The double entry system of book-keeping — Paper 1 · IGCSE Accounting 0452

3 Dilip is a manufacturer. He purchased a machine on credit from Sachin. How did Dilip record this? account to account to be debited be credited A machinery Sachin B purchases Sachin C Sachin machinery D Sachin purchases

1 marks

Answer: A

This question in 0452/12 Feb/March 2020

4 Mui 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

1 marks

Answer: C

This question in 0452/12 Feb/March 2020

5 The following account appeared in the books of Abdul. Hanif account 2020 $ 2020 $ Jan 18 returns 100 Jan 1 balance b / d 400 31 bank 392 4 purchases 250 discount 8 balance c / d 150 650 650 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.

1 marks

Answer: A

This question in 0452/12 Feb/March 2020

7 Rashida sells goods on credit and allows her customers a trade discount. Which statements are correct? 1 A debit entry is made in the customer’s account in the sales ledger for the net value of the goods sold. 2 The date of sale, name of the customer, cost price and trade discount are entered in the sales journal. 3 The trade discount is debited to the customer’s account and credited to the discount allowed account. A 1 and 2 B 1 and 3 C 2 only D 2 and 3

1 marks

Answer: A

This question in 0452/12 Feb/March 2020

3 On 2 April Nina received a cheque from Zaffar, a credit customer. On 12 April the cheque was returned unpaid by the bank. What entry would Nina make on 12 April? account to be debited account to be credited A irrecoverable debts bank B irrecoverable debts Zaffar C provision for doubtful debts Zaffar D Zaffar bank

1 marks

Answer: D

This question in 0452/11 May/June 2020

4 Ann is a trader. On 1 April Cindy’s account in Ann’s ledger showed a credit balance of $520. The following transactions took place during April. April 2 Ann returned goods, $30, to Cindy. 14 Ann bought goods, $210, from Cindy, and paid in cash. Which statement about the balance on Cindy’s account in Ann’s ledger on 30 April is correct? A Ann owes Cindy $490. B Ann owes Cindy $700. C Cindy owes Ann $490. D Cindy owes Ann $700.

1 marks

Answer: A

This question in 0452/11 May/June 2020

5 Goods bought on credit by Tumelo from Tebogo are returned before they are paid for. Tumelo keeps a full double entry system. Where will Tumelo record the return of goods? A cash book and sales ledger B general ledger only C general ledger and purchases ledger D purchases ledger only

1 marks

Answer: C

This question in 0452/11 May/June 2020

1 Which are examples of book-keeping? 1 entering details of a cheque received from a customer in a cash book 2 entering details of goods purchased on credit in a purchases journal 3 producing an income statement to calculate the profit for the year 4 recording details of credit sales in the account of a credit customer A 1, 2 and 3 B 1, 2 and 4 C 1 and 2 only D 3 and 4

1 marks

Answer: B

This question in 0452/12 May/June 2020

4 On 2 April Nina received a cheque from Zaffar, a credit customer. On 12 April the cheque was returned unpaid by the bank. What entry would Nina make on 12 April? account to be debited account to be credited A irrecoverable debts bank B irrecoverable debts Zaffar C provision for doubtful debts Zaffar D Zaffar bank

1 marks

Answer: D

This question in 0452/12 May/June 2020

5 Ann is a trader. On 1 April Cindy’s account in Ann’s ledger showed a credit balance of $520. The following transactions took place during April. April 2 Ann returned goods, $30, to Cindy. 14 Ann bought goods, $210, from Cindy, and paid in cash. Which statement about the balance on Cindy’s account in Ann’s ledger on 30 April is correct? A Ann owes Cindy $490. B Ann owes Cindy $700. C Cindy owes Ann $490. D Cindy owes Ann $700.

1 marks

Answer: A

This question in 0452/12 May/June 2020

6 Goods bought on credit by Tumelo from Tebogo are returned before they are paid for. Tumelo keeps a full double entry system. Where will Tumelo record the return of goods? A cash book and sales ledger B general ledger only C general ledger and purchases ledger D purchases ledger only

1 marks

Answer: C

This question in 0452/12 May/June 2020

9 Paul rents premises from John and pays the rent by credit transfer. How would John record this? account debited account credited A bank rent receivable B cash rent receivable C rent receivable bank D rent receivable cash

