Please write clearly in block capitals.
Centre number Candidate number
Surname
Forename(s)
Candidate signature
I declare this is my own work.
A-level
ACCOUNTING
Paper 2 Accounting for Analysis and Decision-Making
Tuesday 2 June 2020 Morning Time allowed: 3 hours
Materials
For Examiner’s Use
For this paper you must have:
• a calculator. Question Mark
A
Instructions
• Use black ink or black ball-point pen. B
• Fill in the boxes at the top of this page. C
• Answer all questions. TOTAL
• You must answer the questions in the spaces provided. Do not write
outside the box around each page or on blank pages.
• If you need extra space for your answer(s), use the lined pages at
the end of this book. Write the question number against your answer(s).
• Do all rough work in this answer book. Cross through any work you
do not want to be marked.
Information
• The marks for each question are shown in brackets.
• The maximum mark for this paper is 120.
*Jun207127201*
IB/G/Jun20/E12 7127/2
, 2
Do not write
outside the
Section A box
Answer all questions in this section.
Only one answer per question is allowed.
For each question completely fill in the circle alongside the appropriate answer.
CORRECT METHOD WRONG METHODS
If you want to change your answer you must cross out your original answer as shown.
If you wish to return to an answer previously crossed out, ring the answer you now wish to select
as shown.
0 1 Which transaction has a cheque counterfoil as the source document?
[1 mark]
A Cheque deposited in a business bank account
B Cheque paid to a supplier
C Cheque returned due to being out of date
D Dishonoured cheque from a customer
0 2 J Jones received a payment from D Smith, whose debt had previously been written off as
irrecoverable.
What is the correct double entry to record this transaction?
[1 mark]
Debit Credit
A Bank Irrecoverable debt recovered
B Bank D Smith
C Irrecoverable debt recovered Bank
D D Smith Bank
*02*
IB/G/Jun20/7127/2
, 3
Do not write
outside the
0 3 What is the correct formula to calculate mark-up? box
[1 mark]
A Gross profit × 100
Cost of sales
Gross profit
B × 100
Revenue
Profit from operations
C × 100
Cost of sales
Profit from operations
D × 100
Revenue
0 4 Which are all credit entries in the cost of sales section of an income statement?
[1 mark]
A Carriage inwards, closing inventory and purchases
B Carriage inwards, opening inventory and purchases
C Closing inventory, goods for own use and returns outwards
D Goods for own use, opening inventory and returns outwards
0 5 Fred is a sole trader and is converting his business into a private limited company.
He will be the only shareholder of the company.
Which of the following would be a consequence of this change to ownership status?
[1 mark]
A Loses limited liability
B Ownership is diluted
C Profits are subject to corporation tax
D Receives more capital
Turn over ►
*03*
IB/G/Jun20/7127/2
, 4
Do not write
outside the
0 6 Donovan Ltd is planning to expand and will require additional finance. Its statement of box
financial position includes non-current liabilities of £750 000 and equity of £1 300 000.
Which method of funding will decrease the capital gearing ratio?
[1 mark]
A Debenture
B Long-term bank loan
C Mortgage
D Ordinary shares
0 7 Eloc runs a sweet shop. He has taken several boxes of chocolates as gifts for friends.
What are the ledger account entries to record these transactions?
[1 mark]
Debit Credit
A Closing inventory Drawings
B Drawings Closing inventory
C Drawings Purchases
D Purchases Drawings
0 8 A business paid £18 250 for wages and salaries during the year ending 31 March 2020.
Wages and salaries owing at 1 April 2019 were £2 190 and owing at 31 March 2020 were
£2 740.
What is the amount to be included for the wages and salaries expense in the income
statement for the year ending 31 March 2020?
[1 mark]
A £13 320
B £17 700
C £18 800
D £23 180
*04*
IB/G/Jun20/7127/2
Centre number Candidate number
Surname
Forename(s)
Candidate signature
I declare this is my own work.
A-level
ACCOUNTING
Paper 2 Accounting for Analysis and Decision-Making
Tuesday 2 June 2020 Morning Time allowed: 3 hours
Materials
For Examiner’s Use
For this paper you must have:
• a calculator. Question Mark
A
Instructions
• Use black ink or black ball-point pen. B
• Fill in the boxes at the top of this page. C
• Answer all questions. TOTAL
• You must answer the questions in the spaces provided. Do not write
outside the box around each page or on blank pages.
• If you need extra space for your answer(s), use the lined pages at
the end of this book. Write the question number against your answer(s).
• Do all rough work in this answer book. Cross through any work you
do not want to be marked.
Information
• The marks for each question are shown in brackets.
• The maximum mark for this paper is 120.
*Jun207127201*
IB/G/Jun20/E12 7127/2
, 2
Do not write
outside the
Section A box
Answer all questions in this section.
Only one answer per question is allowed.
For each question completely fill in the circle alongside the appropriate answer.
CORRECT METHOD WRONG METHODS
If you want to change your answer you must cross out your original answer as shown.
If you wish to return to an answer previously crossed out, ring the answer you now wish to select
as shown.
0 1 Which transaction has a cheque counterfoil as the source document?
[1 mark]
A Cheque deposited in a business bank account
B Cheque paid to a supplier
C Cheque returned due to being out of date
D Dishonoured cheque from a customer
0 2 J Jones received a payment from D Smith, whose debt had previously been written off as
irrecoverable.
What is the correct double entry to record this transaction?
[1 mark]
Debit Credit
A Bank Irrecoverable debt recovered
B Bank D Smith
C Irrecoverable debt recovered Bank
D D Smith Bank
*02*
IB/G/Jun20/7127/2
, 3
Do not write
outside the
0 3 What is the correct formula to calculate mark-up? box
[1 mark]
A Gross profit × 100
Cost of sales
Gross profit
B × 100
Revenue
Profit from operations
C × 100
Cost of sales
Profit from operations
D × 100
Revenue
0 4 Which are all credit entries in the cost of sales section of an income statement?
[1 mark]
A Carriage inwards, closing inventory and purchases
B Carriage inwards, opening inventory and purchases
C Closing inventory, goods for own use and returns outwards
D Goods for own use, opening inventory and returns outwards
0 5 Fred is a sole trader and is converting his business into a private limited company.
He will be the only shareholder of the company.
Which of the following would be a consequence of this change to ownership status?
[1 mark]
A Loses limited liability
B Ownership is diluted
C Profits are subject to corporation tax
D Receives more capital
Turn over ►
*03*
IB/G/Jun20/7127/2
, 4
Do not write
outside the
0 6 Donovan Ltd is planning to expand and will require additional finance. Its statement of box
financial position includes non-current liabilities of £750 000 and equity of £1 300 000.
Which method of funding will decrease the capital gearing ratio?
[1 mark]
A Debenture
B Long-term bank loan
C Mortgage
D Ordinary shares
0 7 Eloc runs a sweet shop. He has taken several boxes of chocolates as gifts for friends.
What are the ledger account entries to record these transactions?
[1 mark]
Debit Credit
A Closing inventory Drawings
B Drawings Closing inventory
C Drawings Purchases
D Purchases Drawings
0 8 A business paid £18 250 for wages and salaries during the year ending 31 March 2020.
Wages and salaries owing at 1 April 2019 were £2 190 and owing at 31 March 2020 were
£2 740.
What is the amount to be included for the wages and salaries expense in the income
statement for the year ending 31 March 2020?
[1 mark]
A £13 320
B £17 700
C £18 800
D £23 180
*04*
IB/G/Jun20/7127/2
