Professional Documents
Culture Documents
Name of Candidate:
INSTRUCTIONS
• There are thirty-five questions on this paper. Answer all questions.
• For each question there are four possible answers A, B, C and D. Choose the one you consider
correct and record your choice in soft pencil on the multiple choice answer sheet.
• Follow the instructions on the multiple choice answer sheets.
• Write in soft pencil.
• Write your name, centre number and candidate number on the multiple choice answer sheet in the
spaces provided unless this has been done for you.
• Do not use correction fluid. You may use a calculator.
INFORMATION
• The total mark for this paper is 35.
• Each correct answer will score one mark. A mark will not be deducted for a wrong answer.
• Any rough working should be done on this question paper.
Teacher’s signature
P1 35
P2 100
3Safir bought a machine for $10 000 and depreciated it at the rate of 30% per annum on
thereducing (diminishing) balance basis.
What was the net book value at the end of year 2?
A $4000
B $4900
C $5100
D $6000
4Albert maintains a provision for doubtful debts account. Where is the closing balance on
theaccount included in the financial statements?
A as an expense in the income statement
B as a revenue in the income statement
C in the current assets section of the statement of financial position
D in the current liabilities section of the statement of financial position
2
6 On 1 January Omar had capital of $23 000.
During the year ended 31 December Omar introduced $2500 as extra capital and
$1500 was paid by the business for building work to Omar's house.
What was Omar's capital on 31 December?
A $23 000
B$24 000
C $25 500
D $27 000
7Henrick sent Jan an invoice for goods supplied on credit.
In which of Jan’s books of prime (original) entry will the invoice be entered?
A cash book
B journal
C purchases journal
D sales journal
8An office junior keeps a petty cash book using the imprest system. The monthly
imprest amount is $150.
Petty cash payments during September were:
$
stationery 25
tea and coffee 33
postage 27
How much will be received from the chief cashier on 1 October to restore the imprest
amount?
A $65 B $85 C $150 D $235
3
10A business values its inventory (stock) of items X and Y. The following information is
available.
12On 2 September Tumelo purchased goods on credit, list price $4200, less
trade discount of 20% and a cash discount of 2% if the invoice was paid within 30 days.
On 5 September Tumelo returned one-third of the goods to the supplier.
4
13Beketele’s financial year ends on 31 December. On 1 January 2015 she purchased
a machinecosting $18 000. The machine was depreciated by 15% per annum using the
straight line(equal instalment) method. The machine was sold on 1 January 2019.
What was the book value of the machine on the date of sale?
A $4500
B $7200
C $10 800
D $13 500
14A trader provided the following information for his financial year.
$
Revenue for the year 60 000
Inventory at the start of the year 6 000
Purchases for the year 44 000
15Which accounting principle requires profit to be recognised as earned when the legal
ownership of goods passes to the purchaser?
A going concern
B money measurement
C prudence
D realization
5
16Mahendra designs computer systems. He provided the following information.
$
Fees prepaid by clients at the start of the year 2 120
Fees received from clients during the year 42 150
Fees owing by clients at the end of the year 2 840
A $37 190
B $41 430
C $42 870
D $47 110
6
19Mui owns a household appliance store. He took home a washing machine for
his personal use.
Mui recorded this transaction as follows.
account debited account credited
drawings sales
Did Mui make the correct entries to record this transaction?
debit entry credit entry
A no no
B no yes
C yes no
D yes yes
7
22Tony paid a cheque for $3250 to James in full settlement of a debt for $3400.
How will James record this transaction?
23Rent received, $100, has been debited to rent paid account and credited to
cash account.
What is the correcting entry?
8
25Which does not appear in a statement of affairs?
A accruals
B capital
C premises
D sales
26Why does a sports club prepare the trading account section of an income statement?
A it has paid staff as well as voluntary workers
B it operates a café
C to calculate subscriptions for the year
D to value the closing inventory
28The rent of a manufacturing business is split 60% factory, 10% offices and
30% showrooms.
Business rent is $40 000 a year and salesmen’s salaries are $12 000 a year.
How much appears in the manufacturing account for these costs?
A $24 000
B $31 200
C $36 000
D $46 800
29A statement of financial position showed non-current assets, current assets, current
liabilitiesand non-current liabilities.
What equals owner’s capital?
A current assets – current liabilities
B non-current assets
C total assets – current liabilities
D total assets – total liabilities
9
30Which statement is true about dividends paid on ordinary shares?
At the year end inventory of raw materials had increased by $4000. Inventory of finished
goods had increased by $9000.
What was the cost of sales?
A $37 000
B $46 000
C $117 000
D $126 000
10
33What does not affect the total equity of a limited company?
A issue of ordinary shares
B ordinary share dividend paid
C profit for the year
D transfer from retained earnings to general reserve
35The table shows information relating to two businesses trading in the same type
of goods.
business rate of inventory turnover quick ratio
Y 3 times a year 1.5: 1
Z 9 times a year 0.7: 1
Which statement is correct?
A Business Y has a good rate of inventory turnover but has poor liquidity.
B Business Y has a poor rate of inventory turnover and has poor liquidity.
C Business Z has a good rate of inventory turnover but has poor liquidity.
D Business Z has a poor rate of inventory turnover and has poor liquidity.
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