ZIMSEC O-Level Principles of Accounts Paper 1 June 2019 Question Paper

About this question paper

This is the ZIMSEC O-Level Principles of Accounts question paper for Paper 1 from June 2019. Use it for exam practice under timed conditions, then check your work against the marking scheme. The paper code is 4051/1. Time allowed: 1 hour 30 minutes. See the marking scheme.

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Extracted text

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

**PRINCIPLES OF ACCOUNTING**<br>**4051/1**<br>**PAPER 1 Multiple Choice**

**JUNE 2019 SESSION**<br>1 hour 30 minutes

Additional materials:<br>Multiple Choice answer sheet<br>Soft clean eraser<br>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 \(\mathbf{1 6}\) printed pages.**

Copyright: Zimbabwe School Examinations Council, J2019.

## Question 1
One of the advantages of sole proprietorship is that

A chances of business growth are limited.

B decision making is fast.

C owner bears all losses.

D owner has unlimited liability.

## Question 2
Which part of a computer manipulates accounting data?

A central processing unit

B keyboard

C mouse

D visual display unit

## Question 3
In a manufacturing business, which item is a direct cost?

A depreciation of plant

B factory power

C hire of special plant

D lubricant oil

## Question 4
The balances of the carriage inwards and carriage outwards accounts are shown in the trial balance as

A credit carriage inwards, credit carriage outwards.

B credit carriage inwards, debit carriage outwards.

C debit carriage inwards, credit carriage outwards.

D debit carriage inwards, debit carriage outwards.

## Question 5
A capital account.

B drawings account.

C purchases account.

D sales account.

## Question 6
Which items are debited to the sales ledger control account?

A cash refunds and dishonoured cheques

B credit sales and bad debts

C interest on overdue accounts and set off

D returns inwards and cash received

## Question 7
Which of the following items is capital expenditure?

A carriage costs of purchases

B cash paid for insuring delivery vans

C legal costs for debt collection

D payment for new alarm system for vehicle

## Question 8
Goods sold to Hilda were debited to Hilda's account and credited to the sales account.

Which accounting concept was applied?

A consistency

B double entry

C going concern

D prudence

## Question 9
Given:

|  | \($\) |
| :--- | ---: |
| Purchase of delivery van, cost | 11500 |
| Import duty on delivery van | 500 |
| Rear view mirror repairs | 750 |
| Legal costs of changing ownership | 1400 |

The amount debited to the delivery van account is

A \($ 11500\).

B \($ 12900\).

C \($ 13400\).

D \($ 14150\).

## Question 10
Which of the following is debited to the updated cash book?

A credit transfer

B dishonoured cheques

C interest on overdraft

D ledger fees

## Question 11
What is the source document for the sales returns day book?

A bank statement

B credit note

C debit note

D sales invoice

## Question 12
A decrease in the provision for bad debts is recorded as

> debit

A bad debts account credit

B profit and loss account provision for bad debts account.

C provision for bad debts account bad debts account. bad debts account.

D provision for bad debts account profit and loss account

## Question 13
A hair salon provided the following information:

|  | \($\) |
| :--- | ---: |
| Opening inventory | 15000 |
| Closing inventory | 6500 |
| Purchases | 65000 |
| Gross profit | 50000 |
| Returns outwards | 3500 |

The turnover was

A \($ 116000\).

B \($ 120000\).

C \($ 123000\).

D \($ 140000\).

## Question 14
In partnership accounts, a partner's salary due is a

A credit in the current account.

B credit in the profit and loss account.

C debit in the current account.

D debit in the profit and loss account.

## Question 15
Which item appears as a debit entry in a partner's current account?

A interest on capital

B partner's commission

C partner's salary

D share of loss

## Question 16
A club's subscriptions account had a credit balance at the end of a financial year.

In which section of a statement of financial position is this balance recorded?

A current assets

B current liabilities

C non-current assets

D non-current liabilities

## Question 17
A creditor was paid by cheque after the preparation of the statement of financial position.

What is the effect of this transaction on the bank account and trade payable account?

## bank

A decrease

B decrease

C increase

D increase

## trade payable

decrease

increase

decrease

increase

## Question 18
Goods returned to Tanaka, the supplier, worth \($ 350\) were debited to both Tanaka's account and the returns outwards account.

The journal entry to correct the error is

debit

A returns outwards account \($ 350\)

B returns outwards account \($ 700\)

C suspense account \($ 700\)

D Tanaka account \($ 350\)

credit

Tanaka account \($ 350\). suspense account \($ 700\).

returns outwards account \($ 700\).

returns outwards account \($ 350\).

## Question 19
What shows that the business of a sole trader is solvent?

A credit balance in a capital account

B credit balance in a profit and loss account

C debit balance in a capital account

D debit balance in a profit and loss account

## Question 20
Which of the following part of the accounting cycle is correct?

A ledger ⟶ subsidiary books ⟶ final accounts

B source documents ⟶ subsidiary books ⟶ ledger

C subsidiary books ⟶ trial balance ⟶ final accounts

D subsidiary books → trial balance ⟶ ledger

## …