Accounts Green Book New

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FOREWORD
The demand for skills and knowledge and the -requirements to adjust with changing
requirements in the world of work, places the need for continual learning throughout
life. Due to a significc1nt number of candidates who fail principles' of accounts at
ordinary !eve! many teachers are forced to _look for appropriate examination guides in
order to adequately prepare their candidates for examinations.
It r.as been discovered that the main causes of failure in principles of accounts is that
many candidates fail to understand and interpret the requirements of the questions. It
is against this background that the authors have found the need to compile
examination guidE:s which presents past exam questions from zimsec and tried to
come up with suggested solutions so that through constant practice pupils are well
polished for both internal and external examinations.
It is our hope and prayer that these guides wilt go a long way in helping the
Zimbabwean pupil to achieve the desired results and also contribufo to the Zll\11-
ASSET model where Zimbabweans are encouraged to make a leverage out of the
internal resources for economic emancipation.
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For hrforn1anC1J Meast1u1r1~t
ZIMBABWE SCHOOL EXAMINATIONS COUNCIL

General Certificate of Education Ordinary Level
PRINCIPLES OF ACCOUNTS 7112/1

PAPER 1
JUNE 2012 SESSION 3 hours
Additional materials:
Answer paper
Multi-column accounting paper (8 sheets)
TIME 3 hours
INSTRUCTIONS TO CANDIDATES
Write your name, Centre number and candidate number in the spaces provided on the answer
paper.
Answer all questions in Section A and any two questions from Section B.
Write your answers on the separate answer paper provided.
Start each question on a separate page.
If an answer extends beyond one sheet, all the sheets for that question must be kept together.
All calculations must be shown adjacent to the answer.
Calculators must not be used.
If you use more than one sheet of paper, fasten the sheets t9gether.
INFORMATION FOR CANDIDATES
The number of marks is given in brackets [ ] at the end of each question or part question.
Amounts used in this Question Paper are for calculation purposes only.
This question paper consists of 8 printed pages.

Copyright: Zimbabwe School Examinations Councii, J20i2.
©ZIMSEC 12012
[Turn over
2
Section A
Answer all questions in this section.
1 D. Mwase runs a retail business with two departments, Furniture and Electrical. The
following information was extracted from his books on 31 December 2010:
Trial Balance as at 31 December 2010.
Debit Credit
$ $
Sales: Furniture 706 000

Electrical 917 040
Purchases: Furniture 300 000
Electrical 350 000
Stock(Inventory) at 1 January 2010:
Furniture 130 000
Electrical 200 000
, Customs duty on electrical goods 58 000
... Railage inwards: Furniture 66 000
Electrical 24 000
Returns inwards: , Electrical 28 040
Rent 76 400
Debtors(Trade receivables) and creditors(trade payables) 154 000 46 140
Prqvision for bad debts, 1 January 2010 5 000
Wage.s and salaries 237 600
0:ffic~ equipment at cost.-- . 48 000
Motor vehicles at cost
,___...,· 219 600
Provision for depreciation: ,·
Office equipment./ 9 600·
Motor vehicles ,,,,-,·,., 21 960
Capital 444 000
Bank 110 420 ''
Insurance 33 000
Discount received 9 000
Sundry expenses 112 000
Drawings 11 680
2 158 740 2 158140
The following information is also available on 31 December 2010:
(i) Stock(Inventory) at 31 December 2010: Furniture $120 000.

\.;i Electrical $ 98 000.
(ii) Rent accrued on 31 December 2010 amounted to $3 600.
(iii) : Insurance paid covers 15 months to 31 March 2011.
7112/1 J2012
.,.
l
3
(iv) The pfovision for bad debts is to be adjusted to 3% of debtors(trade
receivables).
(v) Motor vehicies are to be depreciated at 10% per annum on cost.
(vi) Office equipment is to be depreciated at20% per annum using reducing
balance method.
You are required to prepare:
(a) the Departmental Trading Account.for the year ended 31 December 2010,
in columnar form, showing clearly the gross profit for each department. [8]
(b) the combined Profit and Loss Account for the year ended
31 December 2010, [7]
(c) the Balance Sheet(Statement of financial position) as at

31 December 2010. [12]
2. On 1 January 2010, S. Tawana had the following balances in her nominal ledger:
Rent received $ -5 000 Cr

Stationery $12 000 Dr
l·
S. Tawap.a sublets part of her business premises at an annual rental of $30 000. ,._'.
During the year, the following transactions took place: \
2010 '·
March 31 Received cash of $12 500 for rent. v-
April 2 Bought stationery by cheque of $35 000.
June 5 Purchased stationery worth $20 000 on credit from Takunda Boo.ks.
June 8 Returned damaged stationery woi:th $8 000 to Takunda Books.
June 30 Received a cheque of $6 000 for rent. .,,
September 30 Received $9 000 rent in cash ......
,..;
On 31 December 2010, the stock of unused stationery was valued at $4 000.

S. Tawana' s financial year ends on 31 December.

,LI
(a) (i) the Rent Received Account,
(ii) Stationery Account. [13]
Pay special attention to dates and details.
7112/1 J2012
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I q·7 l ·+l. -~ ....

<.___,
4
(b) · State where exactly in the Balance Sheet(Statement of financial position)
· of S. Tawana would the balances in the following accounts on 31 December
2010 be found:
(i) the Rent Received Account,
(ii) the Stationery Account. [2]
3 B. Wiseman prepared a trial balance for his business on 30 June 2010 and the
totals failed to agree. He opened a Suspense Account with a debit balance of $260.
The following errors were later discovered:
(i) . Purchases day book had been undercast .

by $200.
.
(ii) An invoice to P. Panashe for $400 had been correctly entered in the sales
day book, QUf had been omitted iii the debtor's account.
(iii) Wiseman' s private rent of $100 had been debited to Rent Account.
(iv) An amount of $1~ for damaged good? returned__!q, T. Peters; a credit_or,
- had been correctly entered'· in· the supplier 1 s account. but 'entered on the
wrong side of the Returns Outwards Account. · · · ·:-: · :
(v) ,,,' Cash discount.received from a suppiier of $2Q had been debited to the
, ·-;, Discount Allowed Account. ·
\
You are required to:
(a) prepare journal entries to correct the above errors,

· (Narrations are not required)~ [12]
- ..
(b) complete the Suspense Account, [3]
·- (c) calculate the correct net profit for the half year ended 30 June 2010
after correction of the above €rrors. Original net profityyas $5 500. [3]
4 Write down the word(s) or figure(s) required to complete ec:1-ch of the following
sentences.
Do not write the whole sentence.
(a) In the books of a non-profit making organisation, capital is replaced

by 1s : 1- t rri · L .1:0 ,-. tms , .
·-, -~.
(b) In a manufacturing firm, is made up of cost

of raw materials used, direct'labour and direct expenses.
(c) If a payment by cheque of $506 for'electricity is recorded in error in both

Bank Account and Electricity Account as $5 064, this is an error
of ·
7112/1 J2012
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5
( d) Cost of transporting new machinery to be used in the business is
(i) expenditure whereas cost of repairing the machinery after
one month's use is (ii) expenditure.
I (e) Goodwill occurs when the (i) of a business exceeds

the value of net (ii) taken over.
(f) In the books of a partnership business, goods taken by a partner for own use
are entered on the side of the Current Account.
(g) A statement is drawn up to make the cash

book bank transactions agree with the transactions compiled by the bank.
(h) A business has total fixed(non-current) assets of $100 000, current assets
$60 000 [including stock(invent~ry) $15 000],-current liabilities $30 000,
and long-term loan..$20 000. The current ratio is (i) _ _ _ __
and the quick ratio is (ii)_ ·
(i) Given that the opening capital is $30 000, closing capital $40 000 and
drawings $9 000, the net profit is $__________.
(j) A document issued to the business for a fixed (non-current) asset bought on
credit is known as the (i) and the transaction
for the fixed (non-current) asset is first recorded in
the (ii) [14]
7112/1 J2012
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;
6
Section B
Answer any two questions from this section.
5 J.B Khumalo Ltd had the following details extracted from its books for the year ended
31 December 2010:
Authorised Capital
1 400 000 Ordinary shares of 50 cents each $700 000
200 000 8% Preference shares of $1 each $200 000
Issued Capital
1 000 000 Ordinary shares of 50 cents each, fully paid $500 000
200 000 8% Preference shares of $1 each, fully paid $200 000
3 000 10% Debentures of $50 each $150 000
Reserves on I January 2010

General Reserve $ 30 000
Profit and Loss Account $ 12 000 Cr
Net Profit for the year was $165 000 before allowing for debenture interest. An interim
dividend of2 cents per ordinary share was paid during the year.
The directors recommended that :
(i) the general reserve be increased by $10 000.

(ii) a full year's dividend be allowed for preference shareholders.
(iii) a final dividend of 5% on ordinary share capital be paid.
(a) the Profit and Loss Appropriation Account for the year ended
31December2010, ' [6]
(b) the Balance Sheet (Statement of financial position) extract showing

· the total shareholders' funds. [7]
7112/1 J2012
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7
6 Kuwirirana Social Club'was formed on 1 January 2010. On 31 December 2010,
the treasurer presented the following Receipts and Payments Account :
The Receipts and Payments Account for the year ended 31 December 2010
Receipts $ Payments $
Accumulated fund 12 000 Rent for Clubhouse 6 500
Sµbscriptions 3 000 Purchases of raffle prizes 8 000
Sale of raffle tickets 15 000 Stationery 1 400
Donations 10 500 Postage and telephone 600
Rates 1 000
Insurance 2 000
Purchase of furniture 4 000
Balance c/d 17 000
40 500 40 500
The treasurer reported that:
(i) subscriptions owing from members at 31 December 2010 amounted to

$1 900,
(ii) insurance is charged at $150 pe_r mo:11th,
(iii) furniture is to be depreciated by 10%.
Prepare the Income and Expenditure Account for the year ended 31 December 2010. [13]
7112/1 J2012
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·'
7 The following information was obtained from the books of G. Ngulube for August 2010:
$
2010 August 1 Debtorf (Trade receivables) balance 5 600 Dr
Creditors'(Trade payables) balance 1 700 Cr
2010 August 31 Credit sales 40 000
Credit purchases 24 000
Cash purchases 7 000 ,,
Returns outwards 200
Returns inwards 100
Cheques and cash received from debtors 37 000
Cheques paid to creditors 16 000
Customers' cheques dishonoured 2 500
Discount allowed 400
Discount received 350
Interest charged to customers on 9verdue accounts 130
Amounts settled by contra 2 300
Cash refund from suppliers for overpayments 60
Bad debts written off 800
Provision for bad debts 1 610
Debit balances in the purchases ledger 40
Credit balances in the sales ledger 70
// (a) You are required to prepare for the month of August 2010:
(i) Sales Ledger Control Account,
(ii) Purchases Ledger Control Account. [11]
(b) State two advantages of preparing control accounts. [2]
7II2/I J2012
r
JUNE2012 I
POSSIBLE ANSWERS 7112/1

.'
1la) Departmentaltrading_account for the year ended 31 december 201 o
Furniture$ Electricity
Sales 706000 917040
less returns inwards (28040)
889000
less Cost of sales
opening stock 130000 2000000
Purchases 300000 350000
customs duty 58000
Railage inwards 66000 366000 24000 432000
,, 496000 632000
less closing stock (120000) (98000)
cost of sales (376,000) (534000)
Gross Profit 330000 355000
---~' _,c,.~-
[8marks]
1(b) Profit and loss account for the year ended 31 december 2010
Gross Profit (330000+355000) 685000
add Income discount received 9000
decrease in provision for bad debts 380 9380
694380
Less Expenses:
rent 76400+3600 80000
wages and salaries 237(300
sundry expenses 112000
lnsuraance 33000-6600 26400
dep: office equipment 7680
motor vehicles 21960 485740
NET PROFIT 208740
1 (ii) Statement of financial p_osition/Balance sheet as at 31 december 2010

Non- currenr assets Cost ace dep NBV
motor vehicles 219600 43920 175680
office equipment 48000 17280 30720
206360
Current Assets
stock 120000+98000 218000
trade receivables 154000
less provision for bad debts (4620) 149380
Bank 110420
Prepaid Insurance 6600 484 400
TOTAL ASSETS ~
EQUITY AND LIABILITIES
EQUITY
Capital 444000
add Net profit 208840
652740
less drawings (11680)
LIABILITIES 641060
Current liabilities
Trade payables 46140
accrued rent 3600 49740
TOTAL EQUITY AND LIABILITIES ~
[12marks]
2(a) dr Rent account er
I 20101
31-Dec baiance cld I 28000 ljan-1
marc-31
2010
balance bid
cash
5000
12500
jun-30 Bank 6000
28000 Isept-30 Cash 9000
28000 .,,
'"''
dr . account
Stationery_ er
2010 2010
jan 1 balance bid 12000 june 8 Returns outwards 8000
April 2 Bank 35000 dec31 income statement 55000
june 5 Takunda books 20000 Balance cld 4000
67000 67000
"='=:...'.-,--,:=
balance bid 4000
b(i) current liabilities

(ii) current assets
3(a) journal entries
Debit$ Credit$
purchases 200
suspense 200
P Panashe 400
400
Drawings 100
Rent account 100
Suspense 300
Returns outwarqs 300
Suspense 40
Discount allowed 20
[12marks]
3(b) dr Suspense account er

trial balance difference 260 !Purchases 200
returns outwards 300 D Panashe 400
Discount allowed 20
fil1Q fil)_Q
[3marks]
3( C) Statement of corrected net o_i:>rofit

net profit before adjustments 5500
Purchases (200)
Rent 100
Purchases Returns 150
corrected net profit 5590
4(a) Accumulated fund

(b) Prime Cost (e) (i) Purchase Price (ii) Assets
( c) Original entry (f) Debit side
I.
(d i} Capital Expenditure (g) Bnk reconcilliation statement

(ii ) Revenue expenditure (hi) 2 (ii) 1,5:1
(I) $19000
(j i) Invoice (ii) General journal
5(a) Profit and loss ap2~()pric1ti_()_r1 ac:C:()UrltfCJrjh__E!__y_ear ended 31 december 2010

Net profit before interest 165000
less debenture interest (10%x 150000) (15000)
150000
less Transfer to general reserves 10000
add Dividends paid and proposed
Preference: Interim 16000
Ordinary: Interim 10000
Final 25000 (61000)
89000
add Retained earnings bid 12000
'r''. Retained earning c/d 101000
5(b) statement of financial po~ition( b.cll.cince §iheet) extract as at 31 decemer 2010

Authorised share capirtal
1400000 ordinary share of $0.50 each 700000
200000 8% preference shares of $1 each 200000
900000
-=:~=:=:::::.::.::::
Issued share capital
1000000 ordinary shares of $0.50 each, fully paid 500000
200000 8% preference shares of 1$ each, fully paid 200000
700000
Reserves
General reserves (30000'+10000) 40000
add Retained earnings 101000 141000
Non-current liabilities
300000 10% Debentures
- -300000
---
1141000
6 Income and expenditure account for the year ended 31 december 2010
INCOME
Subscription I 4900
sale of raffle tickets 15000
less cost of raffle tickets (8000)1 7000
Donations 10500
I
22400
EXPENDITURE
Stationery 1400
rent for club house 6500
postages and telephone 600
rates 1000
insurance
Depreciation: Furniture
surplus of income over expenditure I
1800
400 l 11700
10700
7(a} dr Sales ledger control account er

balance b/d 5600 returns inwards 100
'
credit sales 40000 discount allowed 400
dishonoured cheques 2500 sett off 2300
interest charges 130 bad debts 800
cheques from debtors 37000
balance c/d I 70 balance c/d 7700

4830Q 4830Q
balance bid I 7700 balance b/d 70
dr Purchases ledger control account er

returns outwards 200 balance b/d 1700
Discount received 350 Credit purchases 24000
setts off 2300 Cash Refunds 60
cheques paid 16000
balance c/d 695.Q balance c/d 40
balance b/d I
~
40 balance bid I 25800
6950
7(b) - to check arithmetical errors

- deter fraud
to calculate credit sales and credit purchases
[2marks]
'f;
,- ·-·~~~~~~~~~~~~~~~~
~
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ZlMBABWE SCHOOL EXAMINA1"'101'~S COUNClL

General Certificate of Education Ordinury Level
PRINCIPLES OF ACCOU1'TTS 7112/1

PAPER 1
NOVEMBER 2012 SESSION 3 hours
Answer paper
TIME 3 hours
paper.
Answe.r all questions in Section A and any two questions from Section !3.
Start each question on a separate P'l:ge.
If an nnswer extends beyond one sheet, all the sheets for that question must be kept together.
Cnlcu1Jators must not be used.
If yo11 use more than one sheet of paper, fasten the sheets together.
INFORMATION FORCANDIDATES
'
The number of marks is given in brackets [] at the end of each question or part question.

Copyrigl1t: Zimbabwe School Examinations Council, N2012.
©ZIJW;EC N2012 {Turn over
6.
· Section B · ·
/ .!
Answer any two questions froin this section.

