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ZIMSEC O Level · 4051/2 · J2024

Principles of Accounting Paper 2 June 2024

Questions
50
Total marks
100
Syllabus code
4051/2

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Questions
50
Pass mark
30
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Answer every question in the printed order, get marked at the end, then see the answers.

The questions

Question 101

[2 marks]Manufacturing account and income statement
T. Zvinowanda's trial balance showed opening inventory of raw materials $30 600 at 1 January 2021, purchases of raw materials of $104 000 during the year, and closing inventory of raw materials of $33 000 at 31 December 2021. Calculate the cost of raw materials consumed for the year.

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Question 102

[2 marks]Manufacturing account and income statement
T. Zvinowanda's cost of raw materials consumed for the year was $101 600. Direct wages paid were $18 000, with a further $3 000 owing at the year end. Royalties of $10 000 were also paid, a direct cost. Calculate the prime cost for the year.

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Question 103

[1 marks]Manufacturing account and income statement
T. Zvinowanda's machinery cost $200 000 and is depreciated at 10% per annum on cost, a factory overhead. Calculate the depreciation charge on machinery for the year ended 31 December 2021.

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Question 104

[3 marks]Manufacturing account and income statement
T. Zvinowanda's prime cost for the year was $132 600. Factory overheads for the year were: factory supervisor's wages $9 000, rent apportioned to the factory (80% of $24 000) $19 200, and depreciation on machinery $20 000. Opening work in progress was $11 500 and closing work in progress was $12 400. Calculate the production cost of goods completed for the year.

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Question 105

[2 marks]Manufacturing account and income statement
T. Zvinowanda's rent for the year was $24 000, apportioned 80% to the factory and 20% to the office. Calculate the amount of rent charged as an office expense in the Income Statement.

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Question 106

[2 marks]Manufacturing account and income statement
T. Zvinowanda's delivery vans cost $120 000, with accumulated depreciation of $40 000 at 1 January 2021 (net book value $80 000). Delivery vans are depreciated at 15% per annum on the reducing balance. Calculate the depreciation charge on delivery vans for the year ended 31 December 2021.

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Question 107

[2 marks]Manufacturing account and income statement
T. Zvinowanda's sales of finished goods for the year were $260 000. Opening inventory of finished goods was $48 700, the production cost of goods completed during the year was $179 900, and closing inventory of finished goods was $50 300. Calculate the gross profit for the year.

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Question 108

[3 marks]Manufacturing account and income statement
T. Zvinowanda's gross profit for the year was $81 700. Discounts received were $6 000. Expenses for the year were: rent (office) $4 800, selling and distribution expenses $28 000, and depreciation on delivery vans $12 000. Calculate the net profit for the year.

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Question 109

[1 marks]Manufacturing account and income statement
In T. Zvinowanda's manufacturing account, Royalties of $10 000 (a payment for the right to use a patented manufacturing process) is treated as...
  1. Aa selling and distribution expense in the Income Statement.
  2. Ba deduction from sales in the Income Statement.
  3. Ca factory overhead, added after prime cost.
  4. Dpart of prime cost, alongside direct materials and direct wages.

Question 201

[2 marks]Personal ledger account and journal entries
On 1 October 2021, A. Mhazi owed P. Johns $10 000. On 5 October, A. Mhazi paid $9 600 cash in full settlement of this amount. Calculate the discount allowed to A. Mhazi.

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Question 202

[3 marks]Personal ledger account and journal entries
A. Mhazi's account in P. Johns' books opened with a balance of $10 000 owing on 1 October 2021. During October, P. Johns sold goods on credit to A. Mhazi for $35 000, sent a credit note for $5 200, received an office desk valued at $9 000 in part settlement, and received a cheque for $8 000, in addition to the $9 600 cash and $400 discount allowed on 5 October. Calculate A. Mhazi's closing balance owed to P. Johns at 31 October 2021.

