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: increase 4500 increase 4500 no effect
📋 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...
🎯 Mark Scheme Breakdown
Award 1 mark for identifying the correct principle. Award 1 mark for showing clear working. Common errors include failing to convert units and misreading the scale. The examiner report notes that only 34% of candidates achieved full marks on this question.
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