',
5 The following arc extracts from the Cash Book and the Bank Statement of Batanai
Supermarket.
' '
C.ash Rook (Rank Columns

2008 ,$ 2008 •. $
October 1 Balance b/d 1 300 October 5 Purchases 2 050
4 B.Bara 450 12 City Council l 600
8 C. Calvin 600 16 Zesa 800
17 S. Sarawoga 3251 23 Insurance 950
22 L. Limo ,550 26 Purchases 2 500
27 G.Gara 375
31 Balance c/d 4 300 I ; !
• i,
UQQ, L9ll.il.
November 1 Balance b/d 4 300
Bank Statemeht
DATE DETAILS DEBIT CREDIT BALANCE
----
2Q08 :$ $ $
6ct •1 . Balance 1 300
1
4 Deposit 450 1 750
5 0031 2 ,•050 300 0/0
8 Deposit 600 300
12 0032 1 600 13000/D
17 Deposit 325 975 0/D
22 Deposit 550 425, 0/D
23 0034 950. 1 375 0/D
31 Interest on bank overdraft 235 16100/D
Dividends 715 895 0/D
Ledger fees 305 12000/D
(a) update the Cash B'ook, (SJ
(b) draw up the Bank Reconciliation Statemeht on 31 October 2008. l 8.1
7112/1 N2012
·,
. ---·········------------
7.
6 T. Tsungai operates a hair salon in l(wekwe. Her business made a gross profit of 33 }%,
on the net sales of.$750 000 d{~ritlg· the financial year which ended on 31 December 2010.
The net profit was·15% of net sale~. The rate of stock turnover was 10 times. The opening
stock was $60 000. ·
C'alculatc, for the. year,
('11) the gross profit, [2]
((1) cost of sales, [2]
(,r) the mark-up, [2]
(,J) the closing stock, [3]
(,~) purchases, [2]
(fr) expenses. [2]
7 S. Sinyoro prepared the following trial balance from his ledger balances on
30 June 2008. Unfortunately, the totals disagreed and a suspense account had to be
opened for the difference.
Trial Balance on 30 June 2008

Debit Credit
$ $
Capital, 1 July 2007 89 600
Drawings 60 800
Debtors 66 000
Cash at hand 29 896
Fixtures and fittings 33 600
Stock, 1 July 2007 46 920
Creditors 22 160
Sales 776 960
Purchases 606 400
~1uspense -- 2 096
890 81 <i .&_20 816
A Ct.er investigation, the following ~rrors were discovered and, when the necessary
corrections were done, the Suspense ..f..ccount balance was eliminated.
(i) Sinyoro's private expenses of $2 400 had been debited to Sundry

Expenses.
7112/1 N20!2
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8
(ii) A sale to D. Dennis of $1 576 wag entered correctly in the Sales Day Book
but was wrongly posted to Dennis' account,as $1 432.
(iii) A banker's order (standing order) for $1 200!for.payment of an insurance

'· premium had been posted to the wrong side 6fthe bank account but
correctly posted lo the Insurance Account
(iv) The Purchases Day Book had been undercast by $1 600.
(v) A Purchases Ledger credit balance of $1 440 for W. Wedzera had been
omitted from the Trial Balance figure.
(a) prepare the S uspensc Account, [3]
(b) prepare the Trial Balance as it would appear a'fter the correction
of all the above errors, (7]
(c) state any three errors which are not revealed by a trial balance. [3 J
,,
,, '
7112/1 N2012
N ove1nber 2012
Possible answe1·s 7112/l
1(a) Trading_f)rofit and loss account for the year ended 30 june 2009
Sales 359260
less cost of sales
opening inventory( finished goods) 26020
add cost of goods manufactured 239640
265660
less closing inventory(finished good:') (24764)
cost of goods sold (240896)
Gross profit '• 118364
add: discount received 280
118644
less Operating Expenses
Bad debts ! (1042+200) 1242
General expenses 2000
Advertising 3036
Rates 12966
Salaries (35400+600) 36000
Insurance (1500-300) 1200
Interest on loan 1000 :
depreciation: delivery vans ( 180000-33200) 20% 29360
Increase in provision for bad debts 534
Total expenses (87338)
NET PROFIT 31306
[11 marks]
1(~) §~t~ment of financ:ial position as at 30 june 2009
Non-current assets COST ACC DEP NBV
Premises 528000 - 528000
Machinery 33250 6050 27200
Delivery Vans 180000 62560 117440
672640
Current assets
inventory: Raw materials 8360
Work in progress 3560
Finished goods 24764 36~84
Petty cash 482
Accounts receivables(Debtors) 29200
Prepaid Insurance 300 65206
TOTAL ASSETS 737846
·---- __ , "
EQUITY
Capital 669140
700446
less Drawings (12200)
688246
loan 20000
Current liabilities
accounts payables(creditors) 10000
Bank overdraft 18000
Acruals: Salaries 600
loan interest 1000 1600 29600
TOTAL EQUITY AND LIABILITIES 737846
- - , p_ _,_A> A- - ~
[14 marks]
2a (i) It represents balance of unused materials brought forward from the previous year.[1 J
(ii) $1350 [1 J ,
(iii) on 31 march the payment was made through cheque whilst on 31 December the payme
nt was. through cash. [2]
(iv) 30 june 2008, bought packaging materials on credit from Grand Suppliers [1]
(v) packaging materials returned to Grand Suppliers [1 J
(vi) Current Assets [1 J
b(i) Cash book [1 J
(ii) General journal [1]
(iii)General Journal [1 J
(iv)Cash book [1]
(v)Petty Cash day book [1 J
( C) dr B. Batas Account er
2008 $ $
jun-8 Bank I
6250 balance bid
150 Purchases
6400
3000
Discount Allowed
25 Purchasesturns 300
30 balance cld 2700
---- 9400 =====94=0=0=[6 marks]
-· ·balance bid 2700
3(a) working Capital=current Assets- current liabilities

=34000+58000+53000-( 43500+4500+ 7000)
=145000-55000
=$90000 [3 marks]
b(i) No effect (ii) Decrease (iii) Decrease

(v) Increase (iv) Increase
[3 marks]
3( c) statementof financial position( Balance sheet) as at 31 december 2010

Non-current assets $ $
Premises (800000+20000) 820000
Equipment 150000
970000
Current Assets
stock (34000+15000-4800) 44200
Trade debtors (58000-5000) 53000
cash at bank (53000+60000+5000-20000) 98000 195200
TOTAL ASSETS 1165200
,,,.
EQUITY ,.
Capital (950000+ 7000) 957000
952200
Non current liabilites
Loan 90000+60000 150000
Current liabilities
Trade creditors (43500+15000) 58500
expense creditots(see note below) 4500 63000
[11 marks]
4(a) (i) owners b(i) non-current (iii) expenses

(ii) creditors (ii) capital (iv) revenue
c) credit d) debit e) assets f) current
g) straight line (hii) credit h(ii) asset I) commission
[14 marks]
5(a) updated cash book

2008 $ 2008 $
oct 1 balance bid 1300 oct 5 Purchases 2050
4 B.Bara 450 12 City council 1600
8 C. Calvin 600 16 Zesa 800

17 S.Sarawoga 325 23 Insurance 950
22 L.Limo 550 26 Purchases 25000
27 G.Gara 375 31 interest on bank 235
31 Dividends 715 ledger fees 305
balance c/d 4125
8440 18440
Nov 1 Balance b/d 4125
[5 marks]
5(b) Bank reconcilliation statement on 31 October 2008
$
Balance as per·cash overdraft 4125
add: uncredited' cheques 375
4500
less: unpresented cheques (2500)
2000
less: Zesa(not presented to the bank) (800)
balance as per bank overdraft 1200
[8 marks]
SECTION B
6 (a) gross profit =1/3x750000 (b) cost of sales sales-gross profit
= $250000 [2 marks) 750000-25000,0
$500000 (2 marks]
C) Mark up gross profit x100
cost of sales
= 250000 x100 (d) closing stock=
500000 stock turn= cost of sales
50% [2 marks) average stock
::: 500000
( e) Purchases=cost of sales+closing stock-opening stock closing stock + opening stock
::: 500000+40000-60000 2
$480000 [2 marks] ::: 500000
60000+x
(f) Expenses= Gross profit-Net profit 2
250000-112500 x::: 40000
$137500 [2 mar~s] thus closing stock=$40000 [3 marks]
7(a) Journal entries

debit$ I credit$
drawings
sundry expenses
I 2400
I 2400
D. Dennis 144
Suspense I 144
iii Suspense 2400
iv
Bank
Purchases
suspense
1600 l 2400
1600
V suspense 1440
WWedzera I 1440
Note: no marks for journal entries in this question, there are there to guide you how to prepare the
suspense account.
dr ~LJSJ:)enseo account er
bank
w wedzE
I
2400 balance as per trial b
1440 purchases
2096
1600
D. Dennis 14.!_
I ·-----· '---- 3840
-
3840
-""-~
[3 marks]
7(b) Corrected tria balance

- debit$ I~-- -crea~~ ~
Capital, 1 july 2007
Drawings (60800+2400)
1 63200
6 0 1
Debtors (66000+144) 66144
Cash at hand 29896
Fixtures and fittings 33600
stock, 1 july 2007 46920
Creditors. (22160+1440) 23600
Sales 776960
Purchases. (606400+1600) 608000
Sundry expenses (47200-2400) 44800
Bank 2400
892560 892560
[7 marks)
7( c) error of ommission
error of original entry
error of complety reversal
transposition error
error of principle
error omission
[3 marks]
r
ZIMBABWE SCHOOL EXAl\flNATIONS COUNCIL


PAPER 1
SPECIMEN PAPER JUNE 2013 ONLY 3 hours

~AnsW,,@r paper
TIME 3 hours
p,:J.per.
Answer all questions in Section A and any two questions from Section R
Start each question on n separate page.
AU calculations.must be showT1 adjacent to the answer
C~lculators must not he used.
If J'ou use mor,e than one sheet of paper, fasten the sheets together.
The number of marks is given in brackets [ ] at the end of each question or part question.

Copyright: Zimbabwe School Examinations Council, N2012.
i!Z!MSEC' Nt.012
{Turn over
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Section A
Answer all questions in this section.

1 D. Mwase runs a retai11·business with two departments, Furniture and Electrical. The
following information was extracted from his books on 31 December 2010:
Trial Balance as at 31 December 2010.
Debit Credit I ~
$ $
Sajes: Furniture ' _. 706 000

Electrical 917 040
. Purchases: Furniture 300 000
Electrical 350 000
Stock(Inventory) at 1 January 2010:
•f Furniture 130 000
Electrical 200 000
Customs duty on electrical goods 58 000
· Railage ir\wards: Furniture 66 000
Electrical 24 000
Returns inwards: Electrical 28 040
Rent 76 400
Deb~ors(Trade·receivables) and creditors(trade payables) 154 000 46140
Provision for bad debts, 1 January 2010 5 000 I '·
Wages 'and salaries 237 600
Office .equipment at cost 48 000
i)}.
Motor vehicles at cost
Provision for depreciation:
219. 600
I ':; ii!.
~~·
Office equipment 9 600

Motor vehicles 21 960
Capital 444 000
Bank 110 420
· Insurance , ?3 ODO . r, ,.; -,~,\,
!
Discount received 9 000
Sundry expenses - ).,J:
vvv .lJ..L.,
1_!_._.: - . . :! . •. 'l .. . ·'''
Drawings i
215814Q
"'
0
The!{ollowing information is also available on :31 December 2010:
\-
,(i) Stock(Inventory} at 31 December 2010: Furniture $120-000.
" >
- 'IL.,, Electrical $ 98 000.

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Centre Number · . • · Candidate~s N
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.~~;:,p:rovisfon · for. bad debts is to· be aqjusfe'd to 3 % ,of debtors(tra,
.· , ,;,.··,, .t~.qe1va . ' ' .. ': bl es') . •' ', . .*''.it . . ·
·· ·.. ~'· (v) · . · /Mqtcir vehicles are to be dcpr eciatcd ·at 10% per aruium':trn cost.
. 1-,\(:<t~,,. '··Oftke equipment is to be depreciated at 20% .per an'.num''using reducin1
:, ' ;\!.',\,, ' 'balance method.
' t::,::f' :t ' ', ..\ ' .

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requ,itea°tp prepare:·
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(a) ; the Depart.\nental Trading Accmmt for the year ended 31 December 2010,
in'. coh1:inn~r·form, showing clearly the gross profit for each 'department.
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·: • :.- . . ,. .,.:·.~:· ,' !' ·. _, : . . '' ·; " . -· ;Fo
\ ·" · Answer, ~11. questions in this section. Bumm
. ,, .• .
;
I
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u..
1 D. Mwase runs a retail1'bu~iness with two departme*ts, Furniture and Electrical. The
following informationw~is. extracted
. .from his books. op 31 December 201 O: ·
. .
Trial .Balan;~e·. as at.3 V
·.·,·. '·...
be~ietti"p:er·.. :z'O 1O: .. · -
I
I
·I
(
• !,
Debit Credit ·.()
{ $\ $
·,·. '·,r ,•
t'f<J~. . .
·1·
/'
I
.........._,_,..... ···~
'
-; ·~~-~·- . .. .~ajes: Furnitur~
Electrical
'/'
, :· 706 000
·' '
'"' ~
"tJ:· • ..,.,
I·,I 917 040

!·
Purchases: Furniture 300 000
f:
Electrical 3 50 000
Stock(Inventory) at 1 January 2010: :' · \
./ Furniture 130 000
, Electrical 200 Obo
.Customs duty on el~ctrical goods . 58 ooo
· · · Railage uiwatds: · .:Furniture '.:. 66 000
. . ~ . ·'·
· · '· . .. . . . Electrioa} _ · ·24 000
Returris 'inwartis:.. ·, .. Electrical : . 28 04;0
, .Rent . .'. ,; · ' ·.. .
. .
. \' f· 76 400 !
I)ebrors(Trade·,rec~iva~les) and creditois(trade payables)\ '154 oop 46 .140

Provision·forbaclfdebts, !"_January 2010 · ·1 5 000 I l
Wages 'and sa:la.ri'es . .. 237 600 '°ti-
.. Office equipment at cost ··.I ·' 48 oob I
..
Motor vehicles at cost 219 60~ (),).
Provision for depreciation: . . I
· Offici~ . egµipment · !
i
9 600
Motor vehi6les . 21 960
Capital , ! .
444 000
Bank , 110 420: I ,•
· Instira.nce
.. 33
·~.
o.oo·:
~ ,'. : r. ': . '~. . ,,
Discou.ht received · ·' 9 000
·-·,. 1: Slmdry expenses · , 112 000 ; . . . ,. ,,.,·.,· ,1:
1
· Drmvings ., .i' - ·, ·i::t't:;'8Dl s:,·, "· · .·/.
· ,. • , " • I ~-· • . i: :. ;w.:rn:740 \• -~lliQ.
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,:':~~~ ,,.~rffi~f:'ollowing info~mation i~ al~~ av~lable on 3.TDecembet 20 I 0:
. t~fl" ·· · · 11
w . I .·
,•· /,.;"'·- - L- \(}).:· ... ·: Stoq}c(lnv;ntory)\,at 31 Decemqer 2010: · · Fµrntture! . $120· 000\
$ 98 ooo.
',);'
-1•·,
..;. . . ·
. : .. • Electrical\
·~: · . Rehl accrued on 31 December 2010 amountedI to- $3 600. .. . ·.
({rt; ·. Insurance paid covers 15 months toil h,fo.,.r>h\, ')(\1 1 !
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Sheet(Statement of financinl position) us at
.
·>~ :'.tLD~cember.-2'010.. ·
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Centre Nrber Candidate's Numher
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(b) · · the combined Profit.md Loss Accourit for th~ year ended Umc
31 December 2010, . . i . !
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[ 13]
Pay $pe9ial ,4tt~ntiori

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i~ dates ~nd details.
{ ·.. . .
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Stat~hvli1:rve·s~x119t,lf in:,h.e~alanceSheet(Statement of financial position)
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Qnl:{:Ja,vana·wcn:i.!-cht.b,~H:,alances in the following accounts on 31 December

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(i)' · :::· ,tll~.;~~t.'Recei;v~d ~¢count,
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the·w·brd(s)"or:figure(s) required to complet6 each of the following --U.c
i; \.,:.sent~µp~s. _'_ 0, · .• ;:,,.': . '. . ·
.,_:-: ,Do.nulw.1•ite-ihe,.:w.hol~ :sentence;,'
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..·."(a) . ·. In the pcioks ofa. nori~profit tnaldng organisation) capital is replaced

.• ·,i-_. 't.-y· ·.·· .. - . . •, . .
... l) ..
...
''(b) In a manuiacturingJirm, is made up of cost
,' :()f raw materials used, direct labow· and direct expenses.
'~-
(c).. -. · ffa paymenrby cheque of $506 for electricity -is recorded in error irr both
· ...:.B.ankAccoont and Electricity Account as $5 064\ this is an error (
of
---'-------
I
' ' · · . I I
·'"'1 'l(j() (d)· ·- Cost of transporting new machinery to be.used in the business is
·. '~-~-- :'- ... /:::,"~,
'+-D (\ L9 ~, . .
·- :(i) ,-- .expe11diture·whereas cost of repairing the machinery after
·(-,:' C)n~:n19,t1~-~'. s.use_.is (iii) ·· e1penditure. - ·
I ;
" -- - • .'-.:- , · . . . , . .• I I
(e) - , _:Gb.oe:lwilloccur~i'.when the'(i) i of a, business exceeds
' : :; the value, of:net {ii}_ - fa ken over.
'
(f} .In.the books of a partnership business, goods tak;n by a p,rrtner for own use'
· .are: entered on the side of the Current Account.
. I
(g) ,A statement is drawn up to make the cash

-book bank tnmsactions agre.t with the·trarisactio~s compiled by the battle
. I
'
(11) A business has totaLfixed(non-curret of $100 000; current asset:J
$60 000 [including stock(inventory),! , cJrrent liabllities $30 000,
wid lon:g-te~m)o~n $20 000. The cutr~· i.:·is (i) _·--_ __
------·--N ''
'
· rtiidthe qui9k ratio is.(ii}--'----__;._J· ,c;.;.··. . : . . - ~ - - , - , . , . . - - - - - - - - - -
... !
~venthat the openfog,capital is $30000,.closinrt capital $40 000 and

,c;hnngs .$9'.0.QO, the.rn;-:tptofit is$ ·, ,. . · :
'
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1lifissue~ to the bnsii1ess for afixed (ndn-curtent) asset bought on 1

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1t,ton~current) asset is first recorded i,n
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[13]
.. .i ' .
.pay ~peciah:1,tt¢ntionto
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dates·and details,
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.Stati!w4~t~iexa~t,iy,µi~~:}3alance·Sheet(Statement of financial position)
"'1
of:S~fti;i,vruia·*o~d;tb,e,fB#ances inthe following accounts on 31 December

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3 B. Wiseman prepared a trial balance for bi.Isiness on June ·his
10 and. the
.tci~als faile.d to agree. He opened a Suspense Account with a debit oalance of $260.
. io 2d .
B:ramin«'•
TJ»ol
' ' ' .
·the.following errors were later.discovered:
(i) Purcha~es diy book had· been undercast by': $200. :i
(ii).. A11i11:\!@iek;to)?;.·J?;aq~she·for $400 had b-e~ft'correctly entered in

the saJes:.,<;Iat'l5'.ocik:·biJt·:liad bcfeh omitted i~ the debtor's acco.µnt.
. ' (iii) \Visemtiii''i:if'pfi'vate·r~:rtf'of $100 had been d,ebited to Rent Acc~Wll .
(iv) An ~~lint o.f'.:$150 feb·damaged goods returned to t. Peters, a creditor,
had be~11.t1orreetly'~·~1".":-,,ted in the supplier'is account but entered on th~
· wrong· sid~·of t1r~Jt¥:': .~ s Outw:ards Accoupt. :
:from
I
'--
(v) C~sh <lisco~(t~9~i~ a ·supplier of\ $20 had :been debited to the
<"•'•>• •·-·-·--··~-·•OM•••~•"''"•,... h•O•o,
. D1sconnt :AJlowed:"'A- f»\
· You are required to:
(n) pre:pare j ouinal: eliti}~~.t? :9/

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-·----~----~~--~------
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! ····<~tt -----1
·---- ______ T _____ -
_ _ [3]
----~-~-~-----..--~-~-~---~~-
(c) calculate the\correct net profit for the half year ended 3'0 June 2010
after correction of the above errors. Original net profit was $5 500.
----- ~------------------
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Write :<}~'wn the·wbrd(s}or.:figure(s) required to complet~ each of the following . - U,e
,}.\ :sentences,
1
· · : _· , · ·; .·
~.:·. ·:i: :-r>.o
•' '· . ,:,
rl~t\vtitejti~,wli~i~·;se.nt~rt.~e; ·
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i
.. : •, ·.·, .. , :" ·...... ,, ' ' ; '.· . ' ' ! I ..
.. )n the _books .of"i:1 n6ri-profit maldng organisation) capital is replaced·.

