3 MAY 2015 P21 Q2 (A TO C) ............................................................................................................. 167
QUESTION 4 MAY 2016 P21 & 22 Q3 ................................................................................................................ 168
QUESTION 5 MAY 2018 P23 Q3 (A TO D) ............................................................................................................ 169
CHAPTER 13 ACCOUNTS OF NON PROFIT ORGANISATIONS 171
QUESTION 1 MAY 2012 P21 Q3 ........................................................................................................................ 171
QUESTION 2 NOVEMBER 2013 P22 Q3............................................................................................................. 171
QUESTION 3 MAY 2014 P21 Q3 ........................................................................................................................ 172
QUESTION 4 MAY 2015 P22 Q3 ........................................................................................................................ 173
QUESTION 5 NOVEMBER 2017 P22 Q3 (A TO C) ................................................................................................. 173
QUESTION 6 MAY 2018 P22 Q3 ........................................................................................................................ 174
CHAPTER 13 SOLUTIONS 176
QUESTION 1 MAY 2012 P21 Q3 ........................................................................................................................ 176
QUESTION 2 NOVEMBER 2013 P22 Q3............................................................................................................. 177
QUESTION 3 MAY 2014 P21 Q3 ........................................................................................................................ 178
QUESTION 4 MAY 2015 P22 Q3 ........................................................................................................................ 178
QUESTION 5 NOVEMBER 2017 P22 Q3 (A TO C) ................................................................................................. 179
QUESTION 6 MAY 2018 P22 Q3 ........................................................................................................................ 180
CHAPTER 14 MANUFACTURING ACCOUNTS 182
QUESTION 1 NOVEMBER 2012 P21 Q3............................................................................................................. 182
QUESTION 2 NOVEMBER 2012 P22 Q5............................................................................................................. 182
QUESTION 3 MAY 2013 P21 Q5 ........................................................................................................................ 183
QUESTION 4 MAY 2014 P22 Q3 (A & B) ............................................................................................................. 184
QUESTION 5 NOVEMBER 2014 P21 Q5............................................................................................................. 185
QUESTION 6 MAY 2015 P21 Q5 ........................................................................................................................ 186
QUESTION 7 NOVEMBER 2015 P22 Q3 (A) ........................................................................................................ 187
QUESTION 8 NOVEMBER 2016 P21 Q3 (D)........................................................................................................ 188
QUESTION 9 NOVEMBER 2016 P22 Q5............................................................................................................. 188
QUESTION 10 MAY 2017 P22 Q5 ........................................................................................................................ 189
QUESTION 11 NOVEMBER 2017 P21 Q3 (A) ........................................................................................................ 190
QUESTION 12 NOVEMBER 2018 P22 Q2 (C) ........................................................................................................ 191
QUESTION 13 MAY 2019 P22 Q4 (C) .................................................................................................................. 192
CHAPTER 14 SOLUTIONS 193
QUESTION 1 NOVEMBER 2012 P21 Q3............................................................................................................. 193
QUESTION 2 NOVEMBER 2012 P22 Q5............................................................................................................. 193
 11

QUESTION 3 MAY 2013 P21 Q5 ........................................................................................................................ 194

