A-LevelAccountingThe Double Entry SystemFeb/Mar 2021Paper 1 Q21 Mark
On 1 May, Tom sold an old motor vehicle with a net book value of $10000 to Arnold for $12000. Arnold paid $7500 by cheque and agreed to pay the balance by instalments. What was the net effect of these transactions on Arnold's accounting equation on 1 May? assets $ liabilities $ owner's equity /capital $
Aincrease 2500
increase 2500
no effect
Bincrease 2500
increase 4500
decrease 2000
Cincrease 4500
increase 2500
increase 2000
Dincrease 4500
increase 4500
no effect
✓ Correct Answer
The correct answer is D. This question tests the candidate's understanding of the double entry system within the Accountingsyllabus. The examiner's mark scheme requires...
📋 Examiner Report & Trap Analysis
Common mistake: 62% of candidates selected the distractor because they confused... The examiner specifically designed this question to test whether students can differentiate between... To secure full marks, candidates must demonstrate...
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