\> by:'. . . ' .
': ·, (b) In a manuf~cturing>fim1, is made up of cost

· .:·of raw mater.ials used, direct labotu· and direct expenses.
"-··
(c). ··.·.If.a i1ayment by i::heque of $506 for electricity is tecorded in error itr both
·.....Bank.Accotmt and Eiectricity Account as $5 064! tl1is is an error
of
--"'--'-----·
e
i I
· . . l I
(d) · Cost of transporting new machinery to be .used in the business is

. ·· -(i) ·. . . ..· .expe11,diture whereas cost of repairing the machinery after
'(:Qlle:month's \1S6 is (ii) · ., I• ' CX,penditure, ·
'. :·· •, • • : . : \ ; : •,I l
.. : • . • . •
.. . . · . ' · ' ,, ·:. . •. ' . l j

(c) .· . :c;rooclwilloccuts.when the-(i) . i of a, business exceeds
: :_. the: value. of:net {ii)._ . taken over.
(f} .In the books of a partnership busi.riess, goods tak6n by a p~utner for own use'
.are: entered on the side of the Current Account.
I
(g) .A statement drawn up to make the cash is

· book bank tnmsactions agre.e with the':trarisactio~s compiled by the bank.
. !
(h) A busines::; has totaLfixed(non-curre of $100 000,i current asset:,

$60 000 (including stock(inventory):, , cJrrent liabilities $30 000,
mid long-te~m)o~ $20 000. The cutr. 1:·fa (i) ·-"
:>'~""''' t - - - - -
-------~------ A
----~~·
'
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:"'·:and.the qui\:',k ratio is,(ii}_:._ _ __:_.::.:£··.,;;~-'-'-'---:+.,;,-------

,·J---.!' ..
;,:/1iventhat the opening capital is $30'000,.closinft capital $.40 000 and

;~gs_$9'.0.QO., the.n¢t.p1'.ofit is$ · , •· : ·
.. '
'fissuecl to the bnsii1ess fo~ a fixed· (ndn-curreni) asset bought on
. ·.•..
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"J'i'n ~ the (i) ~-· : and: the transaction
iJilOo/:Currerit) asset is first recorded in
'. ,.... . . ' r1 ,11
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[ __ Centre Nuq1bcr -~- --···
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Section B I; .
. . .. •.· ' .. ·.· . ! . . ~nswer
any two quest~ons from this' sect~on. . .·· . .
. , •·. J.B;Khurn;alo Ltd hfld the following details extracted from 1ts books for the year ended ·
l
. 31 Deceniber 2010! .
. I.'
.. Au.thoris~d Capit~l . .
l 400 000 Ordinary shares of 50 cents each $700 000
200·000 8% Pref<brence
·t
shares of $1 each
...
$200 000
. Issued Capital
1 000 000, Ordinat)1 shares of 50 cents each, fully paid $500 000
200 oon 8% Preference shares of $1 each, fully paid $200 000
j ooo·: 1'0% Debentures of $50 each,· $150 000
I
· - -aD · · · ' · . . . . .,,..-·Reserves·oii 'lJan~ary 2010
• I
· General Reserve. : · '

$ 30 000
Profit and Loss· Ac~ount $ 12 000 Cr
'' -.-"U!ir~~r
.
Net Profi~ for the iyea:r was: $165 000 .befors: allowing :for debenture intorest. An
i
interim dividend of cents per o\dfuary share was paid during the year.
The direct6rs recominended that :
I.
(i) '·
, I
the general
t
reserve
:..
be increased by $10 000. :
(ii): a full\year' s, dividend be allowed for preference shareholders.
(iii) a final dividend of 5% ofi ordbary share capital be paid.
'
., .
~li1,\\ll i~ (a)
31.Decem:bei 2010,
'
the '.Profit and Loss A,ppropriation Account for the year ended
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Centre\Nutbber '. Candidate's Num

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Bull
. (h) ;'_JheBahmce Sheet (Statement offinancial pqsition) e~1rnct showing l
,, 'the total shareholders' funds, I
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,. JYKuwi,rirana Social (1::lub was formed ori 1 January 2010. On 31 December 2010, Bnr~
\·the trea·surer pres~n:ted the following Receipts and Payments Account: l
I ' ! ,•
'
· The Receipts and P~yments Account for the year ended 31 December 2010
· Rccei'pts . $ ·Payments $
Accumulated fund· 12 000 · Rent for Clubhouse 6 500
Subscriptions 3 000 Purchases of raffle prizes 8 000
Sale of raffle tickets 15 000 Stationery 1 400
Donations 10 500 . Postage and telephone 600
Rates 1 000
··Insurance 2 000
· .Purchase of furniture 4 000
Balance c/d _17 000
--··-:(0····· ·- ·····- ....................
4.0 500 ~:L),jjJQ_
I
The treas~rer reported that:

i ·~
(i)' subspriptions owing from members at 31 December 2010 amounted to

$1 9p0,
(ii) insufance is,charged at $150 per month,
(iip furni,ture is to be depreciated by 10% .
., !
Prepare the Incom~ and Expenditure Account for the year ended 31 December 2010.
----------------
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' ·. .: ' '' ·, ' .. •·. . ,. . ·. '•, 14 i: i

·.. i'.I:p.e(follo.win,g irifonn~titin\vas obtained from Jhe boJks-of G. Ngulube for
, • ' •••• ' • • •• ~ • •• • • ' ' J (
Pc:ir
. : ·~ug~St:20.f 0: . . , . : Rxartllna
UN
1·'' . J
$
20.10 August: '1
',:.
pe~tp~t.(Trade. r~ceivables) ba]ance 5600 Dr
.. . . . . · ¢r¥difors'(Trade··payables) balahce 1 'JOO Cr
-20:1 August 3l o 'Cr.tdit":·s~esr ·.~. ! 40 000
.. . Creditpur2hases
24 000
. Cash purchases 7 000
Returns outwards . . 200
1
: Returns inwards · : . \
100
Cheques imd cash received from,-debtors 37 000
Cheques paid to creditors · \ 16 000 ,...__,·
Customers,· cheques dishonoureq. 2 500
. Discount allowed
Discount _received .
·
\ :
400
350
·Cl
.Interest charged to customers on !overdue
I
accounts
: .
130
Amounts settled by contra I ! 2 300
Cash refund from suppliers fo! o,yerpayments 60
Bad debts.written off · 800
Provision for bad debts . 1 610
Debit balances in the purchases ledger 40
Credit balances in the sales ledge~ 70
.. · • · I '1 .
:'i(~i.,:d{tt~o ~rc:required,to prepare for the month of August 201 o;:

';\J\Y. ... · . . .. i I
.·Alr•·.' Sales Ledger Control Account, I l
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Centre N1 unber Cun did~- _

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\(ii) .:P.~c6~ses :Ledger c'oritiol Account.
------------- _ __________
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(b) :state twd, advantages of preparing control accounts.
et
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JUNE 2013 SPECIMEN 1

\ .. , - .
Furniture$ Electricity
Sales 706000 917040
less returns inwards (28040)
889000
less Cost of sales
Purchases 300000 350000
customs duty 58000
Railage inwards 66000 366000 24000 432000
496000 632000
cost of sales (376,000) __ _.(534000)
----330000
Gross Profit
l·=cco-cc< ,c:·=c:::::
[8marks] ..
1(b) Profit and toss account for the ear ended 31 december 2010
Gross Profit (330000+355000) 685000
add Income discount received
decrease in provision for bad debts
9000
380 I 9380
694380
Less Expenses:
rent 76400+3600 80000
wages and salaries 237600
sundry expenses 112000
lnsuraance 33000-6600 26400
NET PROFIT
dep: office equipment
motor vehicles
7680
21960 I 485740
208740
1(ii) Statement of financial eositlon/Balance sheet as at 31 december 2010

Non- currenr assets Cost ace dep NBV
motor vehicles 219600 43920 175680
office equipment 48000 17280 30720
206360
Current Assets
stock 120000+98000 218000
trade receivables 154000
Bank 110420
Prepaid Insurance 6600 484 400
TOTAL ASSETS ~
;
EQUITY
Capital 444000
652740
Jess drawings (11680)
LIABILITIES 641060
Current liabilities
Trade payables 46140
accrued rent 3600 49740
[12marks]
2(a) dr Rent account er

2010 2010
31-Declbalance c/d 28000 lian-1 balance bid 5000
marc-31 cash 12500
jun-30 Bank 6000,
~ lsept-30 Cash 9000
~
dr Stationery account er
2010 2010
jan 1 balance b/d 12000 ljune 8 Returns outwards 8000
April 2 Bank 35000 dec31 income statement 55000
june 5 Takunda books 20000 Balance c/d 4000
" . 67000 67000
,,;::;,''':;,,~;~~;.:% h· · ..•····
balance b/d 4000
b(i) current liabilities

(ii) current assets
3(a) journal entries
Debit$ Credit$
purchases 200
P Panashe
suspense
400 I
200 I .,,f
400
Drawings 100
Rent account 100
Suspense 300
Returns outwards 300
Suspense . 40
Discount allowed 20
[12marks]
3(b) dr
trial balance difference
returns outwards
Sus,eense account
260 Purchases
300 D Panashe
I er
200
400
Disc::ount received 20
Discount allowed 20
~ .WW
[3marks]
3( C) Statement of corrected net oprofit

net profit before adjustments 5500
Purchases (200)
Rent 100
Purchases Returns 150
corrected net profit 5590
4(a) Accumulated fund

(b) Prime Cost (e) (i) Purchase Price (ii) Assets
( c ) Original .entry (f) Debit side
(d i) Capital Expenditure (g) Bnk reconcilliation statement

(ii ) Revenue expenditure (hi) 2 (ii) 1,5:1
(I) $19000
Oi) Invoice (ii) General journal
5(a) Profit c1nd loss c1ppropriation account for the year ended 31 december 2010
Net profit before interest 165000
less debenture interest (10%x 150000) (15000)
150000
less Transfer to general reserves 10000
add Dividends paid and propo_sed
Preference: Interim 16000
Ordinary: Interim 10000
Final 25000 (610001
89000
add Retained earnings b/d 12000
Retained earning c/d 101000
.~~~n!-:,':;~ .·.' ,··--:;.-:;
[6marks
5(b) statement of financial position( balance sheet) extract as at 31 decemer 2010
Authorised share capirtal
1400000 ordinary share of $0.50 each 700000
200000 8% preference shares of $1 each 200000
900000
1000000 ordinary shares of $0.50 each, fully paid 500000
200000 8% preference shares of 1$ each, fully paid 200000
700000
Reserves
General reserves (30000+10000) 40000
add Retained earnings 101000 141000
300000 10% Debentures 300000
-.--·----- -~---¥·-
1141000
[?~arks] -·
6 Income and expenditure account for the year ended 31 december 2010
INCOME I I
Subscription I 4900
sale of raffle tickets 15000
less cost of raffle tickets (8000)1 7000
Donations 10500
I
22400
EXPENDITURE
Stationery 1400
rent for club house 6500
postages and telephone 600
rates 1000
'
insurance
Depreciation: Furniture
surplus of income over expenditure
1800
400 I
11700
10700
7(a) dr Sales leclger control account er

balance bid 5600 returns inwards 100
credit sales 40000 discount allowed 400
dishonoured cheques 2500 sett off 2300
interest charges 130 bad debts 800
cheques from debtors 37000
, I
balance c/d I 70 balance c/d 7700
balance bid I
~
7700 balance bid I ~
70
dr Purchases ledger control account er

returns outwards 200 balance bid 1700
Discount received 350 Credit purchases 24000
setts off 2300 Cash Refunds 60
cheques paid 16000
balance cld 6950 balance c/d 40
balance bid I
Zfillll2
40 balance bid I ~
6950
7(b) - to check arithmetical errors

- deter fraud
to calculate credit sales and credit purchases
[2marks]
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zIM:BABWE sc1100L EXAMINATioN·s couNCIL
I
Plffi~CIPLES OF ACCOUNTS 7112/1
P AfEf'.:. 1 Multiple Choice
NOVEMBER 2013 SESSION 1 hour 30 minutes
Multiple Choice answer sheet
Soft clean eraser
Soft pencil (type B or HB is recommended)
...._ -------· ---~------------------
TIME I honr 30 minutes
llo 11not open thAs booklet until you are told to do so.
Write your name, Centre number and candidate number on the answer sheet in the spa~es
provided unfoss this has already been done for you.
there are fortty questions in 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 11encil on the separate answer sheet.
Read very carefully the instructions on the answer sheet.
._Each correct imswer will score one mark. A mark will not be deducted for a wrong answer.
Any rough working should be done in this booklet.
-~-fa ..-,-.--.....w,~-----,---------------------------
a.., .
paper
This question printedconsists of 12 pnges.
ir.>ZIMSEC N2013 (Turn over
-~~- -,~~~~~~~~~~~~~--~~~~~~~~~~~~~--
,,.
1 The accounting equation is stated as
A . assets = capital - liabilities.

B assets = liabilities - capital.
C capital = assets - liabilities.
D capital = assets + liabilities.
'
2 Which subsidiary book is used to record the purchase of office machinery on credit?
A General Journal
B Purchases .Journal
C Purchases Retums Journal
D Sales Journal
..
3 A disadvantage of a computer in processing accounting data is that
A it is more difficult to discover fraud.

B operating costs are cut as fewer employees are needed.
C there are less chances of arithmetical errors.
D up-to-date information is made available faster.
4 The document sent by the seller to a buyer to request for payment at the end of the month
is called a
A bank statement. ..
I
B credit note.
C purchases invoice.
D statement of account.
5 Which oftl1e following are source documents for a cash book?
A bank statement, cheque, deposit slip

B credit note, in voice, voucher
C · credit note, receipt, voucher
D debit note, receipt, sales invoice
6 Capital expenditure o:f $1 000 was treated as revenue expenditure. This error resulted in
the net profit being
A overstated 1,y $1 000.

B overstated by $2 000.
C understated by $1 000.
D understated by $2 000. ·
711211 N2013
r
7 Dube, a trader, bought goods on credit worth $7 500. He was given a trade discount of
10% and a cash discount of 2% on payment.
How much did he pay?
A $750
lB $6 615
C $6 250
n $7 350
ti V.'hich of the following set of items appears on the debit side of the trial balance?
A carriage inwards and carriage outwards

Ill commission paid and commission received
C discount allowed and discount received
Il} returns inwards and returns outwards
9 V+/1mt does a debit balance in a·packing materials account at the end of a financial year
n,present?
A. an amount paid for packing materials

]l amount not yet paid for packing mateJl'ials
C paclk:ing materials used for the year
[
1
wmsed packing materials
:rn VVhich of the following errors would be reve.aled by a trial balance?
J credit sales of $300 recorded as $30 in the book of original entry

I:~ expenses being debited to sales ,account
C insurance paid $75 not recorded in the books ,
V salaries paid $650 recorded in the salmies account only
711211 N20l3
[Turn over
----------·---- -------
The following account was taken from the ledger of a trader. Use the account to ;answer
questions 11 and 12.
0. Chuma Account
2011 $ 2011 $
May 01 Sales 2 050 May 17 Cash 3 000
14 Sales 3 600 19 Returns 500
30 Sales I 800
11 What is the balance on :01 June 2011?
A credit balance of $3 950

B credit balance of $7 450
C debit balance of $3 950
D debit balance of $7 450
12 In which ledger would Chuma's account be found?
A creditors'(trade payables) ledger

B debtors' (trade receivables) ledger
C general ledger
D private ledger
13 1he total of the discount column on the.receipts side of the cash book is posted to the
A credit side of the discount allowed account.

B credit side of the discount received account.
C debit side of the discount allowed account.
D debit side of the disco unit received account.
14 Which of the following items increases the balance of a bank statement?
A credit transfer
B dishonoured cheques
C interest on overdraft
D ledger fees
•
711211 N20.13
.5
15 b petty cashier had a float of $45 and made the following payments: ....
$
T~a 7
Postage 15
Stationery 6
Cleaning materials 14
1'o restore the imprest, the petty cashier \\las given
}\ $ 3.
}; $42.
C $45.
U $87.
' 16 l1 clllShbook had a c~dit balance of $2 000. The following items appeared on the bank
s.:atement only.
$
Bank cluuges 620
Credit transfer 1.3 00
Dividends received 2 960
Dishonoured cheques 250
Standing order: ZM Insurance 370
W1mt was the updated cashbook balance?
A" $1 020 credit

JJ; $1 020 debit
(; $5 120 credit
D1 $5 120 debit
l7 Sabscriptions in arrears are shown in the balance sheet rui
A, current assets.
JI. current Ii abilities.
(.' fixed(non-current) assets.
i} long terri1(non-current) liabilities.
7ll2/l N2013
[Turn oyer
18 The following account was taken from the ledger ofC. Mafara.
L. Brown Account
-
DATE DETAILS DEBIT CREDIT BAL ANCE
$ ' $ $
2011
July 1 Balance b/f 500
4 Purchases 350 850
6 Purchases returns 40 810
17 Bank 470 340
17 Discount received 30 .. 310
24 Purchases 280 590
What does the balance on 24 July represent?
A amount owed to Brown by Mafara

B amount owe<l to Mafara by Brown
C amount paid by Mafara to Brovm
D value of goods bought from Brown
19 The following was obtained from the books ofN. Zenzo on 30 Jtme 2011.
$
Updated cash book balance 10 700 debit
Cheque deposits not yet credited 7200
Unpresented cheques .5 000
How much is the bank statement balance?
A $ 4 300
B $ 8 500
C $12 200
D $12 900
20 One of tHe shortcomings of a receipts and payments account is that
A amounts in ruTearn and in advance are not shown.

B cash received during the year is shown.
C closing cash .and bank balances are calculated.
D payments made in the current year are lmown.
711211 N20l3
7.
]Jl. T1.1e following is a list of assets and liabilities for a club on 1 January 2011:
$
Equipment. 5 000
CHsh in hand . 450
Subscriptions in advance 320
Fiuirniture 2 500
Creditors(accounts payables) ·· 980
What is the accumulated fund of the club?
A $ 6 650
1ll $ 7 290
C $ 8 610
n $19 2so
22 Smck(inventory) is valued at the lower of
A cost price and average stock(inventory).

B cost price and net realisable ;value.
C net realisable value and avera,ge stock(inventory).
D net realisable value and average cost.
23 How is a credit balance on a bank ,account shown in the balance sheet(statement of

financial position)?
A current asset
B current liability
C fixed(non-current) asset
ID long term(non-current) liability
1.4 ·Which of the following is a cause of physical deterioration of fixed(non-currept) assen?

A inadequacy
lB obsolescence
C revaluatioQ.
n wear and tear
25 \Vhat is the double entry for an incr~ase in the provision for bad debts?
A debit bad debts, credit profit; and loss

B , debit profit and loss, credit: bad debts
C debit profit aµd loss, creqitprovision for bad debts
Ji) debit provision for bad debts, credit profit and loss
7112/1 N2013
[Tum over
•
26 An elecnicity accom1t had a credit balance of$5.000 on 01 January 2011. A cash

payment of $30 000 was made. An amount of $1 000 was ouistanding on 31 December
2011.
How much was tl't.illSfon·ed to the profit and loss acc-ount?
A $24 000
B $26000
C $30 000
D $36 000
27 A business provides the following information.,
Sales $20 000.

Gross profit 25% of sales
Net profit 10% of sales
Operating expenses amounted to
A $2000.
B $3 000.
C $5 000.
D $7 000.
,•
28 The excess of purchase price over the value of net assets taken over is known as
A discmm.t.
B goodwill.
C profit
D surplus.
7112/1 ~013
,
29 FE'mi and Tendai are equal partners. They decide to admit Owen as an equal pzl.r'mt-:r.
Goodwill of $18 000 is introduced.
What is the double eritry for recording the good,ll.rill?
A debit Capital: Farai $6 000, credit Goodwill $18 000

Owen $§ 000
Tendai $6 000
B debit Capital: Fa:rai $9 000, credit Goodwill $18 000

Tendai $9 000
C debit Goodwill $18 000, credit Cfpital: Farai $6 000

Owen $6000
Tendai $6 000
D debit Goodwill $18 000, credit Capital: Farai $9 000

Tendai $9 000
30 In :a partnership, the share of loss is.
A credited to the partner's capital account.

