ROOTS INTERNATIONAL SCHOOLS

Department of International Qualifications

Head Office: Building 66, St: 7, H- 8/4 , Islamabad: www.rootsinternational.edu.pk

INTERNAL EXAMINATIONS
International General Certificate for Secondary Education
Online Sessional Examination March 2021 (IGCSE-I)

Candidate
Name

Centre Candidate
Number Number

Branch: ___________________________ Date: ______________________

Accounting 0452
March 2021
75mins
Additional Material: Answer Sheet Total marks:30

READ THESE INSTRUCTIONS FIRST

Write your Centre number, candidate number and name on FOR EXAMINER’S USE
all the work you hand in. Max. Marks
Questions
Marks Obtained
Write in dark blue or black pen.
You may use an HB pencil for any diagrams or rough working. 1 10
Do not use staples, paper clips, highlighters and glue or 2 20
correction fluid.
Answer All the questions.
Total 30
At the end of the examination, fasten all your work securely
Percentage
together.
The number of marks are given in brackets [ ] at the end of Grade
each question or part question.

This document consists of 4 printed pages

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Question 1: Chose the best option. All MCQ’s 1 Marks each.

1 Which statement is correct?

A Accounting involves measuring profits and losses.
B Accounting is the recording of financial transactions.
C Book-keeping involves communicating financial data.
D Book-keeping requires the use of ratio analysis.

2 Ann is a trader. On 1 April Cindy’s account in Ann’s ledger showed a credit balance of $520.
The following transactions took place during April.
April 2 Ann returned goods, $30, to Cindy.
April 14 Ann bought goods, $210, from Cindy, and paid in cash.
Which statement about the balance on Cindy’s account in Ann’s ledger on 30 April is correct?
A Ann owes Cindy $490.
B Ann owes Cindy $700.
C Cindy owes Ann $490.
D Cindy owes Ann $700.

3 Dave supplies goods to Peter on credit. On 1 April, Peter owed Dave $440. Dave sent or
received the following documents in April.

Date Details $
April 7 Invoice 360
April 12 Cheque (after deducting $11 cash discount) 429
April 13 debit note 50
April 15 credit note 50

What was the closing balance on the statement of account on 30 April?

A $260 B $310 C $321 D $421

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4 What is recorded in the sales journal?
A all money received from sales
B all sales transactions
C cash sales transactions
D credit sales transactions

5 Which statement about a two-column cash book is correct?

A It is a ledger account for bank transactions only.
B It is a ledger account for cash transactions only.
C It is a book of prime entry.
D It records cash discount

6 Which statements about trade discount are correct?

1 It is debited to the supplier’s account.
2 It is only given if the invoice is paid within the period allowed by the supplier.
3 It is shown as a deduction from the price of the goods on an invoice.
4 It is used to encourage bulk buying.
A 1 and 2 B 1 and 3 C 2 and 4 D 3 and 4

7 Why is a trial balance prepared?

A to analyse the financial information
B to assist preparation of financial statements
C to control the costs of the business
D to evaluate the performance of the business

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8 On 31 December 2019 John had net assets of $2000 and capital of $2000.
On 1 January 2020, goods costing $140 were sold on credit for $220.
What was the effect of this transaction on the statement of financial position?
Net assets ($) Capital ($)
A 80 decrease 80 decrease
B 80 increase 80 increase
C 220 decrease 220 decrease
D 220 increase 220 increase

9 Hassan’s capital decreased by $200 over the year, even though he made a profit of $7000.
Which transactions caused this?
Capital Introduced ($) Drawings ($)
A 1,000 8,200
B 1,200 6,000
C 2,000 8,800
D 2,200 4,600

10 Which statement describes the going concern principle?

A Accounting methods must be used consistently from one accounting period to the next.
B It is assumed that the business will continue to operate for the foreseeable future.
C Revenue is earned when legal title to goods passes from the seller to the buyer.
D The business is treated as being completely separate from the owner of the business.

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Question 2: Ame had the following balances at the start of March 2021.
$
Equipment 16,000
Inventory at 1st March 2021 1,850
Mark Wood 1,690 Dr
Bank Overdraft 690
Chippo 2,150 Cr
Sales 38,350
Purchases 25,850
Carriage Inwards 780
Carriage Outwards 800
Rent 6,000
Insurance 2,700
Office Expenses 2,220

A) Using the Above information find the Capital at that date. (2 marks)
B) The Following transactions occurred during the month of March 2021:
• March 2 Proprietor invested addition $3,500 into the business $2,800 wired
into Ame bank account and the reminder in Cash.
• March 4 Sales on time to Benz Co $9,890.
• March 8 Rent paid by cheque $1,200.
• March 9 Insurance paid by cash $600.
• March 12 Paid off Chippo in full via bank transfer owed to him.
• March 15 Purchased good for resale on-time from Fulton Co $7,100.
• March 19 Benz returned goods worth $820.
• March 21 The owner withdrew $4,000 from the bank to pay off his house rent.
• March 26 paid sundry expenses by cash $350.
• March 29 Received cheque from Benz Co $6,000.

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Ame did a stock count and the Inventory at 31st March 2021 was $5,900. You are required to
do the following:
i) Prepare Journal Entries (2.5 marks)
ii) Closing Accounts (2.5 marks)
iii) Trial Balance (3 marks)
iv) Income Statement (5 marks)
v) Balance Sheet (5 marks)

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