O & A Level Accounting Online Lectures By Waseem Hassan Gul

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1 O & Level ccounting Online Lectures y Waseem Hassan Gul whg4gul@gmail.com : (For E. Mail & Text hat) whg4gul : (Skype: Voice all) : (Voice all) : (For Notes & Formats) This page is created to help O & Level ccounting students and solve their problems. Our mission is to provide O & Level ccounting Help to student who face problems in accounting, don't find an accurate solution or can't access some professional. You can mail me your problems or you can have text chat with me to discuss. In more interactive way, you can call me through Skype or on my ell, Of ourse help is totally free. For notes visit : (HELP OFFERE HERE IS TOTLLY FREE) You will find these helping notes on my website. 1. O-Level Handouts 2. O-Level ccounting Formats 3. O-Level omprehensive ccounting Notes 4. -Level ash Flow Statement 5. -Level Standard osting and Variance nalysis JOIN US ON FEOOK by liking our page.

2 MRIGE INTERNTIONL EXMINTIONS General ertificate of Education Ordinary Level PRINIPLES OF OUNTS 7110/1 PPER 1 Multiple hoice MY/JUNE SESSION hour 15 minutes dditional materials: Multiple hoice answer sheet Soft clean eraser Soft pencil (type or H is recommended) TIME 1 hour 15 minutes INSTRUTIONS TO NITES o not open this booklet until you are told to do so. Write your name, entre 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. nswer all questions. For each question there are four possible answers,,, and. hoose 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. INFORMTION FOR NITES Each correct answer will score one mark. mark will not be deducted for a wrong answer. ny rough working should be done in this booklet. alculators may be used. This question paper consists of 11 printed pages and 1 blank page. SP (KN) S23704/1 IE 2002 [Turn over

3 2 1 business bought a computer for the office and paid by cheque. How will the business record the transaction? debit credit ank account Office Equipment account Office Equipment account ank account ank account Purchases account Purchases account ank account 2 X buys goods on credit from Y. What is the name for the document used by X to settle the liability to Y? cheque credit note receipt statement of account 3 In which book of account is cash discount received first recorded? cash book purchases ledger sales journal sales ledger 4 X sells goods with a list price of $5000 to a credit customer. The customer is allowed a 5% trade discount and a further 2 1 / 2 % cash discount if payment is within 20 days of the invoice date. What amount should be credited to the Sales account of X? $4631 $4750 $4875 $5000

4 5 bank reconciliation statement starts with the cash book balance. 3 How are uncredited deposits and unpresented cheques shown in the bank reconciliation statement? uncredited unpresented deposits cheques added added added deducted deducted added deducted deducted 6 Which should be recorded in the general journal? debt written off as bad goods returned to supplier goods sold for cash trade discount allowed to customer 7 Which account could have a credit balance? bank carriage inwards carriage outwards cash 8 Y s account appears in the ledger of X as follows. $ $ Jan 1 alance b/d 100 Jan 10 ank 100 Jan 20 Sales 400 Jan 31 alance c/d Which statement is true? On 1 January Y was owed $100 by X. On 10 January Y paid $100 into the bank. On 20 January Y supplied goods $400 to X. On 31 January Y was a debtor of X for $400. [Turn over

5 9 bookkeeper recorded the receipt of a cheque for $245 in the cash book as $425. What kind of error was this? 4 commission omission original entry principle 10 business received $123 from X. The entry in the cash book was correct but it was debited as $132 in X s account. What is the difference between the totals of the trial balance? $9 $18 $255 $ Which item is capital income? cash received from the sale of office equipment cheque received from the sale of stock discounts received from trade creditors rent received from tenants 12 builder s charges for work on XY ompany s offices are as follows. $ repairing ceiling in existing office converting disused hut into office repainting walls in existing office How much should be entered in the XY ompany s Profit and Loss ccount? $3000 $5000 $7000 $12 000

6 5 13 business buys a delivery van for $ Its estimated useful life is four years, after which its scrap value is estimated to be $4000. epreciation is charged on the straight line basis. What is the annual amount of depreciation? $1000 $2000 $3000 $ Two companies each purchase a car for $ at the beginning of year 1. ompany G uses the straight line method of depreciation at a rate of 15 % per annum, while ompany H uses the reducing balance method at a rate of 20 % per annum. What will be the difference in the depreciation charge between the two companies for year 2? $100 greater for G $100 greater for H $500 greater for G $500 greater for H 15 t 31 ecember a firm s alance Sheet shows Machinery at cost Provision for epreciation of Machinery $ epreciation for the year is calculated at 20% on cost. fter the alance Sheet is prepared it is found that the machinery repairs costing $2000 have been debited to the Machinery account. What should be the corrected balance on the Provision for the epreciation of Machinery account? $ $ $ $ Susan owes a business $100. The business is not sure if Susan will pay. Which ledger entries should the business make? debit credit ad ebts account Susan s account Profit and Loss ccount ad ebts account Profit and Loss ccount Provision for oubtful ebts account Provision for oubtful ebts account Susan s account [Turn over

7 17 trader provides the following information relating to insurance. 6 $ prepayment brought forward at 1 January cheques paid for insurance in the year insurance prepaid at 31 ecember Which amount should be shown in the trader s Profit and Loss ccount for insurance for 2001? $6250 $6850 $7550 $ The difference on a trial balance is entered in a Suspense account. It is later found that the purchases journal has been undercast. Which ledger entries are required to correct the error? debit credit reditor s account Purchases account Purchases account reditor s account Purchases account Suspense account Suspense account Purchases account 19 trader s net profit was calculated at $ Later it was found that depreciation of $2000 had been omitted and that the rent payable included a prepayment of $750. What is the correct net profit? $ $ $ $ cheque received by X from a debtor is later dishonoured. How is this shown in X s control accounts? credit in Purchases Ledger ontrol account credit in Sales Ledger ontrol account debit in Purchases Ledger ontrol account debit in Sales Ledger ontrol account