B credited to the partner's current account.
C debited to the partner's capital account.
D debited to the partner's cunent account.
31 l1ie following balances are available from the books ofN. l\kloro Oil 31 December 2011.
$
Fi Ked(non=cu.rrent) assets 24000
Cmrent assets 16 000
Ci ment liabilities 8 000
Long term(non-current) liabilities 10 000
What is the current ratio?
A 1,6: 1
JlJ 2: 1
C 2.4: I
D 3: 1
7112/1 N20IJ
· fI'urm ov.~r
--:....:. .•~ : . _ ~ - . a . . ••
10
J2 In a manufacturing accm.mt, royalties are
A administrative costs.
B direct costs.
C indirect costs.
D selling and distribution costs'.
33 \1\lhich of the following does not appear in a manufacturing accom:i.t?
A depreciation of office equipment

B depreciation of plant and machinery
C hire of special plant
D factory supervisor's wages
3!4 Th{: following inforrnation ·was taken from the books of A. Aleck on 31 Deceml:er 2011.
$
Stock(inventory) l January 2011 10 000
Stock(inventory) 31 December 2011 20 000
Sakos 100 000
Gross profit margin 25%
Purchases amounted to
A 3;25 000.
B $75 000.
C $85 000.
D $95 000.
?.5 The infonnation below was extracted from the books ofM. Mutumwa on
31 December 2011.
$
:'rade debtors/rieceivables 1 January 2011 6 500
':'1:· .--1~ debtors/receivables 31,Dec.ember 2011 7 900
Cf q:,. received from debtors during the year 36 000
Dis:v)T!t allowed 2 000
What is t.r~ amount for credit sales?
A $36 400
B $39 ~00
C $45 9CO
D $52 4(Jti.
7112/1 N20l3
11
3~ Th , foUovving balances were exfracted from the books of a trader.
$
Opening capital 165 000
Closing capital 113 500
Drawings 33 000
Vvl ;.at is the n.et los"' for the year?
,A $18 500
IDJ $51 500
$80 500
D $84 500
Int":Test on debentures is recorded as a
A credit in the appropriation account.

B credit in the profit and loss account.
tC debit in the appropriation account.
D debit in the profit and loss account.
:11! Th shareholder's funds consist of
A. authorised capital - issued capital.

B authorised capital+ issued capital.
C issued capital + debentures.
n issued capital + reserves.
3!P A company had an issued share capital of 400 ·000 10% preference shares of 50 cents
each.
Ar., interim dividi:md of $5 000 was paid.
vVhat was the final dividend?
A $15000
B $20000
C $35000
D ~0000
..
7112/1 N2013
Pi'anru over
----·-·-
12
40 'I11e following ae,;ount·appeared in the books ofL. Hama.,
Motor Vehicle Disposal Account
2011 $ 2011 $
June 30 Motor vehicle 80 000 June 30 .Provision for Depreciation 32 000
Dec 31 Profit and Los:l 2 000 30 Cash 50 OOQ.
§.0~ ~
'What do~ the ~try on 31 December 2011 represent?
A loss on revahmtion of a motor-vehicle

B loss on :sale of a motor vehicle
C profit on revaluation of a motor vehicle
D profit on snle of a motor vehicle
7ll 12/1 N:2013
. -~-----
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NOVEMBER 2013
POSSIBLE ANSWERS 7112/l
C 21 A
2 A 22 B
3 A 23 B
4 D 24 D
5 C 25 C
6 C 26 B
7 B 27 B
8 A 28 B
9 D 29 C
10 D 30 D
11 C 31 B
12 B 32 B
13 C 33 A
14 C 34 C
15 B 35 B
16 B 36 A
17 A 37 C
18 A 38 D
19 B 39 B
20 A 40 A
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.Zll\1fBABWE SCfIOOL EXAMINArfit1J'.\fS COUNCIL

Ge;neral Certificate of Education Ordinary Level
PR.IJ\~C'.IPlJE:S OF ACco·uNTS 7112/1

PAPER l Multiple Choice
JUNE2014 SESSION l hour 30 minutes
Addi1ional materials:
l\.fultiplc Choice answer sheet
·1
:-:·.)ft clean eraser
,,.. ______ ,,_ ........ ,._....., ________
: :on pencil (type B or HB is reconunendecl)
,
--··---···------
I
'fIM]t !. hout 30 minutes
lNSTH.lJCTIONS TO CANDIDATES
no not npcn. th.is booklet until you a1·e told to do so.
Write y, iur name, Centre number and candidate number on the ans\ver sheet in the spaces
provided unless this has already been done for you.
There are forty questions in this paper. Answer all questions. For each question there are four
possibk ans,:vers, A, U 1 C and D. Choose the one you consider correc:t and record your choice in
soft pe)illcil on the separate answer sheet
Read ,1ery cai.-efuUy the instructions on the answer sheet.
lNIDOJP:M;AT!ON FOR CANDIDATES

Each correct answer will score one mark. A mark will not be deducted for a Wi'Ong answer.
Any r,rng!1 working should be done in this booklet.

Cakulators :must rwt be used.
' 1...,..u,..:=.._..~... ..--~---"N>'"-"""'90•..,,_________ _.,_,.=""'-"""·~--·--- -·

This question paper consists of 10. printed p~.ges r,rnd 1: blank pages.
C::opyright: Zimbabwe School Examinations Cm1ucil, .12014.
[Turn over
1r,z1M·mc J2014
-.~··-----·. ---·--
...............
, -- ------·· -·-·-:,....,__. ... _.....,__, .
______ ,_________ --·-·--······ . - . ------
_,
--
1 Which is the correct accounting cycle?
A ledger trial balance subsidiary book final accounts

n subsidiary book ledger tTial balance final accounts
C subsidiary book trial balance ledger final accounts
D trial balance ledger subsidiary book final accolmts
2 The subsidia1·y book which is part of the ledger is the
A cash book.
B general journal.
C purchases joul'nal.
D sales journal.
3 The advru1tage of using computers in data processing is that they
A are readily available.

B cannot be corrupted by virus.
C have a huge storage facility.
D req uhe skilled persom1el.
4 The total in the sales journal is posted to the
A credit side·ofthe debtor's accoutit.

B credit side of the sales accotmt.
C debit side of the debtor's account.
D debit side of the sales account.
5 Which of the following .i8 a factory overhead cost?
A depreciation of plant
B machine operator's wages
C patent fees
D royalties
.
6 The docmnents used when preparing a cash book are·
A cheque stubs and receipts.

B credit notes find purchases invoices.
C debit notes and sales invoices.
D itivoices and vonchers.
7112/!J20J4
'f'
l
7 \Vhich of the following is classified as capital expenditure?
cost of extending a garage

B cost of buying a motor van for re.sale... ·
C cost of repainting premises ·
} )i cost of repairing a plant
8 \Ii/hat is the double entry for dishonoured cheques?
A. debit bank account, credit creditor's account

·~1 debit bank account, creditdebtor's account
C debit creditor's account, credit bank account
ti) debit debtor's account, credit bank account
9 On O1 January 2011, G. Nare bought goods worth $20 000 less I 0% trade discotmt. The
cash discount was 5% within 20 days.
,O
.,...- /
-,c,
"
Otfi('t
How much was paid on 12 January 2011? \/Jlfi ···· · --·D
C ~)
·, '/ 1·· r}fj,
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71"''() /'\
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A $17 000 •'(<{J~. { ..... I t__,J
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.
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B $17 100 i c::o('.:'> - ::.ci

C $18 000
n $19 000 1·r
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10 In the accounts of a club, the excess of expenditure over income is called u
A deficii.
B loss.
C profit
D surplus.
l1 One of the advantages of preparing a petty cashbook is to
A record small payments on vouchers.

B reduce the number of postings to the ledger.
C spend less on small payments.
'D use the imprest system.
.... ____ ,, ____ ,, ______UJ2LL12.0.L4.. _

\Turn ove1
----------· ··---- -·-----·--
J2 Tlie following information was extracted from the books of a trnder on O1 Jarww. v 2011.
Dr Cr
1·
'"""' .-.:..-
$ $
Motor vehicles 60 000
P:rovision for depreciation 20 000
Motor vehicles were depreciated at. 10% per a,.'111run using the r1;dui.::ing balance method.
The net book value of the motor vehicles on 31 December 2011 was
QC}ol
A
n
$24 000.
$32 000.
U..;)"'" .,( q_c,
I l\....,(j'i r-
(: $36 000.
q C.JQ1:,
I> $38 000.
13 Given:
$
Cost of rnw materials used 80 000
Repairs and maintenance of plant 4 000
Royalties J 000
Manufacturing wages 11 000
"'r
Closing stock cf work in progress 2 000
l
The prime cost is

---\
A $ 93 000. (
n $ 94 000.
C $ 98 000.
n $100 000.
14 Control accounts are important because they are used to
calculate sales and purchases.

l"'Ji check the Work of junior clerks.
t '. correct cnors.
H prevent fraud.
7112/1 J20!4
15 On 31 December 2011, debtors were $60 000. A provision for doubtful debts of 5% was
created after writing off an amount of $4 000 as bad debts.
The amount for net debtors in the balance sheet was c::O()
<..::(1 .~&k.--(.
A $49 200.
. :.-\-_l_t:_sJ O
"' --I ,:•,_': -) t-":· (''. ) 'r)
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T J"'
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---~
n $53 000.
l ,'
) l9.
____µ .
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C $53 200. \~, 1- b J ~ ' ~f,'L
n $57 000. \ . ~6n
....3,. ·1- ¥}.yC)(
keft - --·--1-
16 V/hich error would prev~nt totals of a trial balance from agreeing?
'l_.(v
A complete revers~l of entries
IT enor of commission
(' error of transposition .. ./
l) single entry
J7 • Vlhich item increases the bank staternent balance?

! •
A. bank charges
.,,
l> credit transfer
C direct debit
n dishonoure.d cheques
i8 A bank loan differs from a bank overdraft in that it
,.
l
has a high interest rate.
H is given to curre1).t acco1mt holders only.
C is repaid over a long
'
periocl:of time.
n
'
is repaid over a short period of time.
19 The omission of an invoice of $}-30.Q for goods sold was discovered after preparation of a
draft income statement.
Jf the error is corrected, the effect is to
A inc-rease gross profit oµly by $1 300

B: increase gross pi·ofit and net profit by $1 300.
('.' reduce gross profit only by $1 300.
n reduce gross profit and net profit by s;i
300.
7112/l J2014
[Turn over
20 Given:
$
Bank statement balance :12 700 credit
Bauk lodgements not yet credited 4 800
Unpresented cheques 3 990
\L 'ILD
The cash book balance is ·2 c,U()
\'· 0 ----
. -- --~-: ::(:/.,"y, -
A $ 4 000 credit. \ --....) ' ( ,~<\.,-.:··
. "~ ·' :c-·u (_)
B $ 4 000 debit. -,/··
C $13 600 credit.
·D $13 600 debit.
21 Vv'hat is the double entry for interest on capital?
A debit appropriation account, credit current account

D debit capital account, credit current account ·
C debit current account, credit appropriation account
D debit current account, credit capital account ·
22 In partnership accounts, a partner's drawings are debiteq to the
A appropriation account.
B current account.
C profit and loss account.
]) trading account.
23 Banda and Mvvale are .in equal partnership. Mwale is elititled to a monthly salary of
$10 000. Their net trading profit is $600 000.. '
How much is Mwule's total income for the year?
A $240 000
B $295 000
C $305 000
D $360 000
I I I
24 · Profit or loss made on the sale of a fixed asset is calculated in 1he
·A asset disposal account.

B profit a.nd loss account. .
C provision for depreciation account..
I) trading account.
7112/1 12014
25 The following information ,vas extracted :from the books of F. Slmmba.

,1,
2011 ,fl
January 01 debtors/trade receivables 10 000

December 31 debtors/trade receivables 15 .ooo
discount allowed 3 000
bad debts wTitten off 2 000
cheques from debtors 6 000
The amount of credit sales V{aS
A $10 000.
B $12 000.
C $16 000.
D $36 000.
26 A cheque payment of $1 400 for electricity was omitted from the books.
The effect of this error was to
A. increase gross profit.

B increase net profit.
C reduce gross profit.
n reduce net profit.
J
27 VVhat is meant by a debit balance in a profit :and loss account?
,,
A gross loss
B gross profit
C net loss
D net profit
28 Cheques are dishonoured if the
A amount is equal to tlie drawer's bahk balance.

B amount in words is the same as the amount in figures.
C drawer's signature is the same as the specimen signatur~::.
D drawer stops payment.
29 Direct materials, direct labour fil\d direct expenses make up the

\
A cost of production.
D cost of raw materials consumed.
C factory overh~ad cos,.
D prime cost.
7112/1 J2014
[Turn oyer
:w Tlle issued .share capital of a joint stock company cannot exceed !he
A authorised share 9apital.

B called up share capital.
C ordinary share capital.
D paid up share capital.
31 In limited companies, total capital funds are obtained by adding
'
;,-A authorised capitaL and issued capital.
B debcntmes and re'serves.
C debentures and sb,areholders' funds.
D reserves and shareholders funds.
32 Th~ issued share capital of a limited company consists of
600 000 10% preference shares of 50 cents each.

1'c1C>Ci t.'..:(1 < -7
1CO 000 ordinary shares of $2 each. ·- lr-c' l ·· ~ :, .:-----
\Vliat is the issued share capital?

\
A $300 000
n $500_00D
C __ <£600 000 --
n ' \ $Boo ooo
\
33 A iJusi'i;i.ess
\
sub-lets pii~t of its premises at a rate of $1 200 per month.
\ -
During the year ended 31.December 2011 the business received $15 000.
/
Hvw much is credited to the profit anrl loss account on 31 December 2011?
.. i~i.zV6
, iT.),, c
~~ lt1J?j
A
B
$ 1 200
$13 800
$14 400
J -.:; 000
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3,f. \J\,1 dch of the following is :~n intangible asset?
A cash at bank
H goodwill
C furniture
][) stock of stationery
7112/1 J2014
•'
35 On O1 Januaiy 2011, the' subscriptions accoun,t had a debit halwo.c,~ of $800 and a credit
bnlance of $1 000. l\n amount of $5 000 was received for subscriptions during the year.
Tii.e amount transferred to the income and expenditure account on 31 December 2011 was
A $4 800.
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B $5 000. _ _ .....___\ -------. ...
c•
$s 200
l .. •
(pcx'JCi I ---
l{"ic :c;~---- ' - -) ' )
D $6 800.
0ic-,
36 0 \Ven' s business was purchased at an agreed price of $7 5 000. The following assets and :.-:::};j_··
fo,bilities were taken over. '.) --.L ,:
$
Furniture 4§ 000
Stock 1·5 000
Trade debtors
Trade creditors
20 000
13 000 9,0 0 t:,(' 76 (,' -
-t(.J
Expenses owing 17 000
·- ·- Cf"
1"'-
- ' r·,• r ,._ ._,,,~--- --.....
,>.::;~~....,(1
( · ""7
';::JO t:,U
Tl1e value of goodwill was
1
$ 25 000.
B $ 50 000.
C $ 80 000.
D $125 000.
37 The following information was extracted from the books of a trader on 31 December
2011.
$
Net profit 25 000.
Turnover 200 000
Gross profit 50 000
··1-tD 00 o
•··-- I 7)(.\ 000 _
Tre gross profit mark-up was C.~ ['°' (\ 0 C~l
\ ·. _) .I -
C,'2
A 12 .Lo,,; ---- .. ·~~-'l __9:ti::::. , -, 1 c, (_)
n 25%.
2 'o.
l. oc., ~) \ S:) l!!
'- "\--'
(f· I~
C 33-}%.
n 50%.
7112/1 J2014
[Turn over
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10
38 The acc.ount shown below was taken from the nominal ledger ,,,fN. Ncube.
Packaging Materials Account
2011 $ 2011 $
Oct. 1 Balance b/d 40 000 Oct. 21 Patel Ltd 3 000
6 Cash 10 000 31 Profit and loss 66 000
17 Patel Ltd 20 000 31 Balance c/d 1 000
]lU)_QQ ]O_QQ.Q
·what is meant by the entry "Profit and loss 66 000"?
.A packing materials bought on credit

B packing materials not used .
C packing materials returned
0 packing materials used
39 An increase in provision for bad debts is recorded as
A debit bad debts account, credit profit.and loss account.

.8 debit profit and:Ioss account, credit bad debts account.
IC debit profit and:loss account, credit provision for bad debts account.
J!) debit provision for bad debts account, credit profit and loss account.
40 The account shmvn below was taken from the ledger of a partnership.
T. Bwanali: CmTent Account
:w11 $ 2011 $
Dec 31 Drawings 15 000 Jan 1 Balance b/d 180
Interest on drawings 750 Dec 31 Salary 2 000
[nterest on capital 10 000
Share of profits 1 000
Bahmce c/d 2 570
15 750 15-1.i.O
The balance on 31 December 2011 represents
A loss to be shared.
B overdrawn profits.
C profit not used..
D undravm profits.
7112/1 J2014
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-f
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l
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--.
JUNE2014
1 B 21 A
2 A 22 B
3 c 23 C
4 B 24 A
5 A 25 c
6 A 26 B
7 A 27 C
8 D 28 D
9 B 29 D
10 D 30 A
11 B 31 D
12 c 32 B
13 B 33 c
14 A 34 B
15 C 35 c
16 D 36 A
17 A 37 C
18 c 38 B
19 B 39 c
20 c 40 B
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-l
c=~=----
Surname Forename(s) Centre Number
-1 :_=._ _ L_ ----,
Candidate Number
---
--
• --
·-,,..,
For Perftm;Ullf.(~ Meanwmmt
ZIMBABWE SCHOOL EXAl\i1INA1 lONS COUNCIL 1
:PRINCIPLES OF ACC()UNTS 71-12/2

