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ZIMSEC O Level · 4051/2 · N2024

Principles of Accounting Paper 2 November 2024

Questions
42
Total marks
100
Syllabus code
4051/2

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Questions
42
Pass mark
26
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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]Partnership current accounts and statement of financial position
Hove and Midzi's capital accounts were $80 000 each on 1 January 2020, with interest on capital allowed at 10% per annum. Calculate the total interest on capital for both partners for the year ended 31 December 2020.

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Question 102

[3 marks]Partnership current accounts and statement of financial position
Hove's current account opened with a credit balance of $5 000 on 1 January 2020. During the year, interest on capital of $8 000 and interest on current account of $250 were credited to him, his share of profit was $10 300 and the appropriation account credited him with a salary of $10 000. He was charged interest on drawings of $180, took drawings of $3 600, and had already received $4 000 of his salary in cash during the year. Calculate his current account closing balance at 31 December 2020.

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Question 103

[3 marks]Partnership current accounts and statement of financial position
Midzi's current account opened with a debit balance of $1 900 on 1 January 2020. During the year, interest on capital of $8 000 and his share of profit of $10 300 were credited to him. He was charged interest on drawings of $75, interest on his current account of $95, and took drawings of $3 900. Calculate his current account closing balance at 31 December 2020.

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Question 104

[2 marks]Partnership current accounts and statement of financial position
Hove and Midzi's partnership owned a Motor van with a net book value of $134 000 and Furniture and Fittings with a net book value of $25 000 at 31 December 2020. Calculate the total non-current assets.

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Question 105

[2 marks]Partnership current accounts and statement of financial position
At 31 December 2020, Hove and Midzi's partnership had Inventory $12 000, Trade receivables $36 900, Insurance prepaid 540,Bank540, Bank 4 425 and Cash $455. Calculate total current assets.

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Question 106

[2 marks]Partnership current accounts and statement of financial position
At 31 December 2020, Hove and Midzi's partnership had Trade payables of $14 500 and Rent owing of $720. Calculate total current liabilities.

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Question 107

[1 marks]Partnership current accounts and statement of financial position
In Hove and Midzi's partnership, Hove's current account opened with a credit balance of $5 000 on 1 January 2020, and interest on current account of $250 was credited to him during the year. This interest is treated the same way as...
  1. Aa partner's salary.
  2. Binterest charged on drawings.
  3. Cinterest allowed on capital, since both reward a partner for a favourable balance owed to them.
  4. Da bad debt written off.

Question 108

[1 marks]Partnership current accounts and statement of financial position
Hove's current account credited him with the full $10 000 salary the appropriation account allocated him for the year, but he had already received $4 000 of it in cash during the year. In his current account, this $4 000 is...
  1. Ashown as a non-current liability.
  2. Bdebited, so that only the $6 000 still owed to him remains outstanding.
  3. Cignored, since it is already included in his Drawings figure.
  4. Dcredited again, doubling his salary entitlement.

Question 201

[2 marks]Correction of errors via suspense account and bank reconciliation
J. Jobe's Rent Received of $2 050 was wrongly debited to the Rent Paid Account, instead of being credited to Rent Received. Calculate the total value of the two correcting credit entries needed (cancelling the wrong debit and recording the missing credit).

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Question 202

[2 marks]Correction of errors via suspense account and bank reconciliation
J. Jobe's net profit before correcting any errors was $12 300. Correcting the Rent Received error (wrongly debited to Rent Paid instead of credited to Rent Received) alone adds $4 100 to profit. Calculate the profit after this single correction.

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Question 203

[2 marks]Correction of errors via suspense account and bank reconciliation
J. Jobe's Carriage on purchases of $3 100 was debited to the Furniture Account instead of a trading expense account. Since it was never charged as an expense either way, calculate the effect on net profit of now correctly expensing it.

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Question 204

[2 marks]Correction of errors via suspense account and bank reconciliation
J. Jobe's Bank charges of $670 had never been posted to the Bank Charges Account at all. Calculate the effect on net profit of now correctly recording this expense.

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Question 205

[3 marks]Correction of errors via suspense account and bank reconciliation
J. Jobe's net profit before correcting four errors was $12 300. Correcting the errors changes profit as follows: Rent Received error +$4 100, Carriage on purchases wrongly capitalised -$3 100, a Bank Account posting error with no profit effect, and omitted Bank charges -$670. Calculate the corrected net profit.