QUESTION 4 MAY 2014 P22 Q3 (A & B) ............................................................................................................. 196
QUESTION 5 NOVEMBER 2014 P21 Q5............................................................................................................. 196
QUESTION 6 MAY 2015 P21 Q5 ........................................................................................................................ 198
QUESTION 7 NOVEMBER 2015 P22 Q3 (A) ........................................................................................................ 199
QUESTION 8 NOVEMBER 2016 P21 Q3 (D)........................................................................................................ 199
QUESTION 9 NOVEMBER 2016 P22 Q5............................................................................................................. 200
QUESTION 10 MAY 2017 P22 Q5 ........................................................................................................................ 201
QUESTION 11 NOVEMBER 2017 P21 Q3 (A) ........................................................................................................ 203
QUESTION 12 NOVEMBER 2018 P22 Q2 (C) ........................................................................................................ 203
QUESTION 13 MAY 2019 P22 Q4 (C) .................................................................................................................. 204
CHAPTER 15 COMPANY ACCOUNTS 205
QUESTION 1 MAY 2012 P22 Q3 ........................................................................................................................ 205
QUESTION 2 NOVEMBER 2014 P21 Q3............................................................................................................. 205
QUESTION 3 MAY 2015 P21 Q3 ........................................................................................................................ 206
QUESTION 4 NOVEMBER 2016 P22 Q3............................................................................................................. 206
QUESTION 5 MAY 2017 P21 Q3....................................................................................................................... 207
QUESTION 6 NOVEMBER 2018 P21 Q3............................................................................................................. 207
CHAPTER 15 SOLUTIONS 209
QUESTION 1 MAY 2012 P22 Q3 ........................................................................................................................ 209
QUESTION 2 NOVEMBER 2014 P21 Q3............................................................................................................. 209
QUESTION 3 MAY 2015 P21 Q3 ........................................................................................................................ 210
QUESTION 4 NOVEMBER 2016 P22 Q3 ............................................................................................................. 211
QUESTION 5 MAY 2017 P21 Q3....................................................................................................................... 211
QUESTION 6 NOVEMBER 2018 P21 Q3............................................................................................................. 212
CHAPTER 16 RATIO ANALYSIS 214
QUESTION 1 MAY 2012 P21 Q4 ........................................................................................................................ 214
QUESTION 2 MAY 2012 P22 Q4 ........................................................................................................................ 214
QUESTION 3 NOVEMBER 2012 P21 Q5............................................................................................................. 215
QUESTION 4 NOVEMBER 2012 P22 Q4............................................................................................................. 215
QUESTION 5 MAY 2013 P21 Q2 (C TO E) ............................................................................................................. 216
QUESTION 6 MAY 2013 P21 Q3 ........................................................................................................................ 216
QUESTION 7 MAY 2013 P22 Q4 ........................................................................................................................ 217
QUESTION 8 NOVEMBER 2013 P22 Q 4 ............................................................................................................ 217
QUESTION 9 NOVEMBER 2013 P21 Q4............................................................................................................. 217
QUESTION 10 MAY 2014 P21 Q4 ........................................................................................................................ 218
QUESTION 11 MAY 2014 P22 Q4 ........................................................................................................................ 219
QUESTION 12 NOVEMBER 2014 P21 Q4............................................................................................................. 220
QUESTION 13 NOVEMBER 2014 P22 Q4............................................................................................................. 221
QUESTION 14 MAY 2015 P21 Q4 (A TO C) ............................................................................................................. 221
QUESTION 15 MAY 2015 P22 Q4 ........................................................................................................................ 222
QUESTION 16 NOVEMBER 2015 P21 Q4............................................................................................................. 222
QUESTION 17 NOVEMBER 2015 P22 Q4............................................................................................................. 223
QUESTION 18 MAY 2016 P21 & 22 Q4 ................................................................................................................ 224
QUESTION 19 NOVEMBER 2016 P21 Q4............................................................................................................. 224
QUESTION 20 NOVEMBER 2016 P22 Q4 (A & B) .................................................................................................. 225
QUESTION 21 MAY 2017 P21 Q4....................................................................................................................... 226
QUESTION 22 MAY 2017 P22 Q4 (A TO C) ........................................................................................................... 227
QUESTION 23 NOVEMBER 2017 P21 Q4............................................................................................................. 227
QUESTION 24 NOVEMBER 2017 P22 Q4............................................................................................................. 228
 12

QUESTION 25 MAY 2018 P22 Q4 (A TO D) ............................................................................................................ 229