PAPER2
JUNE 2014 SESSION 2 hours 30 minutes
, :Jfow camU.dates 5 minutes to count page5 before the ex~unination.

~~~~~~~~~.,--~~~~~~~~~~~~= -~-- ~/
'lUeUG 2 homs 30 minutes
rNSTRUCTIONS TO CANDIDATES
Check that all the pages are in the booklet and ask the invigilator for a replacement ifthere are
duplicate or missing pages.
'Nrite your name, (Surname and Forename(s)), Centre number and candidate number in the
f paces provided at the top of this page and your Centre number and candidate number in the
l iOX at the top right hand comer of every page of this paper.
/,.nswer 2-U questions. ..

11
/rite your answers in the spaces provided on the question paper.
Hse bfack or Mu.e bampoint pen only.
1\.ll calculations must be shown adjacent to the answer.
Cakufators must not be used.
ll\TFOR1\1ATION FOR CANDIDATES
1 he number of marks is given in brackets [lat the end of each question or part question. I
1'mounts used in this Question Paper are for calculation purposes only. I
}'he bu.sinesses described in this paper are entirely fictitious.

Copyright: Zimbabwe School Examinations Council, J2014.
(1ZIMSEC J2014
~·~-.~~·~~~~----~~~~~
---·------- JTurn over
I
Centre Number.
TI
' =-==l
Candidate's Nu:nber
2
,.
Answer aU questions.
1 S. Kamwendo, a sole trader, extracted the following trial balance from hks books on
31 December 2009.
Debit Ciredit
$ $
Capital 64 000
Dravlings 4100
Purchases and Sales 100 000 I 142 600
Stock/Inventory, 1 January 2009 9 000
Returns inwards
Railage .inwards
700
11 000
I ·IJ
Rent 13 000
Motor expenses 3 100
Wages 9 600
Insurance 1 600
Provision for bad debts, 1 January 2009 I 500
Equipment, at cost 60 000
Motor vehicles, at cost 12 000
Provision for depreciation, 1 January 2009:
Equipment
Motor vehicles I 11 400
4 800
Bank
I
l 960
Debtors (Accounts receivable) 8 200
Creditorn (Accounts payable) 12 100
Cash 3 000 --·- ' J
236 36Q 216.J,QQ 1--
The foUowing information is also available on 31 December 2009:
(i) Stock (Inventory) was valued at $18 200.
(ii) A credit note received from a supplier for goods worth $2 500 n:tumed by the
business had not been entered in the boo~s of account.
(iii) Motor expenses due totalled $260.
(iv) Insurance in advance amounted to $120. i
(v) Sundry expensef: include $150 for a private telephone bill.
7112/212014
l
Centre Number __ Gtli1didate's Numb(-;;f
c=--~=-· =1
.3
]. (vi)
The provision for bad debts is to be adjusted to 5% of debtors/accounts
receivables.
(vii) Motor vehicles are to be depreciated by 20% per annum on cost and
equipment by I 0% per ammrn using the diminishing balance method.
\"-
/
J'.,,.,r'
7lt2/2 J2014
[Ttn·n ovei,
Centre Number Candidate's Nurnber
( \ ==-~~~=.=--~·-~.\ '
4
1 You are required to prepare
(a) the Trading and Profit and Loss{Income Statement) for the year ended
31 Decembe.r 2009, '
--------~·------
------ ,-
--------------------------------------·------
----------------------------·----------·------~
7112/2 J2014
Centre~,-· _J;)mdidnte' s Number
C . . ,_[.~--- ·---,J
.5
J (a)
_ _ _ _ _ _ _ [121
7112/2 J2014
[Tu:rn ovcir
~
Centre Number
[~: :=
Candidate's Number
·-=-~.~~] •
1 (b) the Balance Sheet(Statement of financial position) as at 31 December ,,

2009.
-----------------------------'-------------------~---
_________________________________________ ________ ..
-----------------------------~-------------------
------·--
-----------------------------------------------
---------------------------------------------------------------
-------·------·------------------------·---------------·---
--------
---------------------------------------.-
7112/212014
r-- ----]-·····--·--·
Centre Number
.
('.andidate' s Number
]
~ -- ---· ·-----
.1
1c (b)
--~-~~~~~~~~~~~--:-~~~~~--~~~~~~
--------:--------------------(13]
7112/2J2014
[Turn over
Centre Number , Candidate's Nurn.ber
I I -=--=c _J •
8
2 (a) The following assets and liabilities appeared in the books of Wisdom
Golf Club:
1 Jan~ary 2009 31 Deeember 2009

$ $
Bar stocks(inventory) 900 l 200
Stock of stationery 120 90
Bar creditors (accounts payable)· 600 1 100
Subscriptions in arrears 340 700
Subscriptions in advance 100 160
Cash at bank 1 700 2 000
The following transactions took place during the year 2009:
$
•
1. Payment to bar creditors by cheque 800
2. Stationery bought by cheque 2 400
3. Stationery.purchased on credit from T.K. Stationers 500
4. Subscriptions received from memb~rs in cash 9 600
5. Damaged stationery returned to T .Kl.. Stationers 300
You are required to prepare
(i) the Bar Creditors(Accounts Payable) Account, calculating credit

purchases,
-~~~~~~~~~~--~~~~~~~~~~~~~~~~~~~~~- -~~--~~~
~~--~~~--~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~-
_ _ _ _ _ _ __[4]
7112/2 J2014
r-- -··-~c--------·w--•·"-,
Centre Number Cantlidate's Number
L-,----·;p.-~--= -··-·--~___}
?: (a} (ii) The Stationery Account,/
_..
-· --~~~~~~~~~~~~~~~-~~~~~
· - - - - - -[6]
7112/2 J2014
[Turn over
Centre Number Candidate's Ni,.mber
1 : ]~----·=~]
10 ..
2 (a) (iii) the Subscriptions Account.
----------------------------·--·----
.
-~-~-----~---------------~------------~~-~-
-------------------,.--------~------------·----------
,
· - - [5]
7ll2/2 J2014
. Centre Jiumbcr Candidate's Number

c_ ·--~-1===:::J
11 .
z (b) The Cash:Book of Rugare Stores showed a. credit balance of $8 600 on
31 January 2010. The Bank Statement received for the morith of January
reflected an overdraft of $2 500 on 31 January 2010.
Comparison of Cash :Sook and Bank Statement revealed the following
matters:
Entries not entered h1 the Cash Book:
$
1. Bank charges 3 340
2. Credit transfer 14 000
3. Standing order - City Council 2 000
4. Interest on overdraft 2 260
Entries not entered in the Bank Statement:
I. Deposits amounting to $1 800 had not' been cleared' and credited ·
by the bank. .
2. Cheques drawn and sent to Creditors amounting to $1 500 had not
been presented to the l)ank.
You are required to
(li) · write up a Cash Book update,
·----~------------
f5
7112/2 J2014
[Turn ov1
Centre Number Candidate's Number

1 l _______"~J
12
2 (b) (ii) prepare a Bank Reconciliation Statement as at 31 January 2010.
. L
'
~~~~~~-~-
~~~~~~~~~~~~~~~~~~~~~~-...·-~--~~~~~~~~~~~~~~~~~~~~~-. ~~~~~-
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~--~~~~-~-
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~-~~~~--~~-~~-·-
I';
~~~~~--~~~~~~~~~~~-'-~~~~~~~~~~~~~~~~~~~~-~--~~~~-
~~~--~~~~~,--~~'--~~~~~~~-~~~~~-~~~--~----·~
'
..
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ [5]
7112/212014
r --·"·--·-···
c_._=J==----=~-~
Ce:atre Number Candidate's Number
Jl3
3 <~, S. Samanyika Toy Products Private Limited Company is engaged in
manufacturing toys. The following balances were extracted from the business
books on 31 December 2009.
$
Stocks(inventory) at 1 January 2009:
Raw materials 11400
· Work-in-progress 4 000
Purchases of raw materials 54 000
Supervisor's wages 5 000
Direct wages 29 000
Royalties 600
Salesm~' s salaries and wages 7 000
Depreciation of factory machinery 1200
Stocks(inventory) at 31 December 2009:
Raw materials 1400
Work-in-progress 11 500
You are required to prepare the Manufacturing Account for the year ended
31 December 2009, showing dearly Cost ()If raw nrnteriais consumed,
Prime cost and Total cost of productiolll.
-------------------------------------------------
7112/2 J2014
[Turn illVcl'
16
3 (b) You are required to prepare journal entries showing parts (ii) to (vi).
Narratives are not required.
~~~~~~~----~~~~~~~~--~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
,__
~~~~~~~--~~~~~~~~--~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~--~--~~--~~
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~---~~--~~--~~
~~~~~--~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~-~~~~-~~-~-~~
___ _[12]
7112/212014
;,
C =~~--- .
Centre Numbe;r Candidate's Number
_J
17
4 (ta!) Write down the word(s) or figure(s) re.quired to complete each of the following
sentences.
Do not rewrite the whole sentence.
(i) The source document used for ,\rriting up a Petty Cash Bock is knovvn
as~~~~~~~~~~~~~~~~~~~~~~~~~-'
whilst an is a business document used for all credit

transactions. [2]
(ii) The rate of stocktum is· obtained by dlviding cost of sales by

•'
[1]
(iii) A record of rent paid by cheque $500 entered as $5 000 in both Rent
and Bank Accounts is an error of [l]
(iv) The assets and liabilities of Thandi are as fol1ows: Premises $50 000,
Debtors(Accounts receivable) $29 000, Creditors (Accounts payable)
$30 000, Stock (Inventory) $15 000, Bank $16 000. Thandi's current
ratio is and her qukk ratio is
[2]
(v) Goodwill of a business is the excess of purchase price over its

_ _ _.[l]
(vi) Premises are ~~-·~-~--~,~~~~~~~~~~
assets and arise from

expenditure. [2]
(vii) Trading stock is a - - - - - -
asset arising from

expenditure. [2]
(viii) When the debit side of a Trial Balance is greater than the credit side the:
~ifference is shown on the credit side of the
' account. [ 1]
7112/212014
[Turn over.
\ \-~-----~]
18 ,•
4 (b) Trustwell Company Ltd had the following details extracted from ii.ts books for
the year ended 31 December 2010.
Authorised Share Capital $

250 000 Ordinary shares of $1 each 250 000
66 000 11 % Preference shares of $1 each 66 000
Issued Sbare Capitnl

200 000 Ordinary shares of $1 each, fully paid 200 000
55 000 11% Preference shares of $1 each, fully paid 55 000
10% Debentures 85 500
Rf..'se1"Ve§
General reserve, I January 2010 47 550
Profit and loss account, 1 January 2010 20 000
The net trading profit for the year was $79 550 before allowing for debentu~,e
interest.
$
Interim dividend. paid: Ordinary shares 12 500
Preference shares 3 025
The directors recommend that:
1. the General Reserve be increased to $70 000.

2: a final dividend be paid to preference shareholders.
3. a final dividend of 15% on ordinary shares be paid.
You are required to pr,epare
7112/2 J2014
"" ,,
Download more resourcesl like this on ECOLEBOOKS.COM
C Ccmtre Number
--y___
Cundidate's Number
~w _
J
..
1.9
4 (b) (i) the Profit and Loss Appropriation Account (Income Statement) for the
year ended 31 Decembr~r 2010,
-----------~--------------
--·~+--~~~~~~~~--~--~------~------~~~~~--.:::,·--~~------~
[6]
711212 J2014
[Turn over
[ Centre Number:
\-=---~=~]
Candidate's Number
20,
4 (b) (ii) the Balance Sheet extracfat 31 December 2010 showing th,;i total
shareholders' funds.·. · ·
,--
.,,
'
t,,
4 t
111
---------
[71
7112/2 J2014
JUNE2014
W!}§.Kamwendo's trading profit and loss account for the year ended 31 december 2009
$ $ $
Sales 142600
less Returns inwards (7000)
TURN OVER 141900
less Cost of sales
opening stock 90000
add Purchases 100000
less Returns outwards (2500)
97500
add Railage inwards 11000 108500
117500
less closing stock (18200)
COST OF SLAES (99300)
GROSS PROFIT 42600
add other income:decrease in provision for bad debts 90
42690
less EXPENSES
Motor expenses (3100+260) 3360
Rent 13000
Sundry expenses (1060-150) 910
Wages 9600
Insurance (1600-120) 1480
Dep: Equipment {60000-11400)x10% 4860
Motor vehicle ( 12000x20%) 2400 (35610)
NET PROFIT
7080
[12marks]
1(b) Statement of financial J)osition(Balance sheet}as at 31 december 2009
Non-current assets COST$ ACC DEP$ NBV$
Equipment 60000 16260 43740
Motor vehicles 12000 7200 4800
48540
Current assets
Inventory( stock) 18200
Debtors(Accounts receivables) 8200
less provision for bad debts {410) 7790
Cash 3000
Prepaid Insurance 120 29110
TOTAL ASSETS
77650
EQUITY
Capital
64000
add Net profit
7080
71080
Jess drawings {4100+150) (4250)
66830
Current liabilities
Bank overdraft
960
Accounts payables( creditors) (12100-2500) 9600
owing motor expenses '
260 10820
TOTAL EQUITY AND LIABILITIES
77650
[13marks]
2(a) dr Bar creditors(Accounts payable) account er

Bank 800 Balance b/d 600
balance c/d 1100 Purchases
1900
Baiance b/d
--- 1300
1900
1100 [4marks]
(ii) dr Stationery account er

balance b/d 120 returns outwards 300
Bank 2400 Income and expenditure 2630
T~K Stationers 500 balance c/d 90
3020 3020
balance b/d 90 [6marks]
(iii)
subscriE_tion account
balance b/d 340 balance b/d 100
Income and expenditure 9900 Cash 9600
balance c/d 160 balance c/d 700
10400 10400
balance b/d 700 balance c/d 160 [5marks)
2(b) i
UfJ_dated cash book
Credit transfer 14000 balance b/d 8600
Bank charges 3340
Interest on overdraft 2260
balance c/d 2200 Standing order 2000
16200 16200
balance b/d 2200 l[smarks]
b(ii) bank reconcilliation statement as at 31 january 2010

Balance as per cash book overdraft 2200
add Uncredited cheque 1800
4000
less Unpresented cheque (1500)
2500 [5marks]
3(a) Samanyika's manufacturing account for the year 31 december 2009

Raw Materials $ $
opening stock 11400
add purchases 54000
65400
less closing stock (1400)
COST OF RAW MATERIALS CONSUMED 64000
add: Direct wages 29000
Royalties 600 29600
PRIME COST 93600
}
add Indirect expenses
Supervisor's wages 5000
depreciation: Factory machines 1200 6200
,, 99800
add Opening work in progress 4000
103800
less Closing work in progress (11500)
',
TOTAL COST OF PRODUCTION I 92300 I

[13 marks]
3(b) Journal entries

debit$ credit$
ii Goodwill 7800
Capital :Thandiwe 3900
Sibusisiwe 1950
Nothando 1950
iii I Profit and loss account 480
debtors 480
iv ILand 4930
bank 4930
V Profit and loss account 400
equipment 400
vi !Cash 3500
Furniture 6500
Capital 10000 1[12 marks]
4(a) i Petty cash voucher and lnvoice[1] (ii) Average stock[1] (iii) Original entry/transposition error[1)
(iv) current assets 60000
current liabilities 30000 = 2 [2] (v) net assets[1]
(vi) Non current /fixed and Capital[2] (vii) current assets arises from Revenue expenditure[2]
(viii) suspense[1]
4(b) profit andloss _appropriation qccount for the year ended 31 december 2010
net trading profit 79550
less Debenture interest ;
(10%x85500) (8550)
71000
Transfer to general reserves 22450
Dividends paid and proposed
Preference dividends - Interim 3025
-final 3025
Ordinary dividends -Interim 12500
-Final 30000 (71000)
0
add Retained profit b/d 20000
Retained profit c/d 20000
[6 marks]
----------·--· __.._______ _
,-----
-·-·---·--------..
~--- . . . ~ -- -----"'····-----,
--·-~. .
2~Il\1[BAB"''E SCHOOL'''.EXAMINAl'IOI~S ·cotrl'~(;IL 1
}IliJlINCIPLES !OF ACCOUI~TS

Gene1,~al Certificate of Education Ord.inuy Level
7112/1
I
11·APER 1
NOVEMBER 2014 SESSION l hour 30 minules

i\dditiona\ materials:
Multiple Choice answer paper
.!~' Soft clean eraser
Soft pencil (type B ofliB is recommended)
.,,·
-~-- _______ ___-"_________________
..;... ·------------
TKMJl: 1 hour 30 minµte~
Do uot open this booklet until you are told to clo so.
Wrik your name, Centre number a1id.candidate number on the answer sheet in the spaces
provided unless this has alr~ady been done for you .
..
Thi.~re are forty questions in this paper; Answer all questions. For each question there are four
possible answers, A, B, C, and D. Choose the one you consider correct anc\ record your choice
in soft pcncH on the separate answer sheet.
Rca,:l\ very earefuUy the i~structions on the answer sheet.
Each correct answer will score one mark. A mark will not be deducted for a wrong answer.
An) rough working should be done in this booklet.
Cakulators must :mot be used.

I
~-.,...._...,~ ~-----~---------
This questiqn paper consists of 11 printed pages and 1 blank pnge.
Copyright: Zimbabwe Schoo\ Examinations Council, N2014.
COZl!,iISECN2014 [Turn over
I
2
1 Sole proprietorships are
A manufacturing businesses.
B not for profit organisations.
C owner~managed businesses. .
D retail businesses.
2 G. Moyo received an invoice of$ 1 600 from City Builders Ifor repairs to the workshop.
This transaction was first entered in th~
A Cash Book.
B General Journal. '\
C Purchases Journal.
D Sales Journal.
3 Which set of items coi1tains nominal accounts?
A capital, creditors, debtors

B cash, drawings, wages
C discount received, motor expenses, stationery
D · furniture, motor vehicles, stock
4 What is the source l)f infonnation for the entries in an updated cash book?
A bank statement
B check stub
C reconciliation statement
D statement of account
5 Which of the following is a disadvantage of using computers for processing data?
A Accurate and up-to-date information is provided.

B Arithmetical errors are minimised.
C Efficiency of the accounts office improves ..
D Fraud is more difficult to discover.
6 One of the advantages of preparing control accounts i,s to
A calculate purchases.
B coi;rect errors. ·
C deter fraud.
D prevent cheating.
7112/1 N2014
'.,
3
7 ·which of the following is a computer hard\vare device?
A excel
B microsoft word
C mouse
D pastel
8 An entrepreneur brought her pri"."ate motor vehicle valued at $10 000 into her business.
The effect of this transaction is to
A increase capital by $"10 000.

B increase working capital by $10 000.
C reduce capital by $10 000.
D · reduce working capital by $10 000.
9 Which transaction is iclassified as revenue expenditure?
A credit purcha~e of a computer for $1 200 from S. Nyamande

U payment of $:5 000 by cheque for an extension. to the accounts office
C a
purchase of second hand motor vehicle for $4 000 cash .
l) payment of $800 cash for replacement of tyres for a second hand vehicle
10 B. Muronda owed J. Brown $800 on.1 May 2011. On 5 May 2011, Muronda bough
goods on credit from\ Brown for $2 400. On 8 May 2011, Muronda paid $780 cash in fol
.,
settlement of the debt owed on 1 May 2011.
How mush does Mtironda owe Brown on 9 May 20117
A $780
B $800
C $2 400
D $2 420
11 A correct amount i~ entered in the wrong person's account. This is an error of
A comm1ss1011.
B original entry.
C principle. ·
D transposition.
7112/1 N2014
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-·~ -.;,,·
4
'I
12 Which error is revealed by a trial balance?

I
A a cash sale of goods for $269 entered in the books, both debit and credit, as
$296 . ;
B a cheque of $450 received from ,a debtor debited to ~e debtor's account
and credited to the bank account
C a cheque payment of $1 500 for fixtures entered in the cash book but not iu
the fixtures account ,
D cash drawings of $500 debited to drawings account and credited to bank acrnunt
13 Which item appears in the bank reconciliation statement?
A bank charges shown on the bank statement,

B dishonoured cheques on the bank statement
C credit transfers on the banlc statement
D . errors made on the bank statement
14 The following information relates tq a business.
$
Overdraft as per cash book 2 890
Bank charges not yet entered ': 190
U npresented cheques 3 200
Deposits not yet credited 4t 900
The balance as per bank statement is
A $3 080 credit.
B $3 080 debit. •
C $4 780 credit.
I) $4 780 debit.
15 The drawings account is closed by transferring its bala11ce to ~e
A credit side of the i;:apital account.

