ZIMBABWE SCHOOL EXAMINATIONS COUNCIL General Certificate of Education Ordinary Level PRINCIPLES OF ACCOUNTING 4051/1 PAPER | Multiple Choice JUNE 2023 SESSION 1 hour 30 minutes Additional materials: Multiple Choice answer sheet Soft clean eraser Soft pencil (type B or HB is recommended) TIME | hour 30 minutes INSTRUCTIONS TO CANDIDATES Do not open this baoklet 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 Schoo! Examinations Council, 12023. \ ezmasee 02s (Turn over _/A business organisation that raises capital by issuing shares is a limited company. not for profit making organisation. partnership. sole proprietor. vou> Which is the first stage of the accounting cycle? A ledger B source documents c subsidiary books D transactions Manual processing of data A ischeap. B is flexible, c is more accurate. D processes data fast. Nomsa and Norman are in an equal partnership. Norman was entitled to a monthly salary of $2 000, Their annual net trading profit was $20 000. Nomsa's annual share of profit or loss was A $2,000 loss. B $2,000 profit. C $9000 loss. D $9 000 profit. Which source document matches with the subsidiary book? A Debit note - Purchase Journal B Credit note - Sales Journal Cc Invoice - General Journal D Receipt - Petty Cash Book The imprest system is associated with which subsidiary book? A Cash book B Petty cash book Cc Purchases day book D__ Sales day book sos 2033 @) Zimsec 2027 Aprivate motor vehicle brought into the business by the proprietor is recorded as debit credit A Capital account Drawings account, B Capital account Motor vehicles account. C Drawings account Capital account. D Motor vehicles account Capital account. 8 When a Trial balance fails to agree, the difference is entered in a A bank account. B cash account. C current account. D suspense account. 9 The maximum share capital a company can raise is called A authorised share capital. B called up share capital. C issued share capital. D _ paid up share capital. 10 The following Bank Account appeared in the books of a trader. Bank Account 2017 $ 2017 $ January 7 Balance b/d 2500 January 5S Equipment 5.000 Sales 8.000 10 Wages 1500 What is the closing balance in the account? A $2500 B $4 000 Cc $6500 D —$10500 4051/1 2023, PIMC HANNE N NEL NMYNO MIAMI MM LH [Turn overuL Which accounting concept states that the business has no intention to close in the near future? A consistency B going concem C historical cost D prudence Which of the following is entered in the profit and loss account? A carriage inwards B carriage outwards c returns inwards D returns outwards A sale of goods for $500 to a debtor was credited to his account in error. The debtor's account should be corrected by a A credit entry of $500. B credit entry of $1 000. C debit entry of $500. D debit entry of $1 000, The accuracy of the Trade receivables ledger and the Trade payables ledger is checked by preparing a A Bank reconciliation statement. B Control account. c Trial balance. D Statement of affairs. Which of the following increases a favourable bank balance? A credit transfer B dishonoured cheque c direct debit D standing order 0311 nom ©) Zimsec 20216 17 18 19 20 Current ratio is expressed as A —Sumtenbasscls ‘current liabilities Sument liabilities current assets —totabasscis total liabilities fotalliabilities | total assets A statement of affairs is used to calculate A bank balance. B credit purchases C credit sales D opening capital. In a Not for profit making organisation, the purchase of sports equipment by cheque is shown in the A _ income and expenditure account and the statement of financial position. B receipts and payment account and the statement of financial position. C receipts and payments account only D__ statement of financial position only. Ina manufacturing business royalties are part of A B € D cost of raw materials. direct cost. indirect cost. trading cost. Drawings taken by a partner are A B c D debited to Appropriation account. debited to Current account, credited to Appropriation account. credited to Current account, ssi 12008 {Turn over21 22 23 24 Which of the following is part of shareholders’ funds? Authorised share capital. Interest on debenture. Loan capital. Retained profits, Same The following was taken from the books of a trader. 