Cambridge Assessment International

Education International General Certificate of

Secondary Education I-Half Yearly Examination
2024-25

CANDIDATE
NAME

CENTRE CANDIDATE
NUMBER NUMBER

SUBJECT: ACCOUNTING CLASS: X IGCSE

PAPER: 1 Multiple Choice CODE: 0452/12
DURATION: 1 hour 15 minutes DATE: 29/08/2024
ADDITIONAL MATERIAL: Multiple Choice Answer Sheet. Soft clean
eraser. Soft pencil (type B or HB is recommended)

READ THE 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 sheet.
 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.
 Do not write on any bar codes.
 You may use a calculator.
 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.
 The maximum mark for this examination paper is [35 marks].

This paper consists of 10 pages

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1 What is the purpose of accounting?

A to enter each business transaction twice in the books of account

B to prepare financial statements and provide information for decision making
C to prove that the total of the debit entries equals the total of the credit entries
D to provide financial information for the business’s bank manager

2 How would a business owner know that he is receiving a return on his investment?

A His bank account is no longer overdrawn.

B His drawings have increased.
C His income statement shows a profit for the year.
D His working capital has increased during the year.

3 What is the correct order of processing accounting data using the double entry system?

A business documents, journals, ledgers, trial balance

B journals, business documents, ledgers, trial balance
C ledgers, business documents, trial balance, journals
D trial balance, business documents, ledgers, journals

4 Ada bought goods on credit from Zuri. Later, she returned some of the goods to Zuri.

How did Ada record the return in her books?

account debited account credited

A purchases returns Zuri

B sales returns Zuri
C Zuri purchases returns
D Zuri sales returns

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5 Samir owns a shop. To determine his selling price he marks up his inventory by 50%.
He took inventory for his own use costing $100 but did not pay for it.

How should this be entered in the accounts?

debit credit

A drawings $100 purchases $100

B drawings $150 purchases $150
C trade receivables $100 sales $100
D trade receivables $150 sales $150

6 In April, Meena sent Ralph invoices for $170, $240, $125 and a credit note for $63. In
the same month, Ralph sent Meena a debit note for $70 and a cheque for $107.
There was no opening balance on Meena's account at the start of April.

What was the balance on Meena’s account in Ralph’s books on 1 May?

A $295 credit
B $295 debit
C $365 credit
D $365 debit

7 On 1 May, Bashir purchases goods on credit with a list price of $200. He is given a
trade discount of $20. If payment is made within 28 days a cash discount of $10 will
be given.

Which amount is credited to the supplier’s account on 1 May?

A $170 B $180 C $190 D $200

8 The following errors were found after a trial balance had been completed.

The total of the sales account was overstated by

$25. The total of the wages account was

overstated by $25.

Which statement is correct about the trial balance that had been completed?

A The total of the debit column was $25 more than that of the credit column.
B The total of the credit column was $50 more than that of the debit column.
C The total of the debit column was $50 more than that of the credit column.
D The total of the debit column and the total of the credit column were equal.
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9 After completing the trial balance, it was found that an amount of $4000 for motor
vehicle repairs had been entered in the motor vehicle account.

Which type of error is this?

A commission
B compensating
C omission
D principle

10 At the end of his financial year, Zane opened a suspense account.

Why was it necessary to open this account?

A the suspense account had been omitted from the ledger

B the trial balance totals did not agree
C to correct an error of commission
D to make sure no errors were made in the ledger

11 Jack has opened a suspense account. He has found that rent paid of $250 has
been correctly entered in the rent account but credited to the bank account as $520.

Which entries will correct this error?

debit $ credit $

A bank account 270 suspense 270

account
B bank account 520 suspense 520
account
C suspense 270 bank account 270
account
D suspense 520 bank account 520
account

12 Naila provided the following information at 31 August.

debit balance in cash book at 31 449

August
uncredited deposits 424
unpresented cheques 175
interest charged in error by the bank 10

What was the credit balance on the bank statement at 31 August?

A $190 B $210 C $688 D $708

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13 Which statement about a sales ledger control account is not correct?

A It assists in the location of errors.

B It helps to deter fraud.
C It prevents debts becoming irrecoverable.
D It provides a quick total of trade receivables.

14 The following partly completed account appeared in Candy’s ledger.

Purchases ledger control account

$ $

Dec 31 bank 42 000 Dec 1 balance b / d 720

discount 600 31 purchases 48 000
received

The following entries still need to be made in the account.

Interest of $15 was charged by credit suppliers for overdue payments.

Balances owing in the purchases ledger totalling $450 were set off against
balances in the sales ledger.

What will be the closing balance on the purchases ledger control account after these
entries are made?

A $5655 B $5685 C $6555 D $6585

15 A trader’s expenditure during the year includes the following amounts.

redecoration of premises 5 000

insurance of motor 2 000
vehicles
purchase of machinery 10
000

How much should the trader charge to her income statement for the year?

A $7000 B $10 000 C $12 000 D $17 000

16 Which statement about depreciation is correct?

A It is a cash fund to replace a non-current asset.