1 marks

Answer: A

This question in 0452/12 May/June 2020

17 Elzevir purchased a motor vehicle costing $8000 on 1 January 2018. It is depreciated at 40% on the reducing balance basis. Which journal entry records the depreciation for the year ended 31 December 2019? debit credit A income statement 1920 provision for depreciation of motor vehicles 1920 B income statement 3200 provision for depreciation of motor vehicles 3200 C provision for depreciation of motor vehicles 1920 motor vehicles 1920 D provision for depreciation of motor vehicles 3200 motor vehicles 3200

1 marks

Answer: A

This question in 0452/12 May/June 2020

1 Which are examples of book-keeping? 1 entering details of a cheque received from a customer in a cash book 2 entering details of goods purchased on credit in a purchases journal 3 producing an income statement to calculate the profit for the year 4 recording details of credit sales in the account of a credit customer A 1, 2 and 3 B 1, 2 and 4 C 1 and 2 only D 3 and 4

1 marks

Answer: B

This question in 0452/13 May/June 2020

4 On 2 April Nina received a cheque from Zaffar, a credit customer. On 12 April the cheque was returned unpaid by the bank. What entry would Nina make on 12 April? account to be debited account to be credited A irrecoverable debts bank B irrecoverable debts Zaffar C provision for doubtful debts Zaffar D Zaffar bank

1 marks

Answer: D

This question in 0452/13 May/June 2020

5 Ann is a trader. On 1 April Cindy’s account in Ann’s ledger showed a credit balance of $520. The following transactions took place during April. April 2 Ann returned goods, $30, to Cindy. 14 Ann bought goods, $210, from Cindy, and paid in cash. Which statement about the balance on Cindy’s account in Ann’s ledger on 30 April is correct? A Ann owes Cindy $490. B Ann owes Cindy $700. C Cindy owes Ann $490. D Cindy owes Ann $700.

1 marks

Answer: A

This question in 0452/13 May/June 2020

9 Paul rents premises from John and pays the rent by credit transfer. How would John record this? account debited account credited A bank rent receivable B cash rent receivable C rent receivable bank D rent receivable cash

1 marks

Answer: A

This question in 0452/13 May/June 2020

3 The following account appeared in the books of Mary. Paul account $ $ April 1 balance b/d 90 April 21 returns 25 14 sales 150 30 bank 88 discount 2 balance c/d 125 240 240 Which statement is correct? A On 1 April Paul owed Mary $90. B On 14 April Paul sold goods, $150, to Mary. C On 21 April Mary returned goods, $25, to Paul. D On 30 April Mary owed Paul $125.

1 marks

Answer: A

This question in 0452/11 Oct/Nov 2020

2 What is not an example of a book-keeping entry? A an entry made in the bank column of the cash book for a cheque received B cost of goods purchased on credit entered in the supplier’s account C expenses paid during the year entered in the income statement D goods returned by a customer entered in the sales returns journal

1 marks

Answer: C

This question in 0452/12 Oct/Nov 2020

5 Which entries did Sally make to record the following transaction? Rashid, a credit customer, returned damaged goods. account to account to be debited be credited A purchase returns Rashid B Rashid purchase returns C sales returns Rashid D Rashid sales returns

1 marks

Answer: C

This question in 0452/12 Oct/Nov 2020

6 The following account appeared in the books of Mary. Paul account $ $ April 1 balance b/d 90 April 21 returns 25 14 sales 150 30 bank 88 discount 2 balance c/d 125 240 240 Which statement is correct? A On 1 April Paul owed Mary $90. B On 14 April Paul sold goods, $150, to Mary. C On 21 April Mary returned goods, $25, to Paul. D On 30 April Mary owed Paul $125.

1 marks

Answer: A

This question in 0452/12 Oct/Nov 2020

7 In which sections of Zamir’s ledger would the following accounts be maintained? 1 the sales account 2 the account of Harjit, a trade receivable sales account Harjit account A nominal (general) ledger purchases ledger B nominal (general) ledger sales ledger C purchases ledger sales ledger D sales ledger purchases ledger

1 marks

Answer: B

This question in 0452/12 Oct/Nov 2020

3 The following account appeared in the books of Mary. Paul account $ $ April 1 balance b/d 90 April 21 returns 25 14 sales 150 30 bank 88 discount 2 balance c/d 125 240 240 Which statement is correct? A On 1 April Paul owed Mary $90. B On 14 April Paul sold goods, $150, to Mary. C On 21 April Mary returned goods, $25, to Paul. D On 30 April Mary owed Paul $125.