2017 $ May | Wages owing 6000 31 Wages paid by cheque 11 500 31 Wages paid in advance 1 600 The amount transferred to the Income Statement was A $3 900, B $7 100. c $15 900. D $19 100. An accounts clerk failed to account for petty cash of $75. Which business ethic was violated? A competence B compliance Cc confidentiality D objectivity Stationery bought for resale on credit is recorded in the > Cash book. B General Journal. c Purchases day book. D Sales Journal.25 26 27 28 29 On I January 2001 a trader bought a motor vehicle for $20 000. It was expected to be sold for $5 000 after 10 years. What was the accumulated depreciation for the motor vehicle on 31 December 2004 if the straight line method was used? A $1500 B $2000 C $6000 D $8000 Cash withdrawn from the bank for private use is recorded as debit credit A Bank account Cash account B Bank account Drawings account. C Cash account Bank account. D Drawings account Bank account. Goods bought by cheque are recorded in which subsidiary book? A Cash book B General Journal C Purchases day book D Sales Journal A decrease in provision for bad and doubtful debts is credited to the Profit and Loss account. credited to the Provision for bad and doubtful debts account, debited to the Debtor's account. debited to the Profit and Loss account. 2 pnw vhich of the following is a manufacturing indirect cost? hire of special plant ‘machine operator's wages patent fees supervisor's salary enw 0s) [Turn over3 32 Guwa manufacturing details for the year 2016 were: $ Cost of raw materials consumed 34.000 Direct costs 12.600. Factory overheads 7200 Opening inventory of work in progress 1.400 Closing inventory of work in progress 2200 The cost of production was A $50 200. B $53 000 C $54 600. D $57 400. Cash withdrawn from the bank for office use is recorded as debit credit A Bank account Cash account. B Bank account Drawings account. Cash account Bank account. D _ Drawings account Cash account. ABC Limited had the following share capital on 31 December 2017. Authorised Share capital 200000 8% Preference shares of $2 each 600000 Ordinary shares of $0,50 each Issued share capital 100 000 8% Preference shares of $2 each fully paid 500.000 Ordinary shares of $0,50 each ‘The amount of share capital to be included in the shareholders’ fund was $450 000. $600 000. $700 000. $700 000. one>> 4051/1 2023 ©) Zimsec 202334 35 A business provided the following information: $ Gross profit 2.000 Cost of sales 4000 Purchases 5000 Sales 6 500 Retums inwards 500 Find the gross profit mark up. A 308% B 33,3% C 40% D 50% The following information was obtained from a trader's books, 2017 September 1 Creditors’ balance 30 Cheque paid to creditors Retums outwards Creditors’ balance The credit purchases for the month were A $13 500. B $33 100. c $34 300, D $45 100, Ss 16 400 credit 39-700 600 10 400 credit Rates paid in advance of $100 were debited to the income statement. What was the effect on net profit? decreased by $100 decreased by $200 increased by $100 increased by $200 cam37 A club provided the following information: $ Subscriptions in arrears on | January 2016 750 Subscriptions received during the year 30 500 Subscriptions received in advance on 31 December 2016 2.000 The amount of subscriptions transferred to the Income and expenditure account on 31 December 2016 was A $27 750. B $29 250. C 831750. D —$33.250. A departmental store provided the following information: Clothing | Groceries [Cosmetics | Hardware it | department | department | department s s 5 $ Sales 300 250 230 220 Sales returns 50 60 70 40 Cost of sales 1s0 10 130 140 Which department has the lowest gross