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Accounting IGCSE Sec 5 Exam 1st Sem 2020

Total questions: 35

Worksheet time: 3hrs 55mins

Name
Class
Date
1.

a)

I and II

b)

I and III

c)

II and IV

d)

III and IV

2.

Which task would an accountant perform?

a)

Writing up the cash book

b)

Drawing up a trial balance

c)

Preparing financial statements

d)

Entering transactions in the ledger

3.

Amina returned goods to Nadia.


Which documents did Amina issue?

a)

Invoice

b)

Debit note

c)

Credit note

d)

Statement of account

4.

Faraz buys and sells new and used motor vehicles.

He purchased a used motor vehicle from Tahir for $7000 which he paid by cheque.


How would Faraz record this transaction?

a)

Dr : Motor vehicles

Cr : Bank

b)

Dr : Motor vehicles

Cr : Tahir

c)

Dr : Purchases

Cr : Bank

d)

Dr : Purchases

Cr : Tahir

5.

On 2 February she paid Suki, a credit supplier, $1950 by cheque, after deducting a cash discount of $50.


What was Kala’s capital after this transaction?

a)

$50 400

b)

$50 450

c)

$52 350

d)

$52 450

6.

Which is an intangible asset?

a)

Goodwill

b)

Inventory

c)

Office fixtures

d)

Trade receivables

7.

Lisa returned goods previously purchased from Tara.


How did Tara record this?

a)

Dr : Lisa

Cr : Purchases returns

b)

Dr : Lisa

Cr : Sales returns

c)

Dr : Purchases returns

Cr : Lisa

d)

Dr : Sales returns

Cr : Lisa

8.

Which will increase a trader’s working capital?

a)

Delaying payment to credit suppliers

b)

Obtaining a short-term bank loan

c)

Selling inventory at cost price

d)

Selling non-current assets

9.

Pia sells two products, X and Y. She provided the following information about her inventory at the year end.


What was the total value of inventory to be included in the financial statements?

a)

$2608

b)

$2674

c)

$2708

d)

$2774

10.

Which account may appear as a credit balance in a trial balance?

a)

Carriage outwards

b)

Discount allowed

c)

Rent received

d)

Inventory

11.

Jason provided the following information.

How much was Jason’s capital?

a)

$105 440

b)

$105 920

c)

$105 960

d)

$111 240

12.

“Financial statements must be free from errors and bias.”


Which accounting objective is this statement describing?

a)

Understandability

b)

Comparability

c)

Relevance

d)

Reliability

13.

Which accounting principle requires profit to be recognised as earned when the legal ownership of goods passes to the purchases?

a)

Money measurement

b)

Going concern

c)

Realisation

d)

Prudence

14.

The employees of a business are highly skilled but this is not recorded in the financial statement of the business.


Which accounting principle is being applied?

a)

Money measurement

b)

Business entity

c)

Materiality

d)

Accruals

15.

Bingwa purchased premises costing $85 000 in February 2018.

Identical premises to those owned by Bingwa were sold in April 2019 for $98 000.

No adjustment was made in Bingwa’s accounting records in April 2019.


Which accounting principle did Bigwa apply?

a)

Money measurement

b)

Historical cost

c)

Materiality

d)

Realisation

16.

Amelia rented premises to a tenant. At the end of Amelia’s financial year, the tenant had paid 2 months’s rent in advance.

Which entries would Amelia make in her ledger?

a)

Credit the rent payable account and carry down as a debit balance

b)

Debit the rent payable account and carry down as a credit balance

c)

Credit the rent receivables account and carry down as a debit balance

d)

Debit the rent receivables account and carry down as a credit balance

17.

Mahendra designs computer systems.

He provided the following information.


How much would be entered for fees in the income statement?

a)

$37 190

b)

$41 430

c)

$42 870

d)

$47 110

18.

An advertising expenses account had a credit balance of $100 on 1 January 2018.

During the year ended 31 December 2018 advertising expenses paid totaled $2830.

This included $45 for the following financial year.


Which journal entry is required to transfer the advertising expenses to the income statement on 31 December 2018?

a)

Dr : Advertising expenses $2 685

Cr : Income statement $2 685

b)

Dr : Advertising expenses $2 885

Cr : Income statement $2 885

c)

Dr : Income statement $2 685

Cr : Advertising expenses $2 685

d)

Dr : Income statement $2 885

Cr : Advertising expenses $2 885

19.

Arissa purchased a motor vehicle costing $23 000 on 1 August 2016. She decided to depreciate the motor vehicle using the straight line (equal instalment) method at 20% per annum.


Depreciation on the motor vehicle of $4600 was charged to the income statement for the year ended 31 July 2017.


