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UNIVERSITY OF CAMBRIDGE INTERNATIONAL EXAMINATIONS Standard Certificate of Education Advanced Subsidiary Level and Advanced Level

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May/June 2008 1 hour

ACCOUNTING Paper 1 Multiple Choice Added Materials: Multiple Choice Response Sheet Gentle clean eraser Soft pen (type M or HB is recommended)


READ THESE GUIDANCE FIRST Create in gentle pencil. Do not use worn, paper fasteners, highlighters, stuff or a static correction fluid. Create your name, Hub number and candidate number on the Response Sheet in the spaces provided unless this has been done for you personally. There are 25 questions with this paper. Response all questions. For each and every question you will find four feasible answers A, B, C and D. Choose the one particular you consider right and record your choice in soft pencil on the separate Answer Linen. Read the instructions on the Solution Sheet very carefully. Each right answer can score one mark. A mark are not deducted to get a wrong answer. Any rough working must be done in this report. Calculators can also be used.

This file consists of 11 printed pages and you blank page. IB08 06_9706_01/2RP В© UCLES 2008

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2 you When is it essential to distinguish between earnings and capital expenditure? A B C D a couple of when preparing cash budgets when preparing investment appraisal calculations while preparing profit and loss accounts when preparing buy ledger control accounts

Lease is paid by a business monthly before hand on the 1st day of each month. The payments in this financial year have been the following: – up to 1 June – from 1 September thereafter $500 per month $600 per month

Which amount(s) can look in the makes up about the year finished 31 August? profit and loss expense A B C Deb 3 $6400 $6400 $6400 $7000 "balance sheet" $600 prepayment $600 accrual -

The table provides information relating to the set assets of your business. money net publication value by the end of the season net publication value at the beginning of the year downgrading charge to get the year additions at expense during the year Precisely what is the net publication value of disposals in the past year? A $8000 B $11 000 C $18 1000 D $22 000 twenty-five 000 16 000 five 000 twenty two 000



a few 4 A trial stability at 40 June, before you make end of year changes, showed: charge $ transact debtors supply for uncertain debts 35 600 credit $ 1 160

At 30 Summer, it was chosen to write off a bad debt of $1600 and to help make it a dotacion for uncertain debts comparable to 2 % of trade debtors. The thing that was the total price in the earnings and reduction account for negative and uncertain debts for the year ended 30 June? A 5 $680 M $1120 C $2080 M $2280

A firm has two fixed resources. Details get in the stand. asset Back button Y date bought 1 Jan, 12 months 1 you Jan, Season 1 expense $ twelve 000 20 000 downgrading method straight line reducing balance lifestyle 5 years rate twenty % left over value $2000 nil

What is the depreciation charge intended for the year concluded 31 December, Year two? A 6 $4800 W $5200 C $5600 Deb $6000

Which transaction applies the complementing concept? A B C D a machine obtained on long term rental is roofed in set assets pc equipment is declined over 2 years a building is revalued following a along with property prices a waste-paper basket is treated because revenue expenses


The next debit harmony appears over a trial equilibrium after preparing the developing account for the season. loose equipment What is this item? A B C D a creditor to get loose equipment the gross annual charge pertaining to loose equipment a prepayment for loose tools inventory of loose tools $18 000

В© UCLES 2008


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4 almost 8 At the year-end a cash book displays a credit balance of $4800. The bank statement included bank costs of $25 which has not been included in the money book. Talon payments joined in the funds book prior to year end to the benefit of $250 had not yet cleared the bank. How will the bank stability be demonstrated in the "balance sheet"? $ A B C D on the lookout for current property...