The double entry system of book-keeping — Paper 1 · IGCSE Accounting (9-1) 0985

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 0985/11 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 0985/11 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 0985/11 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 0985/12 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 0985/12 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 0985/12 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 0985/12 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 0985/12 May/June 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 0985/12 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 0985/12 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 0985/12 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 0985/12 Oct/Nov 2020

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 0985/11 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 0985/11 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 0985/12 May/June 2021

4 Abdul buys all his machinery on credit. He provided the following information. at 30 April 2020 at 30 April 2021 $ $ machinery at cost 30 000 42 000 amounts owing to suppliers of machinery 19 000 ? During the year Abdul paid $25 000 to the suppliers of his machinery. How much did he owe them on 30 April 2021? A $6000 B $13 000 C $17 000 D $32 000

1 marks

Answer: A

This question in 0985/12 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 0985/12 May/June 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 0985/12 Oct/Nov 2021

7 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 0985/12 Oct/Nov 2021

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 0985/11 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 0985/11 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 0985/11 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 0985/12 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 0985/12 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 0985/12 May/June 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 0985/12 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 0985/12 Oct/Nov 2022

7 Which entries should be made to post the monthly totals of the discount allowed and discount received columns of the cash book? discount allowed discount received A credit discount allowed account debit discount received account B credit income statement debit income statement C debit discount allowed account credit discount received account D debit income statement credit income statement

1 marks

Answer: C

This question in 0985/12 Oct/Nov 2022

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 0985/11 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 0985/11 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 0985/11 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 0985/12 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 0985/12 May/June 2023

1 Which actions are examples of book-keeping? 1 entering details of a cheque received from a customer in the cash book 2 entering details of goods purchased on credit in the 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 0985/12 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 0985/12 Oct/Nov 2023

4 The following ledger account was in Meena’s sales ledger. $ $ Jan 1 balance b / d 100 Jan 15 bank 100 Jan 31 balance c / d 20 Jan 30 sales returns 20 120 120 Feb 1 balance b / d 20 Which statement about the balance on 1 February in Meena’s books of account is correct? A It is an asset. B It is an expense. C It is a liability. D It is revenue.

1 marks

Answer: C

This question in 0985/12 Oct/Nov 2023

1 Which task is performed by a book-keeper? A analysing accounting ratios B interpreting the income statement C posting entries from the journals to the ledgers D preparing a statement of financial position

1 marks

Answer: C

This question in 0985/11 May/June 2024

4 The analysis columns of a petty cash book show the following totals. $ postage 20 stationery 31 How should these totals be posted to the ledger? A credit bank account with $51 B credit postage account with $20 and stationery account with $31 C debit cash account with $51 D debit postage account with $20 and stationery account with $31

1 marks

Answer: D

This question in 0985/11 May/June 2024

3 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

1 marks

Answer: D

This question in 0985/12 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 0985/12 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 0985/12 May/June 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 0985/12 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 0985/12 Oct/Nov 2024

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 0985/11 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 0985/11 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 0985/12 May/June 2025

6 Which statement about cash discounts is not correct? A Cash discounts are given if payment is made within the time limit set by the supplier. B Cash discounts are shown as a reduction from the list price when goods are ordered. C Customers will show cash discounts given to them as other income in the income statement. D Suppliers will show the cash discounts they give as an expense in the income statement.

1 marks

Answer: B

This question in 0985/12 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 0985/12 May/June 2025