Accounting (0452) · May/June 2009 · Question paper 2

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UNIVERSITY OF CAMBRIDGE INTERNATIONAL EXAMINATIONS
International General Certificate of Secondary Education

*9568773481*

0452/02

ACCOUNTING

May/June 2009

Paper 2

1 hour 30 minutes
Candidates answer on the Question Paper.
No Additional Materials are required.
READ THESE INSTRUCTIONS FIRST
Write your Centre number, candidate number and name on all the work you hand in.
Write in dark blue or black pen.
You may use a soft pencil for any diagrams or graphs.
Do not use staples, paper clips, highlighters, glue or correction fluid.
DO NOT WRITE IN ANY BARCODES.
Answer all questions.
You may use a calculator.
Where layouts are to be completed, you may not need all the lines for your answer.
The businesses mentioned in this Question Paper are fictitious.
At the end of the examination, fasten all your work securely together.
The number of marks is given in brackets [ ] at the end of each question or part
question.

For Examiner's Use
1
2
3
4
5
Total

This document consists of 13 printed pages and 3 blank pages.
IB09 06_0452_02/3RP
© UCLES 2009

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1

(a) Name the accounting principle which states that sales are recognised when the
ownership of goods sold and legal liability to pay passes to the customer.
[1]

(b) In the table below, place a tick (
) under the correct heading to show whether each
item is an asset or a liability:
Asset
(i)

Prepaid expense

(ii)

Bank overdraft

(iii)

Provision for depreciation

Liability

[3]
(c) In a bank reconciliation statement, explain what is meant by an unpresented cheque.

[2]

(d) In the balance sheet, stock is valued at the lower of cost and
[1]

(e) In which final account will sales returns be shown?
[1]

(f) Working capital is calculated as follows:
less
[2]

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(g) (i) Give one example of an item of capital expenditure.
[1]

For
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(ii) Give one example of an item of revenue expenditure.
[1]

(h) Amhari’s business has sales for the year of $75 000, and her cost of goods sold was
$52 500.
Calculate her percentage of gross profit to sales.

[3]
[Total: 15]

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2

Philo is in business and keeps his petty cash on the imprest system with a balance of $200.
On 31 March 2009 there was $129.00 in the petty cash box and on 1 April 2009 Philo’s
cashier made a transfer from the business bank account to restore the imprest balance. All
the petty cash vouchers for March related to expenses incurred in that month.
REQUIRED
(a) What were the total expenses paid from petty cash in the month of March 2009?

[1]

When the cash was counted on 30 April 2009, there was $117.50 in the petty cash box and
the following petty cash vouchers were found.
April 5
10
13
17
24

Postage stamps
Refreshments
Menon – loan
Flowers for office
Stationery

$
20.00
17.00
100.00
21.00
14.50

Menon had repaid his loan in cash on 29 April.
REQUIRED
(b) What were the total expenses paid from petty cash in the month of April 2009?

[1]

(c) Calculate the amount of cash which should be in the petty cash box on 30 April.

[2]

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(d) Suggest two reasons for the difference in the actual amount of cash in the petty cash
box and the amount which should be there.

For
Examiner's
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(i)

(ii)
[2]

The petty cashier remembered a further petty cash payment of $10.00 was made on
28 April for cleaning the office windows.
REQUIRED
(e) Advise Philo’s petty cashier about the importance of keeping a record of business
expenditure.

[2]

(f) Make the necessary entries for the month of April in the petty cash book as set out on
the following page.
Balance the book and carry down the balance. Show the entry on 1 May to restore the
imprest balance to the correct amount.

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Date
April

Details

© UCLES 2009

$

Total

Date
April
Details
$

Total
$
$

$

Postage and
Refreshments Flowers
Stationery

Philo
Petty Cash Book

$

Cleaning
$

Other

6

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[12]

[Total: 20]

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BLANK PAGE

Question 3 is on the next page.

