Cambridge Past Paper Questions
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A trader provided the following information. year 1 year 2 gross profit $40 000 $75000 gross margin 35% 35% profit margin 11% 22% What would explai...
A business renewed an insurance policy. The total amount paid was charged as an expense in the income statement for the year even though half relat...
What is meant by the business entity principle?
Ahmed is a trader. Why should he prepare financial statements?
Pradip settled Amal's account by credit transfer and received a cash discount for prompt payment. How did Pradip record this discount?
Morgan made the following double entry in his ledgers. debit sales returns account credit Sally account Which transaction was being recorded?
Which business documents provide information for writing up the sales journal and the sales returns journal?
What would not be recorded in the ledgers of a business?
Which errors would be revealed by the preparation of a trial balance? 1 credit purchases, $240, entered as $420 in both the purchases account and t...
Jacob purchased a motor vehicle for business use on credit from Waheed for $20000. This was not recorded in Jacob's books. Which journal entry woul...
Jamal's bank statement on 1 September 2022 showed a bank overdraft of $1460. At that date there were unpresented cheques of $385 and uncredited dep...
A sales ledger control account included the following items. 1 discount allowed 2 dishonoured cheques 3 interest on overdue accounts 4 irrecoverabl...
A sales ledger control account had a debit balance of $4000 on 1 August. During the month of August, credit sales totalled $50000, sales returns fr...
Manjit depreciates her motor vehicles by $1000 at the end of each financial year. Which journal entry would Manjit make at the end of each financia...
On the first day of his financial year, Jason purchased a new machine costing $20 000. On that date his old machine had a book value of $6000. Jaso...
A trader provided the following information about his inventory at the end of his financial year. total number of units 500 cost price of each unit...
For which purposes would a trader use his income statement and statement of financial position? 1 to enable decisions to be made about the performa...
What may appear in a partnership appropriation account?
Anne and Paul are in partnership. How would interest on Anne's capital be recorded in the ledger accounts of the partnership?
Which statement about the members of a limited company is correct?
A limited company provided the following information. non-current assets $35000 ordinary share capital $40 000 5% debentures $10000 net current ass...
A limited company raised funds by issuing ordinary shares, preference shares and debentures. Which statements are correct? 1 Debentures are part of...
A cricket club provided the following information. at 1 August 2021 balance at bank $950 during the year ended 31 July 2022 net receipts from compe...
A food processing factory fills cans with vegetables. The filled cans are then sold to shops. Which wages are direct labour costs for the factory? ...
Thembi manufactures wooden toys. She provided the following information for the financial year ended 31 August 2022. prime cost $35000 factory over...
Chan provided the following information. 1 October 2021: non-current assets $10000, inventory $2500, trade receivables $1500, bank overdraft $800, ...
How can a trader increase her current ratio?
The application of which accounting principle makes it easier to compare financial statements year-on-year?
What does the principle of prudence ensure?
BC a sole trader prepared the following trial balance from his accounts on 31 August 2022. Dr Cr ...
MC is a trader who maintains a full set of accounting records and prepares control accounts at the end of each month. MC has provided the followin...
MG has been in business for a number of years as a furniture manufacturer. On 31 August 2022 the bank column of his cash book showed the business h...
PG a trader sells electrical components. She has provided the following information for the year ended 31 July 2022. Sales journal for the year en...
Sian and Tom are in partnership sharing profits and losses in proportion to capital invested. The partnership agreement states the following: 1 int...
Anika owns property which she rents out to university students. She has made a consistent profit for each year she has been in business. Her trial ...
Rasheed started a business on 1 October 2021. He maintains a petty cash book in the business. A monthly imprest of $100 is restored on the first da...
The following balances have been taken from the accounts of RB, a trader. 1 April 2021 31 March 2022 ...
The following information is taken from the statement of financial position of C Limited at 1 September 2021. ...
NT started in business on 1 September 2020. All sales are on credit and payment is required from customers within 25 days. On 5 May 2021, LW a tra...
Which actions are examples of book-keeping? 1 entering details of a cheque received from a customer in the cash book 2 entering details of goods pu...
A trader supplied the following information at her year end. $ non-current assets 4000 inventory 350 trade receivables 180 cash at bank 650 debit t...
A trader, Karim, purchases a new vehicle by cheque. He will use the vehicle to deliver goods to his customers. How should Karim record this transac...
The following ledger account was in Meena's sales ledger. $ $ Jan 1 balance b/d 100 Jan 15 bank 100 Jan 31 balance c/d 20 Jan 30 sales returns 20 1...
Which document would a supplier issue to a credit customer if the credit customer had returned goods or had been overcharged?
Andy was a regular customer of Khalid. He bought goods with a list price of $1000 and later paid $760 in full settlement after receiving a discount...
The totals of a trial balance agree. What does this mean?
A cheque received from Joe was credited to Joanna's account. Which type of error was made?
A trader's journal shows the following entry. details debit $ credit $ John 300 Jane 300 correction of error Both John and Jane are credit customer...
A trial balance does not balance and a suspense account is opened. It is found that a sale of $250 was credited in the sales account as $2500. Whic...
A cheque received from D Pawson, a trade receivable, was correctly debited to the bank account but was credited to the account of P Dawson, a trade...