1 marks

Answer: A

This question in 0452/13 Oct/Nov 2020

5 On 1 March 2020 the bank column of a cash book had a credit balance of $290. During March cheques totalling $580 were received and cheques totalling $610 were paid to suppliers. Bank charges of $12 incurred in February were also entered in the cash book. What was the balance of the bank column in the cash book on 1 April 2020? A $248 credit B $248 debit C $332 credit D $332 debit

1 marks

Answer: C

This question in 0452/13 Oct/Nov 2020

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.

1 marks

Answer: A

This question in 0452/12 Feb/March 2021

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

1 marks

Answer: D

This question in 0452/12 Feb/March 2021

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

1 marks

Answer: B

This question in 0452/12 Feb/March 2021

3 Carl, a trader, took goods from the business for his own use. These goods had cost $100, and $8 carriage had been paid for them to be delivered to the business. How would this be recorded in Carl’s accounts in the books of the business? A debit Carl’s capital account $100 B debit Carl’s capital account $108 C debit Carl’s drawings account $100 D debit Carl’s drawings account $108

1 marks

Answer: D

This question in 0452/11 May/June 2021

4 Shula’s financial year ends on 31 March. On 1 April 2021 there was a credit balance of $100 on Yasmin’s account in Shula’s purchases ledger. What does this mean? A Shula had paid $100 to Yasmin. B Shula owed $100 to Yasmin. C Yasmin had paid $100 to Shula. D Yasmin owed $100 to Shula.

1 marks

Answer: B

This question in 0452/11 May/June 2021

7 Alisha entered the credit notes she received in March in the correct returns journal. How was the total of this journal recorded in the ledger at the end of the month? A credit purchases returns account B credit sales returns account C debit purchases returns account D debit sales returns account

1 marks

Answer: A

This question in 0452/11 May/June 2021

3 William paid $500 in cash to Sonia for rent. How did Sonia record this? account debited account credited A cash rent receivable B rent receivable cash C rent receivable William D William rent receivable

1 marks

Answer: A

This question in 0452/12 May/June 2021

5 Shula’s financial year ends on 31 March. On 1 April 2021 there was a credit balance of $100 on Yasmin’s account in Shula’s purchases ledger. What does this mean? A Shula had paid $100 to Yasmin. B Shula owed $100 to Yasmin. C Yasmin had paid $100 to Shula. D Yasmin owed $100 to Shula.

1 marks

Answer: B

This question in 0452/12 May/June 2021

3 William paid $500 in cash to Sonia for rent. How did Sonia record this? account debited account credited A cash rent receivable B rent receivable cash C rent receivable William D William rent receivable

1 marks

Answer: A

This question in 0452/13 May/June 2021

20 Shilpa’s financial year ends on 30 April. On 31 March 2021 she wrote off a debt owed by Tahir as irrecoverable. Which entry did Shilpa make on 31 March 2021? debit credit A income statement Tahir B irrecoverable debts income statement C irrecoverable debts Tahir D Tahir irrecoverable debts

1 marks

Answer: C

This question in 0452/13 May/June 2021

2 Hassan is a trader. During the financial year he took goods from the business for his own use. How should he record this? debit credit A drawings inventory B drawings purchases C income statement inventory D income statement purchases

1 marks

Answer: B

This question in 0452/11 Oct/Nov 2021

3 Where are the accounts of credit suppliers maintained? A purchases journal B purchases ledger C sales journal D sales ledger

1 marks

Answer: B

This question in 0452/11 Oct/Nov 2021

6 Farouk sells goods on credit. A cheque from Khalid, a credit customer, was dishonoured by the bank. How should Farouk record this? account to be debited account to be credited A bank Khalid B irrecoverable debts Khalid C Khalid bank D Khalid irrecoverable debts

1 marks

Answer: C

This question in 0452/11 Oct/Nov 2021

8 Jane purchased goods and paid by credit transfer. How should this be recorded in Jane’s accounting records? account to account to be debited be credited A bank purchases B purchases bank C purchases trade payable D trade payable purchases

1 marks

Answer: B

This question in 0452/11 Oct/Nov 2021

3 Goods purchased on credit from Zamir were returned by Ashwin. Which entries should Zamir make to record this? account debited account credited A Ashwin purchase returns B purchase returns Zamir C sales returns Ashwin D Zamir sales returns

1 marks

Answer: C

This question in 0452/12 Oct/Nov 2021

2 Hassan is a trader. During the financial year he took goods from the business for his own use. How should he record this? debit credit A drawings inventory B drawings purchases C income statement inventory D income statement purchases