QUESTION 26 MAY 2018 P23 Q4 (B TO D) ............................................................................................................ 230
QUESTION 27 NOVEMBER 2018 P21 Q4............................................................................................................. 231
QUESTION 28 NOVEMBER 2018 P22 Q4............................................................................................................. 232
QUESTION 29 MAY 2019 P21 Q4 ....................................................................................................................... 232
QUESTION 30 MAY 2019 P22 Q3 ....................................................................................................................... 233
CHAPTER 16 SOLUTIONS 235
QUESTION 1 MAY 2012 P21 Q4 ........................................................................................................................ 235
QUESTION 2 MAY 2012 P22 Q4 ........................................................................................................................ 235
QUESTION 3 NOVEMBER 2012 P21 Q5............................................................................................................. 236
QUESTION 4 NOVEMBER 2012 P22 Q4............................................................................................................. 236
QUESTION 5 MAY 2013 P21 Q2 (C TO E) ............................................................................................................. 237
QUESTION 6 MAY 2013 P21 Q3 ........................................................................................................................ 237
QUESTION 7 MAY 2013 P22 Q4 ........................................................................................................................ 238
QUESTION 8 NOVEMBER 2013 P22 Q 4 ............................................................................................................ 239
QUESTION 9 NOVEMBER 2013 P21 Q4............................................................................................................. 239
QUESTION 10 MAY 2014 P21 Q4 ........................................................................................................................ 240
QUESTION 11 MAY 2014 P22 Q4 ........................................................................................................................ 240
QUESTION 12 NOVEMBER 2014 P21 Q4............................................................................................................. 241
QUESTION 13 NOVEMBER 2014 P22 Q4............................................................................................................. 242
QUESTION 14 MAY 2015 P21 Q4 (A TO C) ............................................................................................................. 242
QUESTION 15 MAY 2015 P22 Q4 ........................................................................................................................ 242
QUESTION 16 NOVEMBER 2015 P21 Q4............................................................................................................. 243
QUESTION 17 NOVEMBER 2015 P22 Q4............................................................................................................. 244
QUESTION 18 MAY 2016 P21 & 22 Q4 ................................................................................................................ 244
QUESTION 19 NOVEMBER 2016 P21 Q4............................................................................................................. 245
QUESTION 20 NOVEMBER 2016 P22 Q4 (A & B) .................................................................................................. 245
QUESTION 21 MAY 2017 P21 Q4....................................................................................................................... 246
QUESTION 22 MAY 2017 P22 Q4 (A TO C) ........................................................................................................... 246
QUESTION 23 NOVEMBER 2017 P21 Q4............................................................................................................. 247
QUESTION 24 NOVEMBER 2017 P22 Q4............................................................................................................. 248
QUESTION 25 MAY 2018 P22 Q4 (A TO D) ............................................................................................................ 248
QUESTION 26 MAY 2018 P23 Q4 (B TO D) ............................................................................................................ 249
QUESTION 27 NOVEMBER 2018 P21 Q4............................................................................................................. 250
QUESTION 28 NOVEMBER 2018 P22 Q4............................................................................................................. 251
QUESTION 29 MAY 2019 P21 Q4 ....................................................................................................................... 251
QUESTION 30 MAY 2019 P22 Q3 ....................................................................................................................... 252
MAY 2017 - PAPER 21 253
MAY 2017 - PAPER 22 258
NOVEMBER 2017 - PAPER 21 263
NOVEMBER 2017 - PAPER 22 267
MAY 2018 - PAPER 22 272
MAY 2018 - PAPER 23 277
NOVEMBER 2018 - PAPER 21 282
NOVEMBER 2018 - PAPER 22 287
MAY 2019 - PAPER 21 292
MAY 2019 - PAPER 22 297
 13

TABLE OF CONTENTS (YEARLY)

