Professional Documents
Culture Documents
There are thirty 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 choice in soft pencil on the separate Answer Sheet.
Each correct answer will score one mark. A mark will not be deducted for a wrong answer.
Any rough working should be done in this booklet.
Calculators may be used.
IB09 11_7110_01/2RP
© UCLES 2009 [Turn over
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equipment 10 000
motor vehicle 8 000
bank balance 2 000 credit
amount owing to suppliers 4 000
amount owing by customers 5 000
stock 6 000
loan to Davinder 3 000
A cash sales
B cash Susie
C sales cash
D Susie sales
6 On 1 August the cash column of Alice’s cash book showed a balance of $950. On 5 August the
following transactions took place.
7 A bank reconciliation statement starts with the debit balance shown in the cash book.
How are uncredited deposits and unpresented cheques shown in the bank reconciliation
statement?
A added added
B added deducted
C deducted added
D deducted deducted
A cash at bank
B cash in hand
C discounts allowed
D discounts received
11 Mona started business on 1 June 2008. She paid business rates of $1400 for 14 months to
31 July 2009.
Mona prepared a profit and loss account for the year ended 31 May 2009.
What will be the balance brought down on the business rates account on 1 June 2009?
14 A business allowed Smith, a customer, $30 cash discount. This was entered correctly in the
discount allowed account, but omitted from Smith’s account.
A capital expenditure
B cost of goods sold
C gross profit
D revenue expenditure
wages 70 000
general expenses 18 200
depreciation 800
fixtures (book value) 8 000
debtors 19 500
creditors 3 100
net profit 33 000
21 Basil and Ben are in partnership sharing profits and losses in the ratio 3 : 2. Basil receives an
annual salary of $12 000. The firm’s net profit for the year was $52 000.
How much would be credited to the current account of each partner after all appropriations?
A 26 000 26 000
B 31 200 20 800
C 36 000 16 000
D 24 000 16 000
22 What will a sports club show as current assets in its balance sheet?
A
B
C
D
$
capital 1 January 2008 20 000
capital 31 December 2008 24 000
During the year ended 31 December 2008, drawings of $12 000 were made and additional
capital, $7000, was paid into the business bank account.
24 Winston started business on 1 April 2008. His purchases for his first year of trading amounted to
$59 400. His stock on 31 March 2009 was valued at $9000. Winston’s profit mark-up is 25 %.
What were the sales for the year ended 31 March 2009?
27 What is included in the current ratio but not the quick ratio?
A bank
B cash
C debtors
D stock
29 Which accounting principle is applied when a business uses the same method of depreciation
each year?
A consistency
B dual aspect
C going concern
D historical cost
30 Rent unpaid at the end of the financial year is added to a business’s expenses and shown as a
current liability in the balance sheet.
A accounting entity
B matching
C materiality
D money measurement
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Permission to reproduce items where third-party owned material protected by copyright is included has been sought and cleared where possible. Every
reasonable effort has been made by the publisher (UCLES) to trace copyright holders, but if any items requiring clearance have unwittingly been included, the
publisher will be pleased to make amends at the earliest possible opportunity.
University of Cambridge International Examinations is part of the Cambridge Assessment Group. Cambridge Assessment is the brand name of University of
Cambridge Local Examinations Syndicate (UCLES), which is itself a department of the University of Cambridge.
7110/01/O/N/09