Cambridge & Pearson Edexcel Past Paper Questions

A business obtained a machine by means of a hire purchase agreement. It showed the machine in its balance sheet at the cash price of $30 000 althou...

The table shows information from the books of a business at 30 April 2010. details credit sales invoiced during financial year $79 000 goods sent t...

Which item will be entered in a purchase ledger control account?

The total of the list of individual balances in the purchase ledger does not agree with the balance on the purchase ledger control account. When li...

Which error will cause an entry in the suspense account?

A trial balance at 31 December shows: trade receivables (debtors) control account debit $48 500 credit $2 900 trade payables (creditors) control ac...

During the year ended 31 December, a sports club received $10 860 for subscriptions. The following further information is available. year ended 31 ...

A firm has incomplete accounting records. The following figures are known. capital at start of year $20 000 owner's drawings $7 000 capital at end ...

A company calculates factory profit at a mark-up of 20% on the cost of production. The following information is available. inventory (stock) of fin...

The table shows transactions relating to an inventory (stock) item during a period. number of units per unit bought 100 cost $16 sold 60 selling pr...

X, Y and Z are in partnership sharing profits and losses in the ratio 5:2:3. Y is entitled to a salary of $18 000 per annum. Partners receive inter...

L and M are in partnership. Which item should appear in the partnership appropriation account?

A company is set up with an authorised share capital of $3 million. It plans to purchase immediately a factory for $1 million. Preliminary expenses...

At 1 January 2009 the capital structure of a company was as follows. issued share capital 100 000 ordinary shares of $1 each $100 000 share premium...

When is a share premium account opened?

A company buys and re-sells goods. It has a higher gross profit margin than its rivals. Which reason could explain this?

A business has trade payables (creditors) of $8000 and a bank overdraft of $2000. Its current ratio is 2:1 and its quick (acid test) ratio is 1.5:1...

A company's sales during a 365 day year are shown in the table. cash sales $179 580 credit sales $927 100 total sales $1 106 680 The trade receivab...

The following information is given about four products. inventory (stock) turnover (per annum), average inventory (stock) in units, mark up on cost...

A soup manufacturer uses batch costing. It produces a batch of 10 000 tins of soup with a direct materials cost of $2500. Direct labour involved 20...

The table shows costs at three activity levels. activity levels 65 units, 90 units, 100 units fixed cost ?, ?, ? variable cost ?, ?, ? total cost $...

A customer places an order for 20 000 bricks. Which costing method will the supplier use to price the order?

A company has total production costs of $6000 to make 10 000 units, and $13 000 to make 24 000 units. What is its total cost to make 20 000 units?

A business makes wedding dresses. Each machinist is paid $30 a day and each supervisor $40 a day. Each supervisor can work with up to 10 machinists...

The graphs show projected sales and cost information for products X and Y.

A business purchases a vehicle for $10 000. The business depreciates its non current (fixed) assets at 20% using the diminishing value method. What...

Accountants prefer the commercial reality of a transaction to a strictly legal approach. Which accounting principle is being applied?

There is great uncertainty about the continuance of a business. This has caused the proprietor to make a large reduction in the valuation of the ye...

The cash book of a business shows a credit balance of $12 500 at 30 June. Bank charges of $2000 have not yet been entered in the cash book. A chequ...

Closing inventory has been overvalued. What is the effect on the financial statements? net current assets overstated, profit from operations overst...

At the year end a company discovers that some inventory is damaged. This inventory originally cost $2000 and to replace it would now cost $1900. It...

A club charges each of its 100 members an annual subscription of $12. At the end of a year four members had not paid their annual subscription. Wha...

How should goodwill be treated by a limited company?

A company issues for cash 50 000 shares of $5 each at a premium of $15 each and $300 000 4% debentures. By what amount will the net assets of the c...

An extract from Bumble Ltd's balance sheet shows the following. $000 ordinary shares of $0.25 each 500 share premium 100 retained earnings 300 The ...

A business paid $10 000 for waste disposal in the year. The opening prepayment was $1500 and the closing accrual was $2000. What was the charge for...

The non-current assets of a business are shown. end of year $ start of year $ cost 360 000 300 000 accumulated depreciation 120 000 75 000 net book...

Which transaction would increase the current assets of a business?

The following summarised information has been taken from the balance sheet of a partnership. $ non-current assets 42 000 capital accounts 36 000 cu...

What is the main use of a computerised age analysis of debtors?

A manufacturing company has the following balances at its year end. $ closing inventory of raw materials 24 500 direct manufacturing wages 162 800 ...

A partnership provides the following financial information for the year ended 30 June 2011. $000 profit from operations 240 bank interest payable 2...

A new business was established with opening capital of $20 000. At the end of the first year, assets less liabilities were $26 000. The owner withd...

The annual accounts of a business include the following. $ revenue 160 000 opening inventory 10 000 closing inventory 14 000 Inventory turnover is ...

A company's profit from operations was $128 000. Interest payable was $8000. The following amounts were included in the company's balance sheet. $ ...

A business has $10 000 in the bank and buys inventory for $6000 paying by cheque. What is the effect of this on its current ratio and quick (acid t...

The following data is available at the end of a financial year. opening inventory $60 000 purchases $420 000 closing inventory $80 000 mark up 25% ...

Which cost will decrease as production is increased?

A business sells its product for $50 a unit and has variable costs of $30 per unit. Its fixed costs for this year were $200 000. Next year, fixed c...

A business has sales of $250 000, fixed costs of $50 000 and a contribution/sales ratio of 30%. What is the profit?