0452/22/F/M/25 Question Paper – Accounting Feb/March 2025 Paper 22

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Cambridge Accounting (0452) question paper for paper 22, Feb/March 2025 — 0452/22/F/M/25, file 0452_m25_qp_22.pdf.

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ACCOUNTING

0452/22

Paper 2 Structured Written Paper

February/March 2025
1 hour 45 minutes

You must answer on the question paper.
No additional materials are needed.
INSTRUCTIONS
●
Answer all questions.
●
Use a black or dark blue pen. You may use an HB pencil for any diagrams or graphs.
●
Write your name, centre number and candidate number in the boxes at the top of the page.
●
Write your answer to each question in the space provided.
●
Do not use an erasable pen or correction fluid.
●
Do not write on any bar codes.
●
You may use a calculator.
●
International accounting terms and formats should be used as appropriate.
●
You should show your workings.

INFORMATION
●
The total mark for this paper is 100.
●
The number of marks for each question or part question is shown in brackets [ ].
●
Where you are asked to complete a layout, you may not need all the lines for your answer.

This document has 24 pages. Any blank pages are indicated.
DC (DE) 340552/4
© UCLES 2025

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Ria started trading on 1 August 2024.
The balances in Ria’s purchases ledger at 1 January 2025 were as follows:
$
465
170
275
600
1510

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Darena
Jadu
Ottie
Nakir

Ottie allows Ria trade discount of 5%.
The following transactions took place in January 2025.
Jan

2 Paid Darena $300 by bank transfer
8 Sold goods for $520 cash
13 Purchased goods, list price $180, on credit from Ottie
17 Paid Nakir the amount due on 1 January 2025, after deducting 3% cash discount

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18 Purchased goods, $528, on credit from Nakir
20 Purchased goods, $73, paying immediately by bank transfer
23 Purchased goods, $310, on credit from Darena
29 Sold goods for cash, $640
30 Returned goods, $24, to Darena
REQUIRED

Total the journal and indicate the ledger account where the total would be posted.
Ria
Purchases journal

Date

Details

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[3]
0452/22/F/M/25

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(a) Prepare the purchases journal for January 2025.

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(b) Prepare the purchases returns journal for January 2025.
Total the journal and indicate the ledger account where the total would be posted.
Ria
Purchases returns journal
Date

Details

[2]

Ria’s total purchases from 1 August 2024 to 31 December 2024 were $6327.

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REQUIRED
(c) Prepare Ria’s purchases account for January 2025. Balance the account and bring down the
balance on 1 February 2025.
Ria
Purchases account
Date

Details

Date

Details

[4]

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0452/22/F/M/25

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(d) Prepare Ria’s purchases ledger control account for January 2025. Balance the account and
bring down the balance on 1 February 2025.
Ria
Purchases ledger control account
Date

Details

Date

Details

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0452/22/F/M/25

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Ria is considering increasing her trade payables payment period to provide her with sufficient
cash for an advertising campaign.
REQUIRED
(e) Advise Ria whether or not she should increase her trade payables payment period to
provide her with sufficient cash for an advertising campaign. Justify your answer by providing
two advantages and two disadvantages of your advice.

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[5]
[Total: 20]

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0452/22/F/M/25

[Turn over

Viraj
Trial Balance at 31 January 2025

Revenue
Rental income
Sales returns
Inventory at 1 February 2024
Purchases
Rent and insurance
General expenses
Wages
Stationery and advertising
Bank charges
Fixtures and fittings at cost
Provision for depreciation of fixtures and fittings
Trade payables
Bank overdraft
Capital
Drawings

Debit
$
2 195
4 500
53 700
8 760
2 945
7 350
710
143
12 500

15 305

108 108

Credit
$
89 600
2 580

3 750
3 125
1 260
7 793

108 108

Additional information
1

Inventory at 31 January 2025 was valued at $5900.

Depreciation on fixtures and fittings is to be charged at 15% per annum using the straight-line
method.

Rental income included the amount due for the period from 1 February 2025 to 30 April 2025.

At 31 January 2025, Viraj owed $282 for wages and $55 for advertising.

After the trial balance was prepared, Viraj received a bank statement which showed that bank
charges of $13 had been paid in January 2025.

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0452/22/F/M/25

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Viraj’s trial balance at 31 January 2025 was as follows:

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Viraj is a retailer. He buys on credit and sells for cash. He rents out an area of the shop to another
business for $172 per month.

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REQUIRED
(a) Prepare the income statement for Viraj for the year ended 31 January 2025.
Viraj
Income Statement for the year ended 31 January 2025
$

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0452/22/F/M/25

[9]

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(b) Prepare the current liabilities section of Viraj’s statement of financial position at
31 January 2025.

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(c) State the accounting principle which Viraj has followed when he did not include a figure in his
statement of financial position for:
(i)

his inventory of price labels
[1]

(ii)

his skills as a salesman.

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0452/22/F/M/25

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[1]

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[4]

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Viraj wants to refurbish the shop. He thinks that the new fixtures and fittings would cost between
$10 000 and $15 000. There are several local shops selling the same type of goods that Viraj sells.
REQUIRED
(d) Advise Viraj whether or not he should refurbish the shop. Justify your answer by providing
two advantages and two disadvantages of Viraj refurbishing the shop.

