ZIMSEC O-Level Principles of Accounts Paper 1 November 2021 Question Paper

About this question paper

This is the ZIMSEC O-Level Principles of Accounts question paper for Paper 1 from November 2021. Use it for exam practice under timed conditions. The paper code is 4051/1. 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 ACCOUNTING <br> PAPER 1 Multiple Choice**

4051/1

1 hour 30 minutes

NOVEMBER 2021 SESSION

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, N2021.

## Question 1
Identify the correct accounting equation.

A Assets + Capital = Liabilities

B Assets + Liabilities = Capital

C Capital - Liabilities = Assets

D Liabilities + Capital = Assets

## Question 2
Which of the following is part of the accounting cycle?

A Bank reconciliation statement

B Control Account

C Suspense Account

D Trial Balance

## Question 3
Which of the following is a computer output device?

A Central Processing Unit

B Keyboard

C Mouse

D Visual Display Unit

## Question 4
A manufacturer provided the following information:

|  | $ |
| :--- | ---: |
| Lubricant oils | 500 |
| Depreciation of delivery van | 1500 |
| Depreciation of plant | 2000 |
| Repairs to plant | 9000 |
| Patent fees | 1200 |

The total indirect costs were

A $11000.

B $11500.

C $12700.

D $14200.

## Question 5
The following are source documents and subsidiary books.
Which set is correct?

A Invoice and Cash book

B Invoice and Returns inwards journal

C Voucher and Petty cash book

D Voucher and Sales journal

## Question 6
The following information was taken from the partnership books of Chiedza and Sipho.

|  |  | $ |
| :--- | :--- | ---: |
| Net profit for the year |  | 75200 |
| Drawings: | Chiedza | 5000 |
|  | Sipho | 5700 |
| Interest on capital: | Chiedza | 2500 |
|  | Sipho | 1000 |

The balance of profit to be shared was

A $61000.

B $71700.

C $78700.

D $82400.

## Question 7
Entries for adjustment purposes are recorded in which subsidiary book?

A Cash Book

B General Journal

C Purchases Journal

D Sales day book

## Question 8
A trade payables ledger of a business contains

A creditors accounts.

B debtors accounts.

C purchases accounts.

D sales accounts.

## Question 9
A transaction was recorded in the correct accounts but on wrong sides.

This is an error of

A commission.

B complete reversal of entries.

C omission.

D original entry.

## Question 10
AXY Limited had the following balances.

|  | $ |
| :--- | ---: |
| Net profit for the year after debenture interest | 3000 |
| Transfer to general reserves | 500 |
| Dividend paid: ordinary shares | 300 |
| preference shares | 600 |
| Debenture interest | 400 |

What was the retained profit transferred to the Statement of Financial position?

| A | $1200 |
| :--- | :--- |
| B | $1600 |
| C | $1800 |
| D | $2200 |

## Question 11
Which accounting concept is applied when recording non-current assets?

A consistency

B historical cost

C matching

D prudence

## Question 12
Cost of goods sold is calculated as follows:

A opening stock + purchases - closing stock

B opening stock - purchases - closing stock

C purchases + returns inwards - closing stock

D purchases + closing stock - returns outwards

## Question 13
Depreciation is

A the amount spent replacing a non-current asset.

B the amount spent buying a non-current asset.

C the part of the cost of a non-current asset consumed during its period of use.

D the scrap value of a non-current asset.

## Question 14
A supplier allows a 10% trade discount and a 5% cash discount to traders. A trader bought goods worth $2000.

How much is she going to pay if she makes a prompt payment?

A $1700

B $1710

C $1800

D $1900

## Question 15
What is capital expenditure?

A Additional capital brought to the business by the proprietor.

B Money received from the sale of non-current assets.

C Money spent on buying non-current assets.

D Money spent on the day-to-day running of a business.

## Question 16
The source of information for contra items in both the debtors' and creditors' control accounts is the

A General journal.

B Sales journal.

C Trade payables ledger.

D Trade receivables ledger.

## Question 17
The following information was provided by a trader at the end of a financial period.

|  | $ |
| :--- | ---: |
| Trade receivables | 1000 |
| Provision for bad and doubtful debts | 200 |
| Provision for discount allowed | 100 |

The net trade receivables were

A $700.

B $800.

C $1100.

D $1300.

## Question 18
Which item is entered on the credit side of an updated Cashbook?

A Credit transfer

B Dividends received

C Interest received

D Standing order

## Question 19
Which transaction increases working capital?

A Buying stock by cheque.

B Cash drawings.

C Receiving cash from debtors.

D Selling a motor vehicle for cash.

## Question 20
A trader provided the following information:

| 2017 |  | $ |
| :--- | :--- | ---: |
| October 1 | Total trade receivables | 4300 |
| October 31 | Cheques received from debtors | 3100 |
|  | Bad debts written off | 600 |
|  | Credit sales | 18500 |

Trade receivables on 31 October 2017 were

A $10500.

B $17900.

C $19100.

D $20300.

## Question 21
In a Not for profit making organisation, profit made from trading activities is

A credited to the Income and expenditure account.

B …