VIBGYOR HIGH

FIRST TERM EXAMINATION

2020 - 2021
GRADE: 10 IGCSE Max. Marks: 35

SUBJECT: ACCOUNTING (0452) Date: 28.09.2020

Paper No: 1 Multiple Choice Time: 1 hr 15 minutes

Name of Candidate:

Candidate No: Centre No:

You will need: Multiple choice answer sheets

Soft clean eraser
Soft pencil (type B or HB is recommended)

INSTRUCTIONS
• There are thirty-five questions on this paper. Answer all questions.
• For each question there are four possible answers A, B, C and D. Choose the one you consider
correct and record your choice in soft pencil on the multiple choice answer sheet.
• Follow the instructions on the multiple choice answer sheets.
• Write in soft pencil.
• Write your name, centre number and candidate number on the multiple choice answer sheet in the
spaces provided unless this has been done for you.
• Do not use correction fluid. You may use a calculator.

INFORMATION
• The total mark for this paper is 35.
• Each correct answer will score one mark. A mark will not be deducted for a wrong answer.
• Any rough working should be done on this question paper.

For Examiner’s use

Total marks obtained in

Paper 1

Teacher’s signature

For Examiner’s use

Paper No. M. Mark Marks Obtained

P1 35

P2 100

Grand Total 135

This document has 11 pages. Blank pages are indicated.

1
1 Which task would be carried out by a book-keeper but not an accountant?
A comparing one year’s results with those of previous years
B interpreting the accounting records
C preparing financial statements
D recording transactions in the ledgers and cash book

2 Where is discount received shown?

A credit side of the purchases ledger control account
B debit side of the purchases ledger control account
C credit side of the sales ledger control account
D debit side of the sales ledger control account

3Safir bought a machine for $10 000 and depreciated it at the rate of 30% per annum on
thereducing (diminishing) balance basis.
What was the net book value at the end of year 2?
A $4000
B $4900
C $5100
D $6000

4Albert maintains a provision for doubtful debts account. Where is the closing balance on
theaccount included in the financial statements?
A as an expense in the income statement
B as a revenue in the income statement
C in the current assets section of the statement of financial position
D in the current liabilities section of the statement of financial position

5Which group contains an intangible asset?

A bank, trade payables, fixtures
B bank loan, trade receivables, motor vehicles
C bank overdraft, cash, goodwill
D mortgage, premises, inventory

2
6 On 1 January Omar had capital of $23 000.
During the year ended 31 December Omar introduced $2500 as extra capital and
$1500 was paid by the business for building work to Omar's house.
What was Omar's capital on 31 December?
A $23 000
B$24 000
C $25 500
D $27 000
7Henrick sent Jan an invoice for goods supplied on credit.
In which of Jan’s books of prime (original) entry will the invoice be entered?
A cash book
B journal
C purchases journal
D sales journal

8An office junior keeps a petty cash book using the imprest system. The monthly
imprest amount is $150.
Petty cash payments during September were:
$
stationery 25
tea and coffee 33
postage 27
How much will be received from the chief cashier on 1 October to restore the imprest
amount?
A $65 B $85 C $150 D $235

9What is a bank reconciliation statement?

A a statement presented by a business to the bank listing cheques to be credited by
thebank
B a statement sent by a business to a customer who has purchased goods on credit
C a statement sent to a customer each month by the bank
D a statement showing the differences between a business’s cash book balance and
thebank statement balance

3
10A business values its inventory (stock) of items X and Y. The following information is
available.

What is the total value of the inventory (stock)?

A $3900 B $4200 C $4500 D $4800

11 The following account appeared in the books of Zabeel.

Which statement is not correct?

A On 8 May Khalid purchased goods, $450, from Zabeel.
B On 19 May Zabeel allowed Khalid $2 cash discount.
C On 19 May Khalid paid Zabeel $98 by cheque.
D On 31 May Zabeel owed Khalid $450.

12On 2 September Tumelo purchased goods on credit, list price $4200, less
trade discount of 20% and a cash discount of 2% if the invoice was paid within 30 days.
On 5 September Tumelo returned one-third of the goods to the supplier.

Which amount did Tumelo enter in his purchases returns journal?

A $1092 B $1120 C $1372 D $1400

4
13Beketele’s financial year ends on 31 December. On 1 January 2015 she purchased
a machinecosting $18 000. The machine was depreciated by 15% per annum using the
straight line(equal instalment) method. The machine was sold on 1 January 2019.

What was the book value of the machine on the date of sale?
A $4500
B $7200
C $10 800
D $13 500

14A trader provided the following information for his financial year.
$
Revenue for the year 60 000
Inventory at the start of the year 6 000
Purchases for the year 44 000

The mark-up is 25%.