1 marks

Answer: B

This question in 0452/13 Oct/Nov 2021

6 Farouk sells goods on credit. A cheque from Khalid, a credit customer, was dishonoured by the bank. How should Farouk record this? account to be debited account to be credited A bank Khalid B irrecoverable debts Khalid C Khalid bank D Khalid irrecoverable debts

1 marks

Answer: C

This question in 0452/13 Oct/Nov 2021

8 Jane purchased goods and paid by credit transfer. How should this be recorded in Jane’s accounting records? account to account to be debited be credited A bank purchases B purchases bank C purchases trade payable D trade payable purchases

1 marks

Answer: B

This question in 0452/13 Oct/Nov 2021

1 What is prepared by a book-keeper? A appropriation account B cash book C income statement D statement of financial position

1 marks

Answer: B

This question in 0452/12 Feb/March 2022

3 Fatima required additional finance for her business and borrowed funds from Ali. This was deposited into the business bank account. How should Fatima record this? account to be debited account to be credited A bank Ali (loan) B bank Ali (trade payable) C Ali (loan) bank D Ali (trade payable) bank

1 marks

Answer: A

This question in 0452/12 Feb/March 2022

7 Jacob settled the account of Ahmed, a credit supplier. He made the following entries on the credit side of his cash book. discount cash bank $ $ $ Ahmed 5 195 Which entries did Jacob make on the debit side of Ahmed’s account? $ A bank 195 B bank 200 C bank 195 discount allowed 5 D bank 195 discount received 5

1 marks

Answer: D

This question in 0452/12 Feb/March 2022

25 James is a partner in a business. He made a loan to the business and received loan interest. What is the double entry in the books of the partnership for the loan interest James has received? debit credit A bank account James current account B interest on loan account bank account C interest on loan account James current account D James current account bank account

1 marks

Answer: B

This question in 0452/12 Feb/March 2022

3 Sarah sold goods on credit to Zafar. How was this recorded in Sarah’s ledgers? general ledger sales ledger A credit sales account debit Zafar account B debit sales account credit Zafar account C credit Zafar account debit sales account D debit Zafar account credit sales account

1 marks

Answer: A

This question in 0452/11 May/June 2022

4 Omar sent a credit note to Miriam for goods returned. How would Miriam record this transaction? account to be debited account to be credited A purchases returns Omar B sales returns Miriam C Omar purchases returns D Miriam sales returns

1 marks

Answer: C

This question in 0452/11 May/June 2022

6 Kai bought office equipment from Meena and paid immediately by bank transfer. How should Kai record this in his accounting records? account to be debited account to be credited A bank Meena B bank office equipment C Meena bank D office equipment bank

1 marks

Answer: D

This question in 0452/11 May/June 2022

3 Sarah sold goods on credit to Zafar. How was this recorded in Sarah’s ledgers? general ledger sales ledger A credit sales account debit Zafar account B debit sales account credit Zafar account C credit Zafar account debit sales account D debit Zafar account credit sales account

1 marks

Answer: A

This question in 0452/12 May/June 2022

4 Omar sent a credit note to Miriam for goods returned. How would Miriam record this transaction? account to be debited account to be credited A purchases returns Omar B sales returns Miriam C Omar purchases returns D Miriam sales returns

1 marks

Answer: C

This question in 0452/12 May/June 2022

2 The following ledger account appeared in the books of Leah, a trader. Amraz account $ $ April 26 purchases returns 150 April 1 balance b / d 2100 30 bank 1900 20 purchases 3000 discount 100 balance c / d 2950 ____ 5100 5100 Which statement is correct? A Amraz allowed Leah $100 trade discount on 30 April. B Amraz owed Leah $2100 on 1 April. C Leah owed Amraz $2950 on 30 April. D Leah’s net purchases from Amraz in April were $2900.