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Question 203

[1 marks]Personal ledger account and journal entries
A. Mhazi is a customer who buys goods on credit from P. Johns. In which ledger would P. Johns keep A. Mhazi's account?
  1. AGeneral (Nominal) Ledger
  2. BPrivate Ledger
  3. CSales Ledger
  4. DPurchases Ledger

Question 204

[1 marks]Personal ledger account and journal entries
On 20 October 2021, A. Mhazi partly settled his account with P. Johns by transferring an office desk valued at $9 000, instead of paying cash. In P. Johns' books, this is recorded as...
  1. ADebit A. Mhazi $9 000, Credit Office Equipment $9 000.
  2. BDebit Purchases $9 000, Credit A. Mhazi $9 000.
  3. CDebit A. Mhazi $9 000, Credit Sales $9 000.
  4. DDebit Office Equipment $9 000, Credit A. Mhazi $9 000.

Question 205

[1 marks]Personal ledger account and journal entries
B. Smart took goods costing $2 000 from the business for personal use on 17 August 2019. Which account is debited to record this?

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Question 206

[1 marks]Personal ledger account and journal entries
An amount of $11 500 owed by D. Chimwe was written off as irrecoverable on 21 August 2019. Which account is debited to record this?

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Question 207

[1 marks]Personal ledger account and journal entries
B. Smart purchased office machinery on credit from Kadoma Machines for $8 000 on 10 August 2019. Which journal entry records this?
  1. ADebit Kadoma Machines $8 000, Credit Office Machinery $8 000.
  2. BDebit Purchases $8 000, Credit Kadoma Machines $8 000.
  3. CDebit Office Machinery $8 000, Credit Cash $8 000.
  4. DDebit Office Machinery $8 000, Credit Kadoma Machines $8 000.

Question 208

[1 marks]Personal ledger account and journal entries
On 30 August 2019, B. Smart bought goods on credit from OKAY Mart valued at $3 000. Which journal entry records this?
  1. ADebit Purchases $3 000, Credit OKAY Mart $3 000.
  2. BDebit OKAY Mart $3 000, Credit Purchases $3 000.
  3. CDebit Purchases $3 000, Credit Cash $3 000.
  4. DDebit Sales $3 000, Credit OKAY Mart $3 000.

Question 209

[1 marks]Personal ledger account and journal entries
Stationery bought for use valued at $180 was returned to Town Stationers on 28 August 2019. Which account is credited to record this return?

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Question 210

[1 marks]Personal ledger account and journal entries
In P. Johns' A. Mhazi account for October 2021, the discount allowed of $400 on 5 October is entered on...
  1. AThe debit side, since it reduces what Mhazi owes.
  2. BThe credit side, since it reduces what Mhazi owes.
  3. CThe debit side, since it is an expense to P. Johns paid in cash.
  4. DIt is not entered in Mhazi's personal account at all.

Question 301

[1 marks]Margin, mark-up, inventory turnover and partnership appropriation account
C. Dhliwayo's turnover for the year was $6 000 from selling 240 books. Calculate the selling price per book.

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Question 302

[2 marks]Margin, mark-up, inventory turnover and partnership appropriation account
C. Dhliwayo's mark up is 1/5 (20% on cost). Express this mark up as a margin (gross profit as a fraction of sales).

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Question 303

[2 marks]Margin, mark-up, inventory turnover and partnership appropriation account
C. Dhliwayo's turnover for the year was $6 000, and gross profit is calculated using a margin of 1/6 of sales. Calculate the gross profit for the year.

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Question 304

[2 marks]Margin, mark-up, inventory turnover and partnership appropriation account
C. Dhliwayo's turnover for the year was $6 000 and gross profit was $1 000. Calculate the cost of sales.

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Question 305

[2 marks]Margin, mark-up, inventory turnover and partnership appropriation account
C. Dhliwayo's cost of sales for the year was $5 000. Opening inventory was $2 250 and closing inventory was $1 750. Calculate purchases for the year.

