Cambridge Past Paper Questions
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Jane took cash drawings from the business. The amount was debited to the purchases account and credited to cash. How did this error affect the prof...
What is true about a bank statement? 1 It is a demand by the bank for repayment of an overdraft. 2 It shows a positive bank balance as a debit bala...
On 30 June the bank column in Farad's cash book showed an overdrawn balance of $2000. The following items had not been entered in the cash book. st...
What is an advantage of maintaining a purchases ledger control account?
A limited company sells office equipment. The following amounts were recorded in the company's books of account. 1 cash received from disposal of m...
On 1 January 2023 Kate paid $400 for a two-year maintenance contract on her machinery starting on that date. In error this amount was debited to th...
Why should a business depreciate its non-current assets?
A trader had a credit balance on his heat and light account at the start of the financial year. What does this balance represent?
Which statements about irrecoverable debts are correct? 1 They are an application of the historic cost principle. 2 They are debts which will not b...
At the end of his financial year Raminder made an adjustment for rent owed to him by a tenant. How did this affect Raminder's financial statements?
What is a disadvantage of operating as a sole trader?
Which statement correctly describes the effect of limited liability if a business fails?
At the start of the year, V Limited had $45750 total equity, of which $10750 was retained earnings. At the year end, the company had transferred $1...
The treasurer of a sports club provided the following information. clubhouse and sports fields $250 000 sports equipment $80 000 cash at bank $1200...
What will be included in a receipts and payments account of a social club? 1 cash payment for new furniture for the clubhouse 2 depreciation charge...
Thato is a manufacturer. His manufacturing account for the year ended 31 December showed that his work in progress had increased. How did this affe...
A factory makes uniforms for school children. What is not included in the calculation of prime cost in the factory's manufacturing account?
The average inventory of a business was $40000. The rate of inventory turnover was 5 times a year. Mark-up was 20%. What was the revenue for the year?
Shelley does not maintain a full set of accounting records but was able to provide the following information. sales for the year ended 31 August 20...
Wayne provided the following information. non-current assets $110000 current assets $25000 current liabilities $15000 profit for the year $23000 Wh...
The trade payables turnover of a business is 36 days. What do these 36 days represent?
Paul's gross margin increased from 16.5% in year 1 to 17.5% in year 2. What would explain the improvement in the gross margin?
M Limited has made sure that its financial statements are comparable with those of previous years. How does this affect interested parties?
Which accounting principle states that profit should be recognised when title to the goods passes to the customer?
Kalima is a trader. At the start of September 2024, Kalima had a cash balance of $240, a bank balance of $890 credit and a credit customer, Elizah,...
Ben runs a small business but does not maintain a full set of accounting records. He has provided the following information: 31 March 2024 $ 1 Apri...
Sports T is a club providing sporting facilities to its members. The club hires all sporting equipment. The club also runs a small café selling foo...
Y Limited is a public limited company. Y Limited's financial year ends on 31 December each year. On 1 January 2023, the company had: 800000 ordina...
Azim is a wholesaler. He sells goods on both cash and credit basis. Terms of business for all credit sales is 30 days. Azim has provided the follow...
What are liabilities?
Sally maintains a full set of accounting records. She has entered the following transactions in her cash book. 1 A cheque for $200 was received fro...
An account in the purchases ledger of X Limited has a debit balance. What does this balance represent?
The following account appeared in the books of Mary. [Figure 5.1 - Paul account table] Which statement is correct?
A supplier has received a debit note from a customer. What does the supplier use this debit note for?
A trader prepared their trial balance which showed the debit column total of $45000 and the credit column total of $40000. The following errors wer...
Ahmed's trial balance totals did not agree. He entered the difference in a suspense account. The following errors were later discovered. 1 A paymen...
Susanne is a trader. She received a cheque from Zahir, a credit customer, for $300. This cheque was incorrectly debited to Zahir's account and cred...
A trial balance does not agree, and a suspense account is opened. Which statement is not correct?
After receiving her bank statement, Lyn updated her cash book. Which items would reduce the overdrawn balance in the cash book? 1 bank interest rec...
Natalie is both a customer of and a supplier to Gustav. On 28 June, Gustav's account in Natalie's purchases ledger had a credit balance of $295, an...
Johnny prepared his sales ledger control account. The figures in it came from several different sources. Which statements are correct? 1 The source...
At the beginning of the year on 1 January, Zac paid $420 for an equipment repair. He entered this amount in the equipment account. At the end of th...
Why does a business need to provide for depreciation in its accounting records?
An asset originally costing $20000 had been depreciated by $15000 when it was sold for $3000. Which entry will be shown in the disposal account to ...
Why should prepaid income be shown in the financial statements of a business?
What is the effect on total assets and on equity in the statement of financial position if the value of closing inventory is overstated? [Figure 19...
Who works in a service business? 1 a hairdresser 2 an estate agent 3 a car mechanic 4 a car salesperson
At the beginning of the year on 1 January, Keith was owed $1500 commission by clients. During the year, Keith received $18000 commission. At the en...
Jack and Gill are setting up in business as partners and are considering writing up a partnership agreement. What is not included in any partnershi...
Raj and Rohit are in partnership sharing profits and losses in the ratio of 2: 1. Raj is entitled to an annual salary of $3000. The profit for the ...