Other payables and other receivables — Paper 1 · IGCSE Accounting (9-1) 0985

11 The income statement of a business showed a loss for the year of $16 000. On checking the books the following errors were discovered. 1 No adjustment had been made for insurance prepaid, $480. 2 No entry had been made for bank charges, $620. What was the correct loss for the year? A $14 900 B $15 860 C $16 140 D $17 100

1 marks

Answer: C

This question in 0985/11 May/June 2020

16 A company’s financial year ended on 31 December 2019. On 1 December 2019 it paid rent, $8000, for the four months ending 31 March 2020. What was the opening balance on the rent account on 1 January 2020? A $2000 credit B $2000 debit C $6000 credit D $6000 debit

1 marks

Answer: D

This question in 0985/11 May/June 2020

17 Alice’s financial year ends on 31 December. The balances on her books on 1 January 2020 included the following. $ commission receivable 250 debit rent receivable 500 credit What do these balances represent? commission receivable rent receivable A income outstanding income outstanding B income outstanding income prepaid C income prepaid income outstanding D income prepaid income prepaid

1 marks

Answer: B

This question in 0985/11 May/June 2020

21 At the end of his financial year, Raminder made an adjustment for rent owed by a tenant. How did this affect Raminder’s financial statements? profit for current assets the year A decrease decrease B decrease increase C increase decrease D increase increase

1 marks

Answer: D

This question in 0985/11 May/June 2020

33 Rashid’s financial year ends on 31 December. He paid rent on 1 February, 1 May, 1 August and 1 November. An adjustment was made in the income statement for rent prepaid. Which accounting principle was applied? A duality B matching C money measurement D prudence

1 marks

Answer: B

This question in 0985/11 May/June 2020

12 The income statement of a business showed a loss for the year of $16 000. On checking the books the following errors were discovered. 1 No adjustment had been made for insurance prepaid, $480. 2 No entry had been made for bank charges, $620. What was the correct loss for the year? A $14 900 B $15 860 C $16 140 D $17 100

1 marks

Answer: C

This question in 0985/12 May/June 2020

18 Alice’s financial year ends on 31 December. The balances on her books on 1 January 2020 included the following. $ commission receivable 250 debit rent receivable 500 credit What do these balances represent? commission receivable rent receivable A income outstanding income outstanding B income outstanding income prepaid C income prepaid income outstanding D income prepaid income prepaid

1 marks

Answer: B

This question in 0985/12 May/June 2020

19 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

1 marks

Answer: A

This question in 0985/12 May/June 2020

21 The financial year of Peter ends on 30 September. On 1 August 2020 Peter received rent $1000. This covered the period from 1 July to 30 November 2020. Which entry will be made in Peter’s statement of financial position on 30 September 2020? A current asset $400 B current asset $500 C current liability $400 D current liability $500

1 marks

Answer: C

This question in 0985/12 Oct/Nov 2020

14 The following ledger account appeared in the books of a trader. Rent receivable account $ $ 2020 2020 Dec 31 balance c / d 600 Jan 1 balance b / d 400 Dec 31 bank 3600 Which entry was made in the income statement for the year ended 31 December 2020 for rent receivable? A $3400 credit B $3400 debit C $3800 credit D $3800 debit

1 marks

Answer: A

This question in 0985/11 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

4 During her first financial year, a trader paid $1800 for insurance and $3200 for rent. At the end of the financial year, she transferred insurance of $1500 and rent of $3600 to the income statement. What do the balances remaining on the accounts at the end of the financial year represent? insurance account rent account A accrued expense accrued expense B accrued expense prepaid expense C prepaid expense accrued expense D prepaid expense prepaid expense

1 marks

Answer: C

This question in 0985/12 Oct/Nov 2021

15 At the end of the financial year Mui had prepaid rent of $1500. How should she record this? A credit $1500 in the rent account and carry down as a credit balance B credit $1500 in the rent account and carry down as a debit balance C debit $1500 in the rent account and carry down as a credit balance D debit $1500 in the rent account and carry down as a debit balance