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Question 306

[3 marks]Margin, mark-up, inventory turnover and partnership appropriation account
C. Dhliwayo's cost of sales for the year was $5 000. Opening inventory was $2 250 and closing inventory was $1 750. Calculate the rate of inventory turnover (in times), using average inventory.

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Question 307

[2 marks]Margin, mark-up, inventory turnover and partnership appropriation account
Dhlamini and Ndebele's partnership had a net profit of $8 150 for the year ended 31 May 2020 (gross profit $13 000 less expenses $4 850). Interest on drawings was Dhlamini $250 and Ndebele $350. Calculate the total after adding back interest on drawings.

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Question 308

[2 marks]Margin, mark-up, inventory turnover and partnership appropriation account
Dhlamini's capital was $20 000 and Ndebele's capital was $30 000, with interest on capital allowed at 10% per annum. Calculate the total interest on capital for both partners.

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Question 309

[2 marks]Margin, mark-up, inventory turnover and partnership appropriation account
Dhlamini is entitled to a monthly salary of $200. Calculate his annual salary.

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Question 310

[2 marks]Margin, mark-up, inventory turnover and partnership appropriation account
After interest on capital of $5 000 and Dhlamini's salary of $2 400 are deducted from a total of $8 750 (net profit plus interest on drawings), the remaining profit is shared between Dhlamini and Ndebele in the ratio 2:3. Calculate Ndebele's share of the remaining profit.

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Question 401

[2 marks]Receipts and payments account, statement of changes in equity, accounting cycle
Batanai Social Club had cash at bank of $11 500 on 1 January 2021. During the year, subscriptions received were $32 200 and donations received were $10 000. Calculate the total receipts for the Receipts and Payments Account (including the opening balance).

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Question 402

[3 marks]Receipts and payments account, statement of changes in equity, accounting cycle
Batanai Social Club's total receipts (including the $11 500 opening balance) for the year ended 31 December 2021 were $53 700. Payments during the year were: clubhouse repairs $5 500, caretaker's wages $6 200, general expenses $14 000 and purchase of equipment $25 000. Calculate the closing cash at bank balance at 31 December 2021.

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Question 403

[1 marks]Receipts and payments account, statement of changes in equity, accounting cycle
In Batanai Social Club's Receipts and Payments Account, the purchase of equipment for $25 000 is entered on...
  1. AThe payments (credit) side, since cash was paid out.
  2. BBoth sides, cancelling out.
  3. CThe receipts (debit) side, since equipment is an asset.
  4. DNeither side, since equipment purchases do not pass through a Receipts and Payments Account.

Question 404

[2 marks]Receipts and payments account, statement of changes in equity, accounting cycle
Ophir Ltd had 80 000 issued 10% Preference shares of $1 each. Calculate the preference dividend paid on 31 December 2020.

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Question 405

[2 marks]Receipts and payments account, statement of changes in equity, accounting cycle
Ophir Ltd had 200 000 issued Ordinary shares of $1 each. The directors paid an ordinary dividend of 8% on 31 December 2020. Calculate the total ordinary dividend paid.

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Question 406

[3 marks]Receipts and payments account, statement of changes in equity, accounting cycle
Ophir Ltd's Profit and Loss Account (retained earnings) balance was $40 000 at 1 January 2020. During the year, net profit of $84 000 was earned, $20 000 was transferred to general reserve, a preference dividend of $8 000 was paid and an ordinary dividend of $16 000 was paid. Calculate the retained earnings balance at 31 December 2020.

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Question 407

[2 marks]Receipts and payments account, statement of changes in equity, accounting cycle
Ophir Ltd's general reserve was $30 000 at 1 January 2020, and the directors increased it by $20 000 during the year. Calculate the general reserve balance at 31 December 2020.

