O-LevelAccountingAccounting proceduresOct/Nov 2021Paper 1 Q201 Mark

Kasi and Ravi are in partnership. The financial statements for the year ended 31 August 2021 showed that Ravi was entitled to interest on capital and interest on loan and was charged interest on drawings. Which entries would be made in Ravi's current account?

Q: What topic does this question test?

This question tests Accounting procedures in O-Level Accounting (syllabus code 7707). It is worth 1 mark.

Ainterest on capital: credit, interest on loan: credit, interest on drawings: debit

Binterest on capital: credit, interest on loan: debit, interest on drawings: credit

Cinterest on capital: debit, interest on loan: credit, interest on drawings: debit

Dinterest on capital: debit, interest on loan: debit, interest on drawings: credit

✓ Correct Answer

The correct answer is C: interest on capital: debit, interest on loan: credit, interest on drawings: debit

📋 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.

🔒

Unlock the Examiner's Analysis

Join thousands of Cambridge students already using Oracle Prep

About This O-Level Accounting Question

Topic

This multiple-choice question tests Accounting procedures in O-Level Accounting (syllabus code 7707). It is worth 1 mark.

Source

This question appeared in the Cambridge O-Level Accounting Oct/Nov 2021 examination, Paper 1 Variant 3.

Practice on Oracle Prep

Oracle Prep provides AI-powered practice for all Cambridge O-Level and A-Level subjects. Our platform includes topic predictions with 87.7% accuracy, AI essay grading, and a comprehensive question bank spanning 25 years of past papers across 29 subjects.