May.

Which entry for training was made in the statement of financial position on 30 April?

A $300 accrual
B $400 accrual
3

5
C
Basic Financial Statements
$600 prepayment
Which statement is not correct about the benefit to a business of maintaining control accounts?
D $700 prepayment
A ensures
1 2019 NOV P11 that all
Q11types
of errors can be detected
11 Joe
B is a sole
helps in trader. Which statement(s)
the preparation of financialrelating to his business are not correct?
statements
C 1 Joe
provides can receive
immediate a bank
totals loanreceivables
of trade for the business.
and trade payables
D 2 Joe’s
reduces risk ofdrawings
fraud asare transferred
jobs to his capital
are performed account.
by different staff members
3 Joe’s personal expenses are included in his income statement.
6 The 1sales
A and 2ledger control
B 1account
only of a business
C 2 andshowed
3 a balance
D 3 onlyof $14 320.

A customer, who owes $1000, has also supplied 5 the business with $400 of goods.
2 2019 NOV P12 Q11
11 This
A sole trader
was hadagainst
offset the following transactions.
the amount owed by the customer.
© UCLES 2019 9706/11/O/N/19
What was the sales ledger control account balance after$the offset?

A $13 720 B returns outwards

$13 920 C $14 720 2750 D $14 920
carriage inwards 4820
7 What is the effect on the financial statements
goods if closing1460
for own use inventory is overvalued?

What was the total

profit effect
for the yearof these transactions
total assets on the cost of sales?

A A $610 increase
understated overstated
B B $3530 increase
overstated overstated
C C $6110 decrease
understated understated
D D $9030 decrease
overstated understated

3 2019 NOV P13 Q08

812 A sole trader’s
A company hadpersonal expenses
the following had
assets been
and paid out
liabilities of the
at 31 business2018.
December bank account and included
in his income statement.

What was the effect of this on the profit and capital? $

trade receivables 30 000

profit capital
trade payables 12 600
A no effect no effect
short-term bank deposit 8 800
B no effect overstated
bank loan repayable on 1 May 2019 20 000
C understated no effect
bank loan interest unpaid 500
D understated understated
motor vehicle 9 400

13 What
A warehouse
was the was damaged
working by fire on 31 March and some of the inventory was destroyed. The
capital?
following information is available.
A $5700 B $6200 C $15 100 D $25 700
$

inventory at cost on 1 January 6 000

inventory at cost on 31 March after fire 3 200
sales during the period 14 700

© UCLES 2019 purchases during the9706/13/O/N/19

period 9 500 [Turn over
 4
4 2019 NOV P13 Q09
9 Why does a trader account for accrued income?

A so that current liabilities are not overstated

B so that current liabilities are not understated
C so that profit is not overstated
D so that profit is not understated
5
5 2019 NOV P13 Q12
10
12 A sole trader provided
business the following
has extracted the financial
followinginformation for the
information yearits
from ended 31 December
books of account 2018.at
31 December 2018, its first year of trading.
$
$000
purchases 95 000
carriage inwards 12
returns inwards 2 3 300
carriage outwards 15
1 The owner of a business returns outwards
purchased a camera to take some photographs 2 100 of her family.
closing inventory 86
inventory withdrawn for personal use 5 000
She wishes to include it as an asset in the financial statements of the business. Her accountant
purchases 286
says that she should not do this.
Inventory on 31 December 2018returns was valued
inwardsat $1000 more 10 than on 1 January 2018.
Which accounting principle is the accountant applying?
What was the cost of sales? returns outwards 2
A business entity
A $85 700 B $86 900 revenue C $89 000 524 D $97 100
B consistency
What is the gross profit for the year ended 31 December 2018?
C going concern
11 A trader has suffered inventory losses due to4theft during the year.
A realisation
D $301 000 B $304 000 C $320 000 D $328 000
7 AWhat is necessary to calculate the value of the inventory stolen?then discovered.
bank statement showed an overdraft of $750. The following was
6 2020 JUN P11 Q02
13 What
Alice are
and1 Bharti
A cheque
have issued
beenofin payment of rent
innon-current for $570 hadand
not been presented.
2 1the characteristics
amounts banked forpartnership
sales and sharing
spent
assets? onprofits
purchases losses in the ratio of 3 : 2. The
balances on the partners’ capital accounts at 31 December 2018 are shown.
2 A cheque for $624 received was not shown on the bank statement.
12 Theyamounts spent
are not for business
intended expenses
for resale.
3 The bank statement included a bank charge $ year of $50 which had not been entered in
23 Theyinventory
the at the
provide
cash book. beginning
future economic and end of the
benefits.
34 Theypercentage
preventofthe
mark-up
companyAlice
on from going32
purchase 000
price
out of business.
What amount of overdraft should appear in the statement of financial position?
Bharti 18 000
A 1,and
2 and 3 BB $696
11,and
2 and 4 CC $754
2 1, 3 and 4 D D $1894
1, 2, 3 and
3 4
A 1 $646 2 only B 3 only C and 3 only D 2 and
The partners decided to share profits and losses equally with effect from 1 January 2019. There
7 2020
was noJUN P11account
goodwill Q08 in the books. Goodwill is valued at $30 000 and is not to be retained in
3 A
8 business
What is a has a of
purpose year end ofstatements?
31 December. It depreciates its motor vehicles over four years
the books
using of account.financial
the straight-line method. A full year’s depreciation is charged in the year of purchase, but
nonetoinaid
A themanagers
year of sale.
to manage the business
What is the balance on Alice’s capital account after the adjustment for goodwill?
B to allow
A motor the owner
vehicle purchasedto take
on drawings
1 July 2016 for $18 000 had an estimated residual value of $4000.
A $15 000 B $18 000 C $35 000 D $50 000
The motor vehicle was sold for $5000 on 31 December 2019.
C to ensure a profit is made
Whattowas the profit or loss on double
disposal?
14 D
X, Y andensure
Z areaccuracy of the
in partnership. entry
A $1000 loss
What would be shown in the partnership appropriation account?
9 An
B electricity accrual of $375 was treated as a prepayment when preparing a trader’s income
$1000 profit
statement. 1 goods taken for personal use of X
C $2500 loss
What was2 theinterest
effect ofon a loan
this made
on the profitbyforY the year?
D $2500 profit
3 interest
A overstated by $375 on drawings made by Z
© UCLES 2019 9706/13/O/N/19
B overstated by $750
A 1 and 2 B 1 and 3 C 2 only D 3 only
 8 2020 NOV P11 Q10

