Cambridge Past Paper Questions

The following errors were found after a statement of financial position had been prepared. 1 A loan repayable in two year's time had been included ...

What are advantages of operating as a sole trader? 1 The owner can keep all the profit. 2 The owner can raise finance by issuing debentures. 3 The ...

Kasi and Ravi are in partnership. The financial statements for the year ended 31 August 2021 showed that Ravi was entitled to interest on capital a...

BCD Limited provided the following information. $ ordinary shares 300 000 retained earnings 200 000 debentures 170000 How much was the equity and t...

What is not part of the prime cost of a manufacturing business?

The value of Thato's work in progress increased during the year. This was recorded in his financial statements. How did this affect the cost of pro...

What are advantages of keeping a full set of accounting records? 1 Financial statements will be free from errors. 2 It is impossible to make fraudu...

Beth provided the following information. net assets 1 January $28.000 31 December $24000 Her drawings during the year amounted to $3000. What was B...

A trader provided the following information for the year ended 31 May 2021. $ trade payables on 1 June 2020 12 250 trade payables on 31 May 2021 42...

What is not a limitation of inter-firm comparison?

Why would a supplier be interested in the financial statements of a credit customer?

Ayesha is a trader who maintains a full set of accounting records and prepares control accounts at the end of each month. She provided the followi...

Jabir owns an electrical wholesale business. The following balances appeared in his books on 30 September 2021. Inventory $8000 Purchases $109000...

On 31 July 2021 the following information was provided by KA Limited, a manufacturer of garden tools. Inventory 1 August 2020 Raw materials $5820 ...

Nikita is a trader. The totals of her trial balance at 30 June 2021 did not agree. The debits exceeded the credits by $2600. Nikita opened up a sus...

Simon has a business selling office stationery. On 1 January 2019 he owned two delivery vehicles which had been purchased on 1 January 2018. Deliv...

Shiv is a trader. His financial year ends on 31 August. He does not maintain a full set of accounting records but was able to provide the following...

Jas owns a printing business and has recently incurred various expenditures relating to her premises. REQUIRED

Anil is a trader. The totals of the trial balance he prepared on 31 December 2020 did not agree. The debits exceeded the credits by $5140. The foll...

Karishma runs her own business. The balances in her books on 1 October 2020 included the following. $ Insurance account 1700 prepaid Electricity ac...

The financial year of VL Sports Club ends on 31 December. The treasurer provided the following information about receipts and payments for the year...

On 1 June 2021, Sue's capital account had a credit balance of $120000. During the year ended 31 May 2022 she withdrew goods costing $1800. The loss...

Bilal purchased goods on credit from Asim. Where should Asim record this transaction? 1 cash book 2 nominal (general) ledger 3 purchases ledger 4 s...

Abdul sells goods to Rekha on credit. Some goods were damaged in transit. Which document would Rekha send to Abdul?

What is not shown on an invoice?

On 1 September, Peter sent a cheque to his credit supplier, John. This was correctly entered in John's books. On 10 September, the cheque was retur...

Which entries should be made to post the monthly totals of the discount allowed and discount received columns of the cash book? discount allowed di...

Jasvinder maintains a petty cash book using the imprest system. The monthly imprest of $100 is restored on the first day of each month. In Septembe...

Saddique's trial balance failed to balance. The debit column totalled $12250 and the credit column totalled $12200. The following errors were disco...

$68 paid by credit transfer for insurance was entered in the accounting records as $86. Which double entry will correct this error? account debited...

After the preparation of her income statement, Emma discovered the following errors. A debt, $1500, should have been written off as irrecoverable. ...

Hamid purchased a motor vehicle from an overseas motor manufacturer. Which expenditure relating to the motor vehicle is capital expenditure?

Wentile purchased a motor vehicle for $35000. He estimated it would be used for five years and then sold for $5000. Wentile depreciated the motor v...

On the first day of his financial year, Jason purchased a new machine costing $20000. On that date his old machine had a book value of $6000. Jason...

Martha rents out part of her business premises. On 1 September 2021, she was owed rent of $1500 and on 31 August 2022 she was owed $1800 rent. Duri...

Parker received cash from Alexi for a debt that had been written off as irrecoverable. How should Parker record this in his accounts? account to be...

Why should inventory be valued at the lower of cost and net realisable value?

How would current assets be listed if they are arranged in decreasing order of liquidity?

During the year, Sam paid advertising expenses, some of which related to the following financial year. Sam made an adjustment for this when prepari...

Members of a limited company have limited liability for the debts of that company. What does this mean?

A limited company provided the following information. $ non-current assets 35000 ordinary share capital 40 000 5% debentures 10000 net current asse...

What is included in the equity of a limited company? ordinary share capital retained earnings debentures general reserve A ✓ ✓ ✓ B ✓ ✓ C ✓ ✓ ✓ ...

The financial year of a club ends on 30 September. During the year ended 30 September 2022, the club received an interest-free loan from a member. ...

Dan makes t-shirts which are stamped with a design using fabric paint. He provided the following information. $ fabric for t-shirts 10000 factory h...

In a manufacturing account, carriage on raw materials was incorrectly treated as a factory overhead. How did this error affect the prime cost and t...

Chan provided the following information. 1 October 2021 $ 30 September 2022 $ non-current assets 10000 12000 inventory 2500 2000 trade receivables ...

Aruna does not maintain a full set of double entry records. She provided the following information. $ trade payables on 1 August 2021 23450 trade p...

Thabo provided the following information. revenue $250 000 gross margin 20% rate of inventory turnover 5 times What was the average inventory for t...

Naeema provided the following information. $ revenue 28 000 gross profit 11900 profit for the year 3500 What was her profit margin?

When calculating the liquid (acid test) ratio, what is compared to the liquid assets?