Cambridge Past Paper Questions
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Sariah owns a business selling ladies' clothing. She maintains a system of double entry bookkeeping. The following occurred during September 2020....
Eniola compared her bank statement for July 2020 with the bank columns of her cash book. She provided the following information. Overdrawn balance ...
Haziq has not maintained full accounting records for his business. Haziq provided the following information for the year ended 31 July 2020. At 1 A...
The directors of DW Limited provided the following information at 30 September 2020. $ 6% debentures (2028) 18000 Bank overdraft 6450 Dividend paid...
Nazim owns a wholesale business and has prepared draft financial statements for the year ended 30 June 2020, his first year of trading. After the ...
Which formulas may be used for the accounting equation? 1 assets = owner's equity minus liabilities 2 liabilities = assets minus owner's equity 3 o...
Goods purchased on credit from Zamir were returned by Ashwin. Which entries should Zamir make to record this? [Figure showing table with account de...
During her first financial year, a trader paid $1800 for insurance and $3200 for rent. At the end of the financial year, she transferred insurance ...
Leah bought goods, $8000, less 15% trade discount. She later returned half of these goods as they were faulty. Which document did Leah issue to the...
What is a cheque counterfoil used for?
Farouk sells goods on credit. A cheque from Khalid, a credit customer, was dishonoured by the bank. How should Farouk record this? [Figure showing ...
Why does a supplier offer trade discount?
Ann maintains a petty cash book using the imprest system. Which statement is not correct?
A sales invoice for $800 was incorrectly recorded in the sales journal as $1800. How did this error affect the trial balance?
A standing order paid for rent has not been entered into the accounting records of a business. Which statement is correct?
The bank statement of a business had a credit balance of $2690 on 1 October 2021. At that date cheques totalling $850 had not yet been presented fo...
A trader has purchased new business premises. What are examples of capital expenditure? 1 cost of heating and lighting the new premises 2 cost of p...
Two companies each purchased a motor vehicle for $10000 at the beginning of year 1. Company G used the straight-line method of depreciation at a ra...
At the end of the financial year Mui had prepaid rent of $1500. How should she record this?
After preparing draft financial statements at the end of her first year of trading, Lucy discovered two errors. 1 Damaged inventory had been valued...
Which is an advantage and a disadvantage of operating as a sole trader? [Figure showing table with advantage and disadvantage columns]
What is shown in the capital and liabilities section of a statement of financial position of a business?
John maintains a full set of accounting records. Why does he also prepare a statement of financial position?
A sole trader paid off the business's overdraft using his own personal funds. How did this affect the statement of financial position? [Figure show...
Hassin found that he needed help to run his business. He decided to take a partner rather than employ an assistant. Why did he decide to take a par...
Anwar is a sole trader making annual profits of $24000. He decides to admit Dilip as a partner. They agree that Anwar would receive a salary, and p...
BCD Limited provided the following information. [Figure showing table with ordinary shares, retained earnings, debentures] How much was the equity ...
A sports club was formed on 1 August 2020. During the year ended 31 July 2021 the club purchased equipment costing $5000, paying by cheque. In whic...
A sports club has 100 members and the annual subscription is $60. During the year ended 31 August 2021: 12 members paid their outstanding subscript...
Beth provided the following information. [Figure showing table with net assets, 1 January, 31 December] Her drawings during the year amounted to $3...
Roshan's sales for his first year of trading were $55000. His gross profit margin was 20%. The closing inventory was $3200. What were the purchases...
Which information is required to calculate the return on capital employed for a sole trader?
What is the best indicator of the liquidity of a business?
A business provided the following information about its gross margin. Year 1 40% Year 2 38% Year 3 35% What could explain the changes in the gross ...
Sam and Rob each own a trading business. The income of each business is solely from the sale of goods. They provided the following information for ...
Why would the owner of a business want to see his financial statements at the end of the year? 1 to assess the performance and progress of the busi...
Charlie is a car dealer. Joe wanted a new car and went to Charlie's car showroom. On Monday Joe took a car for a test drive and decided to buy it. ...
Which accounting objective requires that financial information is provided in time for a decision to be made?
Why does a trader calculate the profit of his business?
Hassan is a trader. During the financial year he took goods from the business for his own use. How should he record this?
Where are the accounts of credit suppliers maintained?
Which document does a trader issue to remind a credit customer that payment is due?
Tumelo sells on credit. The terms of trade are listed. list price: $200 per unit credit period: 60 days trade discount 15% if 10 units or more are ...
Jane purchased goods and paid by credit transfer. How should this be recorded in Jane's accounting records?
What is shown in a trial balance?
At the end of each year, PT Limited transfers 20% of the profit for the year to the general reserve. Draft financial statements were prepared for t...
The bank columns in a trader's cash book and the bank statement both showed positive balances. A comparison revealed the following differences. $ u...
What is a reason for preparing a sales ledger control account?
Amit's financial year ends on 31 December. The following account appeared in his sales ledger. Dipak account 2020 $ 2020 $ Jan 7 sales 3200 Jun 3 b...
Sally wished to increase the balance on the provision for doubtful debts account at the end of the financial year. How should this increase be reco...