Cambridge Past Paper Questions
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Karim works 40 hours a week at a rate of $5 per hour and any overtime is paid at time and a half. He is paid monthly in arrears. He worked 12 hours...
What is included in the working capital ratio (current ratio), but not the quick ratio (acid test ratio)?
Kim has been in business for many years and expects this will continue. She provided the following information. $ premises at cost 50 000 at marke...
Ava had $4000 in the bank. She paid a supplier $575 by cheque in full settlement of $600 owing. Which changes would take place within the accountin...
Winston returned goods to Hanif. Which entries will Winston make in his ledgers?
Andy purchases goods from Charles. The account of Charles in Andy's books for the month of September showed the following entries. Sept 1 purchases...
The following amounts were recorded in the bank columns of Tamir's cash book in September. receipts from customers 4022 payments 4819 cheques banke...
Lisa is a credit customer of Daniel. Her account in Daniel's ledger showed the following entries. Aug 1 balance 10 cr Aug 8 sales 300 ? On 10 Augus...
Seema's financial year ends on 30 September. She rents premises at a monthly rent of $2000. During the year ended 30 September 2018 she paid $26000...
Sally bought a non-current asset. It was to be used for 10 years, after which it would have no scrap value. Sally used the straight-line method of ...
A draft income statement showed a gross profit of $12200. It was later found that carriage on purchases, $260, and carriage on sales, $230, had bot...
Raj is both a customer of and a supplier to Balbir. Raj's account in Balbir's sales ledger showed a debit balance of $300. There was a credit balan...
Michael's financial year ends on 31 August. On 30 August 2018 he purchased a motor vehicle using a bank loan which is repayable on 30 August 2020. ...
A club's financial year ends on 31 July. During the year ended 31 July 2018 the following subscriptions were received. subscriptions for the year e...
A trader does not keep full accounting records. How can credit purchases for his first year of trading be calculated?
A trader provided the following information. revenue 100 000 cost of sales 60 000 gross profit 40 000 profit for the year 20 000 What was the mark-up?
Which statements about ordinary shares are correct? 1 If a company is wound up ordinary shares are repaid after debentures. 2 Ordinary shares are a...
Which items are included in the equity section of the statement of financial position of a limited company?
During the financial year, a manufacturing company's payments included the following. purchase of a new machine running costs of the machine Where ...
A factory employee records his time of arrival and departure each day. Which document is used for recording his hours of work?
A trader provided the following information. revenue 95000 purchases 40000 opening inventory 20000 closing inventory 18000 cost of sales 42000 What...
A business provided the following information about its percentage of gross profit to sales. Year 1 40% Year 2 38% Year 3 35% What could explain th...
A business values its inventory at the lower of cost and net realisable value. Which accounting principle is being applied?
Lohit is a supplier of goods to Asanka. The following entries require recording in the books of Asanka for the month of August 2018. August 1 Asan...
Arjit provided the following information for the month of July 2018. 1 Sales ledger control account balances 1 July 2018 Debit $4230 Credit $80 2...
The following information is available for B Limited at 31 August 2018. B Limited Statement of Changes in Equity for the year ended 31 August 2018...
The following information was available from the books of Linrae. Totals for the year ended 30 September 2017 Revenue $240000 Cost of sales $18000...
Aung and Khin are in partnership. The partnership agreement states that they share profits and losses in the ratio 3:2 respectively. Interest is ch...
An inexperienced book-keeper prepared the following trial balance for Alia's business on 31 August 2018. The trial balance did not balance. Trial ...
East Town Decorators have two separate departments, paints and wallpapers. The following information is available, for the 3-month period ended 30 ...
Lodini and Mathy were in partnership sharing profits and losses equally. They provided the following information on 1 August 2017. Capital Lodini ...
Hema is a trader, buying and selling goods on credit. The following information is available. Balances at 1 September 2018 | Account | ...
Shobi is a sole trader. The following balances were extracted from the books on 30 September 2018. | Account | $ ...
Why does the owner of a business calculate profit?
A trader provided the following information. $ trade payables 2990 trade receivables 3120 bank 230 credit bank loan 5000 commission receivable accr...
Which book of prime (original) entry is used to record discount received?
A trader is preparing to draw up a bank reconciliation statement. How should the bank interest received be treated?
The following account appeared in Amna's ledger. Syed account date details debit $ credit $ balance $ Sept 1 balance b/d 400 dr 14 sales 600 1000 d...
A purchase of furniture was debited to the office stationery account. What type of error was made?
Javed wishes to write off a debt owed by Carl, a credit customer. Which entries would Javed make? debit credit
Zafar maintains a provision for doubtful debts of 2% of trade receivables. On 1 January 2018 the provision was $200. On 31 December 2018 the trade ...
Sales returns were incorrectly recorded as purchases returns in an income statement. What was the effect of this error?
Would the following be classified as a capital receipt or a revenue receipt? the proceeds received from the sale of the delivery van the profit mad...
After the preparation of Abdul's draft financial statements two errors were discovered. The purchase of a machine on credit, $5000, was omitted fro...
What are advantages of maintaining control accounts? 1 They act as a deterrent against fraud as they provide an independent check. 2 They ensure al...
Carlos is preparing his sales ledger control account. Where will he obtain information about contra entries?
Julie bought goods from a supplier for $650. She also paid $75 to have the goods delivered. The goods are expected to be sold for $825. At which va...
On 1 April 2018 a trader paid an annual insurance premium of $1800. Which entry will be recorded in the trader's statement of financial position at...
What is a disadvantage to a sole trader forming a partnership with another trader?
Sara and Fatima are in partnership. Sara is entitled to a partnership salary of $30000 per annum and the balance of the profit is shared equally. T...