0452/02/M/J/09

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3

(a) Name the book of prime (original) entry used to record purchases.
[1]

Tom Charter received an invoice from the Office Supply Company.
REQUIRED
(b) Complete the missing items (words or figures) (i) to (vi) shown on the invoice.
OFFICE SUPPLY COMPANY INVOICE
Tom Charter

15 April 2009

3 Mountain Close
Tobermore
Item

Quantity

Price per unit
$

Boxes of staples
Packets of
envelopes

20

Total
$

7.50
(ii)

14.00

(i)
350.00

500.00
Less

(iii) discount @ 3 %

(iv)

Net amount

(v)

Terms: 2 ½ %

(vi)

discount for settlement within 14 days

[6]
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Tom Charter’s accounting records for the year ended 30 April 2009 showed the following.
Stock at 1 May 2008
Purchases for the year
Purchases returns for the year
Stock at 30 April 2009

For
Examiner's
Use

$
7 600
92 100
2 300
9 200

REQUIRED
(c) Calculate Tom Charter’s cost of goods sold for the year.

[4]

(d) Calculate Tom Charter’s rate of stock turnover for the year.

[4]
(e) Give one example of each of the type of goods sold by a business with
(i) a high rate of stock turnover;

(ii) a low rate of stock turnover.

[4]
[Total: 19]
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4

Rupa made the following bank payments in the month of March 2009.
March 6
12

Motor expenses – repairs
Motor expenses – tyres

For
Examiner's
Use

$
120
150

The bill for repairs had been received in February and $120 had been accrued in the motor
expenses account at the end of that month.
Rupa received a bill for motor fuel for $80 on 29 March but the bill was not paid until 7 April.
REQUIRED
(a) Prepare the motor expenses account in Rupa’s ledger for the month of March 2009.
Show the amount transferred to the profit and loss account for the month and the
balance brought down at 1 April.
Rupa
Motor expenses account

[7]

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Mopsa has to pay $400 rent on her shop each month.
She was not able to pay all the rent due in March 2009 and $150 was outstanding on
1 April.

For
Examiner's
Use

From 1 April, her landlord increased the rent to $450 each month.
On 27 April Mopsa made a payment of rent to her landlord of $500 in total.
REQUIRED
(b) Prepare the rent account in Mopsa’s ledger for the month of April 2009. Show the
amount to be transferred to the profit and loss account for the month and the balance
brought down at 1 May.
Mopsa
Rent account

[7]

Andrea does not include any accrual in her electricity account for electricity used, and
invoiced, but not paid for at the end of the month.
REQUIRED
(c) Place a tick (
) in one of the boxes below to show whether the amount shown for
electricity in her profit and loss account for the month will be
understated
overstated
[2]
[Total: 16]
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5

Gordon has prepared the following trial balance after calculating his net profit for the year
ended 31 March 2009.
Gordon
Trial balance at 31 March 2009
Bank
Bank loan repayable 2011
Capital at 1 April 2008
Creditors
Debtors
Drawings
Motor vehicles
Net profit for the year
Plant and equipment
Provision for depreciation
Plant and equipment
Motor vehicles
Stock at 31 March 2009

$
700

$
6 000
6 400
2 100

3 400
12 000
4 000
12 900
8 000
1 600
1 000
1 900
30 000

30 000

REQUIRED
(a) Prepare Gordon’s capital account for the year ended 31 March 2009.
Gordon
Capital account

[4]

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(b) Prepare Gordon’s balance sheet at 31 March 2009.

For
Examiner's
Use

Gordon
Balance sheet at 31 March 2009

[8]

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(c) From Gordon’s balance sheet, calculate each of the following ratios to two decimal
places. Show your workings.
(i) Current ratio

(ii) Quick ratio

[6]

(d) Place a tick (
) in one of the boxes below to show which of these two ratios Gordon
should use to decide if he can afford to pay his creditors.
current ratio
quick ratio
[2]
[Total: 20]

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