Edexcel IGCSE Jan 14

In which book of original entry would the purchase of a motor vehicle on credit be recorded?

• cash book

• journal

• purchases book

• sales book

A trader purchases goods with a list price of £750. He receives a trade discount of 20% and a cash discount of 2%.

What amount should be entered in the purchases account?

• £600

• £660

• £735

• £750

B Williams sells goods on credit to J Hartley. How will this transaction be recorded in

the books of J Hartley?

• Account to be debited Sales

  Account to be credited J Hartley

• Account to be debited J Hartley

  Account to be credited Sales

• Account to be debited B Williams

  Account to be credited Purchases

• Account to be debited Purchases

  Account to be credited B Williams

A trader operates a petty cash system on the imprest system with a float of £200. During December the petty cashier spends £143.28. How much cash should the petty cashier receive at the end of the month in order to restore the float?

• £56.72

• £143.28

• £200

• £343.28

Which item is included in prime cost?

• carriage on raw materials

• carriage on finished goods

• depreciation of factory machinery

• supervisors’ wages

A trader sells goods on credit to Brown but enters the transaction in error in the

account of Bowen. What type of error is this?

• commission

• omission

• original entry

• principle

A trader owes a month’s rent at the end of his financial year. He adds this amount to the rent actually paid during the year to obtain the total rent expense for the year. Which accounting concept is he applying?

• accruals/matching

• business entity

• consistency

• going concern

A trader provided the following information for the financial year.

Turnover/ Revenue £85 000

Cost of sales £51 000

Total expenses £21 250

What was the net profit percentage for the year?

• 15%

• 25%

• 40%

• 60%

A sole trader’s capital decreases by £10 000 during the year. His books show that his total drawings for the year were £6 500.

What was the amount of profit or loss for the year?

• £10 000 loss

• £10 000 profit

• £3 500 profit

• £3 500 loss