Cambridge IGCSE Accounting 0452 — 2021 Feb/March Paper 1 · Variant 2
0452/12/F/M/21 · 35 questions · 35 marks · ≈39 min
The question paper and its mark scheme, free to read here and free to download. This is Cambridge’s own paper, exactly as it was sat.
Question paper16 pages
Mark scheme3 pages
Answers below. Sit the paper first if you are practising.
Questions as text
Q1 · A business employs a book-keeper and an accountant
1 A business employs a book-keeper and an accountant. Which task would the accountant perform? A extracting balances from the ledger accounts to produce a trial balance B making entries in the general journal to adjust a provision for doubtful debts C preparing a monthly report that analyses the profitability of the company D recording sales and purchase invoices in the books of prime entry
Mark scheme: C
Question 2
2 What are assets? amounts owed amounts owed items owned to a business by a business by a business A no no yes B no yes yes C yes no yes D yes yes no
Mark scheme: C
Q3 · On 15 February, Kalou made the following entries in his accounts
3 On 15 February, Kalou made the following entries in his accounts. debit $ credit $ bank 228 Droghba 240 discount allowed 12 Which transaction was being recorded? A Droghba paid Kalou by cheque after taking a cash discount. B Droghba paid Kalou by cheque after taking a trade discount. C Kalou paid Droghba by cheque after taking a cash discount. D Kalou paid Droghba by cheque after taking a trade discount.
Mark scheme: A
Q4 · Jai is a manufacturer
4 Jai is a manufacturer. On 1 February he purchased a machine costing $15 000 from Vinita. He paid $10 000 immediately with a cheque from his personal bank account. The balance was to be paid in June. Which entries did Jai make on 1 February? accounts debited $ accounts credited $ A machinery 10 000 bank 10 000 B machinery 10 000 capital 10 000 C machinery 15 000 bank 10 000 Vinita 5 000 D machinery 15 000 capital 10 000 Vinita 5 000
Mark scheme: D
Q5 · Jameel’s financial year ends on 31 December
5 Jameel’s financial year ends on 31 December. On 1 January 2021 he brought down a debit balance on his stationery account. What does this balance represent? A amount owing for stationery on 1 January 2021 B amount paid for stationery during 2020 C cost of stationery used during 2020 D inventory of stationery on 1 January 2021
Mark scheme: D
Q6 · Daksha returned goods to Amina
6 Daksha returned goods to Amina. Which entries did Daksha make in her books? debit entry credit entry account ledger account ledger A Amina general purchases returns purchases B Amina purchases purchases returns general C purchases returns general Amina purchases D purchases returns purchases Amina general
Mark scheme: B
Q7 · Which book of prime entry is written up from the copies of credit notes issued by a…
7 Which book of prime entry is written up from the copies of credit notes issued by a trader? A purchases journal B purchases returns journal C sales journal D sales returns journal
Mark scheme: D
Q8 · Which transaction is recorded in the general journal?
8 Which transaction is recorded in the general journal? A correction of an error in recording sales returns B drawings in cash by the owner C purchase of a motor vehicle by cheque D purchase of goods on credit
Mark scheme: A
Q9 · Raminder maintains a petty cash book using the imprest system
9 Raminder maintains a petty cash book using the imprest system. The monthly imprest of $250 is restored on the first day of each month. In January the petty cashier spent $105 and received a refund of $15 from a stationery supplier. How much was given to the petty cashier on 1 February to restore the imprest? A $90 B $105 C $145 D $160
Mark scheme: A
Q10 · The totals of a trial balance failed to agree
10 The totals of a trial balance failed to agree. The total of the credit column was $10 000. Two errors were later found. The sales journal had been overcast by $100. Goods sold to Sarah on credit for $200 had been incorrectly debited to Zara. What was the total of the debit column of the trial balance? A $9700 B $9900 C $10 100 D $10 300
Mark scheme: B
Q11 · On 31 December 2020, the bank column in Farad’s cash book showed an overdrawn balance of…
11 On 31 December 2020, 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. $ standing order for rent 200 interest on bank overdraft 50 credit transfer from X Limited 2900 What was the corrected balance of the bank column in the cash book at 1 January 2021? A $650 credit B $650 debit C $1150 credit D $1150 debit
Mark scheme: B
Q12 · Raj is both a customer of and a supplier to Balbir
12 Raj is both a customer of and a supplier to Balbir. Raj’s account in Balbir’s sales ledger showed a debit balance of $300. There was a credit balance of $100 on Raj’s account in the purchases ledger. A contra entry between the two accounts was agreed. Which entry would Balbir make in his purchases ledger control account? A credit $100 B credit $200 C debit $100 D debit $200
Mark scheme: C
Q13 · Motor vehicle repairs, $2000, were debited to the motor vehicles account
13 Motor vehicle repairs, $2000, were debited to the motor vehicles account. Motor vehicles are depreciated at 20% per annum on the balance of the account at the year end. What was the effect of the error? effect on motor vehicles effect on in statement of financial profit for the year position $ $ A overstated 1600 overstated 1600 B overstated 2000 overstated 2000 C understated 1600 understated 1600 D understated 2000 understated 2000
Mark scheme: A
Q14 · Mandeep depreciates his motor vehicles at the rate of 20% using the straight-line method
14 Mandeep depreciates his motor vehicles at the rate of 20% using the straight-line method. A full year’s depreciation is provided in the year of purchase. Mandeep bought a motor vehicle on 1 January 2017 for $20 000. On 1 June 2020 he bought a second motor vehicle for $10 000. What was the depreciation charge on motor vehicles for the year ended 31 December 2020? A $2000 B $4000 C $5000 D $6000
Mark scheme: D
More questions on Accounting for depreciation and disposal of non-current assets
Q15 · The following ledger account appeared in the books of a trader
15 The following ledger account appeared in the books of a trader. Rates account $ $ Jan 1 Balance b / d 240 Dec 31 Income statement 2880 June 30 Bank 2160 Dec 31 Balance c / d 480 2880 2880 Which statement is correct? A Rates are accrued at both the start and the end of the year. B Rates are accrued at the start of the year and prepaid at the end of the year. C Rates are prepaid at both the start and the end of the year. D Rates are prepaid at the start of the year and accrued at the end of the year.