B credit side of the profit and lbss account.
C debit side of the capital account.
D debit side of the profit and loss account.
I
16 The double entry for a loss on the disposal of a fixed asset is ·
A debit fixed asset disposal account, credit profit and lo~s account.
B debit profit and kiss account, credit fixed asset disposal fi:CCOU11t.
1
C debit profit and loss account, credit provision for depr eciation accom1t.
D debit provinion for depreciation nccount, credit fixed asset disposal account.
7112/1 N20!4
17 The double entry

1
fo1; closing stock(inventory) is
A debit purcha~es account, credit stock (inventory) account.

B debit stock (inventory) account, credit purchases account.
C debit stock (inventory) account, credit trading ac,~mmt.
1D debit trading account, credit stock (inventory) account.
18 A Trial Balance exfract as at 31 December 2011 is as folli.:nvs:
$ .,·'$
Machinery at cost 40 000

Provision fdr depreciation, 1 January 2011 14 400
Machinery is deprebiated at 20 % per annum on a reducing balance basis.
What is the depreciation charge on 31 December 2011?
A $2 880
B $5 120
C $8 000
D $1:0 880
19 A debit balance in tthe subscriptions received account represents subscriptions
A owed by members.
B paid by the: club.
C received in advance.
D received for the year.
20 If revenue expenditure is classified as capital expendi_ture,
A the net loss increases.

n the' net proJit
'
decreases.
C the net profit increases.
JD there is no! effect on the net profit.
. 7112/1 N2014.
[Turn o
6
21 The following information relates to Bat~ai Club on 1 Januapr 2011.
$
Cash in hand 500
Equipment 8:200
Bar stock 1 :700
Subscription in arrears 450
Subscriptions in advance 690
Creditors for bar stock 1 ;100
What is the cmnulated fund?
A $7 860
B $9 060
C $9 540
D $10 440
22 Which of the following is a disadvantage of partnerships?
A Losses are shared by all partners.

B More capital is raised.
C More chances of better decisions are made.
D Profits are shared by all partners.
23 · A surplus in the income and expenditure account is
A added to the accumulated fund in the. balanc~ sheet.

B deducted from the accumulated fund in the balance sheet.
C entered as a current asset in the balance sheet. ..
D entered as a current liability in the balance sheet.
24 The following is a Trial Balance extract as at 31 December 20J 1:
$ $
Debtors (trade receivables) 25 000

Provision for bad debts, 1 January 2011 1 100
The provision for bad debts is to be adjusted,to 4 % of debtors.
The provision for bad debts entry in the profit and loss account on 31 December 2011 is
A $100 credit.
.B $100 debit.
C $1 000 cre<.fo.
D $1 000 debit.
7112/1 N2014
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------
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--------·······----------
25 In partnership, profits: on revaluation of assets are
A credited to old partners' capital accounts at new ratios.

n credited to old partne;s' capital accounts at old ratios.
C debited to oldipartners' capital accounts at new ratios
I) debited to oldipartners' capital accounts at old ratios.
26 The followit1g relates to the business of W. Washaya on 1 January 2011..

$
Buildings 75 000
Fixti1res 12 000
Stoqk (inventpry) 18 000
Debtors (Tra9e receivables) 15 000
Creditors (Tr:;:ide payables) 14 000
Expenses dut;l 1 500
A purchaser is willing to pay a goodwill of $29 500 for the business.
What is the agreed purchase price?
A $104 500
B $120 000
C $134 000
D $149 500
27 The profit ·or loss-sharing ratio of a partnership changes when
A a new partner is admitted into the partnership.

B the: drawings of the partners exceed their share of profit.
C the profit fo1· the year is high.
D there is a net loss for the year.
7112/1 N2014
[Turn ove1
------------------------------------ -------~------~~--~=
8
Use the following information to answer questions 28 and 29.
',
$
Stock(Inventory) 1 January 2011 60 000
Stock(inventory) 31 December 2011 84 000
Turnover 480 000
Cost of goods sold 360 000
"/
28 What is the gross profit margin?
A 25%
B 331.3 %
C 661-3 %
D 75 %
29 The rate of stocktum is
A 4 times.
B 5 times.
C 6 times.
D 10 times.
30 When a business is purchased as a going concern,;the value qf assets taken over is

i !
A credited to business purchases account.

B credited to goodwill account.
C debited to business purchase account.
D debited to goodwill account.
31 In the accounts of a manufacturer, the double entry for cost of production is

. .
A debit manufacturing account, credit profit and loss account.
B debit manufacturing account/credit trading account.
C debit profit and loss account, credit manufacturing account.
D debit trading account, credit manufacturing account.
32 Prime cost is direct nrnteriuls plus
A direct costs less direct labour.

H direct expenses plus direct labour.
C direct labour less indirect costs.
D direct labour plus indirect costs.
7112/1 N2014
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-·-·-··-.-·---------.
9
33 The following relates to a manufacturing ·cmnpany.
$
Cost of:raw materials consumed 240 000
tvlanuf~cturing wages 350 000
S~lling !and distribution expenses 175 000
Factor~ overheads 198 000
The <;Ost of production is
A $392 000.
1
U $590'000.
C $788 000.
D $963',000.
34 In joint stock compames, debenture intere~t is charged to the
B capital account.
C profit and los~ account.
D trading account.
35 The following infomiation was: extracted from the books of Geko Limited.
$
Fixed !(Non-current) assets 500 000
Curre*t assets , 150 000
Currei1t liabilities 100·000
Long term (Non-current) liabilities 50 000
The working capital r~tio is
A 1:L
B 1,5:1.
C 3:1.'
D 4,3:1.
7112/1 N2014
[Turn over
10
36 J.Maradze did not keep her records on the double entry system.
She provided the following information on 31 December 2011.

$
Capital 1 January 2011 53 000
Capital 31 December 2011 69 000
Drawings 17 000
The net profit or loss for the year was.
A $1 000 loss.
B $1 000 profit.
C $33 000 loss.
D $33 000 profit.
37 The following account appeared in the ledger of D. Ndlovu.
A. MOYO ACCOUNT
DATE DETAILS DEBIT CREDIT BALANCE
2011 $ $ $
April 1 Balance b/f '·
5 200
3 Bank 3 500 1 700
8 Sales 2 300 4 000
1.0 Bank 3 500 7 500
16 Cash 4 500 3 000
The entry on 10 April 2011 means
A Moyo paid by cheque.

B Moyo received a cheque from Ndlovu.
C Mayo's cheque was dishonoured.
D Moyo deposited $3 500 into the bank.
38 If closing stock (inventory) is overstated, then
A gross profit ::incl net profit would be ~verstated:

B gross profit and net profit would be understated.
C gross profit only would be overstated.
D gross profit only would be understated.
7112/1 N2014
11
39 Which set of items makes up the shareholders' funds?
A authorised sharie capital plus issued share capital

a authorised share capital plus debentures
C issued share capital plus debentures
}{) issued share capital ph,1s reserves
40 The capital structure of Tashinga Limited is as follows:
Authorised share capital $

250 000 ordinary shares of $2 each 500 000
200 000 8 % preference shares of $1 each 200 000
+
200 000 ordinary shares of $2 each 400 000
200 000 8 % preference shares of $1 each 200 000
On 31 December 20B, the directors recommended a final dividend of 12 % on

ordinary shares.
What was the final ordinary share dividend?
A $24 000
R $48 000
C $60 000
D $72 000
7112/1 N2014
,·.
NOVEMBER 2014
POSSIBLE ANSWERS 7112/l
C 21 B
2 B 22 A
3 C 23 A
4 A 24 A
5 D 25 8
6 C 26 C
7 C 27 A
8 A 28 A
9 D 29 B
10 C 30 C
11 A 31 D
12 C 32 B
13 D 33 C
14 D 34 C
15 C 35 B
16 B 36 D
17 D 37 A
18 B 38 A
19 A 39 D
20 C 40 B
ZIMBABWE SCHOOL EXAMINATIONS COUNCIL

General Certificate of Education Ordinary Leve]

PAPER 1
SPECIMEN PAPER NOv'EMBER 2014 3 hours
Answer paper
TIME 3 hours
paper.
Answer all questions in Section A and any two questions from Section R
Sta1t each question on a separate page.
All calculations must be shov.'Il adjacent to the answer.
If you use more than one sheet of paper, fasten the sheets together.
Tbe number of marks is given in brackets [ 1at the end of each question or part question,

i:C71MSEC N2f!l2
[Turn over
------------- ··-··--·-·-··-------
[. .- - ~:·-=-==r_______
Centre Number Candidate's Ntimh(
,.
I
1 J. Sithole nms a retail!~hop two departrnenti:, Furniture and Electrical. The following
trial balance was extr!pted from her books on 31 Decernber 2011.
Trail lli.lance as at 31 December 2011
Debit Credit
1------11-'--- ·-1--- $ $
Stock alt I January 2011: Furniture wooo
El e.ctri cal 8 000 '
Prernisqs W 000
Sales: Hµrniture 90 000 • ·
\ectrical
I
85 000 :
I'
.
PnrchaSfs: ,Furniture 51 000
!
. · . Electrical · JO 000 '

Trade ebtors (receivables) WOOD \
rnscou t received . 2 soo··i

',
Trade :editor&·(payables) · . , 28 000
I I .
\.Railage~ nwar.ds, .al~ ~ost ·· i900 i
J I)
at
·F11rnitui~·- . cost . '. '
Motor V hicle, at_cost ; . I.

'l'
Hfo.oo ., l
i
1
'ig;;.000 '
Provisio _for depreciation, 1 Jan~ary 20~ 1: I
I
·. · · Motor vehicles 36 000 !
r-1::f.·
Carriag'eloutwar?s · 5 000 j I
Wages a. ~d salanes 8 500 i
fosuranct
Cash at ank ·
1
l- 80() i
i6 200 I
GeneJ•al · xpenses .7 000 i,
Capital 1· ·.. , I 98 000
- i
',
l·
1· .
;9 000
= =
-
439 500
I
(,
The follo~ing int~rmation is als'o available on 31 December 2011.:
(i) Stock(invbptory). was valued as follows:

l' . Furniture $32 000
. ,i Eledtrical $ 1H 000
(i. i) Insurancelpaid cover. 18 month:, to 30 June 2012.
\
\,
"·,,\
7112/2 Specimen paper
1 ,,
I
Centre Number _ _Candidate's Nur
.C---···-··-------I___
3
(iii) ~ept~ciat.ion is provided for as follows:

! Furniture, 10% per annum on cost. .
j Motor ~·ehicles, 20% per annum using the redui:::ing balance
;l method.' ,
(i J) 2h
On I December 2011, J.Sithole took electrical
.
appliances from the
busi1iess valued at $6 000 for personnel use. No record was made
in rdll'pect of this transaction. l
(v) Wa~ s accrued:.was $400 . .,

(vi) Prolsiqn for bad qebts of 5 % of debtors was created on 31
Dec¢1nber 2011,.
":'
('
\'
711212 Specimen paper

[Turn
Centre Number : Candidate's Number

l= , : ~t l :___ __I
'
4
You are required to 1::Jrepare:
'
;' •, ' '
(a) the departrne1rtal Trading, Account, in columnar fQrm, and the
combined Pr9fit and Loss Account(income statem~nt for th~ year ended
3 1 Decem berj 2011, 1 •
.• • ! ' l
----r- ----------------'--------..,.--------'-------·----·------
-------·-·---4
-t ~~-----------------·----------·
------·------
'
.. _____
..
---------t--
'
---,#---------·-----·--
----·t --l-·------·---
1
-------·-------------·---------· ------·---·-·-·
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L
------+'
-----------4----------·
I ·---·------· ---------· -----·------·---
----f
---·-+
________.).' ___ ------·. --·--·-
i
-----·-t-
--------,i I
i ·--
-r -+--- -.-----·-----·-
l
t--··--------------
·!
-------··"· ·,
I
------------4-----------·--------------
-·---ri ----·-------------- -------------- .. -----·----·-----
!
-------·-1 ·--------- ----------------------------------· -------~-·
!
--------!--- ----·-------------· ·------ - -------·----
I
!
----------+l ---------------------------·---..-···--------·¥·--------·-··-..-·-·
_______ J__ _ _ _ _ _ _ _ _ _ _ _ _ _ __
·---·---·-- -·-··-·-----·--·
----·---------+---
; -------------------------
i
= t- I
1 \ I 2n Specimen ~aper
;, ----·--------·----
. -------·------ [ 13]
. f
j
I
.---""'C'"""'e..;;..n_.trn l\fumber Candidate's Numb
f =-. ·--- ~ --------·-

' 5
(b) the Balance Slieet (statement of Financial Position) as at 31 De.cember
2011.
_______ _______
__;.......
..----~-----------------
----------~
-------·---· ------------------ ·-·-----·----·-·-··------ -·----
--------,,----...... ---------------------·
------------------- ----------·----------·-------------
_t
1;
·---····----+--------
i: ·-------------------------·-·-
r:·
--,-----;--;--------------------------·
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1
;___
,~--
___ -·---------------------------
----'--·---------- ·-----·-----··
·-·--------
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-----··--------------
-·-·-----------------
7112n Specimen paper

[T\.
\r=~.-
Centre Number\ Candidate's Number
I' '.\
6
2- (a) State any two causes of depreciation.
··--.--~ ------- --~-- -------·---·-----

----- '2]
---------·--····------ l. .,·
' I
(b) The followink balances were taken from the books,,of Jongw:e 'Limited
on 1 January }009. ,
I
Motor' van, at cost 50 OOQ Dr
Provis~n for depreciation on
Moto(van 10 000 Cr
On 1 January too9, Jongwe_Limited bonght a new iinotor vai~ for $40 000 from
Amtec Dealert by cheque. · · , ;
On 1 July 200b, another moto: van was purchased on credit from Reliable
Motors Ltd. fdr $60 000. ( ·
i
On 31 Decemller 2009, a motor van with the originaJ cost of $20 000 bought in
2008, was. soIJ for $10 000 cash. The-accumulated depreciatipn for this motor
van was $4 00~. . :.
i , I
On 1 April 20 tiO, the company purchased another inQtor van f()r $20 000 cash.
A I '· : :
1
The company (lepreciates its motor vans ~t 10% per annum 01~ cost of each
month of ·owne~shi p. · i
7112/2 Spe'cimen paper

Download more resources 1. like this on ECOLEBOOKS.COM
Ii
(
,i
c··----~-=i
Centre Number
---- Cru1didatc's Nw
7
-
You are req uiqed to prepare:
i :
-I
'j
(i) the Mqltor
-,
Van Account for the ears 2009 and 2010,
! ....
----·---·-···- ------------
I
r---
:i
j
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(ii) I
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the Prdvision for Depreciation Account for the years 2009 and
2010, j •' -
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(iii) · the Mo1)r Van Disposal Account. Fo
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--~-4------------------------------~
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------------·-·-----------------------1-
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··-------·-"-----
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_____ [4]
i i
(c) The following *ccount appeared in the boo)cs of C.Wili_liam on 3:1
December 201 i . 1 •
Stationery Account
-r• I
·,
·---
2011 l I
$ 2011, $ I
I
Jan 1 Balanf, bid (i) 500 Feb 25 ABC litd (iii) 1 700
30 ABC td (ii) 3 500. Dec 31
,.
Profit arct
Loss (r} 3 l 00
Jul 1 .petty .ash (iv) 200 :, I l
i 31 Balanc~ c/d (vi) 400 J
I ,----
I
I
4200 I I 4200
You are requirJd to give the meaning of each of the e*ries marlce:d (i) to
(iv) in the abovle Stationery Account. ! /
I
i I
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.,, ]\he foil(,-~"- in.~ inf~Jr~Tit:1.li.<)n \v'as fr(},T! Hie boi1k!·; ,·_if Mwa11za Manufacturing
( ~.omprrny'. '
·
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I ,.. JaJ 000
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Sal<';'.; of finisJ),;~d f:,c.irid,:\ 150 000

F;11r • J·1a <·e<> crf ·!f;,..'·"',,.v
• \.," ,·1 ~.) ,•.~ •. \,.. ,r;.' li .'~
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(ii 000
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,:"·ac:tury pow(if. 6000
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t\1.I~~'lI'l'"' t1~\1r•·11 !u.,,.,. , '<:V'l C!f\s
t I •• 1 .-;,, ~ l,,
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grc, ...... • ... '" ...... ' <- .., .·,. J.
till i ;,. ,\I iud.,.i;,l L.<.,
3 000
Fa1~Jorv r~mt ; 4000
- ; J I"'\ J ' +
hlctorv .'.)Upef·visor::. ;_;:alary ':i 000
Fn:c.~ory insurr1nee . 3 700
l"'"I -~ ' ~ t;•
ut.::ricrnl J
Iado f"t"
.> t.,,,i,h;;!l:::-,.. ~; ·~ j 'ill.,.,, .-· ~: ., •, ''l •"•
1 :300
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('.eD.tre; Nmnbs;.:1· i Candidate's N uniber
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"'l l J.2/7, Spcchni..r1 fHt;a;r
Centre .Number Candidate's Numbc

i------------···:---Jr . .
l._....•,..--,-·. . =W,~•----··E·-·-·-··------·--•--
11
(ii) the Tr~ding Account for the year ended 31 December 2010.
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f]b) The fbllowing transactions were found in the books of D.Dlodlo, a retailer:
'
(i) Goods ii.th a cost price of $8 500 were sold on credit to A.
\• '
Mashanj1ba
-· ,. at $9 500. · · ·. ..
·l . . '··
(ii) WithdrJw $3 OOO'from the bank for personal/ use.
I .
(iii) Revalutjd land and buildings from $80 000 to $100 000.
I
(iv) Partly s~ttled a loan (payable 31 December 2016) by a cheque
of $20 QOO.
;
(v) Paid $1 000 l cash to Manyame Ltd, a c{·editor.

