Cambridge Past Paper Questions

A trader has extracted the following information from his books of account at 31 March 2018. purchase ledger balances at 1 March 2018 $32 100 credi...

The table shows extracts from a business's bank reconciliation. balance per cash book at 31 December $2075 debit balance per bank statement at 31 D...

Bank interest income, $1800, had been correctly entered in the bank account but recorded as interest expense. Which entries in the ledger will corr...

A company has the following balances. trade receivables at 31 December 2017 $125400 provision for doubtful debts at 1 January 2017 $1800 During the...

How are purchases calculated when proper accounting records have not been kept?

The draft financial statements for a business included an inventory valued at $550000. This valuation included damaged items which originally cost ...

A trader took out a 6% bank loan of $30000 on 1 November 2017, to be repaid in full in 10 years' time. Interest is to be paid annually. No interest...

Which items would not be in the appropriation account for a partnership? 1 interest on capital 2 interest on a partner's loan 3 share of profit on ...

X and Y had been in partnership sharing profit and losses in the ratio of 1:2 respectively. Z was later admitted to the partnership. It was agreed ...

J and K shared profits equally. Their capital account balances were J $400000 and K $160000. L was admitted as a partner. The three partners then s...

The statement of financial position of a business on 31 December 2017 showed the following. retained earnings $136 000 general reserves $28 000 sha...

A company provides the following information. ordinary shares of $0.50 each $84 000 retained earnings $50 000 134 000 The following transactions th...

The financial data relates to two businesses. trade receivable turnover (days) X: 90 Y: 40 trade payable turnover (days) X: 50 Y: 70 liquid (acid t...

A company's financial statements show the following. profit before interest $125378 profit for the year $120426 200 000 ordinary shares $1 each $20...

A company's income statement shows the following. revenue $460 000 cost of sales $120000 administration expenses $54000 distribution costs $47000 f...

To make a single unit of output a business requires material costing $1000. When 20 items are produced, the total cost of the material is $20000. W...

A business has the following total overheads for two different output levels. total overheads $200 000, output (units) 20000 total overheads $21600...

A retailer uses the FIFO method for inventory valuation. The following information is available. June 1 opening inventory 300 units at $12 per unit...

A business manufactures 175 units of a product each month. The following information is available for the month. Per unit revenue $580 Per unit var...

When is marginal costing less useful than absorption costing?

A company manufactures a single product with a selling price of $75 per unit. The table shows the costs based on sales and production volume of 800...

A company has the following revenue information for a month. actual revenue $510000 break-even revenue $555000 budgeted revenue $570000 What was it...

A business provides the following information. budgeted overhead costs $280 000 budgeted labour hours 25 000 budgeted machine hours 20 000 actual o...

A business provides the following budgeted information. contribution to sales ratio 60% budgeted sales $240 000 budgeted production units 40000 Wha...

Which statement identifies an advantage to a business of financial planning?

Which concept requires that profits should be based on recognising revenues and their related expenses for an accounting period?

A business buys a non-current asset and decides to apply the straight-line method of depreciation. The accountant forgets to include an estimate of...

The table gives information relating to the non-current assets of a business. $ net book value at the end of the year 25000 net book value at the ...

The accounting year of a company ends on 31 December. It purchased a warehouse for $100000 on 1 January 2013. The warehouse had an estimated useful...

A company prepared a sales ledger control account. The balance did not agree with the total of the sales ledger balances, which were $42650. The fo...

The correction of which error would require an entry in the suspense account?

The table shows information for a business at 31 March 2019. $ inventory 16 100 trade payables 5200 other payables 2000 The information excludes ...

A business has valued some of its closing inventories at cost. Their net realisable value is lower than cost. What is the effect of this error on ...

The following balances were extracted from a trial balance at 31 March 2019. $ total trade receivables 84 600 provision for doubtful debts at 1 Ap...

A business had the following assets and liabilities at the start of the year. a motor car valued at $2500 inventory which cost $4000 with a sales ...

A sole trader had the following transactions. $ returns outwards 2750 carriage inwards 4820 goods for own use 1460 What was the total effect of t...

A sole trader's personal expenses had been paid out of the business bank account and included in his income statement. What was the effect of this...

A warehouse was damaged by fire on 31 March and some of the inventory was destroyed. The following information is available. $ inventory at cost o...

P and Q are in partnership. R was admitted as a partner on 1 July 2018, and the profit and loss sharing ratio among P, Q and R was 2:2:1 respective...

Hilary and Lee commenced in partnership on 1 January 2018. There was no partnership agreement. They provided the following information. Hilary Lee...

L, M and N are in partnership sharing profits and losses equally. L retired when the credit balances on her capital and current accounts were $100...

The directors of a limited company recently made a rights issue of one ordinary share for every three held at a premium of $0.50 per share. The rig...

A company's year end is 31 December. During the year ended 31 December 2018 it paid the following dividends: $ final dividend for the year ended 3...

Which information would an investor gain by looking at the financial statements of a business? 1 identifying future trading prospects 2 identifyin...

The following information is available for a limited company. $ profit from operations 40475 profit for the year 26380 10% debenture (2025) 75000 ...

A manufacturing business has provided the following information about a product. units produced total cost $ 8000 37000 14000 53 500 What is the ...

The following information relates to the inventory of a business. date purchases unit cost sales unit selling price 2 June 1000 units $12 12 June ...

Inventory cost prices are rising for a business. The company uses AVCO rather than FIFO to value its inventory. What is the effect on inventory va...

A company calculates its profit using marginal costing as $90000 for a month. Opening inventory was 4000 units and closing inventory 6000 units. ...

A manufacturing business has provided the following information. budgeted labour hours 12000 budgeted overhead absorption rate $7.50 per labour ho...