0452_w25_qp_13
0452_w25_qp_13
Question 1
hour 15 minutes You must answer on the multiple choice answer sheet. You will need: Multiple choice answer sheet Soft clean eraser Soft pencil (type B or HB is recommended) INSTRUCTIONS There are thirty-five 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 multiple choice answer sheet. Follow the instructions on the multiple choice answer sheet. Write in soft pencil. Write your name, centre number and candidate number on the multiple choice answer sheet in the spaces provided unless this has been done for you. Do not use correction fluid. Do not write on any bar codes. You may use a calculator. INFORMATION The total mark for this paper is 35. Each correct answer will score one mark. Any rough working should be done on this question paper.
What is a purpose of calculating the profit of a sole trader?
1 to analyse the performance of the business against previous years
A to decide on the amount of dividend to be paid to the shareholders
B to reconcile the cash book balance with the bank statement balance
C to work out the liquidity of the business
D What increases owner’s capital?
2 bank loan extended from five to ten years
A purchase of inventory on credit
B purchase of machinery by cheque
C transfer of vehicle to the business from private use
D Accounting data is processed through various stages using the double entry system. Which stage checks the arithmetical accuracy of the double entry?
3 financial statements
A journals
B ledgers
C trial balance
D 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.
4 April
2 Ann returned goods for $30 to Cindy. Ann bought goods for $210 from Cindy and paid in cash. April 14 Which statement about the balance on Cindy’s account in Ann’s ledger on 30 April is correct?
Ann owes Cindy $490.
A Ann owes Cindy $700.
B Cindy owes Ann $490.
C Cindy owes Ann $700.
D 11_0452_13_2025_1.8 b
UCLES
2025
2
Hasina buys radios from Nazneen at a list price of $10 each. This month
, Hasina bought
12 radios and was offered 20% trade discount and 4% cash discount. Two radios were faulty and were returned to Nazneen. What was the total of the credit note issued by Nazneen?
5 $20.00
D $19.20
C $16.00
B $15.36
A On
1 March, 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?
6 $248 credit
A $248 debit
B $332 credit
C $332 debit
D Which statement is correct?
7 Both sales ledger and purchases ledger accounts may contain amounts for cash discounts.
A Discount allowed is to reward regular purchases.
B Discount received is recorded on the debit side of a three
- column cash book.
C The double entry system is used to record trade discount.
D The totals of a trial balance do not agree because the debit total is more than the credit total. Which error would have to be corrected to balance the trial balance?
8 expenses paid in cash omitted from the accounting records
A goods sold on credit to Smith debited to the account of Small
B repairs to equipment debited to the equipment account
C total of the sales returns account overcast
D [Turn o ver 11_0452_13_2025_1.8 b
3
A trial balance did not agree, and a suspense account was opened. After the following errors had been corrected the suspense
account balanced and was closed.
9
1 The total of the discount allowed column in the cash book for November of $250 had been credited to the discount received
account. Cash sales of $50 had been correctly entered in the cash book
, but had not been posted to the sales account.
2 What was the difference which was originally entered in the suspense account? $200 credit
A $200 debit
B $450 credit
C $450 debit
D Kate’s draft profit for the year was $9800. She then discovered the following errors.
10
1 Sales for $120 had been recorded as commission income.
2 A computer repair for $95 had been recorded as computer equipment. What is Kate’s revised profit for the year after correcting the errors (ignore depreciation)?
$9895
D $9825
C $9705
B $9585
A Which document is issued at regular intervals to show the transactions that have taken place between a business and its
bank?
11 bank reconciliation statement
A bank statement
B statement of account
C statement of affairs
D 11_0452_13_2025_1.8 b
4
A standing order paid for rent has not been entered into the accounting records of a business. Which statement is correct?
12 Because the payment was made automatically, no additional entries are required in the accounting records.
A Because the payment was made automatically, only an entry in the rent account is required.
B Entries are required in the cash book and in the bank reconciliation statement.
C Entries are required in the cash book and in the nominal (general) ledger.
D Which set of books of prime entry may be used as a source of
information for preparing a sales ledger control account?
13 cash book, sales journal, general journal
A cash book, sales returns journal, purchases journal, sales journal
B purchases journal, general journal, petty cash book
C purchases returns journal, sales returns journal, cash book, sales journal
D What is included in a purchases ledger control account?
14 cash purchases
A debts written off as irrecoverable
B discount allowed
C goods returned to credit suppliers
D An owner bought machinery for her business costing $5000. This was entered as revenue expenditure in the accounting records.
She also invested $2000 of additional capital into the business and entered this as a revenue receipt in the accounting records.
What was the net effect of these errors on her profit for the year (ignore depreciation)?
