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WorksheetsAccounting IGCSE 5.0
Total questions: 20
Worksheet time: 10mins
Harpreet is a credit customer of Suzanna. Harpreet’s account in Suzanna’s books shows a credit balance.
How could the credit balance have arisen?
A cheque from Harpreet was dishonoured.
Harpreet has overpaid his account.
Interest was charged by Suzanna.
Suzanna offered a trade discount.
The following is the subscriptions account of a club.
Which statement is correct?
Subscriptions in advance at 1 January 2018 were $50.
Subscriptions in arrears at 1 January 2017 were $80.
Subscription income for the year was $3060.
Subscriptions received during the year were $3000.
Why is it necessary for a manufacturing business to make an adjustment for work in progress in its manufacturing account?
1 to calculate what is needed to complete production
2 to record all factory costs
3 to show only the cost of goods completed
1 and 2
1 only
2 and 3
3 only
Narinder made a short-term loan to Seema. Narinder’s draft statement of financial position showed this loan as a current liability.
What was the effect of this error?
current assets understated
current liabilities understated
non-current liabilities overstated
owner’s capital overstated
On 1 February 2017 Katya’s fixtures and fittings had a net book value of $12 950.
She purchased fixtures, $2250, during the year.
Depreciation for the year ended 31 January 2018 was $4900.
What was the net book value of fixtures and fittings on 31 January 2018?
$5800
$7150
$10 300
$15 600
For which accounts does the cash book act as a ledger account?
bank ✓
cash ✓
discount allowed ✓
discount received ✓
bank -
cash ✓
discount allowed ✓
discount received ✓
bank -
cash -
discount allowed ✓
discount received ✓
bank ✓
cash ✓
discount allowed -
discount received -
Which statement about the division of the ledger is not correct?
Checking procedures can be introduced.
Fewer entries are needed in the sales and purchases accounts.
It is easier for reference and for locating accounts.
Work can be shared between two or more book-keepers.
Which account may appear as a credit balance in a trial balance?
carriage outwards
discount received
drawings
inventory
Insurance prepaid, $120, was treated as an accrual in the income statement.
Which effect did this have on the profit for the year?
overstated $120
overstated $240
understated $120
understated $240
Goods, $250, sold on credit to Ahmed were credited to Aktar’s account.
What is the correcting journal entry?
debit : Ahmed $250 , Aktar $250
credit : suspense $500
debit : Ahmed $250 , suspense $250
credit : Aktar $500
debit : Aktar $500
credit : Ahmed $250 , suspense $250
debit : suspense $500
credit : Ahmed $250 , Aktar $250
The accounts of a business are prepared on the basis that the business will continue to operate for the foreseeable future.
Which accounting principle is being applied?
accruals (matching)
consistency
going concern
realisation
Which term in club or society accounts means the same as capital?
accumulated fund
appropriation account
balance at bank
surplus for the year
A business provided the following information.
revenue $290 000
gross profit $90 000
profit for the year $70 000
What was the mark-up?
24.14%
31.03%
35.00%
45.00%
Financial statements must provide information in time for financial decisions to be made.
Which accounting objective is being described?
comparability
relevance
reliability
understandability
Which item would be recorded as a credit entry in a purchases ledger control account?
amounts paid to credit suppliers
contra with the sales ledger control account
discount received from credit suppliers
interest charged on late payment
Hassan sells two products, X and Y. He provided the following information on 31 December 2017.
50 units of product Y were damaged and will have to be destroyed.
What was the total value of Hassan’s inventory?
$1992
$2132
$2164
$2314
What would NOT be included in a statement of changes in equity?
ordinary share dividend paid which relates to the previous year
ordinary share dividend proposed which relates to the current year
profit for the year
transfer to general reserve
Beth and Carla are in partnership, sharing profits and losses 3:2. They provided the following information at 31 January 2018.
What was the total amount credited to Beth’s current account on 31 January 2018?
$15 000
$25 200
$29 000
$39 200
Some members of a sports club had not paid their annual subscriptions at the end of the financial year.
Where will these unpaid subscriptions be shown in the financial statements?
receipts and payments account : ✓
income and expenditure account : ✓
statement of financial position : ✓
receipts and payments account : ✓
income and expenditure account : -
statement of financial position : ✓
receipts and payments account : ✓
income and expenditure account : ✓
statement of financial position : -
receipts and payments account : -
income and expenditure account : ✓
statement of financial position : ✓
On 1 April 2017 trade receivables owed $4250 and on 31 March 2018 they owed $3940.
During the year $46 750 was received from trade receivables and they returned goods, $1130.
What were the credit sales for the year?
$46 440
$47 060
$47 570
$48 190
