O LEVEL ACCOUNTS PAPER PATTERN

Write in soft pencil.

Do not use staples, paper clips, highlighters, glue or correction fluid.

Write your name, Centre number and candidate number on the Answer Sheet in the spaces provided

unless this has been done for you.

There are

thirty

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 separate Answer Sheet.

Read the instructions on the Answer Sheet very carefully.

Each correct answer will score one mark. A mark will not be deducted for a wrong answer. Any rough working should be done in this booklet.

Calculators may be used.

less this has been done for you.

1

When is it necessary to distinguish between revenue and capital expenditure?

A

when preparing cash budgets

B

when preparing investment appraisal calculations

C

when preparing profit and loss accounts

D

when preparing purchase ledger control accounts

2

Rent is paid by a business monthly in advance on the first day of each month. The payments

during this financial year have been as follows:

– up to and including 1 June $500 per month

– from 1 July thereafter $600 per month

Which amount(s) will appear in the accounts for the year ended 31 October?

	profit and loss expense	balance sheet
A B C D	$6400 $6400 $6400 $7000	$600 prepayment $600 accrual - -

3     The table gives information relating to the fixed assets of a business.

 

	$
net book value at the end of the year   net book value at the beginning of the year                                      depreciation charge for the year additions at cost during the year	25 000 16 000 5 000 22 000

What is the net book value of disposals during the year?

A $8000 B $11 000 C  $18 000    D $22 000

4   A trial balance at 30 June, before making end of year adjustments, showed:

	debit $	credit $
trade debtors provision for doubtful debit	35 600 -	- 1600

At 30 June, it was decided to write off a bad debt of $1600 and to make a provision for doubtful debts equal to 2 % of trade debtors. What was the total expense in the profit and loss account for bad and doubtful debts for the year

ended 30 June?

A $6800  B $1120 C $2080 D $2280

5 A company has two fixed assets. Details are given in the table.

asset	date bought	cost $	depreciation method	residual value
X Y	1 Jan, Year 1  1 Jan, Year 1	10 000 20 000	STraight line life 5 year REducing balance rate 20%	$ 2000 NIL

What is the depreciation charge for the year ended 31 December, Year 2?

A $4800  B $5200  C $5600  D $6000