9 2020 NOV P12 Q07

10 2020 NOV P12 Q10

11 2021 JUN P11 Q09

12 2021 JUN P12 Q09

13 2021 JUN P12 Q11

 4

7 A bank statement shows a credit balance of $1500.

14 2021 JUN P13 Q11

A payment of $500 and a receipt of $1250 were included in the cash book but have not yet
appeared on the bank statement.

Bank interest payable of $1100 had been correctly recorded in the cash book but due to a bank
error had been recorded in the bank statement as $1000.

What is the cash book balance?

A $650 B $850 C $2150 D $3350

8 A company calculates a draft profit for the year of $88 000. This includes the profit margin of
$3000 on goods sold on credit but not yet paid for. It also includes $500 profit taken on goods
15 2021
sold toJUN P13 Q12
a customer on a sale or return basis.

What is the correct gross profit?

A $84 500 B $85 000 C $87 500 D $91 000

9 The draft profit for the year for a sole trader was $108 000 before the following were taken into
account.

1 The provision brought forward for doubtful debts was $1850. The provision to carry
forward should be $2250.
2 Depreciation of non-current assets had been undercharged by $2000.
3 An accrual of $600 for repairs had been treated as a prepayment.

What was the correct profit for the year?

A $104 400 B $105 200 C $109 000 D $111 600

16 2016 JUN P11 Q10

10 The following balance appeared on a trial balance at 31 December 2015, after the preparation of
the company’s financial statements.

stationery 8000 debit

What did this represent?

A an amount due to the company’s stationery supplier for 2015

B a prepayment made to the stationery supplier at 31 December 2015
C inventory of stationery at 31 December 2014
D the annual stationery charge for 2015

© UCLES 2016 9706/11/M/J/16

 2 Depreciation of non-current assets had been undercharged by $2000.
2
3 An accrual of $600 for repairs had been treated as a prepayment.
1 Which item is entered in the general journal?
What was the correct profit for the year?
A A cash discount given to a customer
A $104 400 B $105 200 C $109 000 D $111 600
B The correction of an error made in the ledger
17 2016 JUN P13 Q10
10 C
The The sale of
following an asset
balance for cashon a trial balance at 31 December 2015, after the preparation of
appeared
the company’s financial statements.
D The withdrawal of cash for private use by the owner

$
2 A calculator costs $9.50 and has a useful life of 5 years. The book-keeper has decided to treat
stationery
the purchase of the calculator as revenue 8000 debit
expenditure.

What did
Which this represent?
accounting principle has been applied?

A an amount due to the company’s stationery supplier for 2015

accruals
B a prepayment made to the stationery supplier at 31 December 2015
materiality
C inventory of stationery at 31 December 2014
prudence
D the annual over
substance stationery
form charge for 2015

18 2016 NOV P13 Q03

3 A vehicle was part exchanged for a new vehicle.

Which entries record the part exchange?

© UCLES 2016 account debited account9706/13/M/J/16

credited

A cash motor vehicles at cost

B disposal motor vehicles at cost
C motor vehicles at cost cash
D motor vehicles at cost disposal
3
19 2016 NOV P13 Q04
4 On 1 January Ann owed Sam $400. She paid the amount due on 6 January after deducting a 2%
cash discount.

How did Ann record this?

account debited account credited

A bank 392 Sam 400

discount
allowed 8

B bank 392 Sam 400

discount
received 8

C Sam 400 bank 392

discount
allowed 8

D Sam 400 bank 392

© UCLES 2016 9706/13/O/N/16
discount
received 8

5 Why are non-current assets depreciated?

A to ensure that funds exist for asset replacement

B to show a reduction in the market values of non-current assets
 2 credit sales
3 payments to trade payables
4 returns inwards

A 1, 2 and 3 B 1, 2 and 4 C 1, 3 and 4 D 2, 3 and 4

20 2017 JUN P12 Q07

7 The following information is extracted from the statement of financial position of a business at
31 December 2016.

bank loan (repayable 2025) 16 200

other payables 1 880
bank overdraft 11 600
capital 20 710
drawings 19 100
inventory 14 610
other receivables 1 420
trade payables 14 110
trade receivables 9 050

What is the value of the net current liabilities?

A $1590 B $2510 C $18 710 D $20 320

Worksheet 2
© UCLES 2017 9706/12/M/J/17 [Turn over