How much was charged to the income statement for the year ended 31 July 2018 for depreciation on the motor vehicle?

a)

$3680

b)

$4600

c)

$8280

d)

$9200

20.

Amrik started a business on 1 January 2017 and purchased a machine costing $18 000.

He decided to depreciate the machine at 20% per annum using the reducing (diminishing) balance method.

No depreciation was to be charged in the year of disposal.

The machine was sold for $13 300 on 1 July 2018.

What was the profit or loss on the sale of the machine?

a)

loss $1100

b)

loss $4700

c)

profit $1100

d)

profit $2500

21.

Amber updated her cash book after receiving her bank statement. The updated cash book balance was an overdraft of $250.

The bank statement did not include cheques not presented, $96 and amounts not credited, $183.


What was the balance shown on the bank statement?

a)

$163 debit

b)

$337 debit

c)

$163 credit

d)

$337 credit

22.

Which accounts would appear in a purchases ledger?

a)

2 and 3 only

b)

1, 2 and 3

c)

2 only

d)

4 only

23.

Zara provided the following information for the year ended 31 December 2018.


How much were the credit sales for the year?

a)

$11 400

b)

$12 900

c)

$15 700

d)

$17 200

24.

Athena is both a customer and a supplier of Heidi.

Athena’s account in Heidi’s sales ledger showed a debit balance of $340 and her account in Heidi’s purchases ledger showed a credit balance of $260.


A contra between the two accounts was agreed.


Which entry would Heidi make in her sales ledger control account?

a)

Debit $80

b)

Credit $80

c)

Debit $260

d)

Credit $260

25.

A trader provided the following information for his financial year.


What was the value of the inventory at the end of the year?

a)

$2000

b)

$5000

c)

$12 000

d)

$15 000

26.

Khalid started a business on 1 April 2018 with a capital of $90 000.

He provided the following information on 31 March 2019.


What was the profit or loss for the year ended 31 March 2019?

a)

$12 000 loss

b)

$26 000 loss

c)

$12 000 profit

d)

$26 000 profit

27.

On 1 May 2018 Ben’s capital was 47 600.

During the year ended 30 April 2019 he introduced his personal motor vehicle, $12 500, into the business.


His drawing during the year ended 30 April 2019 were $7500.


On 30 April 2019 Ben’s capital was $51 250.


What was Ben’s profit or loss for the year?

a)

Loss $1350

b)

Loss $8650

c)

Profit $1350

d)

Profit $8650

28.

Amy and John are in partnership, Amy is entitled to an annual partnership salary of 9000.

Profits and losses are shared 2 : 1.

The profit for the year ended 31 August 2018 was $14 700.

On 1 September 2017 Amy’s current account had a debit balance of $2100.


What was the credit balance on Amy’s current account on 1 September 2018?

a)

$10 700

b)

$14 900

c)

$16 700

d)

$20 900

29.

David and Bashir are in partnership.

David made a loan to the partnership.


What is the double entry to record this transaction?

a)

Dr : Bank

Cr : David capital

b)

Dr : Bank

Cr : David loan

c)

Dr : David loan

Cr : David capital

d)

Dr : David loan

Cr : David current account

30.

Beth and Carla are in partnership, sharing profits and losses 3 : 2. They provided the following in formation at 31 January 2018.


What was the total amount credited to Beth’s current account on 31 January 2018?

a)

$15 000

b)

$25 200

c)

$29 000

d)

$39 200

31.

A sports club purchased sports equipment.


Where will this be entered in the financial statements at the year end?

a)

A

b)

B

c)

C

d)

D

32.

What does the term ‘limited liability’ mean in relation to a company?

a)

A company can only pay a fixed amount of dividends

b)

A company can only issue a limited number of shares

c)

Shareholders are not at risk of losing personal possessions

d)

Shareholders’ liability is not limited to the amount paid for their shares

33.

Which statement about debentures is not correct?

a)

Debentures carry voting rights

b)

Debentures are a non-current liability

c)

Debentures have a fixed rate of interest

d)

Debentures interest must be paid regardless of profit made

34.

What would not be included in a statement of changes in equity?

a)

Profit for the year

b)

Transfer to general reserve

c)

Ordinary share dividend which relates to the current year

d)

Ordinary share dividend paid which relates to the previous year

35.

How is cost of production calculated?

a)

Direct materials + direct labour + direct expenses

b)

Direct materials + direct labour + direct expenses + factory overheads

c)

Direct materials + direct labour + direct expenses + factory overheads + decrease in work in progress

d)

Direct materials + direct labour + direct expenses + factory overheads - decrease in work in progress