2011 NOVEMBER P22 Q2 (c) 58, 61

Q1 (a to d) 20, 37 Q3 138, 147
2012 MAY P21 Q4 217, 239
Q1 (a to c) 20, 37 Q5 104, 118
Q1 (d) 77, 89 2013 NOVEMBER P22
Q1 (e & f) 137, 146 Q1 (a & b) 24, 40
Q2 (a & b) 156, 160 Q1 (c & d) 64, 69
Q3 171, 176 Q2 (a to c) 156, 160
Q4 214, 235 Q2 (d & e) 73, 75
Q5 77, 89 Q3 171, 177
2012 MAY P22 Q4 217, 239
Q1 (a & d) 78, 90 Q5 105, 119
Q1 (b & c) 20, 37 2014 MAY P21
Q2 (a & b) 137, 146 Q1 (a to c) 52, 55
Q2 (c) 58, 61 Q1 (d to f) 24, 41
Q3 205, 209 Q2 (a) 24, 41
Q4 214, 235 Q2 (b & c) 138, 148
Q5 103, 117 Q3 172, 178
2012 NOVEMBER P21 Q4 218, 240
Q1 21, 38 Q5 106, 121
Q2 63, 68 2014 MAY P22
Q3 182, 193 Q1 (a) 58, 61
Q4 78, 90 Q1 (b to d) 25, 41
Q5 215, 236 Q1 (e) 16, 18
2012 NOVEMBER P22 Q2 (a) 156, 160
Q1 22, 38 Q2 (b to d) 139, 148
Q2 137, 146 Q3 (a & b) 184, 196
Q3 (a to c) 163, 166 Q4 219, 240
Q4 215, 236 Q5 80, 92
Q5 182, 193 2014 NOVEMBER P21
2013 MAY P21 Q1 (a & b) 25, 42
Q1 (a to e) 22, 39 Q1 (c) 139, 149
Q1 (f & g) 133, 135 Q2 (a to e) 64, 69
Q2 (a & b) 22, 39 Q2 (f) 133, 135
Q2 (c to e) 216, 237 Q3 205, 209
Q3 216, 237 Q4 220, 241
Q4 63, 68 Q5 185, 196
Q5 183, 194 2014 NOVEMBER P22
2013 MAY P22 Q1 26, 42
Q1 (a to d) 23, 39 Q2 (a to d) 64, 70
Q1 (e & f) 133, 135 Q2 (e) 58, 61
Q2 138, 147 Q2 (f) 133, 135
Q4 217, 238 Q3 163, 166
Q5 79, 91 Q4 221, 242
2013 NOVEMBER P21 Q5 107, 122
Q1 23, 40 2015 MAY P21
Q2 (a & b) 73, 75 Q1 (a & b) 140, 149
 14

Q1 (c) 27, 43 Q3 (d) 188, 199

Q2 (a to c) 164, 167 Q4 224, 245
Q3 206, 210 Q5 110, 125
Q4 (a to c) 221, 242 2016 NOVEMBER P22
Q4 (d) 58, 61 Q1 (a & b) 141, 151
Q5 186, 198 Q1 (c) 30, 45
2015 MAY P22 Q2 (a) 30, 46
Q1 27, 43 Q2 (b) 141, 151
Q2 (a to d) 65, 70 Q2 (c & d) 134, 136
Q2 (e) 59, 61 Q3 206, 211
Q3 173, 178 Q4 (a & b) 225, 245
Q4 222, 242 Q4 (c) 59, 62
Q5 108, 124 Q5 188, 200
2015 NOVEMBER P21 2017 MAY P21
Q1 (a to c) 28, 43 Q1 (a to c) 30, 46
Q1 (d & e) 133, 135 Q1 (d to f) 53, 56
Q2 140, 149 Q2 142, 151
Q3 (a to c) 109, 125 Q3 207, 211
Q3 (d) 59, 61 Q4 226, 246
Q4 222, 243 Q5 84, 96
Q5 81, 93 2017 MAY P22
2015 NOVEMBER P22 Q1 (a to d) 31, 46
Q1 (a & b) 52, 55 Q1 (e & f) 16, 18
Q1 (c to f) 28, 44 Q2 (a & b) 157, 161
Q2 (a) 157, 160 Q2 (c & e) 74, 75
Q2 (b to d) 140, 150 Q2 (d) 59, 62
Q3 (a) 187, 199 Q4 (a to c) 227, 246
Q4 223, 244 Q4 (d) 59, 62
Q5 82, 94 Q5 189, 201
2016 MAY P21 2017 NOVEMBER P21
Q1 29, 44 Q1 31, 46
Q2 (a to d) 65, 71 Q2 134, 136
Q2 (e to g) 73, 75 Q2 (a to d) 66, 71
Q2 (h) 59, 62 Q3 (a) 190, 203
Q3 164, 168 Q4 227, 247
Q4 224, 244 Q5 85, 98
Q5 83, 95 2017 NOVEMBER P22
2016 MAY P22 Q1 32, 47
Q1 29, 44 Q2 142, 152
Q2 (a to d) 65, 71 Q3 (a to c) 173, 179
Q2 (e to g) 73, 75 Q3 (d) 66, 72
Q2 (h) 59, 62 Q4 228, 248
Q3 164, 168 Q5 111, 127
Q4 224, 244 2018 MAY P22
Q5 83, 95 Q1 (a to c) 54, 56
2016 NOVEMBER P21 Q1 (d & e) 33, 48
Q1 (a, b & e) 29, 45 Q2 143, 153
Q1 (c & d) 53, 55 Q3 174, 180
Q2 (a & b) 157, 160 Q4 (a to d) 229, 248
Q2 (c & d) 141, 150 Q4 (e) 60, 62
 15

