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ZIMSEC O Level · 7112/2 · N2014

Principles of Accounting Paper 2 November 2014

Questions
9
Total marks
90
Syllabus code
7112/2

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Questions
9
Pass mark
6
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Answer every question in the printed order, get marked at the end, then see the answers.

The questions

Question 101

[1 marks]Departmental accounts
In J. Sithole's departmental accounts for the year ended 31 December 2011, the combined gross profit from the Furniture and Electrical departments was $72 000. After adding other income of $2 500 and deducting total expenses of $51 900, what was the net profit for the year?

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Question 102

[1 marks]Departmental accounts
In J. Sithole's Statement of Financial Position as at 31 December 2011, non-current assets totalled $157 200 and current assets totalled $85 800. What was the total assets figure?
  1. A$157 200
  2. B$214 600
  3. C$228 000
  4. D$243 000

Question 201

[1 marks]Depreciation and disposal of non-current assets
Jongwe Limited sold a motor van on 31 December 2009 for $10 000 cash. The van's original cost was $20 000 and the accumulated depreciation on it at the date of sale was $4 000. What was the profit or loss on disposal?
  1. AA profit of $6 000
  2. BA loss of $6 000
  3. CA profit of $4 000
  4. DA loss of $10 000

Question 202

[1 marks]Depreciation and disposal of non-current assets
In C. William's Stationery Account for 2011, an entry of 'Profit and Loss $3 100' appears on the credit side at 31 December. What does this entry represent?
  1. AStationery used during the year, transferred to the Profit and Loss Account
  2. BBalance of stationery unused at the end of the year
  3. CBalance of stationery brought forward from the previous year
  4. DStationery bought on credit during the year

Question 301

[1 marks]Manufacturing accounts and working capital
Mwanza Manufacturing Company had opening raw material stock of $13 000, purchases of raw materials of $67 000, freight charged on raw materials of $3 000, and closing raw material stock of $25 000 for the year ended 31 December 2010. What was the cost of raw materials consumed?

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Question 302

[1 marks]Manufacturing accounts and working capital
Mwanza Manufacturing Company's Manufacturing Account for the year ended 31 December 2010 showed a prime cost of $78 000 and total factory overheads/production cost of goods manufactured of $97 000. In the Trading Account, sales were $150 000, and cost of sales (opening finished goods stock $14 000 plus production cost $97 000 less closing finished goods stock $24 000) was $87 000. What was the gross profit?
  1. A$63 000
  2. B$78 000
  3. C$87 000
  4. D$97 000

Question 303

[1 marks]Manufacturing accounts and working capital
D. Dlodlo, a retailer, sold goods with a cost price of $8 500 on credit to A. Mashamba for $9 500. What is the effect of this transaction on working capital: increase, decrease, or no effect?

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Question 401

[1 marks]Partnership formation and bank reconciliation
Thulani and Jabulani took over H. Hunter's business for a purchase consideration of $50 000. The net assets taken over, after revaluing buildings to $32 000 and debtors to $6 320, totalled $40 000. What was the goodwill arising on the purchase?
  1. A$10 000
  2. B$40 000
  3. C$50 000
  4. D$90 000

Question 402

[1 marks]Partnership formation and bank reconciliation
T. Hamandishe's Cash Book showed a debit balance of $15 000 on 31 December 2010. Bank charges of $3 000 and a ZIMRA credit transfer of $2 600 had not yet been entered in the Cash Book. What was the updated Cash Book balance carried down?

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