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Question 408

[1 marks]Receipts and payments account, statement of changes in equity, accounting cycle
In the accounting cycle, which of the following comes immediately after source documents are recorded in the books of original entry (journals), and before the ledger?
  1. ABank reconciliation
  2. BNothing -- books of original entry post directly into the ledger.
  3. CTrial balance
  4. DFinancial statements

Question 409

[1 marks]Receipts and payments account, statement of changes in equity, accounting cycle
In the accounting cycle, the trial balance is prepared...
  1. AAfter the financial statements are prepared, as a final check.
  2. BBefore the ledger accounts are posted.
  3. CAt the same time as the source documents are raised.
  4. DAfter the ledger accounts are posted, and before the financial statements are prepared.

Question 501

[2 marks]Bank reconciliation and classification of errors
Fatima's cash book showed a debit balance of $6 200 at 31 July 2021. Bank charges of $150 and a direct debit for insurance of $400, neither yet in the cash book, are payments. A dishonoured cheque from Tumani for $650 must also be deducted, reversing an earlier receipt. A credit transfer of $1 300 from Zafira, not yet in the cash book, is a receipt. Calculate the updated cash book balance.

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Question 502

[3 marks]Bank reconciliation and classification of errors
Fatima's updated cash book balance at 31 July 2021 was $6 300. A cheque paid to P. Motors for $2 500 had not yet been presented to the bank, and a receipt of $3 100 had not yet been credited by the bank. Calculate the balance shown on the bank statement at 31 July 2021.

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Question 503

[1 marks]Bank reconciliation and classification of errors
A dishonoured cheque received from a customer, previously recorded as a receipt in the cash book, is corrected in a bank reconciliation by...
  1. AIgnoring it, since dishonoured cheques never affect the cash book.
  2. BDeducting it from the cash book balance, reversing the earlier receipt.
  3. CAdding it to the cash book balance, since the customer still owes the money.
  4. DAdding it twice, once for the cash book and once for the bank statement.

Question 504

[1 marks]Bank reconciliation and classification of errors
Goods worth $400 returned by a customer, M. Moyo, were not recorded anywhere in the books. This is an example of an error of...
  1. AOriginal entry
  2. BCommission
  3. COmission
  4. DPrinciple

Question 505

[1 marks]Bank reconciliation and classification of errors
Cash purchases of $700 were debited to the Cash Account and credited to the Purchases Account, the exact opposite of the correct entry. This is an example of an error of...
  1. AComplete reversal of entries
  2. BCommission
  3. CCompensating error
  4. DOmission

Question 506

[1 marks]Bank reconciliation and classification of errors
Rent paid $900 was debited to the Insurance Account instead of the Rent Account, both being expense accounts of a similar nature. This is an example of an error of...
  1. ACommission
  2. BOriginal entry
  3. COmission
  4. DPrinciple

Question 507

[1 marks]Bank reconciliation and classification of errors
Carriage inwards of $450 (a cost of purchases, part of the trading account) was debited to the Carriage Outwards Account (a selling expense in the income statement) instead. This is an example of an error of...
  1. ACommission
  2. BCompensating error
  3. CPrinciple
  4. DComplete reversal of entries

Question 508

[1 marks]Bank reconciliation and classification of errors
A sale of goods to M. Mpofu for $1 720 was recorded as $1 270 in both the Sales account and M. Mpofu's account. This is an example of an error of...
  1. APrinciple
  2. BCompensating error
  3. COriginal entry
  4. DCommission

Question 509

[1 marks]Bank reconciliation and classification of errors
The Loan Account (a credit/liability balance) and the Furniture Account (a debit/asset balance) were each overcast by $2 050, so the trial balance still balanced despite both being wrong. This is an example of a...
  1. AError of principle
  2. BCompensating error
  3. CError of original entry
  4. DError of commission

Question 510

[1 marks]Bank reconciliation and classification of errors
In a Sales Ledger Control Account, the discount allowed figure is taken from the total of which book?

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Question 511

[1 marks]Bank reconciliation and classification of errors
In a Sales Ledger Control Account, bad debts written off are taken from which book?

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Question 512

[1 marks]Bank reconciliation and classification of errors
In a Sales Ledger Control Account, returns inwards is taken from the total of which book?

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