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[5]
[Total: 20]

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0452/22/F/M/25

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Samira has been trading for many years and has a debit bank balance. She prepared her trial
balance at 31 January 2025. The total of the credit side was more than the total of the debit side.
Samira entered the difference in a suspense account.
Samira later discovered the following errors.
1

A repair to equipment, $175, had been debited to the equipment account.

A credit transfer, $132, from David, a trade receivable, had been debited to David’s account
and credited to the bank account.

A repayment of a bank loan, $2500, had been debited to bank charges.

A bank payment for stationery, $21, had been recorded as $12.

Sales returns, $40, had been recorded as purchases returns.

REQUIRED

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0452/22/F/M/25

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(a) Prepare the journal entries to correct errors 1–5. Narratives are not required.

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Samira
Journal
Error
number

Details

Debit
$

Credit
$

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[11]

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0452/22/F/M/25

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(b) Complete the table to indicate the effect of each error on profit for the year and on the bank
balance. Indicate whether the effect is overstated or understated and by how much. If there is
no effect, write ‘no effect’ in the box.
The first one has been completed as an example.
Error number

Effect on profit for the year

Effect on bank balance

Overstated by $175

No effect

2
3
4
5
[4]

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REQUIRED
(c) Calculate the trial balance total after the errors have been corrected.

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Before the errors were corrected, the debit side of Samira’s trial balance totalled $97 400.

[3]
(d) State the number of one error from 1–5 which is:
(i)

an error of principle
[1]

(ii)

an error of original entry.

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[Total: 20]

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0452/22/F/M/25

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[1]

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13

BLANK PAGE

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0452/22/F/M/25

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Raj is a trader who buys and sells on credit.
He has provided the following information.
$
5 500

Inventory at 1 January 2024

112 000
68 200
21 500

At 31 December 2024:
Inventory
Trade receivables
Trade payables
Bank overdraft
Capital

5 700
16 000
5 100
6 890
285 000

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ĥåµÕµÕĥĕĥĥµÅąÕąĕõÕ

0452/22/F/M/25

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For the year to 31 December 2024:
Revenue
Purchases
Expenses

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REQUIRED
(a) Complete the following table.
Ratio

Workings

Answer
(to two decimal places)

Gross margin

Profit margin

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Return on capital
employed (ROCE)

Rate of inventory
turnover (times)

Trade receivables
turnover (days)

Liquid (acid test)
ratio

[11]

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ĥåÅĕõµąõõĕĥÅąµĥÕĥÕ

0452/22/F/M/25

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Raj’s profit margin has decreased over the past few years. It has taken Raj longer to collect money
from trade receivables in 2024 than in the previous years.
REQUIRED
(b) Explain how Raj’s lower profit margin may be linked to his trade receivables taking longer to
pay.

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0452/22/F/M/25

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[4]

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Raj is considering paying more capital into the business to reduce the bank overdraft.
REQUIRED
(c) Advise Raj whether or not he should pay more capital into the business. Justify your answer
by providing points for and against.

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[5]
[Total: 20]

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ĬäûòÍħüùéôóêÅâÊÃ÷Ă
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0452/22/F/M/25

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The ABC Piano Club provides facilities for its members. It also runs a coffee shop where members
can buy hot drinks and snacks.
The club’s assets and liabilities were as follows:

Pianos at cost
Pianos – Provision for depreciation
Subscriptions received in advance
Subscriptions received in arrears
Club insurance paid in advance
Club rent paid in arrears
Coffee shop inventory
Trade payables for coffee shop supplies
Cash at bank (debit balances)

31 December 2023
$
12 000
4 800
650
390
140
435
320
200
2 045

31 December 2024
$
12 000
6 000
715
325
155
–
382
186
4 675

REQUIRED
(a) Calculate the accumulated fund at 31 December 2023.

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[4]

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ĬäùñÐģðďÒýąÅíÜúûïĂ
ĥÅõÕµµåÕµąĕąÅĕÅÕÅÕ

0452/22/F/M/25

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19

The following totals have been taken from the club’s receipts and payments account for the year
ended 31 December 2024.
Receipts
Subscriptions received
Coffee shop sales
Payments
Club rent and insurance
Other club expenses
Trade payables
Coffee shop wages

$
7 800
8 320
6 700
375
3 815
2 600

REQUIRED
(b) Prepare the subscriptions account for the year ended 31 December 2024. Balance the
account and bring down the balances on 1 January 2025.
ABC Piano Club
Subscriptions account
Date

Details

Date

Details

[6]

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ĥÅąĕõÕÅµåõÅąÅõåĕÕÕ

0452/22/F/M/25

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(c) Prepare the Club’s rent and insurance account for the year ended 31 December 2024.
Balance the account and bring down the balance on 1 January 2025.
ABC Piano Club
Club’s rent and insurance account
Date

Details

Date

Details

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0452/22/F/M/25

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[5]

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21

(d) Prepare the income statement for the coffee shop for the year ended 31 December 2024.
ABC Piano Club
Coffee shop income statement for the year ended 31 December 2024
$

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[5]

[Total: 20]

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0452/22/F/M/25

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0452/22/F/M/25

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0452/22/F/M/25

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Accounting (0452) · Feb/March 2025 · Question paper 22

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