Cambridge Assessment International Education Cambridge IGCSE™ ACCOUNTING Paper 1 Multiple Choice 0452/12 February/March 2025 1 hour 15 minutes ‘You must answer on the multiple choice answer sheet. You will need: Multiple choice answer sheet Soft clean eraser ‘Soft pencil type B or HB is recommended) INSTRUCTIONS, * There are thirty-five questions on this paper. Answer all questions. ‘+ For each question there are four possible answers A, B, C and D. Choose the one you consider correct and record your cheice in soft pencil on the multiple choice answer sheet Follaw the instructions on the multiple choice answer sheet. Write n soft pencil, Write your name, centre number and candidate number on the multiple choice answer sheet in the ‘space -stuvided unless this has been done for you. Do not use correction fluid. Do not write on any bar codes, You may use a calculator. INFORMATION ©The tatal mark for this paper is 35. Each correct answer will score one mark, # Any rcugh working should be done on this question paper. ‘This document has 12 pages. Any blank pages are indicated, (030452_12_2025_17 COCs 2025 [Turn over1 Abusiness employs a book-keoper and an accountant. Which task does the accountant perform? A extracting balances from the ledgor accounts to produce a trial balance /, 8 making a Journal entry to record the credit sale of a non-current asset / © preparing a monthly report that analyses the profitability of tho company 0 recording sales and purchases invoices in the books of prime entry, 2 Atransaction has had the following effects. assets liabilities capital decrease decrease Increase The business Is not overdrawn al the bank. Which transaction has happened? 4 Pr-Got @ ‘A payment was made to a credit supplier after taking a cash discount. ChhS (CC B Apayment was received from a credit customer after allowing a cash discount, © Goods were sold to a credit customer for less than their cost price. y D__ Goods were sold to a credit customer for more than thelr cost price, | 3 The double entry system of book-keeping consists of processing accounting data ina certain order, What Is the correct order? @® business documents, books of prime entry, ledgers, trial balance 8 _ business documents, ledgers, tial balance, books of prime entry C books of prime entry, business documents, trial balance, ledgers D books of prime entry, ledgers, trial balance, business documents mw 4 Imran made an entry on the debit side of the cash book in the bank column. What could the corresponding credit entry represent? @® a decrease in cash B_ adecrease In a trade payable xX © anincrease in a non-current asset O Dan increase In a trado receivable x ouctes 2025 03_0487_12_2025.170QO O =) Ne =pley Bayer 5 Davo supplies goods to Peter on credit. On 1 April, Potor owed Dave $440, During the month of April, Dave processed the following documents. s Tie G[apnt7 [invoice issued 360 | 24] 12 | cheque received (attor Peter 428 bls 4yo 4 deducted $11 cash discount) Ao = 13° | debit note received 50 c \a a) 15 _| creditnote issued 50 What was the closing balance on tha Stalément of accolinbissued by Dave to Peter on 30 April? A. 260 @) s3t0 © $321 D sé21 ; Per cele 6 Alisha entered the credit notes she received in Mafch in the correct returns journal. How was the total of this Journal recorded in the ledger al the end of March? (eee purchases returns account & credit sales retums accourt © debit purchases retums account D debit sales retums account 7 Which statements about trade discount are correct? 1 Its debited to the supplier's account. x 2 ItIs only given Ifthe Invoice is paid within the period allowed ty the supplier. x 3. It ls shown as a deduction from the price of the goods on an invoice. —~ 4 IIs used to encourage bulk buying. A tand2 B tand3 © 2and4 ©) 3and 4 8 Why is a trial balance preparod? ‘A to analyse financial information ~ (B) 10 assist in the preparation of financial statomonts ~ © tocontrol the costs of the business ~ to evaluate the performance of the business X 3 m2 9 o4ta_12_2024.1 7 [Turn over9 Which group of account balances would appear In the credit column of a trial balance? A assels, purchases, drawings B discount received, capita, sales returns © llabilities, expenses, sales e sales, capital, purchases returns x 10 Amaud's draft profit for the year was $17 000. His actual correct profit was $17 400.