Cambridge & Pearson Edexcel Past Paper Questions

After completing the trial balance, it was found that an amount of $4000 for motor vehicle repairs had been entered in the motor vehicle account. ...

At the end of his financial year, Zane opened a suspense account. Why was it necessary to open this account?

Jack has opened a suspense account. He has found that rent paid of $250 has been correctly entered in the rent account but credited to the bank acc...

Naila provided the following information at 31 August. $ debit balance in cash book at 31 August 449 uncredited deposits 424 unpresented cheques 1...

Which statement about a sales ledger control account is not correct?

The following partly completed account appeared in Candy's ledger. Purchases ledger control account Dec 31 bank $42000 discount received $600 Dec ...

A trader's expenditure during the year includes the following amounts. $ redecoration of premises 5000 insurance of motor vehicles 2000 purchase o...

Which statement about depreciation is correct?

Rashid provided the following balances at 31 December. machinery at cost $52000 provision for depreciation of machinery $23000 Depreciation for t...

Annual rental income due from Kumar, a tenant, is $3600. At the start of the year, Kumar had prepaid rent of $900. At the end of the year, he owed ...

At the end of the financial year, Gina had the following items of clothing in her inventory. 100 t-shirts: cost price per unit $15, selling price ...

Which error causes the gross profit to be overstated?

Which group consists of only intangible assets?

At the end of the financial year, Karim decided to increase his provision for doubtful debts. How will this affect his income statement and the st...

What is included in an appropriation account of a partnership? 1 annual salary to which each partner is entitled 2 drawings made by each partner d...

X and Y are in partnership with capital of $50000 and $30000 respectively. The partnership agreement provides that profits are to be shared in pro...

What is an advantage of being a member of a limited company?

A limited company provided the following information. $ issued share capital (50000 ordinary shares of $1 each) 50 000 profit for the year ended 3...

P Limited maintains a provision for doubtful debts account. On 1 April 2022, this account had a balance of $6200. The provision should have been i...

What is included in the income and expenditure account of a tennis club?

Tim started a manufacturing business on 1 January. He provided the following information about his first year in business. $ closing inventory of ...

Hassan's capital decreased by $200 over the year, even though he made a profit of $7000. Which transactions caused this?

A trader provided the following information. credit sales $36000 cash sales 10% of total sales net profit margin 30% How much is the net profit?

The table shows the gross margin and profit margin for four businesses. Which business controls its overheads most efficiently?

Ramiz works as a sales manager in a car showroom. He is paid on the basis of the number of cars sold. Which accounting ratio will be relevant to R...

Manvinder started a business and paid a cheque for $1000 into a business bank account. He recorded this in the books of the business by debiting th...

A trader always records assets and expenses in his ledger at the price he paid for them. Which accounting principle is he applying?

What is the main function of book-keeping?

Which components of a statement of financial position do descriptions 1, 2 and 3 relate to? 1 finance and other resources that have been provided b...

A cheque received from Kate, a credit customer, was dishonoured. How was this dishonoured cheque recorded?

What does the sales ledger of a business contain?

Which action is an example of double entry book-keeping?

What is true about cash discounts received?

Tahir prepared a trial balance. He entered both the balance on the discount allowed account, $900, and the bank overdraft, $750, in the wrong colum...

Goods sold on credit to J Sharp were debited in error to the account of T Sharpe. Which type of error has been made?

Khalid made entries in a suspense account to correct two errors found in his ledger accounts. Once the errors were corrected, the suspense account ...

Maya depreciates her motor vehicle at 25% per annum using the straight-line method. The motor vehicle cost $15000. The depreciation for the current...

On 1 August, the sales ledger control account had a debit balance of $1800. During August, a debt of $200 was written off as irrecoverable and $100...

A wholesaler had the following transactions. sold goods, $30000, on credit received cheque, $12000, from sale of old fixtures at book value How wou...

A trader debited the cost of repairing office equipment to the office equipment account. How did this error affect the financial statements?

A business bought two assets, X and Y, on 1 January 2022, for $2000 each. It depreciates asset X by 10% per annum using the straight-line method, a...

Ravi's financial year ends on 30 April. Ravi bought a motor vehicle for $8000 on 1 May 2020 and sold it for $4050 on 1 May 2022. He uses the reduci...

On 2 January, Razia wrote off $450 owed to her by Annette, a credit customer, as irrecoverable. On 2 October, Annette paid $100 by cheque in part s...

Asha provided the following information about her inventory at the end of the financial year. product number of units cost price per unit $ selling...

Which group contains only service businesses?

What does the statement of financial position of a business show?

A trader pays her insurance premium on 1 January each year for the following 12 months. She made the following payments for insurance. 1 January 20...

Which item is added to the profit for the year in a partnership appropriation account?

Abi and Erni are in partnership. Erni is entitled to an annual partnership salary of $3000. They share residual profits and losses equally. The pro...

What is meant by the term equity?