1 marks

Answer: C

This question in 0452/13 May/June 2022

3 Sarah sold goods on credit to Zafar. How was this recorded in Sarah’s ledgers? general ledger sales ledger A credit sales account debit Zafar account B debit sales account credit Zafar account C credit Zafar account debit sales account D debit Zafar account credit sales account

1 marks

Answer: A

This question in 0452/13 May/June 2022

4 Omar sent a credit note to Miriam for goods returned. How would Miriam record this transaction? account to be debited account to be credited A purchases returns Omar B sales returns Miriam C Omar purchases returns D Miriam sales returns

1 marks

Answer: C

This question in 0452/13 May/June 2022

3 Pradip settled Amal’s account by credit transfer and received a cash discount for prompt payment. How did Pradip record this discount? debit credit A Amal discount received B cash discount received C discount allowed Amal D discount allowed cash

1 marks

Answer: A

This question in 0452/11 Oct/Nov 2022

4 Morgan made the following double entry in his ledgers. debit sales returns account credit Sally account Which transaction was being recorded? A goods returned by Morgan to Sally, Morgan’s credit customer B goods returned by Morgan to Sally, Morgan’s credit supplier C goods returned by Sally to Morgan, Sally’s credit customer D goods returned by Sally to Morgan, Sally’s credit supplier

1 marks

Answer: D

This question in 0452/11 Oct/Nov 2022

7 On 1 September, Peter sent a cheque to his credit supplier, John. This was correctly entered in John’s books. On 10 September, the cheque was returned unpaid due to lack of funds. Which entries should be made in John’s books on 10 September? account to be debited account to be credited A bank irrecoverable debts B bank Peter C irrecoverable debts bank D Peter bank

1 marks

Answer: D

This question in 0452/11 Oct/Nov 2022

11 Jacob purchased a motor vehicle for business use on credit from Waheed for $20 000. This was not recorded in Jacob’s books. Which journal entry would correct this error in Jacob’s books? debit credit $ $ A Jacob 20 000 motor vehicles 20 000 B motor vehicles 20 000 Jacob 20 000 C motor vehicles 20 000 Waheed 20 000 D Waheed 20 000 motor vehicles 20 000

1 marks

Answer: C

This question in 0452/11 Oct/Nov 2022

16 Manjit depreciates her motor vehicles by $1000 at the end of each financial year. Which journal entry would Manjit make at the end of each financial year? debit credit $ $ A income statement 1000 provision for depreciation of motor vehicles 1000 B motor vehicles 1000 provision for depreciation of motor vehicles 1000 C provision for depreciation of motor vehicles 1000 income statement 1000 D provision for depreciation of motor vehicles 1000 motor vehicles 1000

1 marks

Answer: A

This question in 0452/11 Oct/Nov 2022

3 Bilal purchased goods on credit from Asim. Where should Asim record this transaction? 1 cash book 2 nominal (general) ledger 3 purchases ledger 4 sales ledger A 1 and 2 B 1 and 4 C 2 and 3 D 2 and 4

1 marks

Answer: D

This question in 0452/12 Oct/Nov 2022

6 On 1 September, Peter sent a cheque to his credit supplier, John. This was correctly entered in John’s books. On 10 September, the cheque was returned unpaid due to lack of funds. Which entries should be made in John’s books on 10 September? account to be debited account to be credited A bank irrecoverable debts B bank Peter C irrecoverable debts bank D Peter bank

1 marks

Answer: D

This question in 0452/12 Oct/Nov 2022

3 Pradip settled Amal’s account by credit transfer and received a cash discount for prompt payment. How did Pradip record this discount? debit credit A Amal discount received B cash discount received C discount allowed Amal D discount allowed cash

1 marks

Answer: A

This question in 0452/13 Oct/Nov 2022

4 Morgan made the following double entry in his ledgers. debit sales returns account credit Sally account Which transaction was being recorded? A goods returned by Morgan to Sally, Morgan’s credit customer B goods returned by Morgan to Sally, Morgan’s credit supplier C goods returned by Sally to Morgan, Sally’s credit customer D goods returned by Sally to Morgan, Sally’s credit supplier

1 marks

Answer: D

This question in 0452/13 Oct/Nov 2022

7 On 1 September, Peter sent a cheque to his credit supplier, John. This was correctly entered in John’s books. On 10 September, the cheque was returned unpaid due to lack of funds. Which entries should be made in John’s books on 10 September? account to be debited account to be credited A bank irrecoverable debts B bank Peter C irrecoverable debts bank D Peter bank

1 marks

Answer: D

This question in 0452/13 Oct/Nov 2022

8 What would not be recorded in the ledgers of a business? A cash discount B irrecoverable debts C trade discount D wages accrued

1 marks

Answer: C

This question in 0452/13 Oct/Nov 2022

11 Jacob purchased a motor vehicle for business use on credit from Waheed for $20 000. This was not recorded in Jacob’s books. Which journal entry would correct this error in Jacob’s books? debit credit $ $ A Jacob 20 000 motor vehicles 20 000 B motor vehicles 20 000 Jacob 20 000 C motor vehicles 20 000 Waheed 20 000 D Waheed 20 000 motor vehicles 20 000