Mark scheme: D
Q16 · A book-keeper made the following ledger entry
16 A book-keeper made the following ledger entry. account debited account credited bank debts recovered Which transaction has been recorded? A A credit customer has paid his account by the due date. B A late payment has been received for a debt not yet written off. C A payment has been received for a debt that had been written off. D An irrecoverable debt has been written off.
Mark scheme: C
More questions on Irrecoverable debts and allowance for irrecoverable debts
Q17 · The following accounts appeared in the ledger of Delta Limited
17 The following accounts appeared in the ledger of Delta Limited. Total trade receivables account $ $ Jan 1 Balance b / d 30 000 Dec 31 Bank 109 000 Dec 31 Sales 101 000 Balance c / d 22 000 131 000 131 000 Provision for doubtful debts account $ $ Dec 31 Income statement 100 Jan 1 Balance b / d 1 200 Balance c / d 1 100 1 200 1 200 How had the total of trade receivables and the rate of provision for doubtful debts changed by the end of the year? total of trade rate of provision receivables for doubtful debts A decreased decreased B decreased increased C increased decreased D increased increased
Mark scheme: B
More questions on Irrecoverable debts and allowance for irrecoverable debts
Q18 · On 31 December 2020 Helmut had the following liabilities
18 On 31 December 2020 Helmut had the following liabilities. $ bank loan repayable 1 September 2021 1500 bank overdraft repayable on demand 1000 loan from finance company repayable 30 June 2024 5000 mortgage repayable 1 March 2022 2000 What was the total of Helmut’s non-current liabilities on 31 December 2020? A $5000 B $7000 C $8500 D $9500
Mark scheme: B
Q19 · Vinita’s credit customer paid the amount owing in cash, after deducting 2% discount for…
19 Vinita’s credit customer paid the amount owing in cash, after deducting 2% discount for prompt payment. How did this affect Vinita’s financial statements? statement of financial income statement position A increase expenses decrease current assets B increase expenses increase current assets C increase revenue decrease current assets D increase revenue increase current assets
Mark scheme: A
Q20 · Mohan and Dipak are in partnership
20 Mohan and Dipak are in partnership. They provided the following information at the end of the financial year. $ $ profit for the year 30 600 interest on capital Mohan 1 000 Dipak 1 500 2 500 interest on drawings Mohan 40 Dipak 320 360 salary Mohan 4 000 How much was available for distribution to the partners? A $23 740 B $24 460 C $27 740 D $29 460
Mark scheme: B
Q21 · Raj and Rohit are in partnership sharing profits and losses in the ratio of 2 : 1
21 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 year ended 31 December 2020 was $14 100. On 1 January 2020, Raj’s current account had a debit balance of $1800. What was the credit balance on Raj’s current account on 1 January 2021? A $8600 B $10 400 C $12 200 D $12 400
Mark scheme: A
Q22 · Which items appear in the capital and reserves section of a statement of financial…
22 Which items appear in the capital and reserves section of a statement of financial position of a limited company? A debentures, ordinary share dividend, general reserve B debentures, retained earnings, general reserve C ordinary share capital, debentures, retained earnings D ordinary share capital, general reserve, retained earnings
Mark scheme: D
Q23 · The issued share capital of AN Limited consists of ordinary shares
23 The issued share capital of AN Limited consists of ordinary shares. On 1 January 2020, the retained earnings were $78 000. For the year ended 31 December 2020, the company earned a profit of $65 000. An ordinary share dividend of $20 000 was paid during the year and a further dividend for the year of $15 000 was proposed. A transfer was made to general reserve of $40 000. What was the balance of retained earnings at 31 December 2020? A $3000 B $5000 C $68 000 D $83 000
Mark scheme: D
Q24 · Which group contains only items which may be recorded in both the income statement of a…
24 Which group contains only items which may be recorded in both the income statement of a trading business and the income and expenditure account of a club? A bank charges, depreciation, wages B bank charges, gross profit, sales revenue C deficit, sales revenue, treasurer’s expenses D depreciation, treasurer’s expenses, wages
Mark scheme: A
Q25 · The following ledger account appeared in the books of a club for the year ended 31…
25 The following ledger account appeared in the books of a club for the year ended 31 December 2020. Subscriptions account $ $ 2020 2020 Jan 1 Balance b / d 2 000 Dec 31 Bank 29 000 Dec 31 Income and expenditure 24 000 Balance c / d 3 000 29 000 29 000 Which statement is correct? A Subscriptions prepaid on 1 January 2020 amounted to $2000. B Subscriptions prepaid on 31 December 2020 amounted to $3000. C Subscriptions received during the year ended 31 December 2020 amounted to $24 000. D Subscriptions relating to the year ended 31 December 2020 amounted to $29 000.