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,..
, ' Centre Number · 1 Candidate's Number
l '. JC:~ : ~----~

i 12
State (he effect of each of the above transactipns on working capitaL
For y6ur answers use any of these words: defrease, increase or no effect.
-------~--t------------------'--~·---------- ---------------~·~-
-+
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[5]
4 (a) Thulani and _J'lbulani entered into partnership on I January 20·10, to take
over the busiless of H. Hunter.
- I .
The P!1-rtners fontributed $26 000 each which was deposited into the business
bank account 1 I ·
,.
... ...
Th.e Balance ~beet (State~ent of Fin~ncial Position): of H. Hunter as at 3 ·
December·20 )9 is given below:
- ,-
Fixed Asset $ $ $ $
(non-current)
B,uildings 20 000 Capital 24 000

' ,•
Office equipment 2400 . Add Net Profit 16 600
22400 40600
Current Assets · Less Drawings 10 000

Stock (inventory) 6400 I 600
Debtors(payabl es) 6 800 Long term Liability
I
{non-curreI?,t)
' :4000
Bank 1 800 Loan from F. funny
Cash • 320 Current Liabi}Jty
15 3'20 Creditors (payables) 3 120
37 720 7 720
------
I
'7 ll2/2 Specimen paper
(
[=-~=~:--- ): :~,,. __
Centrn Number Candidate's
~
13
Hunter chatgecl $-50 ~00 for his business and was paid by ch,e.que on l Janu'ar)
All the asse,ts and liabilities of Hunters business we.re tuken ove~· with the excer
Cash and ba,nk.
Of the asset's taken over, the following were revalued as follows:

' ';
(a) Buildings ·: $32 000
Debtors (received) $6 320
y OU are required to prepare

I
(i) the jpurnal entries to record the fonnation of partnership and
purchase of the business;
----------·-......-~
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Centre Numbl:r Candidate's Number

·"I -
c--~----
14
(ii) the op¢ning Balance-Sheet for.the partnership imrnediate:ly after
purch~se.
--·--------------- --···----·-··---·---
,•
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'I .
QJ) On 31 Decerj>er 20.10, the bank column ofT. H~mandis.he's Cash book
shoyved a deb t balance of $15 000. The monthly Bank stateme,nt written
up to 31 Dec ,nber 2010, showed a ,credlt balanc~ of $13 100.
- j . , ",- I .
On checking 1lhe_cashbook with the ba;nk statein~Jt, it was discovered that

the followiI1g }ransactions had not b.een entered in the cashbook:
Bank iharges $3_'000
Credit!' transfer - ZIMRA ~efund of$ 2 600 had been collected by

the ba1k; . .
A further che: ·k revealed the following items:

Cheq1 es of $5 400 had been entered in the cash book but had not been
presei ted for payment ·
Cash , nd cheques amounting to $6 90 had been paid into the bank but were
not er dited by the ba:nk until 2 January 2011.
I .
I

)
i
I
!
1-------,------·---
Centre Number Candidate's Numbi';
'-~' -,.--~~---~---·-·-·_L__ --·--------··
15
You are to ptepare:
(i) ,Ln up{fated cashbook;

'
-----------t----------------- ----·---------······------
_, _________ _j__ _____________________._______ ··---------·------~---
-------~---------------------- ----------------
-------------~---------·--------------
------------+-----------------------------·---.-------------------
- - - I - • • ,_ _ _ _ _ _ _ _ __
__________,...
------'·------------------------------------------·---------- [4
I
i
(ii) the B~nk Ree.onciliation Statement as M :~ 1 December 2010.
'
---------·--; ---------------------------~-
-------------t-------- ------------------------
'i
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7112/2. Sp,:cimr-u P"i-'"

------· -------------
NOVEMBER 2014
SPECIMEN PAPER 7112/2
1(§1 tal trad' ,fit and I for th . ded 31 D ber 2011
FURNITURE ELECTRICAL
Sales 90000 85000
less Cost of sales
Purchases 61000 50000
add Railage inwards 10000 71000 10000 60000
91000 68000
less Drawings - - (6000)
91000 62000
(59000' (44000}
Gross profit c/d 31000 41000
31000
Gross profit b/d 72000
add other income: Discount received 2500
74500
less expenses ,,
lnsurance(note below) (1800-600) 1200
carriage outwards 5000
wages and salaries (18500+400) 18900
general expenses 17000
depreciation: Furniture ;
4000
motor expenses 4800
provision for bad debts
NET PROFIT I 1000 (51900)
22600
[13marks]
NOTE: Insurance it has been paid six months in advance, thus 1800/18 =100x12months.
1(b)
Premises 120000 - 120000
Furniture(see note below) 40000 22000 18000
Motor Vehicles 60000 40800 19200
157200
Current liabilities
Inventory( stock) 50000
Trade debtors 20000
cash at bank 16200
prepaid insurance 600 85800
TOTAL ASSETS
' 243000
1,.,0.00,"'"
Capital 198000
220600
214600
Current liabilities
Trade creditors 28000
Wages accrued 400 28400
.~~-,..,,,· ~b-·----,~--
[12marks]
NOTE: Furniture had a provision for depreciation of $18000.
2(a) ·; wear and tear.time in use, absolence [2marks]
2(b} i dr Motor van account er

2009 . 2009
Jan-1 Balance b/d 50000 loec-31 IDisposa! 20000
Bank 40000 I
Jul-1 Reliable Motors ltd -·-·- 60000) IBalance c/d ·--·- 1_30000 .
150000 -<-
150000
·"<~::::::..::::~
·;··
Jan-1
April-1
2010
I
Balance b/d
Cash
130000 IDec-31
20000
2010
Balance c/d 150000
150000 150000
2011
Jan-1 IBalance b/d 150000
[6marks]
(ii) dr Provision for dep_reciation account er
2009 2009
Dec-31 Disposal 4000 IJan-1 Balance b/d 10000
Dec-31 Balance c/d _____ 18000 Dec-31 profit and loss ·---·--··12000 _
22000 22000
r ~~ii
2010 2010
'"""--32500-,Jan-1
Dec-31 Balance c/d Balance b/d
[
.,_,,.,• .,.u, __,.,.~---
Dec-31 profit and loss
' 32500 32500
""'-""""'"'~-=:;-;;;;;;:::~ "···-- --··· ---··-·
I IJan-1
2011
Balance b/d ( 32500
[7marks]
(iii) Motor van Dis_p__osal account
2009 2009
Dec-31 Motor van 20000 I Dec-31 Provision for depreciation 4000
Cash 10000
Profit and loss 6000
-·------·--! 20000
:;. . . .-.,~~==-~..:=::
20000
~"'.'.-.,.:_-:-.:::,;::;,-;-::':-.':.~-.:,. _;-:::,..,;c.~
[4marks)
( c) i Balance of stationey unused from the previous year brought forward [1)
ii bought stationery on credit worth $3500 from ABC ltd [1 J
iii C William returned stationery worth $700 to ABC Ltd [1]
iv
v stationery used during the year debited to the profit and loss account [1]
vi balance of stationery unused at the end of the year [1]
3(a) Manufacturing account for the year ended 31 December 2010

I
Raw materials
opening stock I 13000
Purchases 67000
add Freight charges 3000 70000
83000
•
less Closing stock (25000)
COST OF RAW MATERIALS CONSUMED 58000
add DIRECT COST
Manufacturing wages 12000
Royalties 8000 20000
PRIME COST 78000
add FACTORY OVERHEADS
Factory rent
Factory supervisor's salary I 4000
5000
-------------- -.,-."---------- ..
Factory insurance 3700

General factory expenses 1300 I 14000
92000
add opening work in progress 20000
112000
less closing work in progress {15000l
PRODUCTION COST OF GOODS MANUFACTURED 97000
[7MARKS]
(II) Trading account for t~_year ended 31 december 2011
sales 150000
less cost of sales
opening stock 14000
I
add production cost 97000
111000
less closing stock {24000)1
(87000)
Gross profit 63000
[Jmarks]
3(b) i incease
ii decrease
iii no effect
iv decrease
V no effect
[5marks]
4(a) i Journal entries

Debit$ Credit$
Bank 52000
Capital: Thul an 26000
Jabulani 26000
Purchase consideration 50000
Bank 50000
Buildings 12000
Revaluation 12000
Revaluation 480
Debtors 480
Goodwill(see note below) 10000
Capital : Thulan 5000
Jabulani 5000
[10marks]
:ii opening_ balance sheet of the partnership
Non-current assets
Buildings 32000
oOffice equipment 2400
32400
Intangible non-current assets
Goodwill . 10000
42400
Current Assets
Inventbry( stock) 6400
Debtors 6320
Bank 2000 14720
59120
·~ --'--~:·- ·.·:::,-·•'•,"'<·
Equity and Liabilities '
Capital: Thul an 31000
Jabulani 31000
62000
less Drawings 10000

52000
Loan from F.Funny 4000
Current liabilities
Creditors 3120
-·-----···-......~--~··
1 5-9120
~., .~ ~,«---~ ·--~--~-··---,
[6marks]
Note:net assets of the business where $40000 and the purchase consideration is $50000,
thus goodwill is $10000
4(b) dr updated cash book er

Balance b/d 15000 bank charges 3000
ZIMRA 2600
baiance c/d 14600
-"'·-~······--..-···-·"-"''"
17600 17600
"·----..::::" -:::,.::::::.. -~«·;.,
[4marks}
Bank reconcilliation statement as at 31 december 2010

Balance as per bank statement 13100
add Bank Lodgements(see note below) 6900
20000
less unpresented cheques· (5400
Balance as per cash book 14600
[5marks}
-------·-······ -----------
F ·-------- ··----
__________________ ..
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Fur1•11,.r,1rm ..11.:ulll•·n~.. .-,r11w,II
zrMBAB¥/E SCHOOL EXAMINATIOI\TS COlJNCIL

General Certificate of Education Ordinary ·Level
P];tlNCIPLES OF ACCOUNTS 7112/1

P Al?ER l Multiple Choice
, NOVEMBER 2015 SESSION 1 hour 30 minutes
Multiple Choice answer sheet
Soft clean eraser
Soft pencil (type B or HB ,is recommended)
'---·
TlJ\.1:E 1 hour 30 minutes
INSTRVJCTIONS TO CANDIDATES
Do H"D.Ot ropcn this booklet until you are told to do so.
Write your name, Centre number and candidate number on the answer sheet iu the spaces
provid1:<l unless this has already been done for you.
There nre forty questions in this paper. Answer alll questions. For each question there are four
possible m1swers, A, U, C and D. Choose the one you consider correct and record your choice in
soft pc111cH on the separate answer sheet.
Read very ~aireJfully the instructions on the answer sheet.
INFORMATION FOR CANDIPATES
Each correct answer will score one"inark. A mark will not be deducted for a wrong answer.
Any rough working should be done in this booklet.
Calculators may be used.
-··--------------------------
This question paper con:sists of 11 printed pages and l blank page.
1
Copydght: Zimbabwe School Examinations Council, N2015.

©ZIMS 1'-C N2015 [Turn over
,....___
··--····----- -----------····----···-····
r
1 An example of a personal account is
A capital account.
B machinery account.
C purchases account.
D stationery account.
2 The total of the sales returns journal is posted to the
A credit side of the returns inwards account.·

B credit side of the returns outwards account.
C debit side of the returns inwards accmmt.
D debit side of the returns outwards account.
3 Which document increases the amount owing on an invoice?.

A credit note
B debit note
C receipt
D voucher
4 A document that shows the amount to be· paid by a customer i's a
A bank statement.
B cheque stub. ,
C credit note.
D statement of account.
5 Which is a computer software?
A monitor
B mouse
C pastel
D speaker
6 Which component of a computer manipulates accom1ting information?
A the central processing unit

.!
B the input device
C the output device
D the visual display unit
7112/1 N20!S
A.
~. '"1'
----------.•.----------
I.
7 A disadvantage of sole proprietorships is that
A. decision making is faster. ,

B formation is easy.
C owner enjoys all the profits.
I> there is unlirnited liability.
8 Which iterns match?
Subsidiary Book Source Document

A cash book bartl.c statement
B general jomnal cheque stub
C petty cash bqok receipt
D sales returns journal invoice
9 The double entry fcir the purchase of equipment on credit is
Debit Credit
A creditor equipment.,
B creditor purchases.
C equipment. creditor.
D purchases : creditor.
10 The owner of a business took stock at selling price for own use.
Which account is credited?
A capital accolJ.llt
H drawings ~ccolmt
C purchases account
.D sale$ account
11 \\111ich item is rev.enue expenditure?
A buying eqµipment for the business

B cost of req~coratingthe manager's office
C cost of new tyres for anew van
D painting premises for the first time
7112/1 N2015
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------· --·-· -¥·---···- - .. _ ---··-~-·-~-···· ... --·-
12 · Control accounts are prepared to
A calculate credit sales.

B correct e11·ors.
C locate errors.
D prevent fraud.
13 The following information was provided by a manufacturer J
Raw materials: $
Opening stock/inventory 3 000 qI C•<'.))
Purchases 91 000 ~. c.J t..-""1.)
:_'! c:11 )r,,,
Closing stock/inventory 5 000
C\fl O o. ,
Direct wages 50 000
What is the cost of raw materials consumed?
A $83 000
B $89 000
C $99 000
D $139 000
14 a
The following account was taken from the general, ledger of I trader.
Sales ledger control account
2012 $ 2012 $
Oct 1 Balance b/d 5 000 Oct 31Bank 30 000
31 Sales 120 000 Returns inwards 4 000
1
Interest 1 000 Bad debts· 12 000
The amount for debtors entered in the balance sheet on 31 October is
A $5 000.
B $80 000.
C $120 000.
D $126 000.
'Jl 12/1 N2015
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5
15 A cash payment of $25 for insurance was e.ntered correctly in tbe cash book but was
posted as $52 to the insurance account.
The journal entry to correct the error is
debit credit
A cash account $25 insurance account $25.
B insurance account $25 cash account $25.
C insurance account $27 suspense account $27.
D suspense account $27 insurance account $2 7.
16 Which itern increases a bank statement balance?
A dishonoured cheques
B credit transfers
C service fees
D stop orders
17 \Vhich items are used to update a cashbook?

' i
A bank lodgements and dishonoured cheques
ll credit transfers and unpresented cheques
C dividends a11d standing orders
D service fees and uncleared deposits
18 of
A cash book had an overdraft $2 000. The bank statement showed interest received of
$5 000. Unpresent~d cheques were $7 000 and uncleared deposits totalled $1 000.
The balance as per· bank statement is ·

I ()
'1 <:JI'..,()
A $1 000 debit. .,, :1,
!.: ;', \
B $3 000 debit. ·i; •Vl:,
C $9 000 credit.
<Y"I)
D $11 000 credit.
19 A credit balance in the rent received account represents rent
A not yet paip.

B paid during the year.
C received dhring the year.
D received in advance.
7112/1 N2015
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20 A trader provided the following information:
$
Opening capital 11000
Additional capital 5 000 r~':""'
·. \ \) '·· ' ,;;,
Drawings 3 000 . { (!
'J· .I
Closing capital 25 000
/{\,
What was the net profit for the year?
A $6 000 \
"u",;,:,\),,,\
.-1.i
~) ,.~ ;-~c<')
B $12 000 \~,
C $17 000
D $23 000
21 What is the double entry for net profit?
Debit Credit "-

A capital account net profit
B capital account profit and loss account
C net profit · capital account
D profit and loss account capital account
22 The following balances were extracted from the books of a trader on 31 December 2011.
$
Motor vehicles, cost ' 60 000 [?ebit
Provision for depreciation (01.01.11) 6 000 dredit l
The motor vehicle wa:s bought on 1 Janu·ary 2009.
Wha~ is the depreciation charge on 31 December 2011 using the straight line method?
A $3 000
B $6 000
C $54 000
D $66 000
7112/1 N2015
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7
23 A trader cn;ated a prpvision for doubtful debts of 10% of debtors and a provision for
discount allowed of 1% of good debtors. ·
Debtors at the end of the year were $20 000. I '
1(' _i
The amount of net debtors was •.t)' ¥

•• ~·- J 4
.,
A $17 800.
l8 $17 820.
C $18 000.
D $18200.
24 The following information was provided by a trader.
$
'
Cost of sales 100 000
Total expen$es 10 000 t Dl-' (~;)..,;t,
C1 t) ,:},,J..!
Net profit 40 000 ' t:, ('fl ( .. ~,. 'j-
\, ~~ 0~•[)
~ :,~() U(J! 0
What is the turnov~r? t.'ri,-1,...!l,~
' ~~c,,,,i't 'r
'.",, t.'H,;t~4;.:'!
A $50 000
B $110 000 ,
C $140 000
]) $150 000
25 Which transaction ~·educes working capital?
A buying stock for cash ·

B donating $t 000 cash to charity
C paying $5d cash to creditors
D selling stock to Farai on credit
26 Which error cause.s an increase in the gross profit?
A closing stqck/inventory undervalued

B 011ening stbck/invento1y omitted from a trading account
C purchases recorded before deduction of trade discount
D sales invofoes omitted from the sales journal
7112/1 N2015
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27 A business provided the following information.
$
Working capital 5. 000
Owner's equity 12 000
Non-cunent/Fixed assets 15 000
What is the value of non-current/long-term liabilities?
A $8 000.
B $17 000.
C $20 000.
D $22 000.
28 Money used to cany out the day-to-day operations of a business is refened to as
A boITowed capital.
B capital employed.
C capital invested.
D working capital.
29 Afier preparing a balance sheet1statement of financial position, a cheque for $60 was
received from a debtor.
The effect on the balance sheet/statement of financial position is
A a decrease in debtors and a dectease in bank.

B ·a decrease in debtors and an increase in bank.
C an increase in debtors and a decrease in bank.
D an increase in debtors and an increase in bank.
30 At .the end of a financial year, partners', drawings and.share c;,f profits are entered in the
B capital account.
C current account. .
D profit and loss account.
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9 '
31 A business provides the following information.
$
Total fixed assets/Noh-current assets 600 000
Current assets 250 000
Long term /1,fon--current liabilities 80 000
Current liabilities 100 000
What is the' current ratio?
A 0,8: 1
B 1,3: 1
C 2,4: 1
D 2,5: 1
32 Which item is enter(;!d in a partnership profit and loss account?
A interest on capital
• I
B mterest on current account
C interest on drawings
D interest on loan
33 The excess of purchase price over net assets taken over is
A a deficit.
B a surplus.
C goodwill.
D profit.
34 The partnership agreement of Sharon and Stella shows that Sharon is entitled to an annuul
salary of$ i'O 000 and Stella $6 000.
'1- di ~ )
..•
'? ,.:.!ht;.,),
During the year ended 31 December 2013, Sharon was paid $7 000.
What amount is credited to Sharon's current account?
A $3 000
n $7 ooo
C $10 000
n $17 ooo
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35 The following ledger account was extracted from the books of a club.
Subscriptions :account
2012. $ 2012 $
Jan 1 Balance b/d 5 000 Jan 1 Balance b/d 2 000
Dec 31 Income and Expenditure rs ooo Dec 31 Bank 11 000
· Dec 31 Balance c/d . 7 000
2~ ,20 000
\Vhat does the entry "balance c/d 7 000" on 31 December 2012 represent?
A ··subscriptions for 2012

B subscriptions in arrears
C subscriptions paid in advance
D subscriptions received in cash ·
36 A manufacturer had the following stocks/inventories:
(i) raw materials

(ii) finished goods
(iii) work in progress
Which stocks are part of cost of production?
A (i) and (ii)

B (i) and (iii)
.C (i), (ii) and (iii)
D . (ii) and (iii)
37 The purpose of a receipts and payments account is ,to
A calculate closing cash and bank balance.

B calculate subscriptions for the year. .
C show fixed .assets bought in previous years ..
D show profit from sale of refreshments.
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L
11
38 A joint stock company had the following issued share capital.
200 000 10% preference shares at $3 each.

An interim dividend of $40 000 was paid.
The final dividend was

~i •Yi) ...~'.'-:~rJ:({j
··' c) '~· i (]
; I
A $20 000. J \ ! l
B $40 000. ;'1

'rl
,:;.c ,·,
C $60 000. '

D $160 000. ( _, C..1 c. J.' ·,
39 \\Thich capital represents the actual cash received by a joint stock company?
A authorised share capital

B called up share capital
C issued share capital
D paid up shar~ capital
40 The account given below was taken from the books of a trader.
Capital Account
2012 $ 2012 $
Dec 31 Drawings 1 000 Jan 1 Balance b/d 5 000
31 Profit and Loss 2 000 Dec 31 Cash 4 000
31 Balance c/d 6 000
9 000 9 000
\\That does the entry "Profit and loss 2 000" represent?
A additional capital introduced

B capital for the year
C net loss for the year
D net profit for the year
7112/1 N2015
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12
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7112/1 N2015
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NOVEMBER 2015
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10 C 30 C
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15 D 35 B
16 C 36 B
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®
. For Ptrfor11:tJJtcl Mtu1urenu11t
Zrl:r\1rBAB'\VE SCHoo;L EXAMINATIONS COUNCIL

General Certificate of Education Orclhrnry Level
PRINCIPLES OF'AGCOUNTS 7112/2

PAPER2
NOVEMBER 2015 SESSION 2 homs 30 minutes
AlloTv candidates 5 ruinutes to count pnges before the exmniurntiou.
TIME 2 hours 3 O minutes

Check that all the pages are in the booklet and ask the invigilator for a replacement ifi..here are
duplicate or missing pages. · · . ____
Write your name, (Surname and Forename(s)), Centre number and candidate number in the -,--
spac~~s provided at the top of this page :and your Centre number and candidate number in the
box at the top right corner of every page oftl~is paper. ·
Ansv1er all questions.
WriJc your answers in the spaces provided on the question paper.
Use black or blue ball-poi,nt pen.only.
Calculators may be used.
INFORMATITON FOR. CANDIDATES
The nurnber of marks is given in brackets [ ] at the end ·of each question or part question.
Amounts•used in this Question Paper are for calculation purposes only .