~ Which error had been made? Dy per yoo Get = Pde GT pa Yoo X purchases invoice for $2600 had been recorded in the purchases journal as $2200. ae Assales Invoice for $2600 had been recorded in the sales journal as s2200 TEES ycot Pt DDT, ‘X Discount allowed of $400 had been posted to the credit side of the discount allowed account. eo aX F p y Discount received of $400 had been ested fo the deb sde ofthe discount recevedaccounL “GS “Did. Kc. BO 11. Paul caleuated his proft forthe year 10 be $40000. \oe45 Gen -ooR Paul then discovered the following errors. a + The expenses included rates prepaid, $1000; for the following year, EPS piece + $600 owed for electricity had been omitted) eet’ Py ooo + Sales retums of $1000 had not been recorded. “ey PA Is ,c00 ‘What was the correct profit for the year? A 28400 @) ss0400 c $49600 D $51600 12. The totals of Simon's trial balance did not agree, and he opened a suspense account. He then found that when he had restored the Imprest with $70, he had recorded it correctly in the petty cash book but had recorded It on the wrong side of the main cash book. This was the only error. ‘What was the opening entry in the suspense account? eur A $70 on the credit side & sce Dr asrb B $70 onthe debit side — J © S140 0n ho crt sido Ce Gen 40 $140 on the debit sido ar) Sucre an Gs» wo | Df (YS) @ucLEs 2025 09. 12.2025.170vee 43 Jamal's bank statement at 1 May showed a bank overdraft of $1460. At that date, there were unpresented cheques of $385 and uncredited deposits of $255. What was the cash book balance at 1 May? RS Cube) A. $1330 credit + a B $1330 debit ae _ 26 © $1590 credit ce ave D $1590 debit ep 44 Which items are included in a sales ledger contol account? goods retumed by credit suppliers X debts that have been written off as irrecoverable 1 goods sold for cash X Rona cheques received from credit customers returned by the bank as dishonoured -—~ A 4,2and3 B tand3only G 2,3and4 () 2and4only 45 After preparing his financial statements, Jonty discovered two errors had been made in his accounting records. CLE vdersyatee) = Paners\eleel 1Sc0 error 1 Vehicle repair costs of $1500 had been debited to the vehicles account. error 2 Legal fees of $2100, relating to the purchase of new premises, had been included in expenses. Carp cyestarel +P undes vated OICG Ignoring depreciation, what was the effect of these errors on Jonty's profit for the year? A $600 overstated $600 understated C $3600 overstated D $3600 understated 46 Which item is a revenue receipt? ‘A cash invested by the owner of the business X B proceeds from the sale of a non-current asset at book velueX © ent received trom letting part of the premises D short-term loan received from a finance company < eUCLES 2025 03 _0¢82_12_2025.170 {Turn over“Deo. ‘vce aie ay Pwr, Le = wee Be ce se [ile Sle B Tihs 3s Smorits cla CD 17 Samuel started his business on 1 January 2023 and bought two delivery vans for $12000 each. He depreciates all vehicles at the rate of 10% per annum, calculated monthly, using the straight-line method. ae On 1 April 2024, he sold one of the vans and replaced it with a larger one costing $24 000. What was the balance on the provision for depreciation of delivery vehicles account on 31 December 20247 als neo | A sss00 (8) s4200 © $5700 D se600 Oct = veeo VO 18 Acarpenter uses the revaluation method of depreciation fo: tire hand tools used in the business. All hand tools in use at the end of the financial year, including those bought during the year, are revalued. New hand tools were purchased during the year, but no hand tools were disposed of, Which value of hand tools shows the calculation of the depreciation for the year? A value atthe start of the year (EMS post of new tools less value atthe end of the year B value at the start of the year less value at the end of the year ¥ © value at the start ofthe year fidgyvalue at the end of me year [eS$hew hand tools purchased (© value atthe star of the year plus new hand tools purchased less value atthe end ofthe year { ; 419 Atthe end of year 1, a trader created a provision for doubtful debts of 5% of trade receivables. At the end of year 2, she decided to increase the provision to 6%. | | | The trader provided the following information. s {trade receivables at the end of year 1 asco « [sl trade receivables al the end of year 2 7500 | 6/ ‘What was the amount for the provision for doubtful debts that should be included in the income statement for year 2? A $210 credit S210 debit C.P $450 credit D $450 debit / oucues 2025 03 0482_12.2025.17020 The end-of-year inventories held by a sports shop are shown in the table. cost net realisable value s s football kits 250 230 tracksuits 210 240 football boots 160 200 Which inventory value is shown in the statement of financial position? @® s000 B $620 c $630 D $670 21 What is a disadvantage of running a business as a sole trader? OE A The owner does not have to pay interest on drawings, ~ B The owner is entitled to all the profits made by the business. — © The owner must share the decision-making and the profits. @) ‘The owner's personal possessions are at risk if the business should fail, 22 Whatis shown in the capital and liabilities section of a statement of financial position of a business? ‘A how the resources are being used by the business B the working capital ofthe business C total amounts owed by the business and total amounts owed to the business (©) where the resources ofthe business have come from 23 Ann and Ben are in partnership, sharing profits and losses equally. They provided the {following information for the year ended 30 April. 