profit? A clothing department B _ cosmetics department C groceries department D hardware department The following doubled entry was completed in the books of L. White ‘Asset disposal account debited by $400 Income statement credited by $400 The above double entry means that the asset was sold for $400. the cost price of the asset was $400, there was a loss on disposal of $400. there was a profit on disposal of $400. A B c D esi ne (©) Zimsec 202339 40 uw The following account appeared in the books of a club. Subscriptions Account 2017 2017 $ January | Balance b/d January | Balance b/d 250 December 31 Income and Expenditure June 30 Bank 25 000 December 31 Balance c/d 25.250 The balance of $750 on 31 December 2017 was shown in the Statement of financial position under A current assets, B current liabilities. c on-current assets, D non-current liabilities. The following is an extract of a Trial balance as at 31 December 2016. DR CR $ $ Equipment at cost 40 000 Provision for depreciation (1 January 2016) 14.000 Equipment is depreciated at 25% per annum using the straight line method The accumulated depreciation transferred to the Statement of financial position on 31 December 2016 was A $10 000. B $14 000. c $20 500. D —_S24.000 eeZIMBABWE SCHOOL EXAMINATIONS COUNCIL General Certificate of Education Ordinary Level PRINCIPLES OF ACCOUNTING 4051/2 PAPER 2 JUNE 2023 SESSION 2 hours 30 minutes Additional materials: Answer paper Time: 2 hours 30 minutes INSTRUCTIONS TO CANDIDATES Write your name, centre number and candidate number on the answer paper provided. Answer alll questions. Write your answers on the separate answer paper provided All calculations must be shown adjacent to the answer. If you use more than one sheet of paper, fasten the sheets together. Calculators may be used. INFORMATION FOR CANDIDATES The number of marks is given in brackets [ ] at the end of each question or part question. Amounts used in this Question Paper are for calculation purposes only. ‘The businesses described in this paper are entirely fictitious. This question paper consists of 7 printed pages and 1 blank page. Copyright: Zimbabwe Schoo! Examinations Council, J2023. L jozissec J2023 [Turn oyer JONNNEINIYENTLAVHUAL ENGR SAA UEin the trading business and does not keep a full set of accounts. The M, Mel following is available for the year ended 31 March 2017. Cash Book 5 $s Balance (1 April 2016) 3300 | Payments totrade payables 30 000 Receipts from trade receivables 74000 | Purchase of motor vehicle 5 500 Sale of motor vehicle 750 | Rent 9.000 General expenses 2.900 Insurance 600 Wages 3.600 Drawings 20 000 Balance (31 March 2017) _6 650 78250 18250 The motor vehicle sold had a net book value of $1 000, Additional information: 1 April 2016 Inventory 6 600 Trade payables 4200 Motor vehicles 16 000 Trade receivables 14 200 Insurance prepaid = Loan (6%) 10 000 General expenses prepaid 100 Rent accrued 400 ‘Wages accrued 2 (a) (b) 31 March 2017 6 200 6 800 17 500 11 000 50 10 000 500 600 100 Calculate the capital on 1 April 2016. Prepare the Income Statement for the year ended 31 March 2017.2 The following balances were taken from the books of B. Ncube. Cosmetics Drugs $ Sales 12 000 18 000 Purchases 5.000 10.000 Inventory (1 January 2017) 2300 - Inventory (31 December 2017) 2100 3700 Sales retums - 250 Purchases returns 400 : Customs duty 670 Carriage inwards 3.000 Rent 1460 Drawings 4.600 Carriage inwards to be apportioned to cosmetics and drugs in proportion to gross purchases. (a) Prepare the Departmental Trading Account for the year ended 31 December 2017. [10] (b) The following information was available on 30 June 2018, from the partnerships books of Andrew and Chelsea after the preparation of the profit and loss appropriation account. 