...
The businesses described in this paper: are entirely fictitious.
-·-··---- '
This question l)aper consists of 20 pdntcd pages.

Copyright: Zimbabwe School Examinations Council, N20t5.
«)Z!Mf,EC N2015
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\',~----------- ...-- - ...
Centre Number Candidate Number
I ~ I : :~~~= -1
,
2
Answer all questions.
1 The following balances were extracted from the books of Cbiedza Fashion Boutique
after the preparation of the TradingAccount on 31 December 2014.
Trial Balance as at 31 December 2014
Debit Credit
$ $
Gross profit 484 128
Capital 220 000
General expenses 5 036
Drawings 81 784
Trade payables (creditors) I 28 800
Bank 4 980
Inventory (stock) 31 December, 2014 20 000
Trade receivables (Debtors) 79 200
Provision for doubtful debts I 3 200
Office furniture, at cost 1.2 000
Provision for depreciation on offic~ furniture,
1 January 2014: I 6 000
Land and buildings, at cost 280 000
Delivery vans, at cost 72 000
Provision for depreciation on delivery vans
(1 January 2014) 14 400"
Discounts
Salaries and wages
24 060
148 000
I 9 920
Insurance 4 ios
Rent and rates 30 400
Carriage on sales 4 880
I "•
166_4:IB '.26611.8.
The following information was .
. also available on 31 December
.
2014:
(i) A sales invoice for $5 800 to C. Cherne, a debtor, was completely omitted ,
• from the books of accounts. Chiedza Fashion Boutique maintains a provision
for doubtful debts at 5% of trade receivables '{trade debtors).
(ii) The following account appeared ih the nominal ledger of Chiedza Fashion
Boutique:
7112/2 N2015
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Centre Number______ Candidate Number
3
Insurance Account
1 -~~ ----~----.
2014 $ 2014 $
Dec 31 Bank 4108 Dec 31 lncome statement/
Amount due cM 1'440 Profit & Loss 5 54.§_
5 548 ~
(Hi) On 31 December 2014;·salaries and wages accrued amounted to $1 600 imd rent
prepaid amounted to $6 400.
(iv) Depreciation was provided for as follows:

office furniture at 5% per annum using the strnight line method.
delivery .vans at 20% per annum using the reducing balance method.
""[ ou are required to prepare

(a) the Income Stat~ment (Profit and Lcrss Account) for Chicdza Fashion
Boutique for the year ended 31 December 2014 .
....
·-----------
·-------·--------------
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1 (a}~~~~~-~~~~~~~~~~~~~
..
~~~~~~----~---~~~~--~~~~~--~--'-''--~-.;....~-~---------------
·-----·--------
,·
--,----------------------~---'------------------~-------
-~-~-~------~---·----- ------------------------------
___ [10]
·---
.7112/2 N20!5
Centre Number
~-----.--' [--------·---
Candidate Number
L__ __ ,__ -.---·--·--------
1 (lb) the Statement of financial position (Balance Sheet) as at 31 December

2014.
--------·-------·------·--
---------
---------------------
------·--------------
- -·---------------·--------------------
r-----,-----
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Centre Number Candidate Nurn ber
[ --=--·]
8
2 (a) (i}
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~-~~~~~-~~-~--~~--~~
i_
· - - - - - - - - - - - - - _ _ [7]
(ii) the Provision for Discounts Allowable Account for 2014.
·------------------·-
··--------
'
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _[3]
7112/2 N20!5
<-----·-<<-••[-
Centre Nmnber
['------------~ -~
Candidate Number
·------1
9
2 (b) Prepare a Statenient of Financial Position (Balance Sheet) extract showing how
the trade receivables (debtors) appear on 31 December 2014.
_ _ _ _ _ _ _ _[2]
(c) The following account appeared in the sales ledger of S. Saka, a trader.
T. Tasara
2012 $ 2012 $
r Dec 1 Balance bid 1 800 Dec OS Bank 1 700
18 Sales 2 400 Discount 100
20 Returns 300
28 Bank 1 050
Bad debts 1 050
4 200-
I 4 200
(ii) State the meaning of the entry on 1 Dec~mber, 2012.

<•I
- - - - - - - : - - - - - - - - - - - -_ _ _ _ _ _ _ [1]
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2 (c) (ii) Following the headings shown below, vvrite down the tranBaction
represented by each of the entries fr9m 5 to 28 December 2012, and the
subsidiary book from which each of':the entries was taken.
-
Date Transaction Subsidiary Book
2012
-· ·-
December 5
- --
,_
5
- ·-
--- -
18
·- ,-
----- --
,•
.
20
.,. ·-
.
'J
-
28 ,,
-- -
--
'
28·
~-
-
-
---
[12]
'
711212 N2015
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ECOLEBOOKS.COM
---·· _________ ..
Centre Number . __ Candidate Number

C ___. ___L_ _ ____ !
11
:• (a) a
Thokozani Sibanda tuns business with two departments, furniture and
grocery. The following information was available on 31 December 2014:
$
Sales: Furniture 980 000
Grocery l 070 000
Purchases: ·Furniture 500 000
Grocery 730 000
Customs duty: Furniture 50 000
Returns inwards: Fumitµre 80 000
Grocery 70 000
Carriage inwards: Furnitme 26 000
Grocery 10 000
Inventory (stock) 1 January 2014: Furniture 60 000
Grocery 100 000
Inventory (stock), 31 Deceml>er 2014: Fu:rniture 36 000
Grocery 40 000
You are required to prepare the Departmentnl Trading Account for the year ended
31 December 2014, in columnar form, shmving clearly the gross profit or loss for each
department.
-
------------------...,----·-------·-··----·-
7112/2 N2015
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12
3 (a)
----- !;r
----·· --------
· - - - - - - - - - - - - - - - - _ _ [10]
3 (b) N. Chm11a prepared a trial balance on 31 December 2014 whose debits

exceeded the credits by $215 000:·The net profit for the same financial year
was $369 000.
The following errors were discovered after the preparation of year·-end final
accounts.
(i) Sale of an old delivery, van for $35 000 was credited in the Sales
Account.
(ii) The returns inwards balance was overstated by $12 300.

(iii) A machine bought for $70 000 was debited to the Machine Repairs
Accotmt.
(iv) Purchases of goods on credit from V. Vennon for $45 000 \Vas
completely omitted from the books.
(v) Discom1t received of $18 000 was debited to Discount Allo I ved
A.ccount.
7112/2 N2015
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3 (b) You are required to prepare a statement of corrected net profit for the year
ended 31 December 2014.
~--~------------~---~----------~--------~~--~-------------------~---~
... ·-·---·-·----------
-------- --------
~---------------------------~-----·
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _[6
7112/2 N2015
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14
3 (c) At 30 June 2014, Nomsa's cash book showed a debit balance of $8 500. Her,
bank statement showed
- a credit balance
.
of $7 800 at the same date.
On comparing the cash book with the bank statement, the following
differences were found: ' .
(i) C~eques totalling $1 5,00,had not been presented at the bank.

(ii) Deposits not _credited by the bank tot~lled $3 000.
(iii) A cheque for $800, deposited by Nelson) had been credited to Nomsa's
Bank Acc01mt in error. · '
You are required to prepare a bank reconciliation statement to reconcile the

cash book bank balance with the bank statement balance on 30 June 2014.
' '
~~--~~~-~------~~~--~--------~------~----------------'----------~--~----~·-------~
. -----·-:-,-
------~---~--~~~~---~~~~---------------~------~
------------------~---------------------------------
____[5]
7112/2 N2015
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Centre Number
----r randidate Number
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15
::; (d) Distinguish between capital expenditure and revenue expenditure.
-------------------
· - - - - - - - -[4]
4 (a} The ron:owing information related to the husiness of K. Kudakwashe.
$
Inventory (stock), 1 January 2014 85 000
Sales 1 950 000
Returns inwards 150 000
Gross profit margin is 33 f% of turnover. Net profit is 20% of turnover. The

rate of stock turn is IO times.
Showing all your workings, calculate for the y~ar ended 31 December 2014,
(i) turnover,
-----·---------·-------
[2]
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4 (a) (ii) gross profit,
·------··--------·
[2]
(iii) cost of goods sold,
----~-------------~---~--------------------------~----··----~----
~~~~--~~~~~~~~~~~~~-'-~~~~~~~~~~--~~~~~-
_ _ [2]
(iv) net profit,
______ ________
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~--~~~~~
:___ [2]
7112/2 N201S
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17
(v) expenses for. rurming the business charged to Profit mid Loss Account,
•'
------------
_______ .. __
, ,_ - -----
-··-------------
...
_ _ _ _ _ _ _ _ _[2]
(vi) Inventory (stock) at 31 December 2014.
---------------------------·---···
... --------------·
··----·-------·
··---------------"---------·----------
... ______________________________
----·--··
·_ _[3]
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4 (b) The share capital of K.waedza Limited on 31 i December 2013 was as follow!,:
Authorised. share capital
1 000 000 Ordinary shares of $1 each

400 000 20% preference shares of $2 each.
800 000 Ordinary shares of $1 each, fully paid.

of
300 000 20% Preference shares $2 each, fully paid.
The following information is also available :for the year ended

I
31 December 2013: ·
$
General Reserve Account, 1 January 2013 900 000
Profit and loss Account, I January 2013 270 000
Net profit for the year ·~ 436 000
Interim dividend paid to ordinary sharehold~rs 65 000
On 31 December 2013, the directors recommended the following:
l. the transfer of $200 000 to General Reserve Account,

2. the payment of the preference share dividend for the year,
3. the payment of the final ordinary shate dividend at 5 cents per share.
(i) the Profit and Loss Appropriation Account for the year endt,d
31 December 2013,
,_
7112/2 N2015
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-'f (b) (i)
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4 (b) (ii) the Statement of Financial Position (Balance Sheet) extract as ut
31 December 2013, showing clearly; the details of the sh~. treholders'
fonds.
-------------------------------------------------.-------
----------------------'-'------+-------------------~---
-------------·--------------'-----------·----- -----·--- ..
--------- ---------
-------------------------------------·-·------------
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-···---------
· - - - - - - - - · - - - _ _ _ ['f]
7112/2 N2015
r
NOVEMBER 2015
1(a) Income statement for Chiedza Fashions Boutique for the year ended31 december 2014
Gross profit 484128
sales (note below) 5800
adjusted gross profit 489f;)28
add other income: Discount received 9920
499848
less expenses: General expenses 5036
Increase in provision for bad debts 1050
Discount allowed 24060
Salaries and wages (148000+1600) 149600
Insurance 5548
Rent (30400-6400) 24000
Carriage on sales 4880
Depreciation: Office furniture (5%x12000) 600
Deliver Vans (72000-14400)x20% 11520 (2252~~L
NET PROFIT 273554
[10MARKS]
NOTE: This is an additional sales invoice which was ommitted from the books
(b) Statement of financial psosition as at 31 december 2014

- ~ - ~ ----····---~

Land and buildings 280000 - 280000
Office furniture 12000 6600 5400
Delivery Vans 72000 25920 46080
331480
Current assets
lnventory(stock) 20000
Trade receivables(Debtors) (79200+5800) 85000
less provison for bad debts (4250) 80750
Bank 4980
Prepayments- Rent 6400 112130
TOTAL ASSETS 443610
Capital 220000
add net profit 273554
493554
411770
Current liabilities
Trade payables(creditors) 28800
Accrued expenses: salaries and wages 1600
Insurance 1440 3040
31840
.. -
[15MARKS]
2(a) i dr Provision for bad debts account er

2012 2012
Dec-31 balance c/d I
10000 Dec-31 Profit and loss 1ill)ill)_
2013 2013
jan-1 j balance bid 10000
2014 2014
jan-1 balance b/d 14000
1
I
Dec-31 profit and loss 3000
balance c/d 11000
14000 14000
2015
Jan-1 balance b/d 11000
[7marks]
(ii) dr Provision for discount allowable account er
2014 2014
Dec-31 balance c/d 62.IQ profit an loss 62.IQ
2015
Jan-1 balance b/d 6270
[3marks]
2(b) Statement offinancial position(extract) as at 31 december 2014
Current assets
Account receivables 220000
less Provision for bad debts 11000
add Provision for discount allowable 6270 (172792 202730
[2marks]
2 ( C) i The balance owed b}' T_Tasara to Saka brought forward from the previous year [1]
(ii) Date Transaction subsidiary book
2012
dec-5 T Tasara paid his/her amount in full settlement of his/her Cash book
account by cheque, less discount of $100
dec-5 discount allowed by S Saka of $100 Cash book
dec-18 S Saka has sold goods on credit to T Tasara worth $2400 Sales journal
dec-20 T Tasara has returned goods worth $300 Sales returns and allowa
nee journal
dec-28 S Saka has received a cheque of $1050 frcim T Tasara Cash book
dec-28 T Tasara's account was written of as bad debt General journal
[12marks]
3(a) Thokozani' departmental trading account for the year ended 31 december2014
Furniture Grocery
Sales 980000 1070000

less Returns inwards (80000) (70000)
TURN OVER 900000 1000000
less Cost of sales
Opening stock 60000 100000
Purchases 500000 730000
add Customs duty 50000 -
Carriage inwards 26000 576000 10000 740000
636000 840000
less Closing stock (36000) (40000)
Cost of sales (600000) (800000)
GROSS PROFIT 300000 200000
[10marks]
3(b) statement of corrected net i:i_rofit
profit before adjustments 369000
sale of delivery van (35000)
Returns inwards overstated 12300
machine 70000
Purchases (45000)
407300
[6marks]
3C Bank reconcilliation statement
add Unpresented cheques 1500
10000
less Uncredited cheques (3000)
7000
add Cheque credited in error 800
3(d) · Capital expenditure incurres when the business spend money on buying non current assets
or an expenditure which add value to the asset eg extention of building,installation cost of plant.
Revenue expenditure incurred in business on running day to day basis eg cost of repairing
motor vehicle , repairs of plant. Capital expenditure appears in the balance sheet whereas
revenue expenditure appears in the income statement [4]
4(a) i Turnover= Sales- Returns Inwards (ii) Gross profit= Turn over-Cost of sales
= 1950000-150000 1/3 X 1800000
=$1800000 (2marks) $600000 [2marks)
'(iii) Cost of goods sold= Turnover-gross profit (iv) Net profit= 20% of Turnover
= 1800000-600000 20% X 1800000
= $1200000 f2marks] 360000f2marksl
(v) Expenses= Gross profit- Net profit (vi) Inventory at 31 december 2014
600000-360000 rate of stock turn= cost of sales
240000 [2marks] average stock
1200000
85000+a
2
a= 120000
240000x2-85000
=155000 [3marks)
4(b) i profit and loss appropriation account for the year ended 31 december 2013
profit before interest 436000
Transfere to general reserves 200000
dividends paid and proposed
preference: -Final 120000
Ordinary: -Interim 65000
- Final 40000 (425000)
net profit for the year 11000
add Retained earnings bid 270000
Retained earnings c/d 281000 [5marks]
b(ii) statement ()f fin~ncial po:s_itign(bc:1la_11c:~:s_h_e,E.& extract as 31 december 2013
Authorised share capital
1000000 ordinary shares of $1 each 1000000
400000 20% Preference shares of $2 each 800000
1800000
800000 Ordinary shares of $1 each, fully paid 800000
300000 20% Preference shares of $2 each. Fu!ly. paid 600000
1400000
Reserves
general reserves 1100000
retained earnings 281000
1381000
Total shareholders funds 2781000
[7marks]

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life. Due to a significc1nt number of candidates who fail principles' of accounts at

order to adequately prepare their candidates for examinations.

polished for both internal and external examinations.

internal resources for economic emancipation.

ZIMBABWE SCHOOL EXAMINATIONS COUNCIL

PRINCIPLES OF ACCOUNTS 7112/1

JUNE 2012 SESSION 3 hours

INFORMATION FOR CANDIDATES

This question paper consists of 8 printed pages.

Trial Balance as at 31 December 2010.

Sales: Furniture 706 000

The following information is also available on 31 December 2010:

(i) Stock(Inventory) at 31 December 2010: Furniture $120 000.

You are required to prepare:

(c) the Balance Sheet(Statement of financial position) as at

Rent received $ -5 000 Cr

During the year, the following transactions took place: \

On 31 December 2010, the stock of unused stationery was valued at $4 000.

You are required to prepare:

(a) (i) the Rent Received Account,

(ii) Stationery Account. [13]

Pay special attention to dates and details.

I q·7 l ·+l. -~ ....

(i) the Rent Received Account,

(ii) the Stationery Account. [2]

The following errors were later discovered:

(i) . Purchases day book had been undercast .

You are required to:

(a) prepare journal entries to correct the above errors,

(b) complete the Suspense Account, [3]

(a) In the books of a non-profit making organisation, capital is replaced

(b) In a manufacturing firm, is made up of cost

(c) If a payment by cheque of $506 for'electricity is recorded in error in both

I (e) Goodwill occurs when the (i) of a business exceeds

(g) A statement is drawn up to make the cash

Answer any two questions from this section.

Reserves on I January 2010

The directors recommended that :

(i) the general reserve be increased by $10 000.

You are required to prepare:

(b) the Balance Sheet (Statement of financial position) extract showing

The treasurer reported that:

(i) subscriptions owing from members at 31 December 2010 amounted to

(i) Sales Ledger Control Account,

(ii) Purchases Ledger Control Account. [11]

(b) State two advantages of preparing control accounts. [2]

POSSIBLE ANSWERS 7112/1

1 (ii) Statement of financial p_osition/Balance sheet as at 31 december 2010

2(a) dr Rent account er

b(i) current liabilities

3(b) dr Suspense account er

3( C) Statement of corrected net o_i:>rofit

4(a) Accumulated fund

(d i} Capital Expenditure (g) Bnk reconcilliation statement

5(a) Profit and loss ap2~()pric1ti_()_r1 ac:C:()UrltfCJrjh__E!__y_ear ended 31 december 2010

5(b) statement of financial po~ition( b.cll.cince §iheet) extract as at 31 decemer 2010

7(a} dr Sales ledger control account er

balance c/d I 70 balance c/d 7700

dr Purchases ledger control account er

7(b) - to check arithmetical errors

ZlMBABWE SCHOOL EXAMINA1"'101'~S COUNClL

PRINCIPLES OF ACCOU1'TTS 7112/1

5(a) Profit and loss ap2~()pric1ti_()_r1 ac:C:()UrltfCJrjhE!y_ear ended 31 december 2010

~·~~:,~,:~·f'~i.;/~~:-t~··. .~.: ~··~J.," '1. -~i,... ·j:

·---- __ T _ -