7 spose profit for the year 20000 Coce0o) interest on capital: Ann 5000 C yore) a Ben | 4000 Wo Jdrawings: ‘Ann | 8000 a Ben | 7000 . A So ‘What was Ben's share of the residual profit? (a) ss500 B $1000 © $1300 D. s14500 ovcies 2025 (03 o482_12_2025.170 [Tum over24 Frankie is a partner. He has both a capital account and a current account. Which statement is correct? ‘A. Any loans he makes to the partnership are added to his capital account balance.X ® He can have a debit balance on his current account but not on hs capital account.~ C Interest on drawings would increase a credit balance on his current account,X D The balance on capital account falls when his drawings exceed his share of profit. 25 Whatis included in the equity of a limited company? debentures X general reserve. goodwill X ordinary share capital A 1,2and3° BB 1,2and4 © 2end 4 only D 4only zona 26 What is shown in the receipts and payments account of a music club? @ a summary of all cash and bank transactions B__ depreciation of musical instrumentsx © subscriptions received and accrued x D_ the club's surplus or deficit , 27 Medway social club runs a café for its members. For the year ended 31 December, the sales were '$15000 and the cost of goods sold was $1200. Gate piohy Zeco The closing inventory of coffee had been included at a cost value of $1000 but had deteriorated and was worth $500. C\o> \nvd - Cos * Geohy | Sco. ‘What profit on the café should be transferred to the income and expenditure account? A $2000 ©@®) s2500 cc $3000 D_ $3500 28 Which statement about work in progress is correct? A. Itconsists of competed and partly completed goods. B tis adjusted for when calculating prime cost. x © Itis included as inventory in the statement of financial position. D tis included in the manufacturing account and income statement. X ouctes 2025 03_0452_12.2025.170+\a0r ; 29 Amanufacturer calculated the cost of production for the year at $57 000. It was found that lighting and heating of $2000 had been omitted from the financial statements. wy. .-45)]. > ‘Sex 75% of lighting and heating is allocated to the factory, and 25% of lighting and heating is allocated to the offices. ‘What was the correct cost of production? A $55500 B 56500 © $57500 (©) ss8s00 30. Farred did not keep a full set of accounting records. He purchased goods on credit terms, and all sales were made on a cash basis. Farred compared his assets and liabilities at the start and at the end of his financial year. He recorded the following changes at the end of the financial year. s ‘an increase in non-current assets| 11000 a decrease in inventory 6100 an increase in trade payables 3000 ‘The bank balance had changed from a debit balance of $4200 to an overdraft of $7100. What was the change in Farred’s capital? A adecrease of $3400 Ge a decrease of $9400 an increase of $4800 an increase of $10800 = Aco 31 A business provided the following information, $ i revenue 100000 gross profit 20000 ‘What was the percentage mark-up? A 20% © 25% © 75% D 80% eucies 2025 03 0482_12_2025.1.70 [Turn over10 32 Why might a trader wish to increase his trade payables tumover days? 1 to improve his total working capital 2 tokeep funds available for other purposes 3 torreceive more cash discounts A 1,2and3 9 B tonly © 2only D 3only 33. Uzoma provided the following information about her first year of trading. s sales 46000 gross profit 21850 advertising 2700 other expenses, 11350 profit for the year 7800 Uzoma wants to improve her profi in the future and is considering four options. Whi option would provide the biggest increase in her profit for the year? ‘A eaming commission, which would increase profit for the year by 20% X PS \SGo B increasing advertising by $1000, which would increase gross profit by $2500 * “* \Soo Increasing the sales price, which would increase gross profit by $2000x T SOCO ® reducing other expenses by $1500 and eaming commission of $1000 T YSCS 34. Sally's business has reached its bank overdraft limit of $1500, Sally is considering the following actiuns. asking the bank to increase the bank overdraft limit to $2000 XK borrowing $2000 from a relative and paying the money back in six months X obtaining a loan of $2000 from the bank, repayable in two years -~ sons paying $2000 from Sally's personal bank account into the business bank account — ‘Which actions will improve the working capital of the business? A tand2 B tand4 © 2and3 (6) Sanda eUcLEs 2028 0u,o482_12_2025.170" 35 When does a business recognise the income from a sale of goods on credit? ‘A whon a cheque Is recelved from the customer in payment for the goods K B when a cheque received is paid into the business bank account ¥ © when the goods are delivered to the customer D__ when the goods are ordered by the customer K eucies 2025 03 oase_12 2028.17