2020_principlesOfAccounting_olevel_nov_paper1

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For Performance Measurement

ZIMBABWE SCHOOL EXAMINATIONS COUNCIL

General Certificate of Education Ordinary Level

PRINCIPLES OF ACCOUNTING 4051/1

PAPER 1 Multiple Choice
NOVEMBER 2020 SESSION 1 hotir 30 minutes

Additional materials:
Multiple Choice answer sheet
Soft clean eraser
Soft pencil (type B or HB is recommended)

TIME 1 hour 30 minutes

INSTRUCTIONS TO CANDIDATES

Do not open this booklet until you are told to do so.
Write your name, centre number and candidate number on the answer sheet in the spaces
provided unless this has already been done for you.

There are forty questions in 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. <
Read very carefully the instructions on the answer sheet.

INFORMATION FOR CANDIDATES

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.

This question paper consists of 11 printed pages and 1 blank page.
Copyright: Zimbabwe School Examinations Council, N2020.

©ZIMSEC N2020 [Turn over

ACOA

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Which of the following are assets only? A cash, drawings, motor vehicles B cash, fixtures, trade payables (6 furniture, inventory, stationery D machinery, cash, trade receivables 2 What is the source document for a sales returns journal? A credit note B debit note Cc purchases invoice D sales invoice 3 A trader buys goods on credit from a supplier for $5 000 less 5% trade discount. The double entry is debit credit A purchases account $4 750 supplier's account.$4 750. B purchases account.$5 000 supplier's account $5,000. Cc supplier's account $4 750 purchases account $4 750. D supplier's account $5 000 purchase account $5 000. 4 Which of the following shows the correct order of the accounting cycle? A subsidiary books — financial statements — trial balance B subsidiary books — ledger = trial,balance, Cc transaction — financial statements — trial balance D transaction — ledger — subsidiary books 5 Trade discount differs from cash discountin that it is A an allowance for prompt payment. B deducted after cash discount. (6 given for bulk buying. D recorded in the purchases journal:

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6 Which of the following is a computer hardware device?

A Keyboard

B Microsoft excel
Cc Microsoft word
D Pastel
7 The following ledger account was taken from the books of a trader.

Purchases Account

May 31 Income statement

In which ledger is this account found?

A General ledger.

B Private ledger.

Cc Trade payables ledger.
D Trade receivables ledger.

8 Goods sold on credit to A. Moyo were recorded in B. Moyo's account.

This is an error of

A commission.
B omission.

Cc principle.

D transposition.

9 A trader sold goods for $10 000 less 20% trade discount. A 5% cash discount is offered when
payment is done within 30 days.

Ifa cheque was received after 45 days, how much was recorded in the cash book?

A $7 500
B $7 600
Cc $8 000
D $9 500

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EAU

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10 The totals of a Trial balance agree as a result of which concept?

A consistency concept
B double entry concept
Cc matching concept

D prudence concept

ll The delivery cost of goods to customers by a trader is recorded in her books as

A carriage inwards debited to Profit and Loss account.
B carriage inwards debited to Trading account.

Cc carriage outwards debited to Profit and Loss account.
D carriage outwards debited to Trading account.

12 On | January 2017 a trader obtained a loan of $25 000 at an interest rate of 5% per annum.
During the year interest on loan paid was $250.

The interest on loan due on 31 December 2017 was

A $250.

B $1 000.
Cc $1 250.
D $1 500.

13 Bad debts are written off by

A crediting bad debts account, debiting provision for bad debts account.
B debiting bad debts account, crediting debtors’ account.
Cc debiting debtors’ account, crediting bad debts account.
D debiting provision for bad debts account, crediting bad debts account.
14 Office equipment bought for use in the business is
A capital expenditure added to capital in the Statement of Financial position.
B capital expenditure added to non-current assets in the Statement of Financial position.
c revenue expenditure added to operating expenses in the Income Statement.
D revenue expenditure added to purchases in the Trading account.

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On | January 2015 a trader had motor vehicles worth $50 000. Motor vehicles are depreciated
at 10% per annum using the reducing balance method.

What was the net book value of the motor vehicles on 31 December 2016?