B It is a monetary expense as it involves the outflow of money.
C It is an estimate of the loss in value of a current asset over its expected life.
D It is recorded in the nominal ledger and the income statement.
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17 Rashid provided the following balances at 31 December.

machinery at cost 52 000

provision for depreciation of 23 000
machinery

Depreciation for the year was calculated at 20% on cost and is included in the
balance for the provision.

After the balances had been extracted, it was found that machinery repairs costing
$2000 had been debited in error to the machinery account.

What is the correct balance on the provision for the depreciation of machinery account?

A $21 000 B $22 600 C $23 400 D $25 000

18 Annual rental income due from Kumar, a tenant, is $3600. At the start of the year,
Kumar had prepaid rent of $900. At the end of the year, he owed two months’ rent.

How much rent was received from Kumar during the year?

A $2100 B $3300 C $3900 D $5100

19 At the end of the financial year, Gina had the following items of clothing in her
inventory.

100 t-shirts: cost price per unit $15, selling price per
unit $30 200 dresses: cost price per unit $40, selling
price per unit $30

What was the value of Gina’s inventory?

A $7500 B $9000 C $9500 D $11 000

20 Which error causes the gross profit to be overstated?

A closing inventory under-valued

B opening inventory omitted from the income statement
C purchases recorded before deduction of trade discount
D sales invoices omitted from the sales journal

21 Which group consists of only intangible assets?

A bank balance, brand names, goodwill

B bank balance, trademarks, trade receivables
C brand names, goodwill, trademarks
D goodwill, trademarks, trade receivables
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22 A trader pays her insurance premium on 1 January each year for the following 12
months.

She made the following payments for insurance.

1 January 2022 1680

1 January 2023 1920

How much did the trader include for insurance in her income statement for the
year ended 31 March 2023?

A $1680 B $1740 C $1920 D $2160

23 Which item is added to the profit for the year in a partnership appropriation account?

A interest on capital
B interest on drawings
C partners’ drawings
D partners’ salaries

24 Abi and Erni are in partnership. Erni is entitled to an annual partnership salary of
$3000. They share residual profits and losses equally. The profit for the year
ended 31 August 2022 was
$12 600.

On 1 September 2021, the partners’ current account balances were as follows.

Abi 2500 credit

Ern 1400 debit
i

What was the credit balance on Erni’s current account on 1 September 2022?

A $400 B $3200 C $6400 D $9200

25 What is meant by the term equity?

A dividend paid to ordinary shareholders

B funds raised through borrowing
C interest paid to debenture holders
D total funds provided by shareholders
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26 During the financial year, AB Limited paid debenture interest of $1400 relating to
that financial year. At the end of the year, debenture interest of $700 was accrued.

How was debenture interest shown in the financial statements for the year?

income statement of
stateme changes in equity
nt $
$
A 1400 no entry
B 2100 no entry
C no entry 1400
D no entry 2100

27 Which items are included in an income and expenditure account prepared for a sports
club?

1 cost of new furniture purchased during the year for the clubhouse
2 depreciation on furniture and sports equipment
3 rates for the clubhouse paid in advance for the next financial year
4 subscriptions that remain unpaid by club members at the end of the
financial year

A 1 and 2 B 1 and 4 C 2 and 4 D 3 and 4

28 Melody is a music club. The club holds a music concert once every year. Prizes are
awarded to musicians selected by a judge.

The club provided the following information related to the latest music concert.

sale of concert tickets 1 500

purchases of concert prizes 450
sale of concert programmes 150
payment of fee to the concert 250
judge

What was the profit from the concert?

A $950 B $1050 C $1450 D $2100

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29 A business provided the following information.

opening inventory of raw 50 000

material
closing inventory of raw 60 000
material
purchases of raw material 80 000
carriage inwards on raw 2 000
material

What was the cost of raw material consumed?

A $70 000 B $72 000 C $90 000 D $92 000

30 Ashwin started a business as a taxi driver on 1 January 2022. His taxi cost $5000 and
he paid
$100 into a business bank account.

He did not keep any accounting records. On 31 December 2022, he had $1750 in the
business bank account, his taxi was valued at $4000 and he owed $50 to the garage
for repairs. During the year, he took $1600 out of the business bank account as
drawings.

What was the profit for the year?

A $1650 B $2200 C $2250 D $3250

31 A trader did not keep a complete set of accounts. He provided the following
information for the year.

opening trade payables 5 000

closing trade payables 9 800
payments to credit 35 000
suppliers
cash discounts received 3 000

What were the purchases for the year?

A $30 200 B $36 800 C $39 800 D $42 800

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32 Which action does not reduce the owner’s capital?

A business expenses paid using a personal cheque

B cash withdrawn from the business bank account for personal use
C goods taken from inventory for personal use
D personal expenses paid using business cash

33 Which statement correctly describes the accounting equation?

A capital = assets – liabilities

B capital = assets + liabilities

C capital = current assets – current liabilities
D capital = current assets + current liabilities

34 What could a credit balance on a ledger account represent?

A accrued income
B asset
C expense

D prepaid income

35 Aiden purchased goods from Jai and paid for them by bank transfer when he
received a statement of account. Jai says he has not received the payment.

Which document would help Aiden check that he had made the payment?

A bank statement
B cheque counterfoil
C paying-in slip

D petty cash voucher

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