1 marks

Answer: B

This question in 0985/12 Oct/Nov 2021

18 On 1 April 2021, commission receivable, $210, was outstanding. Commission received during the year ended 31 March 2022 amounted to $4850. Which journal entry should have been made at the end of the financial year on 31 March 2022? debit credit $ $ A commission receivable 4640 income statement 4640 B commission receivable 5060 income statement 5060 C income statement 4640 commission receivable 4640 D income statement 5060 commission receivable 5060

1 marks

Answer: A

This question in 0985/11 May/June 2022

22 At the end of his financial year, Marek was owed $200 for interest on a loan he had made to an employee. He recorded this in his financial statements. How did the interest on this loan affect Marek’s profit for the year and where was it recorded in his statement of financial position? statement of profit for the year financial position A decreased current assets B decreased current liabilities C increased current assets D increased current liabilities

1 marks

Answer: C

This question in 0985/11 May/June 2022

14 On 1 April 2021, commission receivable, $210, was outstanding. Commission received during the year ended 31 March 2022 amounted to $4850. Which journal entry should have been made at the end of the financial year on 31 March 2022? debit credit $ $ A commission receivable 4640 income statement 4640 B commission receivable 5060 income statement 5060 C income statement 4640 commission receivable 4640 D income statement 5060 commission receivable 5060

1 marks

Answer: A

This question in 0985/12 May/June 2022

17 Mariam owns a business providing accounting services. She provided the following information for the financial year ended 31 March 2022. $ fees owed by clients on 1 April 2021 4 500 fees received from clients during the year ended 31 March 2022 22 500 fees owed by clients on 31 March 2022 1 500 What was the amount of fees shown in the income statement for the year ended 31 March 2022? A $19 500 B $22 500 C $25 500 D $28 500

1 marks

Answer: A

This question in 0985/12 May/June 2022

21 The draft financial statements of a limited company showed retained earnings of $31 820. It was then found that no adjustment had been made for the following. $ commission receivable accrued 450 insurance prepaid 175 What was the correct amount of the retained earnings? A $31 195 B $31 545 C $32 095 D $32 445

1 marks

Answer: D

This question in 0985/12 May/June 2022

11 After the preparation of her income statement, Emma discovered the following errors. A debt, $1500, should have been written off as irrecoverable. No adjustment had been made for rent prepaid by Emma of $2800. The draft profit for the year was $35 000. What was the corrected profit for the year? A $30 700 B $33 700 C $36 300 D $39 300

1 marks

Answer: C

This question in 0985/12 Oct/Nov 2022

15 Martha rents out part of her business premises. On 1 September 2021, she was owed rent of $1500 and on 31 August 2022 she was owed $1800 rent. During the year ended 31 August 2022, Martha received rent of $6000. How much was transferred to Martha’s income statement for the year ended 31 August 2022? A $2700 B $5700 C $6300 D $9300

1 marks

Answer: C

This question in 0985/12 Oct/Nov 2022

19 During the year, Sam paid advertising expenses, some of which related to the following financial year. Sam made an adjustment for this when preparing his financial statements for the current year. What was the effect on Sam’s financial statements of making this adjustment? decrease profit for the year increase profit for the year increase current assets increase current liabilities 0 0O WwW > v v v

1 marks

Answer: B

This question in 0985/12 Oct/Nov 2022

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

1 marks

Answer: A

This question in 0985/11 May/June 2023

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

1 marks

Answer: B

This question in 0985/12 May/June 2023

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 statement changes in equity $ $ A 1400 no entry B 2100 no entry C no entry 1400 D no entry 2100

1 marks

Answer: B

This question in 0985/12 May/June 2023

21 At 1 January 2022, there was a credit balance of $800 on the electricity account. Payments made during the year totalled $4900. At 31 December 2022, a further $1800 of electricity had been used since the last invoice was paid. What is the charge to the income statement for electricity for the year 2022? A $2300 B $5900 C $6700 D $7500

