Cambridge & Pearson Edexcel Past Paper Questions

What is a trial balance?

Which is an error of omission?

John's financial year ends on 31 December. He pays his annual insurance premium on 1 July. He provided the following information. $ insurance premi...

Raminder maintains a provision for doubtful debts of 2½% of the trade receivables. On 1 January the balance on the provision account was $1075. The...

A company purchased a new computer system. What would be recorded as revenue expenditure?

What is depreciation?

A machine costing $60 000 is depreciated by 25% per annum on the reducing (diminishing) balance method. What was the depreciation charge for the se...

Lisa's trial balance failed to balance and a suspense account was opened. It was found that the return of goods, $20, by Zaffar, a customer, had be...

What would be entered in a purchases ledger control account?

Which statement is correct?

When might goodwill appear in a balance sheet?

A trader provided the following information. $ non-current assets 25 000 current assets 12 000 current liabilities 9 000 non-current liabilities 10...

At the end of his financial year Tom owes $150 rent. How will the adjustment for this amount affect Tom's financial statements?

Amina and Sabena are in partnership. How is interest on drawings recorded in the ledger?

Which would appear in a receipts and payments account?

A trader does not keep a full set of accounting records. How is the profit for the year calculated?

A manufacturing business provided the following information. $ direct expenses 6 000 direct labour 15 000 direct materials 20 000 office expenses 4...

Anne works 40 hours and is paid $5 per hour. She pays income tax at 20%, national insurance at 10% and pension contributions at 5%. What is her gro...

A trader provided the following information. $ $ revenue 60 000 opening inventory 15 000 purchases 30 000 45 000 closing inventory 10 000 35 000 gr...

Loose tools are shown in a balance sheet at valuation. Which accounting principle is being applied?

Yang is a supplier of goods to Win. The following transactions took place in March 2012. 2012 March 1 Win owed $3 000 to Yang. March 17 Win purcha...

Lau buys and sells goods on credit. The following information is provided by her for the month of March 2012: $ Trade payables 1 March 2012 15 300...

The following balances were extracted from the books of Trinity Social Club on 30 April 2012: $ Fixtures and fittings 1600 Donations income for th...

Ashok provided the following information for the year ended 31 March 2012: $ Revenue (sales) 120 000 Inventory 1 April 2011 22 500 Inventory 31 Ma...

Thien has a retail business. The following balances were extracted from his books at the end of his financial year on 31 March 2012. $ Leasehold p...

Giorgos commenced business on 1 May 2012 with the following assets and liabilities. Bank loan $6 000 Bank 1 000 Dr Cash 600 Premises 15 000 Invento...

Haung's income statement showed a draft profit for the year of $15 500. After completion of the income statement the following errors were discover...

Dang Ltd had the following balances in its books after the calculation of the profit for the year ended 31 March 2012: Profit for the year (before ...

Jones is a trader, buying and selling goods on credit. The following balances were available on 30 April 2012. Capital $350 000 Revenue 200 000 Exp...

Su and Li are in partnership sharing profits and losses in the ratio 3:2. Interest is allowed on capital at the rate of 5% per annum. Su is entitle...

A trader prepares financial statements each year. What do these assist the trader to do?

Oliver received a statement from Sunway Wholesalers showing a debit balance of $6742. What does this mean?

A customer is given a discount of 25% for buying a large quantity of goods on credit with a list price of $2000. He is given a further discount of ...

On 1 May Hassan had an overdraft of $1144. On 2 May he was notified by the bank that a cheque, $133, received from Waheed had been dishonoured. On ...

Where is the total of the purchases journal posted?

The cash book acts as a ledger account for which accounts? | | cash account | bank account | discount allowed account | discount received account |...

On 31 March, Somraj's bank statement showed a credit balance of $740. Comparing the bank statement with the cash book he found the following. | | $...

A business discovers that cash received from Abdul, a credit customer, has been recorded as a cash sale. How can this be corrected? | | account to ...

Peter is a customer of Paul. On 1 May Peter owed Paul $250. Transactions during May were as follows. | | $ | |---|---| | sales | 1470 | | discount ...

Which is an error of original entry?

Hani decided to make a provision for doubtful debts of 3% of his trade receivables. How is this recorded? | | debit | credit | |---|---|---| | A | ...

The cost of motor vehicle repairs was debited to the motor vehicle account. How would this affect the profit and the non-current assets? | | profit...

A computer network costing $100000 is depreciated by the straight line method at 25% per annum. What will be the net book value at the end of year 3?

Ernest prepared a trial balance. He omitted the bad debts account, $400, and he entered the balance of the insurance account as $9000 instead of $9...

A trader prepares control accounts. Where will discount received be entered?

A business has two departments, X and Y. The total sales were $120000, of which 60% related to department X. The total cost of sales was $90000 of ...

Sabena is a trader. She provided the following information. | | $ | |---|---| | current assets | 130000 | | non-current assets | 300000 | | current...

Which would not appear in an income statement of a service business?

A trader took goods for her own use. How should this be recorded? | | account to be debited | account to be credited | |---|---|---| | A | drawings...

X and Y are in partnership sharing profits and losses equally. The following information was extracted from their financial records at 31 December....