ACCOUNTING Paper 2 Structured Written Paper with Marking Scheme 0985/21
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Course
ACCOUNTING 0985 Paper 2
Institution
ACCOUNTING 0985 Paper 2
Nakul is a trader. He buys and sells goods on credit. He buys most of his supplies from one
supplier, Nadia, who allows Nakul a trade discount of 20%.
The following transactions took place in January 2022.
Jan 2 Paid $441 by cheque to Nadia, in full settlement of $450 owed to her at
1...
Cambridge International Examinations
Cambridge International General Certificate of Secondary Education
ACCOUNTING 0452/12
Paper 1 with MARKING SCHEME February/March 2024
1 hour 45 minutes
Candidates answer on the Question Paper.
No Additional Materials are required.
READ THESE INSTRUCTIONS FIRST
Write your Centre number, candidate number and name on all the work you hand in.
Write in dark blue or black pen.
You may use an HB pencil for any diagrams or graphs.
Do not use staples, paper clips, glue or correction fluid.
DO NOT WRITE IN ANY BARCODES.
Answer all questions.
You may use a calculator.
Where layouts are to be completed, you may not need all the lines for your answer.
The businesses mentioned in this Question Paper are fictitious.
At the end of the examination, fasten all your work securely together.
The number of marks is given in brackets [ ] at the end of each question or part question.
For each of the parts (a) to (j) below there are four possible answers, A, B, C and D. Choose the one
you consider correct and place a tick (✓) in the box to indicate the correct answer.
1 (a) 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 A cheque from Harpreet was dishonoured.
B Harpreet has overpaid his account.
C Interest was charged by Suzanna.
D Suzanna offered a trade discount. [1]
(b) The following is the subscriptions account of a club.
Subscriptions account
2017 $ 2017 $
Jan 1 Balance b/d 150 Jan 1 Balance b/d 80
Dec 31 Income and Dec 31 Bank 3060
expenditure 3000 Balance c/d 60
Balance c/d 50
3200 3200
2018 2018
Jan 1 Balance b/d 60 Jan 1 Balance b/d 50
Which statement is correct?
A Subscriptions in advance at 1 January 2018 were $50.
B Subscriptions in arrears at 1 January 2017 were $80.
C Subscription income for the year was $3060.
D Subscriptions received during the year were $3000. [1]
(c) 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
(d) 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?
A current assets understated
B current liabilities understated
C non-current liabilities overstated
D owner’s capital overstated [1]
(e) 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?
A $5800
B $7150
C $10 300
D $15 600 [1]
(f) 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?
A accruals (matching)
B consistency
C going concern
D realisation [1]
(g) Which term in club or society accounts means the same as capital?
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