A $5 000
B $9 500
Cc $40 500
D $45 000

What is the purpose of preparing control accounts?

A To calculate total debtors and total creditors.
B To calculate total sales and total purchases.
Cc To correct errors.

D To prevent fraud.

The amount deposited directly in a business bank account is a
A credit transfer.

B direct debit.

(Ci service fee.

D standing order.

A trader bought an office computer at a cost of $3 300. The following expenses were incurred:

$
Carriage costs 500.
Installation costs 100
Printing stationary 50

How much was debited in the office computer account?

A $3 400
B $3 800
€ $3 900
D $3 950

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Which of the following transactions reduces working capital?

A additional cash capital

B buying goods on credit for resale
Cc buying motor vehicles by cheque
D receiving long term loan

The following method can be used to calculate net profit.

A closing capital — opening capital — drawings
B closing capital — opening capital + drawings
€ opening capital — closing capital — drawings
D opening capital + closing capital — drawings

Regular amounts received by a Not for profit making organisation from members are

A donations.

B entrance fees.

Cc life membership fees.
D subscriptions.

What is the main purpose of preparing departmental trading accounts?

A to apportion operating expenses

B to calculate gross profit or loss for each department
(C to calculate net profit or loss for each department
D to show the financial position of each department

A cash book had an opening debit balance of $1 100. The following information was available

$
Dividends 3 500
Dishonoured cheques 200
Bank charges 50

What was the balance as per updated cash book?

A $2 650 ,
B $4 350
Cc $4 450
D $4 750

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ANA

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24 Cost of production is calculated as

A cost of raw materials consumed + direct costs + indirect costs.
B cost of raw materials consumed + direct costs — indirect costs.
Cc cost of raw materials consumed — direct costs + indirect costs.
D cost of raw materials consumed — direct costs — indirect costs.

25 The following details were obtained from the books of a trader.

2017 $

January | Purchases ledger control 6 800 credit

January 31 Credit purchases 28 400
Discount received 3 200
Cheques paid to creditors 19 700

The amount owed to creditors on 31 January 2017 was

A $1 300.
B $5 100.
Cc $12 300.
D $18 700.

26 The double entry for a partner's salary is

debit credit
A Appropriation account Current account.
B Current account Appropriation account.
Cc Current account Profit and loss account.
D Profit and loss account Current account.

27 Debenture holders

are owners of the company.
are paid after shareholders.
eam a fixed rate of dividend.
earn a fixed rate of interest.

GOW

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AAA CTE ALAC TERA

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28 A company manager prepares monthly reports timeously as per company policy.

Which business ethic is being observed?

A
B
Cc
D

compliance
confidentiality
integrity
objectivity

29 A business provided the following information.

$
Cash in hand 9 700
Trade payables 3 000
Trade receivables 4400
Inventory 2 000

The working capital was

A
B
Cc
D

$10 300.
$13 100.
$16 100.
$19 100.

30 Which of the following is an asset?

A
B
Cc
D

Credit balance in a Bank account.
Credit balance in a Creditor's account.
Debit balance in a Debtor's account.
Debit balance in a Drawings account.

31 A sale of goods for $500 was recorded in the books as $50.

Which error is this?

San>

A

compensating error
complete reversal of entries
error of commission

error of original entry

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32 Credit notes issued by a business will be recorded in the

A purchases journal.

B returns inwards journal.
C returns outwards journal.
D sales journal.

33 A trader provided the following information:

$

Capital: 1 January 2017 15 400

31 December 2017 13 300
Net profit for the year 1 900
Additional capital 600
Drawings amounted to
A $2 100.
B $3 400.
(G $4 000.
D $4 600.

34 Individual entries in the sales day book are posted to the

A credit side of the individual Debtors account.
B credit side of the Sales account.
Cc debit side of the individual Debtors account.
D debit side of the Sales account.

35 A cash payment to a creditor was credited to the Cash account only.

To correct this error

debit credit
A Cash account Suspense account.
B Creditor's account Suspense account.
Cc Suspense account Cash account.
D Suspense account Creditor's account.
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PTAA CUA ECA A

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