Mark scheme: B
Q26 · The following costs were incurred by a clothing manufacturer
26 The following costs were incurred by a clothing manufacturer. 1 purchase of fabric 2 purchase of buttons 3 repairs to sewing machine 4 wages of factory supervisors 5 wages of sewing machinists Which costs are indirect costs? A 1, 2 and 5 B 1, 4 and 5 C 2 and 3 D 3 and 4
Mark scheme: D
Q27 · A manufacturer calculated the cost of production for the year at $57 000
27 A manufacturer calculated the cost of production for the year at $57 000. It was found that lighting and heating, $2000, had been omitted from the financial statements. Lighting and heating is allocated 75% to the factory and 25% to the offices. What was the correct cost of production? A $55 500 B $56 500 C $57 500 D $58 500
Mark scheme: D
Q28 · Tariq provided the following information
28 Tariq provided the following information. 31 January 2020 31 January 2021 $ $ non-current assets 60 000 70 000 current assets 20 000 25 000 current liabilities 15 000 19 000 Tariq’s drawings for the year ended 31 January 2021 were $5000. What was the profit for the year ended 31 January 2021? A $6000 B $11 000 C $14 000 D $16 000
Mark scheme: D
Q29 · Nour does not keep full accounting records
29 Nour does not keep full accounting records. She provided the following information at the end of the financial year. $ decrease in trade receivables during the year 2 000 receipts from trade receivables 58 000 discount allowed 1 200 sales returns 1 500 What were the credit sales for the year? A $55 700 B $57 300 C $58 700 D $62 700
Mark scheme: C
Q30 · A trader provided the following information
30 A trader provided the following information. $ non-current assets 132 000 current assets 28 000 current liabilities 12 000 interest paid on loan 2 000 Return on capital employed was 12.5%. What was the profit for the year before loan interest? A $16 500 B $18 250 C $18 500 D $20 500
Mark scheme: C
More questions on Calculation and understanding of accounting ratios
Q31 · Which change would cause an increase in the liquid (acid test) ratio?
31 Which change would cause an increase in the liquid (acid test) ratio? A a decrease in inventory B an increase in inventory C a decrease in the provision for doubtful debts D an increase in the provision for doubtful debts
Mark scheme: C
More questions on Calculation and understanding of accounting ratios
Q32 · Abhinav provided the following information
32 Abhinav provided the following information. year ended year ended 31 December 2019 31 December 2020 $ $ purchases 112 500 124 000 cost of sales 115 500 120 000 inventory $ 1 January 2019 7000 31 December 2019 4000 31 December 2020 8000 What was the rate of turnover of inventory for the year ended 31 December 2020? A 15 times B 20 times C 21 times D 30 times
Mark scheme: B
More questions on Calculation and understanding of accounting ratios
Q33 · Which action will improve the gross margin?
33 Which action will improve the gross margin? A increasing expenses B increasing selling price C reducing expenses D reducing selling price
Mark scheme: B
Q34 · Amaira depreciates her non-current assets by the same rate and using the same method…
34 Amaira depreciates her non-current assets by the same rate and using the same method every year. Which group of accounting principles is she applying? A business entity, consistency, matching B business entity, prudence, realisation C consistency, matching, prudence D matching, prudence, realisation
Mark scheme: C
Q35 · Kamika’s financial statements did not comply with the accounting principle of money…
35 Kamika’s financial statements did not comply with the accounting principle of money measurement. What had Kamika done? A included a value for the skill of her employees B forgot to include prepaid insurance C recorded her drawings in wages and salaries D valued her inventory above original cost
Mark scheme: A
What was in this paper
The subtopics covered by these 35 questions, and how many questions each got. Open one in a new tab to see every Cambridge question on it.
3Limited companies3The double entry system of book-keeping3Accounting concepts2Books of prime entry2Clubs and societies2Corrections of errors2Incomplete records2Irrecoverable debts and allowance for irrecoverable debts2Manufacturing accounts2Other payables and other receivables2Partnerships2Accounting for depreciation and disposal of non-current assets1Bank reconciliation1Business documents1Control accounts1Interpretation of accounting ratios1The accounting equation1The purpose of accounting1The trial balance1What you needed in this session
Cambridge’s own grade thresholds for 2021 Feb/March, Paper 1 · Variant 2. A higher threshold means an easier paper — the bar moves with how the cohort did.