Q5 86, 99 Q2 (a & b) 144, 154

2018 MAY P23 Q2 (c) 191, 203
Q1 (a & b) 33, 48 Q3 (d) 60, 62
Q1 (c & d) 16, 18 Q4 232, 251
Q2 (a to e & g) 67, 72 Q5 87, 100
Q2 (f) 134, 136 2019 MAY P21
Q3 (a to d) 165, 169 Q1 (a to e) 35, 50
Q4 (a) 62 Q1 (f) 54, 56
Q4 (b to d) 60, 230, 249 Q2 (a to c) 144, 154
Q5 112, 128 Q2 (d) 134, 136
2018 NOVEMBER P21 Q4 232, 251
Q1 34, 48 Q5 87, 101
Q2 144, 153 2019 MAY P22
Q2 (a & b) 158, 161 Q1 (a to c) 36, 50
Q3 207, 212 Q1 (d to f) 144, 154
Q4 231, 250 Q2 (a & e) 74, 76
Q5 113, 130 Q2 (b to d) 158, 162
2018 NOVEMBER P22 Q3 233, 252
Q1 17, 19 Q4 (c) 192, 204
Q1 (b to d) 35, 49 Q5 115, 131
Chapter 1 16 Accounting Basics
Read & Write Publications

CHAPTER 1 ACCOUNTING BASICS

QUESTION 1 MAY 2014 P22 Q1 (e)
The following balances were extracted from the books of Fashran on 30 April 2014.
$
Trade payables 6 450
Trade receivables 9 230
Revenue 68 400
Purchases 29 800
Inventory 1 May 2013 5 100
Expenses 22 350
Bank overdraft 830
Non-current assets 24 000
Provision for depreciation – Non-current assets 7 800
REQUIRED
Prepare the trial balance showing Fashran’s capital at 30 April 2014. [5]

QUESTION 2 MAY 2017 P22 Q1 (e & f)

(e) Complete the table to state the effect of each of the following transactions made by Chung in April 2017.
Where there is no effect write ‘No effect’. The first transaction has been completed as an example.

Assets Liabilities Capital

Transaction
$ $ $
Purchased goods on credit at a cost of $500 +500 +500 No effect
Sold goods on credit for $700 (cost $400)
Paid Yang, a credit supplier, $2050 in full settlement of a debt of $2 200
Purchased goods, $130, and paid in cash
[9]
(f) State two reasons why book-keeping records are maintained. [2]
[Total: 20]
QUESTION 3 MAY 2018 P23 Q1 (c & d)
The following information is available for the month of April 2018
$
April 01 Balances Drawing account 6 400
Capital account 9 000
07 Kusum paid $2 500 into the business bank account from her personal bank account.
09 Kusum cashed a cheque from the business bank account for $500 for her personal use.
15 The annual insurance premium, $750, was paid by cheque. This included $150 for the insurance
of Kusum’s home.
30 Kusum prepared the financial statements. The profit for the year was $3 700.
REQUIRED
(c) Prepare the following accounts for the month of April 2018.
Complete the appropriate year-end transfer from the drawings account.
Balance the capital account and bring down the balance on 1 May 2018.
(i) Drawings account [5]
(ii) Capital account [5]
(d) Distinguish between book-keeping and accounting. [2]
Chapter 1 17 Accounting Basics
Read & Write Publications