8 7 21 Entries in control accounts are made from bank statements. books of original entry. ledger accounts. sales invoices. 22 X pays $ for the purchase of a business. The purchase price includes equipment worth $9000 and stock valued at $4000. X deposits $2000 of his own money into the business bank account. What is X s capital? $ $ $ $ Which error may cause an increase in the gross profit? closing stock under valued opening stock omitted from the cost of sales purchases recorded before deduction of trade discount sales invoices omitted from the sales journal 24 Which is a current asset? purchase ledger balances rent received in advance sales ledger balances wages accrued 25 How are fixed assets normally shown in a alance Sheet? at net book value at net realisable value at replacement cost at scrap value 26 business has working capital of $6000 at 31 January. On 2 February debtors pay $1150 in full settlement of debts $1200 and damaged stock costing $200 is written off. What is the working capital at close of business on 2 February? $4600 $5750 $6950 $7150 [Turn over

9 27 In the absence of a partnership agreement how should profits be shared? 8 equally equally after interest on partners capitals equally after interest on partners loans equally after interest on partners capitals and partners salaries 28 The owner of a business takes goods costing $6000 from his shop for his own use. What are the book keeping entries? debit credit rawings account $6000 Purchases account $6000 rawings account $6000 Stock account $6000 Purchases account $6000 rawings account $6000 Stock account $6000 rawings account $ trader accepts $500 from a debtor in full settlement of a debt of $650. What effect will this have on the owner s capital? increase it by $150 decrease it by $150 increase it by $500 decrease it by $ partner has to pay interest on drawings. What is the entry in the personal account of the partner? credit partner s apital account credit partner s urrent account debit partner s apital account debit partner s urrent account

10 31 How will interest on capital and share of profit appear in a partner s current account? 9 debit credit interest on capital share of profit interest on capital share of profit share of profit interest on capital interest on capital share of profit 32 The financial year of a drama club ends on 31 ecember. The club rents a theatre at an annual rent of $3600. On 1 January 2001 rent accrued amounted to $300. uring 2001 a total of $4500 rent was paid. How much will be shown for rent in the club s Receipts and Payments ccount for the year ended 31 ecember 2001? $3600 $3900 $4200 $ sports club includes the purchase of a new rowing machine costing $5000 in its Income and Expenditure account. What is the effect of this error? fixed assets surplus of income over expenditure decreased by $5000 decreased by $5000 decreased by $5000 no effect increased by $5000 increased by $5000 no effect decreased by $5000 [Turn over

11 10 34 The books of a business show the following. $ ebtors at 1 January ebtors at 31 ecember For the year ended 31 ecember: Receipts from debtors iscounts allowed ash sales What are the total sales for the year? $ $ $ $ What is a limited company s authorised capital? called up share capital capital the company is allowed to raise issued capital plus loan capital paid up share capital 36 What does prime cost in a Manufacturing ccount include? carriage inwards on raw materials carriage outwards factory power factory rent and rates

12 37 manufacturing firm s costs were as follows. 11 $ raw materials direct labour factory overheads depreciation of plant administration costs selling and distribution There was closing work-in-progress of $ What was the factory cost of production? $ $ $ $ Which ratio can be calculated from the details in a sole trader s alance Sheet? expenses to gross profit net profit to capital net profit to sales rate of stock turnover 39 X had a net profit of $40 000, which was 20% of sales. The cost of goods sold was 75% of sales. What was X s gross profit? $ $ $ $ Which accounting concept is a business following when it includes a provision for doubtful debts in its annual accounts? consistency matching prudence realisation

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14 O & Level ccounting Home Tuition Services Name Subject Experience Name Subject Experience Syed Waqar Haider Math 15 years Mohamad Majid Math 13 Years Waseem Hassan ccounting 12 Years Mohammad yub ISL/P. St 13 Years Mohammad Sheraz iz Studies 7 Years Mohammad English 12 Years Shahzad Mohammad brar Economics 12 Years Mohammd Physics 10 Years Nadeem r. Shahjahan hemistry 8 Years r. Shahjahan iology 8 Years ata till ecember 2012 Mohammad yub Urdu 13 Years ontact: (Lahore Only) Most of our teachers have over 10 years of teaching experience and are faculty members of famous Schools of Lahore. Some of us have international teaching experience like in U.K. & anada. Names of Schools are not mentioned for privacy reasons. These days quality education which is also affordable is a very big issue. To solve this issue, we (professional teachers) have come forward. We are striving to provide quality education at doorstep for O and Level. We are a group of professional teachers having experience of over one decade 10 years with excellent past results. Teaching is an art which not only focuses on solving the subject problem but it also includes making students learn the basics & improve their concepts. So in their exams, they don t only perform but perform well enough to get positions. If you want to hire services of our worthy and experienced teacher(s), please contact us. JOIN US ON FEOOK by liking our page.

CAMBRIDGE INTERNATIONAL EXAMINATIONS General Certificate of Education Advanced Subsidiary Level and Advanced Level ACCOUNTING

CAMBRIDGE INTERNATIONAL EXAMINATIONS General Certificate of Education Advanced Subsidiary Level and Advanced Level ACCOUNTING MRIGE INTERNTIONL EXMINTIONS General ertificate of Education dvanced Subsidiary Level and dvanced Level OUNTING 9706/01 Paper 1 Multiple hoice May/June 2003 dditional Materials: Multiple hoice nswer Sheet