1 marks

Answer: C

This question in 0452/13 Oct/Nov 2022

16 Manjit depreciates her motor vehicles by $1000 at the end of each financial year. Which journal entry would Manjit make at the end of each financial year? debit credit $ $ A income statement 1000 provision for depreciation of motor vehicles 1000 B motor vehicles 1000 provision for depreciation of motor vehicles 1000 C provision for depreciation of motor vehicles 1000 income statement 1000 D provision for depreciation of motor vehicles 1000 motor vehicles 1000

1 marks

Answer: A

This question in 0452/13 Oct/Nov 2022

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

1 marks

Answer: A

This question in 0452/12 Feb/March 2023

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

1 marks

Answer: C

This question in 0452/12 Feb/March 2023

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

1 marks

Answer: A

This question in 0452/12 Feb/March 2023

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

1 marks

Answer: B

This question in 0452/12 Feb/March 2023

35 To finance further expansion, a business owner paid $10 000 into the business bank account. In the ledger, a debit entry was made in the bank account and a credit entry made in the capital account. Which accounting principles were being applied? A business entity and prudence B business entity and duality C matching and duality D matching and prudence

1 marks

Answer: B

This question in 0452/12 Feb/March 2023

3 A trader credited the income statement and debited his capital account. What does this double entry record? A capital introduced B drawings C loss for the year D profit for the year

1 marks

Answer: C

This question in 0452/11 May/June 2023

4 Ted, a manufacturer, purchased a machine on credit from T Limited. How did Ted record this? account debited account credited A T Limited machinery B T Limited purchases C machinery T Limited D purchases T Limited

1 marks

Answer: C

This question in 0452/11 May/June 2023

5 The following account appeared in the books of Abdul. Hanif account 2023 $ 2023 $ Jan 18 returns 100 Jan 1 balance b / d 400 31 bank 392 4 purchases 250 discount 8 balance c / d 150 650 650 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.

1 marks

Answer: A

This question in 0452/11 May/June 2023

34 Manvinder started a business and paid a cheque for $1000 into a business bank account. He recorded this in the books of the business by debiting the bank account and crediting the capital account. Which accounting principles did he apply? A business entity and duality B business entity and going concern C going concern and matching D matching and duality

1 marks

Answer: A

This question in 0452/11 May/June 2023

3 A cheque received from Kate, a credit customer, was dishonoured. How was this dishonoured cheque recorded? account account debited credited A bank Kate B Kate bank C Kate sales D sales Kate

1 marks

Answer: B

This question in 0452/12 May/June 2023

5 Which action is an example of double entry book-keeping? A making a journal entry to record the correction of an error made in the ledger B making entries in the sales journal and the sales ledger to record goods sold on credit C recording a cheque paid to a trade payable in the cash book and purchases ledger D recording the purchase of goods on credit in the purchases journal and purchases account

1 marks

Answer: C

This question in 0452/12 May/June 2023

3 A cheque received from Kate, a credit customer, was dishonoured. How was this dishonoured cheque recorded? account account debited credited A bank Kate B Kate bank C Kate sales D sales Kate

1 marks

Answer: B

This question in 0452/13 May/June 2023

4 What does the sales ledger of a business contain? A accounts of trade payables B accounts of trade receivables C sales account D sales ledger control account

1 marks

Answer: B

This question in 0452/13 May/June 2023

5 Which action is an example of double entry book-keeping? A making a journal entry to record the correction of an error made in the ledger B making entries in the sales journal and the sales ledger to record goods sold on credit C recording a cheque paid to a trade payable in the cash book and purchases ledger D recording the purchase of goods on credit in the purchases journal and purchases account

1 marks

Answer: C

This question in 0452/13 May/June 2023

3 What could a credit balance on a ledger account represent? A accrued income B asset C expense D prepaid income

1 marks

Answer: D

This question in 0452/11 Oct/Nov 2023

3 A trader, Karim, purchases a new vehicle by cheque. He will use the vehicle to deliver goods to his customers. How should Karim record this transaction in his books? account to account to be debited be credited A bank motor vehicles B bank purchases C motor vehicles bank D purchases bank

1 marks

Answer: C

This question in 0452/12 Oct/Nov 2023

3 What could a credit balance on a ledger account represent? A accrued income B asset C expense D prepaid income

1 marks

Answer: D

This question in 0452/13 Oct/Nov 2023

5 Paul rents premises from John and pays the rent by credit transfer. How would John record this? account debited account credited A bank rental income B cash rental income C rental income bank D rental income cash

