ZIMBABWE SCHOOL EXAMINATIONS COUNCIL <br> General Certificate of Education Ordinary Level
**PRINCIPLES OF ACCOUNTING PAPER 1 Multiple Choice**
NOVEMBER 2019 SESSION
1 hour 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, \(\mathbf{A}, \mathbf{B}, \mathbf{C}\) and \(\mathbf{D}\). 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.
Copyright: Zimbabwe School Examinations Council, N2019.
©ZIMSEC N2019
Question 1
A sole proprietorship is a business which is
A managed by a board of directors.
B managed by a selected committee.
C owned and managed by one person.
D owned by two to twenty people.
Question 2
Which of the following is the correct sequence of the accounting cycle?
A ledger ⟶ subsidiary books ⟶ trial balance ⟶ final accounts
B subsidiary books ⟶ ledger ⟶ trial balance ⟶ final accounts
C subsidiary books ⟶ trial balance ⟶ ledger ⟶ final accounts
D trial balance ⟶ ledger ⟶ subsidiary books ⟶ final accounts
Question 3
Which document contains details of purchases, returns and payments which occurred in a month?
A credit note
B debit note
C invoice
D statement
Question 4
The part of the central processing unit that manages data processing in a computer is known as
A hardware.
B keyboard.
C mouse.
D Software
Question 5
Trade discount is offered in order to
A encourage bulk buying.
B encourage prompt payment.
C increase customer's profit.
D reduce trader's profit.
Question 6
Which subsidiary book is part of the double entry system?
A general journal
B petty cash book
C purchases returns book
D sales journal
Question 7
Which item is recorded in the general journal?
A assets brought into the business by the owner
B cash taken by the owner for personal use
C goods returned to supplier
D inventory sold on credit
Question 8
A business made the following payments.
| | \(\$\) | | :--- | ---: | | Roof repairs | 2100 | | Purchase of computers | 5000 | | Carriage costs on computers | 400 | | Replacement tyre for van | 100 | | Installation costs of computers | 300 |
What was the total capital expenditure?
A \(\$ 2200\)
B \(\$ 2900\)
C \(\$ 5700\)
D \(\$ 7100\)
Question 9
Which of the following items is revenue expenditure?
A cost of installing a new non-current asset
B cost of maintaining a non-current asset
C legal costs for purchase of non-current asset
D purchase of new non-current asset
Question 10
Control accounts are found in the
A general ledger.
B private ledger.
C purchases ledger.
D sales ledger.
Question 11
Which of the following transactions has an effect on capital?
A cash payment of \(\$ 2500\) to trade payables
B purchase of motor vehicle for \(\$ 10000\) by cheque
C receipt of \(\$ 1400\) cheque from trade receivables
D sale of inventory at a profit of \(\$ 200\)
Question 12
Which of the following is a desirable quality in a bookkeeper?
A dishonesty
B faithlessness
C integrity
D subjectivity
Question 13
Control accounts are prepared in order to
A check on the work of accounts clerks.
B correct errors.
C prevent fraud.
D reduce trade receivables and trade payables.
Question 14
Which is the correct entry for carriage on sales in the final accounts?
A credit profit and loss account
B credit trading account
C debit profit and loss account
D debit trading account
Question 15
A cash book had a debit balance of \(\$ 2900\). The bank statement showed the following:
Bank charges 150
Standing order: Zesa 700
Credit transfer: Farai 1400
Dishonoured cheques 350
The updated cash book balance was
A \(\$ 3100\) credit.
B \(\$ 3100\) debit.
C \(\$ 3800\) credit.
D \(\$ 3800\) debit.
Question 16
Which is a current asset?
A interest earned accrued
B interest on loan accrued
C rent received in advance
D rent payable due
Question 17
A business always depreciates its motor vehicles using the reducing balance method.
Which accounting principle is being applied?
A consistency
B double entry
C going concern
D prudence
Question 18
A sales returns journal has been overcast.
The journal entry needed to correct this error is
| | debit | credit | | :--- | :--- | :--- | | A | returns inwards account | suspense account. | | B | returns outwards account | suspense account. | | C | suspense account | returns inwards account. | | D | suspense account | returns outwards account |
Question 19
Fadzai owed Chido \(\$ 700\) on 1 June 2016. The following transactions took place during the month.
- Fadzai bought goods on credit valued at \(\$ 2600\) from Chido.
- Fadzai paid \(\$ 1900\) by cheque to Chido.
The balance in Fadzai's account on 30 June 2016 was
A \(\$ 100\) credit.
B \(\$ 100\) debit.
C \(\$ 1400\) credit.
D \(\$ 1400\) debit.
Question 20
Which is an error of omission?
A cash account balance omitted from the trial balance
B cash received from the sale of machinery not entered in the books
C cash received from the sale of machinery entered in the cash book only
D cash received from the sale of machinery entered in the machinery disposal account only
Question 21
A debit balance in a stationery account at the end of a financial period represents
A inventory of unused stationery.
B stationery bought on credit.
C stationery returned to supplier.
D value of stationery used.
Question 22
The receipts and payments account of a club shows
A amounts owed by the club.
B cash and bank balances.
C the excess of income over expenditure.
D trade receivables of the club.
Question 23
Amanda charges a tenant an annual rent of \(\$ 7200\). On 1 January 2016 the tenant owed \(\$ 1800\). On 31 December 2016 the tenant prepaid \(\$ 800\).
The total amount received for rent by Amanda during the year was
A \(\$ 6200\).
B \(\$ 7200\).
C \(\$ 8200\).
D \(\$ 9800\).
Question 24
In the accounts of a manufacturer, machinery maintenance costs are
A direct costs.
B direct materials costs.
C distribution costs.
D factory overhead costs.
Question 25
A manufacturer provided the following information on 31 December 2016.
| | \(\$\) | | :--- | :---: | | Cost of raw materials consumed | 170000 | | Prime cost | 300000 | | Total factory overheads | 113000 |
The production cost amounted to
A \(\$ 293000\).
B \(\$ 357000\).
C \(\$ 413000\).
D \(\$ 583000\).