QUESTION 4 NOVEMBER 2018 P22 (a) Q1 (a)

An inexperienced book-keeper prepared the following trial balance for Alia’s business on 31 August 2018. The trial
balance did not balance.
Trial Balance at 31 August 2018
Debit Credit
$ $
Revenue 19 600
Purchases 9 800
Inventory at 31 August 2018 730
Rent receivable 400
Rent payable 800
General expenses 230
Non-current assets (at cost) 18 750
Provision for depreciation 3 970
Bank overdraft 30
Motor vehicle expenses 650
Trade receivables 2 990
Trade payables 1 090
Capital _____ 9 000
33 730 34 310

Additional information
Inventory at 1 August 2018 was $870.

REQUIRED
Prepare the corrected trial balance. [5]
Chapter 1 18 Accounting Basics
Read & Write Publications

CHAPTER 1 SOLUTIONS
QUESTION 1 MAY 2014 P22 Q1 (e)
Fashran
Trial Balance at 30 April 2014
Dr Cr
$ $
Trade payables 6 450
Trade receivables 9 230
Revenue 68 400
Purchases 29 800
Inventory 1 May 2013 5 100
Expenses 22 350
Bank overdraft 830
Non-current assets 24 000
Provision for depreciation – Non-current assets 7 800
Capital _ ___ 7 000
90 480 90 480

QUESTION 2 MAY 2017 P22 Q1 (e & f)

(e)
Assets Liabilities Capital
Transaction $ $ $
Purchased goods on credit at a cost of $500. +500 +500 No effect
Sold goods on credit for $700 (cost $400). +300 No effect +300
Paid a supplier $2 050 in full settlement of a debt of $2 200. –2 050 –2 200 +150
Purchase goods, $130, and paid in cash. No effect No effect No effect

(f)  Book-keeping enables to ensure recording of all transactions.

 It enables checking transactions through the use of a trial balance and control accounts.
 It enables the production of the income statement and statement of financial position to be
compiled more easily.
 It shows the amount due to individual customers and suppliers thus avoiding overpayment.
 Helps guard against errors and fraud.

QUESTION 3 MAY 2018 P23 Q1 (c & d)

(c) (i) Drawing account
2018 Details $ 2018 Details $
April 01 Balance b/d 6 400 April 30 Capital (balancing figure) 7 050
09 Bank 500
15 Insurance premium 150 ____
7 050 7 050

(ii) Capital account

2018 Details $ 2018 Details $
April 30 Drawings 7 050 April 01 Balance b/d 9 000
30 Balance c/d 8 150 07 Bank 2 500
_____ 30 Income statement (profit for year) 3 700
15 200 15 200
May 01 Balance b/d 8 150
Chapter 1 19 Accounting Basics
Read & Write Publications

(d) Bookkeeping is the detailed recording of all financial transactions of a business whereas Accounting is
about preparing financial statements at regular intervals from the bookkeeping records.
Bookkeeping is the process of recording a firm’s financial transactions and is supported by documentary
evidences.
Accounting on the other hand starts once the book-keeper finishes his work and that mainly measures,
summarizes and then communicates this information recorded by book keeper in the form of accounting
reports using acknowledged methods and techniques which may ultimately be used for decision making.

QUESTION 4 NOVEMBER 2018 P22 (a) Q1 (a)

(a) Trial Balance at 31 August 2018
Debit Credit
$ $
Revenue 19 600
Purchases 9 800
Inventory 870
Rent receivable 400
Rent payable 800
General expenses 230
Non-current assets (at cost) 18 750
Provision for depreciation 3 970
Bank overdraft 30
Motor vehicle expenses 650
Trade receivables 2 990
Trade payables 1 090
Capital _____ 9 000
34 090 34 090
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