3 Capitals (1 July 2017) Andrew 80 000 Chelsea 50.000 Current accounts (I July 2017) Andrew 1.600 DR Chelsea 5200 CR Drawings Andrew 4.000 Chelsea 3.000 " Current assets 55 250 ‘Non-current assets 120.000 Current liabilities 14.000 Andrew Chelsea Share of profits 9.000 6.000 Interest on capital 8.000 5.000 Salary - 7.000 Interest on drawings 200 150 Prepare a statement of financial position as at 30 June 2018 showing ‘current accounts within the statement [10] sosi2 nex [Turn over ; vy3 (a) (b) © ee The following ratio workings relate to the business of A. Mati. on prt () — Saetgoods oud * 100% iy) Ex 100% jy Bator Gi) SEE 100% (vy) SR x 100% ‘Name the ratios above. (4) The following is a trading account of A. Mati for the year ended 31 December 2017. $ $s Inventory (1 January 2017) 30000 | Sales 132.000 Add Purchases 80.000 130 000 Less Inventory (31 December 2017) 60.000 Cost of sales 70 000 Gross profit 62.000 132.000 432.000 Calculate the ratios (i), (ii) and (iv) as in (a) above. [6] The following ledger account appeared in the books of G. Green, A. Mutasa 2018 s 2018 s Jun 3 Bank (ii) 4000 June 1 Balance b/d (i) 4200 Discount (ii) 200 10 Purchases (iv) 12.000 12. Retums (v) 1500 18 Cash (vi) 8.000 30. Balance c/d 2500 16.200 16.250 2018 July 1 Balance b/d 2.500 sia 023 } ) Zi 2023 © imsec |(i) Write the transaction or information represented by each of the entries (i) to (vi) above. (6) (ii) In which ledger would you find A. Mutasa’s account? w (iii) What name is given to the discount on 3 June 2018? ra (iv) For what reason is the discount on 3 June 2018 given? ia {v) Under which sub-heading in the statement of financial position would you find A. Mutasa's balance on June 2018? fi) Portia prepared a trial balance at 30 June 2018 which balanced. A draft Income Statement was then prepared and the net profit for the year was $9 000. The following errors were later discovered. (i) A sale of goods to C. Chauke $180 had been entered in the books as $108. (ii) Cash deposited $210 had been debited to the cash account and credited to the bank account. (iii) An invoice from Philips Insurance company for insurance $80 had not been recorded in the books. (iv) A sale of office equipment $2 000 had been recorded in the sales account. (vy) Purchases of goods $400 from Makro Wholesalers had been credited to the Purchases account and debited to Makro Wholesalers. (a) Prepare journal entries to correct the above errors (narrations are not required). [10] (b) Calculate the revised net profit for the year, following the correction of the errors above. (51(c) State the effect (increase or decrease) of each the following transactions on working capital If there is none, write "no effect” Transaction Effect () Goods taken by the owner for personal use. (ii) Payment by cheque to trade payables. Gi Goods sold on credit at cost price. (i) Purchase of equipment by cheque. owner. (v) Cash introduced into the business by the 65] (a) The following is a cashbook (bank columns only) and a Bank Statement of P. Mwase for July 2018. Date Details F S_| Date Details FF $s 2018 2018 July 1 Balance b/d 600 | July2 Electricity 63 $50 ' 6 ~~ Neube 1200 4 17 Shumba 64 1.400 | 13 Cash 800' 20 = Cash 65 200 18 Nyarai 2200 22 George 66 700 24 Johns 550' 26 Dube 460 28 Cash 120 31 Balance cid 2.160 2400 1.470 Aug 1 Balanceb/d 2160 ssi. 32003 Zimsec 2023 (oOBank Statement Date Details Dr Cr Balance 2018 July | Balance b/d 900 Cr 2 Cheque No 62 300 600 3 Cheque No 63 550 50 7 Neube 1200 1250 13 Cash Deposit 800 2050 7 Stop Order: Insurance 130 1920 18 Credit transfer: Nyathi 700 2620 18 Cheque No 64 1400 1220 21 Cheque No 65 200 1020 28 Cash deposit 120 1140 28 Bank charges 250 890 Prepare: (i) an updated cash book, (4] (i a Bank Reconciliation Statement as at 31 July 2018 (8) (b) A piece of equipment was purchased by Abdullah on 1 May 2016 for $4 000 and was sold on 31 January 2018 for $200. The straight line method of depreciation is at 20% per annum for each month of ownership. (Calculate depreciation for the equipment for years ended 30 April 2017 and 30 April 2018. 4] (ii) Prepare the Equipment Disposal Account, (4)