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Question 206

[1 marks]Correction of errors via suspense account and bank reconciliation
A standing order of $2 000 for electricity was correctly recorded in the Electricity Account but posted to the wrong side of the Bank Account. What effect does correcting this error have on net profit?
  1. AIt increases net profit by $2 000.
  2. BIt decreases net profit by $4 000.
  3. CNone, since the Electricity expense was already correctly recorded; only the Bank balance needs correcting.
  4. DIt decreases net profit by $2 000.

Question 207

[2 marks]Correction of errors via suspense account and bank reconciliation
D. Chimombe's updated Cash Book showed a debit balance of $3 400 at 30 June 2020. A cheque of $2 600 paid to Bindura Wholesalers had not yet been presented to the bank. Calculate the cash book balance after adding back this unpresented cheque.

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Question 208

[3 marks]Correction of errors via suspense account and bank reconciliation
D. Chimombe's updated Cash Book showed a debit balance of $3 400 at 30 June 2020. A cheque of $2 600 paid to Bindura Wholesalers had not yet been presented to the bank, and $8 000 deposited at the bank had not yet been credited on the bank statement. Calculate the balance shown on the bank statement at 30 June 2020.

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Question 301

[2 marks]Non-current asset disposal and statement of financial position current assets
K. Musoni's equipment cost $200 000 on 1 January 2021. New equipment costing $80 000 was bought on credit on 1 July 2021, and equipment that had cost $50 000 was sold during the year. Calculate the closing balance of the Equipment Account (at cost) at 31 December 2021.

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Question 302

[2 marks]Non-current asset disposal and statement of financial position current assets
K. Musoni's equipment still owned throughout 2021 (excluding the piece sold and the new purchase) cost $150 000, and new equipment costing $80 000 was bought on 1 July 2021. Depreciation is charged at 10% per annum on cost, in full in the year of purchase and none in the year of sale. Calculate the total depreciation charge for the year ended 31 December 2021.

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Question 303

[2 marks]Non-current asset disposal and statement of financial position current assets
K. Musoni's equipment sold during 2021 had cost $50 000 when bought on 1 January 2018, and depreciation of 10% per annum on cost is charged in full in the year of purchase and none in the year of sale. Calculate the accumulated depreciation on this equipment at the date of sale (covering 2018, 2019 and 2020 only).

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Question 304

[3 marks]Non-current asset disposal and statement of financial position current assets
K. Musoni sold equipment for $36 000 cash on 1 October 2021. The equipment had cost $50 000 and had accumulated depreciation of $15 000 at the date of sale. Calculate the profit or loss on disposal.

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Question 305

[2 marks]Non-current asset disposal and statement of financial position current assets
J. Mukombe's closing inventory at 31 December 2019 was: Raw materials $4 600, Work in progress $2 300, Finished goods $5 700. Calculate the total inventory to be shown as a current asset.

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Question 306

[2 marks]Non-current asset disposal and statement of financial position current assets
J. Mukombe's trade receivables were $40 000 at 31 December 2019, and a provision for doubtful debts of 5% is to be maintained. Calculate the provision for doubtful debts.

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Question 307

[2 marks]Non-current asset disposal and statement of financial position current assets
J. Mukombe's trade receivables were $40 000 at 31 December 2019, with a provision for doubtful debts of $2 000 already deducted, leaving $38 000. A provision for discount allowed of 2 1/2 % is then created on this net figure. Calculate the provision for discount allowed.

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Question 308

[3 marks]Non-current asset disposal and statement of financial position current assets
J. Mukombe's current assets at 31 December 2019 were: total inventory $12 600, trade receivables of $40 000 less a $2 000 provision for doubtful debts and a $950 provision for discount allowed, and cash in hand of $4 800. Calculate the total current assets.

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Question 401

[2 marks]Club shop income statement, classification of items and trade/cash discount
Chemhanza Athletics Club's shop had opening inventory of $2 500, purchases of $15 000 and closing inventory of $4 100 for the year ended 31 December 2020. Calculate the cost of sales.

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Question 402

[2 marks]Club shop income statement, classification of items and trade/cash discount
Chemhanza Athletics Club's shop had receipts from sales of $29 200 for the year ended 31 December 2020, and cost of sales was $13 400. Calculate the gross profit.

