ZIMBABWE SCHOOL EXAMINATIONS COUNCIL <br> General Certificate of Education Ordinary Level
**PRINCIPLES OF ACCOUNTING**
**PAPER 1 Multiple Choice**
JUNE 2020 SESSION
Additional materials: Multiple Choice answer sheet Soft clean eraser Soft pencil (type B or HB is recommended) Mathematical tables/ Electronic calculator (optional)
4051/1
1 hour 30 minutes
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.
This question paper consists of **14** printed pages and **2** blank pages. Copyright: Zimbabwe School Examinations Council, J2020.
Question 1
A decrease in the provision for bad debts is recorded as a
A credit in the bad debts account.
B credit in the provision for bad debts account.
C debit in the profit and loss account.
D debit in the provision for bad debts account.
Question 2
The purpose of bookkeeping is to
A interpret the double entry records.
B prepare financial statements at regular intervals.
C record all the financial transactions of a business.
D summarise the financial position of a business.
Question 3
One of the advantages of partnerships is that
A decision making is fast.
B more capital is raised.
C partners have unlimited liability.
D profits are shared.
Question 4
Which component of a computer stores accounting information?
A central processing unit
B keyboard
C printer
D visual display unit
Question 5
Which item appears in a purchases ledger control account?
A bad debts
B discount allowed
C returns inwards
D returns outwards
Question 6
Which source document is used to record goods sold on credit?
A credit note
B debit note
C invoice
D voucher
Question 7
Shop fittings bought on credit for $24000 are first entered in the
A cash book.
B general journal.
C purchases journal.
D purchases ledger.
Question 8
On 1 July 2016 Makaya received an invoice of $32000 less 10% trade discount and 2% cash discount if paid within ten days.
The amount paid by Makaya on 8 July 2016 was
A $28160.
B $28224.
C $28800.
D $31360.
Question 9
A business decides to write off Mvundla's debt of $500.
Which journal entry records this?
| | Debit | Credit | | :--- | :--- | :--- | | A | bad debts account | Mvundla account | | B | bad debts account | provision for bad debts account | | C | Mvundla account | bad debts account | | D | provision for bad debts account | bad debts account |
Question 10
The following account was taken from a trader's ledger.
Tinashe account
| 2016 | Dr $ | Cr $ | Balance $ | | :--- | :--- | :--- | :--- | | Oct. 1 Balance b/d | 1500 | | | | 9 Sales | 200 | | | | 18 Interest | 300 | | | | 26 Bank | | 1000 | | | 29 Cash refund | | 500 | | | 30 Sales returns | | | 700 Dr |
Question 11
The total of the sales returns journal is posted to the
A credit side of the returns inwards account.
B credit side of the returns outwards account.
C debit side of the returns inwards account.
D debit side of the returns outwards account.
Question 12
Traders offer trade discount to customers to
A encourage bulk buying.
B encourage prompt payment.
C increase the customer's profit.
D reduce the trader's profit.
Question 13
Nominal accounts are for
A assets and liabilities.
B customers and suppliers.
C expenses and liabilities.
D income and expenses.
Question 14
The double entry for recording goods returned to O. Phiri a supplier is
| | Debit | Credit | | :--- | :--- | :--- | | A | O. Phiri account | purchases account | | B | O. Phiri account | returns outwards account | | C | purchases account | O. Phiri account | | D | returns outwards account | O. Phiri account |
Question 15
A trial balance is prepared in order to
A calculate gross profit.
B find out the amount owed by debtors.
C check the arithmetical accuracy of the ledger.
D correct errors in the ledger accounts.
Question 16
A trader provided the following information:
| | $ | | :---: | :---: | | Cash book balance | 7800 debit | | Uncleared deposits | 4400 | | Unpresented cheques | 1200 |
The balance as per bank statement was
A $4600 credit.
B $4600 debit.
C $11000 credit.
D $11000 debit.
Question 17
The sale of machinery for $3000 is entered in the sales account.
This is an error of
A commission.
B complete reversal of entries.
C original entry.
D principle.
Question 18
The following information was given on 31 December 2016.
| | $ | | :--- | ---: | | Sales | 40000 | | Returns inwards | 1500 | | Carriage on sales | 10000 |
Turnover amounted to
A $28500.
B $31500.
C $38500.
D $48500.
Question 19
A trader received a five year loan of $10000 from the bank.
The effect of this transaction is to
A increase current liabilities.
B increase non-current liabilities.
C reduce current liabilities.
D reduce non-current liabilities.
Question 20
What does a credit balance in a partner's account represent?
A bank overdraft
B overdrawn profits
C undrawn profits
D unpaid salary
Question 21
Which error is revealed by a trial balance?
A capital expenditure treated as revenue expenditure
B complete omission of a transaction
C incorrect amount entered both as a debit and a credit
D overcast sales day book total
Question 22
Which item would appear in the appropriation account of a partnership?
A interest on capital
B interest on debentures
C interest on loan
D interest on overdraft
Question 23
Which set of items contains accounting concepts only?
A competence, consistency
B double entry, integrity
C professionalism, going concern
D prudence, historical cost
Question 24
Given:
| | $ | | :--- | ---: | | Prime cost | 183000 | | Factory overheads | 11000 | | Work in progress, 1 January 2016 | 3500 | | Work in progress, 31 December 2016 | 1200 |
What is the cost of production?
A $194000
B $196300
C $197500
D $198700
Question 25
A loss on the disposal of an asset is debited to the
A asset account.
B asset disposal account.
C profit and loss account.
D provision for depreciation account.
Question 26
A business provided the following information on 31 December 2016.
| Trade receivables | $12000 | | :--- | ---: | | Provision for bad debts | 5% | | Provision for discount allowed | 2% |
The provision for discount allowed on 31 December 2016 was
A $228.
B $240.
C $600.
D $840.
Question 27
If total liabilities exceed total assets the business is
A bankrupt.
B liquid.
C profitable.