ZIMSEC O-Level Principles of Accounts Paper 1 June 2018 Question Paper

About this question paper

This is the ZIMSEC O-Level Principles of Accounts question paper for Paper 1 from June 2018. Use it for exam practice under timed conditions. The paper code is 7112/1. Time allowed: 1 hour 30 minutes.

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Extracted text

# ZIMBABWE SCHOOL EXAMINATIONS COUNCIL <br> General Certificate of Education Ordinary Level

**PRINCIPLES OF ACCOUNTS <br> PAPER 1 Multiple Choice**

JUNE 2018 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, 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 School Examinations Council, J2018

## Question 1
Which user of accounting information analyses financial statements before lending money to a business?

A bank

B debtor

C investor

D manager

## Question 2
One of the disadvantages of partnerships is that

A better decisions are made.

B liability of the partners is unlimited.

C losses are shared among the partners.

D more capital can be used.

## Question 3
Which component of a computer manipulates and stores accounting information?

A central processing unit

B keyboard

C printer

D visual display unit

## Question 4
Which of the following transactions is recorded in the general journal?

A cheques issued for buying stationery

B credit purchase of inventory

C depreciation on office equipment

D goods returned to a supplier

## Question 5
A debit balance in a purchases ledger control account indicates that the business has

A overpaid some suppliers.

B been paid by suppliers.

C not yet paid some suppliers.

D not balanced the account correctly.

## Question 6
What is meant by the error of original entry?

A transaction not recorded

B transaction recorded once

C wrong amount recorded in the subsidiary book

D wrong personal account used

## Question 7
One of the disadvantages of manual data processing is that

A it is less flexible.

B fraud is more difficult to discover.

C up to date information is made available faster.

D chances of arithmetical errors being made are high.

## Question 8
The sales ledger contains

A personal accounts of creditors.

B personal accounts of debtors.

C the sales account.

D the sales returns account.

## Question 9
A trader provided the following information

|  | $ |
| :--- | ---: |
| Purchase cost of machinery | 160300 |
| Transport cost of machinery | 17300 |
| Installation cost of machinery | 14500 |

How much was debited to the machinery account?

A $160300

B $174800

C $177600

D $192100

## Question 10
Which of the following is a reason for a cheque to be dishonoured?

A The drawer's account has an overdraft.

B The drawer has not been declared insolvent.

C The drawer has stopped payment.

D The drawer has signed alterations on the cheque.

## Question 11
Why would a supplier give trade discount to a trader?

A to enable the trader to make profit

B to help the trader manage debts

C to increase the amount owed by the trader

D to reduce the expenses of the trader

## Question 12
What document is sent by a supplier to a buyer to correct an undercast on an invoice?

A credit note

B debit note

C purchases invoice

D sales invoice

## Question 13
Which of the following is a capital receipt?

A commission earned

B dividends earned from investments

C interest received from debtors

D proceeds from the sale of machinery

## Question 14
On 3 June 2014 Tatenda bought goods on credit from Shuvai, list price $8000 less 15% trade discount.

On 7 June 2014 she returned goods with a net value of $700 to Shuvai.
On making payment on 15 June 2014 she was offered a cash discount of 5%.

How much did Tatenda pay?

A $5795

B $6100

C $6460

D $7125

## Question 15
Which item is not entered in a debtors ledger control account?

A contra entries

B dishonoured cheques

C provision for bad debts

D cash received from debtors

## Question 16
A bank overdraft differs from a bank loan in that

A collateral security is required.

B interest paid on it is high.

C it is repaid over a long period of time.

D it is given to current account holders only.

## Question 17
Subscriptions received in advance are recorded in the statement of financial position as a

A current asset.

B current liability.

C non-current asset.

D non-current liability.

## Question 18
A business provided the following information.

| Cash book bank balance | $ |
| :--- | :--- |
| Credit transfer not entered in the cash book | 2400 debit |
|  | 1650 |

A cheque payment of $4600 was wrongly entered in the cash book as $6400.

What was the updated cash book balance?

A $2250 credit

B $2250 debit

C $5850 credit

D $5850 debit

## Question 19
Dishonoured cheques are recorded on the

A credit side of the bank statement.

B credit side of the debtor's account.

C debit side of the bank statement.

D debit side of the cash book.

## Question 20
On 31 December 2013 the trial balance of a trader failed to balance. The credits exceeded the debits by $300.

The difference should be

A debited to the Suspense Account.

B credited to the Suspense Account.

C debited to the Profit and Loss Account.

D credited to the Profit and Loss Account.

## Question 21
Cash received from the sale of a motor vehicle is credited to the

A cash discount.

B motor vehicle account.

C motor vehicle disposal account.

D sales account.

## Question 22
A motor vehicle was purchased at a cost of $35000 on 1 January 2014. It was depreciated at 25% per annum on …