1 marks

Answer: B

This question in 0985/12 Oct/Nov 2023

6 A trader has the following ledger account. heat and light account $ $ year 1 year 1 January 1 balance b/d 400 December 31 income statement 4850 December 31 bank 4200 December 31 balance c/d 250 ____ 4850 4850 year 2 January 1 balance b/d 250 What does the balance on 1 January, year 2 represent? A heat and light outstanding B heat and light refunded C overpayment of heat and light D prepayment of heat and light

1 marks

Answer: A

This question in 0985/11 May/June 2024

8 Trevor prepared his financial statements for the year ended 31 December 2020. He then discovered that he had omitted to record a cash payment, $240, for insurance for the 12 months ending 30 November 2021. What was the effect of this error on his statement of financial position? cash other receivables capital A $240 overstated $20 understated $220 overstated B $240 overstated $220 understated $20 overstated C $240 understated $20 overstated $220 understated D $240 understated $220 overstated $20 understated

1 marks

Answer: B

This question in 0985/11 May/June 2024

15 The following ledger account appeared in the books of a trader. Rent receivable account $ $ 2020 2020 Dec 31 balance c/d 600 Jan 1 balance b/d 400 Dec 31 bank 3600 Which entry was made in the income statement for the year ended 31 December 2020 for rent receivable? A $3400 credit B $3400 debit C $3800 credit D $3800 debit

1 marks

Answer: A

This question in 0985/11 May/June 2024

28 At the end of the financial year, a manufacturing business owed rent on its factory. The business adjusted its financial statements to account for this. What effects did this adjustment have? prime cost cost of production gross profit A decrease decrease increase B no effect increase decrease C no effect no effect decrease D increase increase decrease

1 marks

Answer: B

This question in 0985/11 May/June 2024

17 Abdul is a trader. He rents out part of his warehouse to other businesses. Abdul is preparing his financial statements for the year ended 31 December. His rental income account shows that: rent received during the year totalled $2750 rental income transferred to the income statement was $3000 What does the closing balance on the rental income account represent? A accrued income B an accrued expense C an expense paid in advance D income received in advance

1 marks

Answer: A

This question in 0985/12 Oct/Nov 2024

21 A business provided the following information. $ long-term loan 20000 trade receivables 12000 trade payables 9700 bank overdraft 2000 prepaid insurance 400 accrued wages 1000 rental income prepaid 500 What was the total of the current liabilities? A $13200 B $15400 C $31200 D $32700

1 marks

Answer: A

This question in 0985/12 Oct/Nov 2024

16 T Limited rents out part of its premises. At the start of the year, the tenant was $600 in arrears. During the year, T Limited received $8650 in rent from the tenant. T Limited’s income statement showed rent receivable for the year as $7900. What was the balance brought down on the rent receivable account at the start of the following year? A $150 on the credit side B $150 on the debit side C $1350 on the credit side D $1350 on the debit side

1 marks

Answer: A

This question in 0985/11 May/June 2025

20 A business provided the following information about two expenses. amount paid during year 1 January 2024 ended 31 December 2024 $ 31 December 2024 $ $ electricity 240 accrued 1500 360 accrued insurance 180 prepaid 1200 220 prepaid Which amounts are charged to the income statement for the year ended 31 December 2024? electricity insurance $ $ A 900 800 B 1380 1240 C 1620 1160 D 2100 1600

1 marks

Answer: C

This question in 0985/11 May/June 2025

16 Anjum rents part of her premises to Ajay for $6120 per annum. At the beginning of the year, Ajay had paid two months’ rent in advance. At the end of the year, Ajay had paid three months’ rent in advance. How much rent was received from Ajay during the year? A $3570 B $5610 C $6630 D $8670

1 marks

Answer: C

This question in 0985/12 May/June 2025

24 During the year ended 31 March 2025, subscriptions received by a club amounted to $2500, of which $120 related to the next financial year. On 31 March 2025, subscriptions accrued amounted to $280. What entries would be made in the club’s statement of financial position on 31 March 2025? current assets current liabilities $ $ A 120 280 B 280 120 C 400 no entry D no entry 400

1 marks

Answer: B

This question in 0985/12 May/June 2025