What was the value of the inventory at the end of the year?
A $2000
B $5000
C $12 000
D $15 000

15Which accounting principle requires profit to be recognised as earned when the legal
ownership of goods passes to the purchaser?
A going concern
B money measurement
C prudence
D realization

5
16Mahendra designs computer systems. He provided the following information.
$
Fees prepaid by clients at the start of the year 2 120
Fees received from clients during the year 42 150
Fees owing by clients at the end of the year 2 840

How much would be entered for fees in the income statement?

A $37 190
B $41 430
C $42 870
D $47 110

17A sports club purchased sports equipment.

Where will this be entered in the financial statements at the year end?

18How is cost of production calculated?

A direct material + direct labour
B direct material + direct labour + factory overheads
C direct material + direct labour + factory overheads + increase in work
in progress
D direct material + direct labour + factory overheads – increase in work
in progress

6
19Mui owns a household appliance store. He took home a washing machine for
his personal use.
Mui recorded this transaction as follows.
account debited account credited
drawings sales
Did Mui make the correct entries to record this transaction?
debit entry credit entry
A no no
B no yes
C yes no
D yes yes

20The following account appeared in the books of Abdul.

Which statement is correct?

A On 1 January Abdul owed Hanif $400.
B On 4 January Hanif purchased goods, $250, from Abdul.
C On 31 January Abdul allowed Hanif $8 trade discount.
D On 31 January Hanif owed Abdul $150.

21What is meant by mark-up?

A gross profit measured as a percentage of cost of sales
B gross profit measured as a percentage of revenue
C profit for the year measured as a percentage of expenses
D profit for the year measured as a percentage of revenue

7
22Tony paid a cheque for $3250 to James in full settlement of a debt for $3400.
How will James record this transaction?

23Rent received, $100, has been debited to rent paid account and credited to
cash account.
What is the correcting entry?

24 The following information relates to a business on 31 October.

$
bank account balance in cash book 1600 debit
unpresented cheques 680
amount not yet credited by bank 560

What is the balance on the bank statement at 31 October?

A $360 B $1480 C $1720 D $2840

8
25Which does not appear in a statement of affairs?
A accruals
B capital
C premises
D sales

26Why does a sports club prepare the trading account section of an income statement?
A it has paid staff as well as voluntary workers
B it operates a café
C to calculate subscriptions for the year
D to value the closing inventory

27Why does a partnership prepare an appropriation account?

A to allocate profit for the year to each partner
B to calculate interest on partners’ loans
C to ensure that drawings are accounted for
D to record dividends paid and proposed

28The rent of a manufacturing business is split 60% factory, 10% offices and
30% showrooms.
Business rent is $40 000 a year and salesmen’s salaries are $12 000 a year.
How much appears in the manufacturing account for these costs?
A $24 000
B $31 200
C $36 000
D $46 800

29A statement of financial position showed non-current assets, current assets, current
liabilitiesand non-current liabilities.
What equals owner’s capital?
A current assets – current liabilities
B non-current assets
C total assets – current liabilities
D total assets – total liabilities

9
30Which statement is true about dividends paid on ordinary shares?

A They appear in the appropriation account and are paid to partners.

B They appear in the income statement and are paid to partners.
C They appear in the statement of changes in equity and are paidto members of a
company.
D They appear in the statement of financial position and are paidto members of a
company.

31A trader provided the following information.

$
revenue 1050
opening inventory 50
purchases 800
closing inventory 150

Which mark-up had been applied?

A 16.67%
B 31.25%
C 33.33%
D 50%

32A manufacturer provided the following information.

$
purchases of raw materials 50 000
direct labour 58 000
factory overheads 22 000

At the year end inventory of raw materials had increased by $4000. Inventory of finished
goods had increased by $9000.
What was the cost of sales?
A $37 000
B $46 000
C $117 000
D $126 000
10
33What does not affect the total equity of a limited company?
A issue of ordinary shares
B ordinary share dividend paid
C profit for the year
D transfer from retained earnings to general reserve

34 Why would Joe, a supplier, be interested in Tim’s accounting statements?

A to assess whether Tim could repay a loan that Joe had made to Tim
B to assess whether Tim had sufficient inventory to supply Joe
C to assess whether Tim might give Joe a higher credit limit
D to assess whether Tim will be able to pay for goods bought from Joe

35The table shows information relating to two businesses trading in the same type
of goods.
business rate of inventory turnover quick ratio
Y 3 times a year 1.5: 1
Z 9 times a year 0.7: 1
Which statement is correct?

A Business Y has a good rate of inventory turnover but has poor liquidity.
B Business Y has a poor rate of inventory turnover and has poor liquidity.
C Business Z has a good rate of inventory turnover but has poor liquidity.
D Business Z has a poor rate of inventory turnover and has poor liquidity.

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