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Question 403

[2 marks]Club shop income statement, classification of items and trade/cash discount
Chemhanza Athletics Club's shop had a gross profit of $15 800 for the year ended 31 December 2020, and the only expense was the shop assistant's salary of $6 000. Calculate the net profit (surplus).

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Question 404

[1 marks]Club shop income statement, classification of items and trade/cash discount
Electricity is classified, and normally balances, as...
  1. AAn asset, debit balance
  2. BAn expense, debit balance
  3. CA liability, credit balance
  4. DRevenue, credit balance

Question 405

[1 marks]Club shop income statement, classification of items and trade/cash discount
A bank overdraft is classified, and normally balances, as...
  1. AAn asset, debit balance
  2. BAn expense, debit balance
  3. CRevenue, credit balance
  4. DA liability, credit balance

Question 406

[2 marks]Club shop income statement, classification of items and trade/cash discount
P. Nyasha bought a television set with a list price of $3 400 on credit, and received a trade discount of 20%. Calculate the trade discount.

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Question 407

[3 marks]Club shop income statement, classification of items and trade/cash discount
P. Nyasha bought a television set with a list price of $3 400, receiving a 20% trade discount, leaving $2 720 owing. He also qualified for a cash discount of 2 1/2 % for paying within 3 months, which he did. Calculate the amount Nyasha actually paid.

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Question 501

[3 marks]Incomplete records, purchases ledger control account and error effects on non-current assets
N. Khumalo's trade receivables were $1 200 at 1 October 2020 and $3 300 at 30 September 2021. All sales were on credit, and $18 900 was received from trade receivables during the year. Calculate sales for the year.

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Question 502

[2 marks]Incomplete records, purchases ledger control account and error effects on non-current assets
N. Khumalo's inventory was $1 300 at 1 October 2020 and $1 700 at 30 September 2021. Calculate the average inventory for the year.

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Question 503

[2 marks]Incomplete records, purchases ledger control account and error effects on non-current assets
N. Khumalo's average inventory for the year was $1 500, and the rate of inventory turnover was 10 times. Calculate the cost of goods sold.

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Question 504

[2 marks]Incomplete records, purchases ledger control account and error effects on non-current assets
N. Khumalo's sales for the year were $21 000 and cost of goods sold was $15 000. Calculate the gross profit.

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Question 505

[1 marks]Incomplete records, purchases ledger control account and error effects on non-current assets
In a Purchases (Creditors) Ledger Control Account, the $15 200 total for purchases on credit during the year is taken from which subsidiary book?

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Question 506

[1 marks]Incomplete records, purchases ledger control account and error effects on non-current assets
In a Purchases Ledger Control Account, the $600 discount received figure is taken from which book?

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Question 507

[1 marks]Incomplete records, purchases ledger control account and error effects on non-current assets
In a Purchases Ledger Control Account, the $1 400 returns outwards figure is taken from which subsidiary book?

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Question 508

[1 marks]Incomplete records, purchases ledger control account and error effects on non-current assets
In a Purchases Ledger Control Account, a $700 'set off' entry (a contra against a balance in the Sales Ledger Control Account) is taken from which book?
  1. AGeneral Journal
  2. BPurchases Returns Journal
  3. CPurchases Journal
  4. DCash Book

Question 509

[1 marks]Incomplete records, purchases ledger control account and error effects on non-current assets
The cost of new tyres for a delivery van, a running repair, was debited to the Delivery Van Account (a non-current asset account) instead of a repairs expense account. What is the effect on non-current assets?
  1. AOvercast (overstated)
  2. BUndercast (understated)
  3. CCannot be determined
  4. DNo effect

Question 510

[1 marks]Incomplete records, purchases ledger control account and error effects on non-current assets
Wages paid to workers engaged in extending factory buildings (capital expenditure) were included in the Wages Account (an expense account) instead of being added to the building's cost. What is the effect on non-current assets?
  1. AUndercast (understated)
  2. BCannot be determined
  3. COvercast (overstated)
  4. DNo effect

Question 511

[1 marks]Incomplete records, purchases ledger control account and error effects on non-current assets
Import duty on new machinery, part of the machinery's cost, was treated as a general expense instead of being capitalised. What is the effect on non-current assets?
  1. ANo effect
  2. BCannot be determined
  3. COvercast (overstated)
  4. DUndercast (understated)

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