1 marks

Answer: A

This question in 0452/12 Feb/March 2024

4 Alex issued credit notes in August and entered them in the correct book of prime entry. How was the total of this book of prime entry recorded in the nominal ledger at the end of August? A credited to the purchases returns account B debited to the purchases returns account C credited to the sales returns account D debited to the sales returns account

1 marks

Answer: D

This question in 0452/12 May/June 2024

6 What is the double entry for recording a cheque payment to a credit supplier? debit credit A bank account purchases ledger account B bank account sales ledger account C purchases ledger account bank account D sales ledger account bank account

1 marks

Answer: C

This question in 0452/12 May/June 2024

4 Alex issued credit notes in August and entered them in the correct book of prime entry. How was the total of this book of prime entry recorded in the nominal ledger at the end of August? A credited to the purchases returns account B debited to the purchases returns account C credited to the sales returns account D debited to the sales returns account

1 marks

Answer: D

This question in 0452/13 May/June 2024

6 What is the double entry for recording a cheque payment to a credit supplier? debit credit A bank account purchases ledger account B bank account sales ledger account C purchases ledger account bank account D sales ledger account bank account

1 marks

Answer: C

This question in 0452/13 May/June 2024

5 Sahil took goods from the business for his own use. These goods had a cost of $60 and a selling price of $100. Which entry was made in the drawings account to record this withdrawal of goods? A $60 credit B $60 debit C $100 credit D $100 debit

1 marks

Answer: B

This question in 0452/11 Oct/Nov 2024

7 The following account appeared in the ledger of Eli. Jacob account $ $ June 1 balance b/d 220 June 4 bank 210 22 sales 400 discount 10 ___ 30 balance c/d 400 620 620 Which statement is correct? A On 1 June Eli was owed $220 by Jacob. B On 4 June Eli paid Jacob $210 by cheque. C On 22 June Jacob sold goods to Eli for $400. D On 30 June Jacob was owed $400 by Eli.

1 marks

Answer: A

This question in 0452/11 Oct/Nov 2024

3 Which account is not kept in the nominal ledger? A capital B cash C inventory D purchases

1 marks

Answer: B

This question in 0452/12 Oct/Nov 2024

4 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.

1 marks

Answer: A

This question in 0452/12 Oct/Nov 2024

18 What is the journal entry required to close the irrecoverable debts account at the year end? account to be debited account to be credited A income statement irrecoverable debts B irrecoverable debts income statement C irrecoverable debts trade receivables D trade receivables irrecoverable debts

1 marks

Answer: A

This question in 0452/12 Oct/Nov 2024

5 Sahil took goods from the business for his own use. These goods had a cost of $60 and a selling price of $100. Which entry was made in the drawings account to record this withdrawal of goods? A $60 credit B $60 debit C $100 credit D $100 debit

1 marks

Answer: B

This question in 0452/13 Oct/Nov 2024

7 The following account appeared in the ledger of Eli. Jacob account $ $ June 1 balance b/d 220 June 4 bank 210 22 sales 400 discount 10 ___ 30 balance c/d 400 620 620 Which statement is correct? A On 1 June Eli was owed $220 by Jacob. B On 4 June Eli paid Jacob $210 by cheque. C On 22 June Jacob sold goods to Eli for $400. D On 30 June Jacob was owed $400 by Eli.

1 marks

Answer: A

This question in 0452/13 Oct/Nov 2024

10 Jane took cash drawings from the business. The amount was debited to the purchases account and credited to cash. How did this error affect the profit for the year and the current assets in the financial statements? profit for the year current assets A decrease no effect B increase no effect C no effect decrease D no effect increase

1 marks

Answer: A

This question in 0452/13 Oct/Nov 2024

3 The double entry system of book-keeping consists of processing accounting data in a certain order. What is the correct order? A business documents, books of prime entry, ledgers, trial balance B business documents, ledgers, trial balance, books of prime entry C books of prime entry, business documents, trial balance, ledgers D books of prime entry, ledgers, trial balance, business documents

1 marks

Answer: A

This question in 0452/12 Feb/March 2025

4 Imran made an entry on the debit side of the cash book in the bank column. What could the corresponding credit entry represent? A a decrease in cash B a decrease in a trade payable C an increase in a non-current asset D an increase in a trade receivable

1 marks

Answer: A

This question in 0452/12 Feb/March 2025

3 Sammy bought goods on credit and later returned some of these goods. How would he record the returns in his books of account? account debited account credited A purchases purchases returns B purchases returns supplier C purchases returns purchases D supplier purchases returns

1 marks

Answer: D

This question in 0452/11 May/June 2025

4 An account in Peter’s books of account was as follows: Rami $ $ bank 380 balance b/d 400 discount received 20 400 400 Which statement is correct? A Peter received a discount for buying in bulk. B Peter received a discount for paying early. C Rami received a discount for buying in bulk. D Rami received a discount for paying early.