15 $3000 overstated
A $3000 understated
B $7000 overstated
C $7000 understated
D [Turn o ver 11_0452_13_2025_1.8 b
5
Question 31
December. What is the net book value of the motor vehicle at 31 December 2024? 16 $14 700 D $12 000 C $10 290 B $3000 A Susan is a trader. Her financial year end is 5 April. She bought a motor vehicle on 6 April 2023 for $10 000. It was depreciated at 25% on the straight-line basis and was sold on 15 May 2025 for $3000. No depreciation wa s charged in the year of disposal. What wa s the profit or loss on disposal? 17 loss $2000 A loss $2625 B profit $500 C profit $3000 D At the start of his first year of trading, Jimmy paid $9600 for insurance for 20 months. How did the balance carried down appear in his insurance ledger account at the end of the first year of trading? 18 $3840 on the credit side A $3840 on the debit side B $5760 on the credit side C $5760 on the debit side D Which statement about a provision for doubtful debts is correct? 19 It ensures that the amount of trade receivables at the year end is realistic. A It is an application of the going concern principle. B The level of the provision must be increased when sales are falling. C The profit for the year increases when the provision for doubtful debts is increased. D 11_0452_13_2025_1.8 b © UCLES 2025 6
Question 3
only D
Question 2
and 3 C
Question 1
only B
Question 1
and 2 A Why is it important for a sole trader to prepare a statement of financial position for the business? 22 to know the net worth of the business at a certain date A to list all revenues and expenses of the business B to measure the profitability of business sales C to record all cash receipts and payments D 23 X and Y have set up a partnership sharing profits in the ratio 2 : 1. The profit for the first year of trading was $33 000. X is entitled to interest on capital of $2000, and Y receives a partner ’ s salary of $4000. Interest on drawings charged is $200 for X and $100 for Y. What is X ’ s share of the residual profit for the year? A $17 800 B $18 000 C $18 200 D $21 000 [Turn o ver 11_0452_13_2025_1.8 b © UCLES 2025 7
Question 31
March 2025? 26 a proposed final dividend which is to be paid to ordinary shareholders on 1 August 2025 A a transfer made to the general reserve from retained earnings on 31 March 2025 B an interim dividend paid to the ordinary shareholders on 1 November 2024 C an issue of additional ordinary shares made on 31 October 2024 D 11_0452_13_2025_1.8 b © UCLES 2025 8
Question 355
000 prime cost 114 850 factory overheads
Question 475
000 total production cost of finished goods
Question 4
200 inventory of raw materials at 30 September 2025 1 100 inventory of finished products at 30 September 2025 Work in progress at 30 September 2024 was $9990. What was the total inventory of the business at 30 September 2025? $10 140 D $5300 C $5150 B $4840 A [Turn o ver 11_0452_13_2025_1.8 b © UCLES 2025 9
Question 2
and 4 D
Question 2
and 3 C
Question 1
and 4 B
Question 1
and 2 A A business using incomplete records provided data from its statement of affairs. During the year, the owner invested $6000 from his private funds and withdrew $3250 of the profit for the year for personal use. 30 closing statement of affairs $ opening statement of affairs $
Question 52
000
Question 40
000 assets
Question 8
000
Question 15
000 liabilities How much was the profit for the year? $62 500 D $38 750 C $31 250 B $16 250 A 11_0452_13_2025_1.8 b © UCLES 2025 10
Question 1
and 2 only B 1, 3 and 4 only C
Question 4
only D Senga is concerned that the current ratio of her business is worsening each year. She has suggested the following measures. 32 1 Increase cash purchases of inventory. 2 Introduce further capital in the form of cash. 3 Decrease the rate of depreciation on non-current assets. 4 Sell off surplus non-current assets. Which two measures would improve the current ratio of the business?
Question 2
and 4 D
Question 2
and 3 C
Question 1
and 4 B
Question 1
and 3 A [Turn o ver 11_0452_13_2025_1.8 b © UCLES 2025 11
Question 20
times
Question 15
times rate of inventory turnover What would explain these accounting ratios? 1 Ali controlled his cost of sales better than Hajar. 2 Ali controlled his expenses better than Hajar. 3 Ali sold goods at lower prices than Hajar. 4 Ali sold his goods more slowly than Hajar.
Question 3
and 4 only D 2, 3 and 4 C
Question 1
and 4 B 1, 2 and 3 A Which action is an application of the materiality principle? 34 always using the straight-line method when depreciating assets A buying raw materials on credit rather than paying immediately B charging the cost of light bulbs and batteries to general expenses C recording goods sold only when their legal title passes to the buyer D Which factor relating to the quality of financial information requires that such information is free from significant errors and bias? 35 comparability A consistency B reliability C understandability D Permission to reproduce items where third-party owned material protected by copyright is included has been sought and cleared where possible. Every reasonable effort has been made by the publisher (UCLES) to trace copyright holders, but if any items requiring clearance have unwittingly been included, the publisher will be pleased to make amends at the earliest possible opportunity. To avoid the issue of disclosure of answer-related information to candidates, all copyright acknowledgements are reproduced online in the Cambridge Assessment International Education Copyright Acknowledgements Booklet. This is produced for each series of examinations and is freely available to download at www.cambridgeinternational.org after the live examination series. Cambridge Assessment International Education is part of Cambridge Assessment. Cambridge Assessment is the brand name of the University of Cambridge Local Examinations Syndicate (UCLES), which is a department of the University of Cambridge. 11_0452_13_2025_1.8 b © UCLES 2025 12