KĀSIGA SCHOOL, DEHRADUN

TERM TEST 2, MARCH 2021

GRADE: IGCSE Y1 M.M: 35

SUBJECT: ACCOUNTING 0452/12 MCQ TIME: 1 HR 15 MINS

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GENERAL INSTRUCTIONS

INSTRUCTIONS

• There are thirty-five questions on this paper. Answer all questions.

• For each question there are four possible answers A, B, C and D. Choose the one you
consider correct and record your choice in soft pencil on the multiple choice answer
sheet.

• Follow the instructions on the multiple choice answer sheet.

• Write in soft pencil.

• Write your name, centre number and candidate number on the multiple choice answer
sheet in the spaces provided unless this has been done for you.

• Do not use correction fluid.

• Do not write on any bar codes.

• You may use a calculator.

INFORMATION

• The total mark for this paper is 35.

• Each correct answer will score one mark. A mark will not be deducted for a wrong
answer.

• Any rough working should be done on this question paper.

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TERM TEST 2/CAIE/ACC/IGCSE Y1/ADM/SDE 1 of 14

1 Abdul started a business by transferring his own vehicle to the business at a valuation of $9000
and introducing a sum of cash. In the first year of trading profit was $2000. At the end of the first
year the balance on his capital account was $ 51,000. How much cash did Abdul introduce?

[1]

2 Agnes and Brian operate in similar businesses. They provide the following information.

Which statement is true from the following ?

[1]

3 The following account appeared in Andrew’s ledger.

Which of the following is true ?

TERM TEST 2/CAIE/ACC/IGCSE Y1/ADM/SDE 2 of 14

 [1]

4 In which sections of Zamir’s ledger would the following accounts be maintained?

[1]
5 The following balances appeared in Hussein's books

What was the total of the liabilities?

[1]

TERM TEST 2/CAIE/ACC/IGCSE Y1/ADM/SDE 3 of 14

6 The following account appeared in the books of Mary.

Which statement is correct?

[1]

7 On 1 March 2020 the bank column of a cash book had a credit balance of $290. During March
cheques totalling $580 were received and cheques totalling $610 were paid to suppliers. Bank
charges of $12 incurred in February were also entered in the cash book. What was the balance of
the bank column in the cash book on 1 April 2020?

[1]

8 Ziningi prepared a trial balance. The total of the debit column was $225 750 and the total of the
credit column was $225 250.

What could explain the difference?

TERM TEST 2/CAIE/ACC/IGCSE Y1/ADM/SDE 4 of 14

 [1]
9 Rent received from a tenant was debited to the rent receivable account and credited to the cash book.
Which type of error has been made?

[1]

10 What would not be included in a sales ledger control account?

[1]

11 A trader uses the reducing balance method of depreciation. What effect will this have over the
life of the non-current asset?

[1]

12 Which entries did Sally make to record the following transaction? Rashid, a credit customer,
returned damaged goods.

TERM TEST 2/CAIE/ACC/IGCSE Y1/ADM/SDE 5 of 14

 [1]
13 How does a trader use the information provided by financial statements?

[1]

14 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. 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?

[1]

15 Goods bought on credit by Tumelo from Tebogo are returned before they are paid for. Tumelo
keeps a full double entry system. Where will Tumelo record the return of goods?

[1]

16 Why is inventory valued at net realisable value when this is lower than cost?

TERM TEST 2/CAIE/ACC/IGCSE Y1/ADM/SDE 6 of 14

 [1]

17 Where is discount received shown?

[1]

18 Which task would be carried out by a book-keeper but not an accountant?

[1]

19 Dilip is a manufacturer. He purchased a machine on credit from Sachin. How did Dilip record
this?

[1]

TERM TEST 2/CAIE/ACC/IGCSE Y1/ADM/SDE 7 of 14

20 Mui owns a household appliance store. He took home a washing machine for his personal use.
Mui recorded this transaction as follows.

Did Mui make the correct entries to record this transaction?

[1]

21 The following account appeared in the books of Abdul.

Which statement is correct?

[1]

22 The totals of a trial balance agreed but it was found that the purchase of office equipment had
been debited to office expenses account. Which type of error has been made?

TERM TEST 2/CAIE/ACC/IGCSE Y1/ADM/SDE 8 of 14

 [1]
23 On 31 January, Somraj’s bank statement showed a credit balance of $740. Comparing the
bank statement with the cash book he found the following.

Somraj updated his cash book as required. What was the updated cash book balance on 31
January?

[1]

24 A farmer sold a piece of land at market value. How should the proceeds of this sale be
treated?

[1]

25 Why should a trader provide for the depreciation of a non-current asset?

TERM TEST 2/CAIE/ACC/IGCSE Y1/ADM/SDE 9 of 14

 [1]

26 Which group contains only assets?

[1]

27 Which items may appear on the debit side of a purchases ledger control account?

[1]

28 A trader always depreciates his motor vehicles using the reducing (diminishing) balance
method. Which accounting principle is he applying?

[1]

TERM TEST 2/CAIE/ACC/IGCSE Y1/ADM/SDE 10 of 14

29 Which error does not affect the balancing of a trial balanc

[1]

30 An invoice for the purchase of goods on credit, $980, was incorrectly recorded in the
purchases journal as $890. Which type of error was made?

[1]

31 Bingwa purchased premises costing $85000 in February 2018. Identical premises to those
owned by Bingwa were sold in April 2019 for $98000. No adjustment was made in Bingwa’s
accounting records in April 2019. Which accounting principle did Bingwa apply?

[1]
32 On 1 February Ahmed purchased goods on credit from Zaffar. He returned these goods on 8
February. How did Zaffar record the transaction of 8 February?

[1]

33 Athena is both a customer and a supplier of Heidi. Athena’s account in Heidi’s sales ledger
showed a debit balance of $340 and her account in Heidi’s purchases ledger showed a credit
balance of $260. A contra between the two accounts was agreed. Which entry would Heidi make
in her sales ledger control account?
TERM TEST 2/CAIE/ACC/IGCSE Y1/ADM/SDE 11 of 14
 [1]

34 Amber updated her cash book after receiving her bank statement. The updated cash book
balance was an overdraft of $250. The bank statement did not include cheques not presented,
$96, and amounts not credited, $183. What was the balance shown on the bank statement?

[1]

35 Faraz buys and sells new and used motor vehicles. He purchased a used motor vehicle from
Tahir for $7000 which he paid for by cheque. How would Faraz record this transaction?

[1]

TERM TEST 2/CAIE/ACC/IGCSE Y1/ADM/SDE 12 of 14

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