1 marks

Answer: B

This question in 0452/11 May/June 2025

3 Shula’s financial year ends on 31 March. On 1 April 2024, there was a credit balance of $100 on Yasmin’s account in Shula’s purchases ledger. What does this mean? A Shula had paid $100 to Yasmin. B Yasmin had paid $100 to Shula. C Shula owed $100 to Yasmin. D Yasmin owed $100 to Shula.

1 marks

Answer: C

This question in 0452/12 May/June 2025

20 Which statement is correct? A The income statement is part of the double entry system and shows a trader’s financial performance. B The income statement is part of the double entry system and shows a trader’s financial position. C The statement of financial position is part of the double entry system and shows assets and liabilities only. D The statement of financial position is part of the double entry system and shows owner’s capital only.

1 marks

Answer: A

This question in 0452/12 May/June 2025

3 Sammy bought goods on credit and later returned some of these goods. How would he record the returns in his books of account? account debited account credited A purchases purchases returns B purchases returns supplier C purchases returns purchases D supplier purchases returns

1 marks

Answer: D

This question in 0452/13 May/June 2025

4 An account in Peter’s books of account was as follows: Rami $ $ bank 380 balance b/d 400 discount received 20 400 400 Which statement is correct? A Peter received a discount for buying in bulk. B Peter received a discount for paying early. C Rami received a discount for buying in bulk. D Rami received a discount for paying early.

1 marks

Answer: B

This question in 0452/13 May/June 2025

1 What is not an example of a book-keeping entry? A an entry made in the bank column of the cash book for a cheque received B any goods returned by a customer entered in the sales returns journal C cost of goods purchased on credit entered in the supplier’s account D expenses paid during the year entered in the income statement

1 marks

Answer: D

This question in 0452/12 Oct/Nov 2025

3 Sally maintains a full set of accounting records. She has entered the following transactions in her cash book. 1 A cheque for $200 was received from a credit customer. 2 An insurance premium of $200 was paid by cheque. 3 Petrol for the delivery van was paid for in cash. 4 Total cash sales of $400 were received. Which transactions will then be entered into the nominal ledger? A 1 and 4 B 1 only C 2, 3 and 4 D 2 and 3 only

1 marks

Answer: C

This question in 0452/12 Oct/Nov 2025

5 The following account appeared in the books of Mary. Paul account $ $ April 1 balance b/d 90 April 21 returns 25 14 sales 150 30 bank 88 discount 2 ___ balance c/d 125 240 240 Which statement is correct? A On 1 April, Paul owed Mary $90. B On 14 April, Paul sold goods for $150 to Mary. C On 21 April, Mary returned goods for $25 to Paul. D On 30 April, Mary owed Paul $125.

1 marks

Answer: A

This question in 0452/12 Oct/Nov 2025

3 Accounting data is processed through various stages using the double entry system. Which stage checks the arithmetical accuracy of the double entry? A financial statements B journals C ledgers D trial balance

1 marks

Answer: D

This question in 0452/13 Oct/Nov 2025

4 Ann is a trader. On 1 April, Cindy’s account in Ann’s ledger showed a credit balance of $520. The following transactions took place during April. April 2 Ann returned goods for $30 to Cindy. April 14 Ann bought goods for $210 from Cindy and paid in cash. Which statement about the balance on Cindy’s account in Ann’s ledger on 30 April is correct? A Ann owes Cindy $490. B Ann owes Cindy $700. C Cindy owes Ann $490. D Cindy owes Ann $700.

1 marks

Answer: A

This question in 0452/13 Oct/Nov 2025

7 Which statement is correct? A Both sales ledger and purchases ledger accounts may contain amounts for cash discounts. B Discount allowed is to reward regular purchases. C Discount received is recorded on the debit side of a three-column cash book. D The double entry system is used to record trade discount.

1 marks

Answer: A

This question in 0452/13 Oct/Nov 2025