A-LevelAccountingSole Traders and PartnershipsMay/June 2025Paper 1 Q161 Mark
After preparing the financial statements of a sole trader, the following items were discovered. 1 Drawings consisted of goods taken for own use at their sales value of $12000. The owner applies a mark-up of 50% on all goods sold. 2 Profit for the year included an insurance expense of $7500. One-third was for the owner's health insurance. What is the effect on the profit for the year after correcting these items?
A$1500 decrease
B$3500 decrease
C$6500 increase
D$8500 increase
✓ Correct Answer
The correct answer is A. This question tests the candidate's understanding of sole traders and partnerships 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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