0452/12/M/J/25 Question Paper – Accounting May/June 2025 Paper 12

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Cambridge Accounting (0452) question paper for paper 12, May/June 2025 — 0452/12/M/J/25, file 0452_s25_qp_12.pdf.

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Cambridge IGCSE™
ACCOUNTING

0452/12

Paper 1 Multiple Choice

May/June 2025
1 hour 15 minutes

You must answer on the multiple choice answer sheet.

*0864828159*

You will need: Multiple choice answer sheet
Soft clean eraser
Soft pencil (type B or HB is recommended)
INSTRUCTIONS
 There are thirty-five questions on this paper. Answer all questions.
 For each question there are four possible answers A, B, C and D. Choose the one you consider correct
and record your choice in soft pencil on the multiple choice answer sheet.
 Follow the instructions on the multiple choice answer sheet.
 Write in soft pencil.
 Write your name, centre number and candidate number on the multiple choice answer sheet in the
spaces provided unless this has been done for you.
 Do not use correction fluid.
 Do not write on any bar codes.
 You may use a calculator.

INFORMATION
 The total mark for this paper is 35.
 Each correct answer will score one mark.
 Any rough working should be done on this question paper.

This document has 12 pages. Any blank pages are indicated.
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© UCLES 2025

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1

Rikado left his job as a machine operator to start his own manufacturing business.
Why was he interested in his financial statements at the end of the first year of business?

to ascertain the market value of the non-current assets

to check if all the transactions had been recorded

to find out about job satisfaction among the workers

to see if the profit was greater than his previous earnings

How is owner’s equity calculated?
A

total assets − total liabilities

total assets + total liabilities

current assets − current liabilities

non-current assets − non-current liabilities

Shula’s financial year ends on 31 March. On 1 April 2024, there was a credit balance of $100 on
Yasmin’s account in Shula’s purchases ledger.
What does this mean?

Shula had paid $100 to Yasmin.

Yasmin had paid $100 to Shula.

Shula owed $100 to Yasmin.

Yasmin owed $100 to Shula.

Which document may be used by a business as proof that an invoice has been paid?
A

credit note

paying-in slip

petty cash voucher

receipt

Raminder maintains a petty cash book using the imprest system. The monthly imprest of $250 is
restored on the first day of each month.
In January, the petty cashier spent $105, and received a refund of $15 from a stationery supplier.
How much was given to the petty cashier on 1 February to restore the imprest?
A

$90

$105

$145

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$160

3
6

Which statement about cash discounts is not correct?
A

Cash discounts are given if payment is made within the time limit set by the supplier.

Cash discounts are shown as a reduction from the list price when goods are ordered.

Customers will show cash discounts given to them as other income in the income statement.

Suppliers will show the cash discounts they give as an expense in the income statement.

Ziningi prepared a trial balance. The total of the debit column was $225 750, and the total of the
credit column was $225 250.
What could explain the difference?

The bank overdraft of $250 was included as a debit balance.

Discount allowed of $500 was included as a debit balance.

Purchases returns for $250 were included as a credit balance.

Sales returns of $500 were included as a debit balance.

Michael opened a suspense account when he prepared draft financial statements. He then
discovered that purchases of $68 had been credited to the purchases account as $86.
Which entry was made in the suspense account when this error was corrected?

$18 credit

$18 debit

$154 credit

$154 debit

Sameer calculated that his profit for the year was $6300. He then found two errors.
1

A cheque for $3250, received from a credit customer, had only been recorded in the
cash book.

The total of the discount allowed column in the cash book, $300, had been credited to
the discount received account.

What was Sameer’s corrected profit for the year?
A

$2450

$2750

$5700

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$6000

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10 Miguel’s cash book showed a debit bank balance of $4220. He later discovered the following errors.
1

A cheque for $200, issued for the purchase of office equipment, had been recorded
in error in the office expenses account.

Bank charges of $30 had been recorded in the cash book as $70.

What was the effect of these errors on his statement of financial position?

non-current assets (cost)

current assets

overstated by $200

no effect

understated by $200

no effect

understated by $200

overstated by $30

understated by $200

understated by $40

A trader was reconciling his bank statement with the updated balance of his cash book.
There were unpresented cheques and uncredited deposits. The bank statement did not contain
any errors. He started preparing his bank reconciliation statement with the credit balance on the
bank statement.
How did he arrive at his updated cash book balance?
A

by adding both unpresented cheques and uncredited deposits

by subtracting both unpresented cheques and uncredited deposits

by adding unpresented cheques and subtracting uncredited deposits

by subtracting unpresented cheques and adding uncredited deposits

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12 Mary is a trader. She has a debit balance in the bank column of her cash book. Mary has received
her bank statement and needs to update her cash book to record the following items.
1

A credit customer, Sam, has settled his account using a credit transfer.

Mary lets part of her premises to Dennis who has paid his monthly rent by standing
order.

The bank balance is not overdrawn.
How does recording these items affect the bank balance in Mary’s cash book?
item 1

item 2

decrease

increase

decrease

increase

13 The cash book provides information for which control account item?
A

discount allowed to credit customers

interest charged on overdue accounts

irrecoverable debts written off

purchases returns

14 When Mark started a car repair business, he purchased premises and equipment.
Two years later, he spent $5000 on building an extension, $600 on new equipment and $750 on
repainting the original premises.
By how much will the non-current assets increase because of these transactions (ignore
depreciation)?
A

$5000

$5600

$5750

$6350

15 On 1 January 2023, equipment was purchased for $50 000. The equipment is expected to have a
useful life of five years and a residual value of $10 000. The straight-line method of depreciation is
used.
What was the balance on the provision for depreciation of equipment account on 31 December 2024?
A

$8000

$10 000

$16 000

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$20 000

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16 Anjum rents part of her premises to Ajay for $6120 per annum. At the beginning of the year, Ajay
had paid two months’ rent in advance. At the end of the year, Ajay had paid three months’ rent in
advance.
How much rent was received from Ajay during the year?
$3570

$5610

$6630

$8670

17 Why does a trader write off money owed by a credit customer as an irrecoverable debt?
A

because the credit customer has not paid their account at the end of the trading period

because the credit customer has not paid their account by the due date

because the credit customer is no longer buying goods from the trader

because the credit customer is not able to pay their account

18 Shilpa’s financial year ends on 30 April. On 31 March 2025, she wrote off a debt owed by Tahir as
irrecoverable.
Which entry did Shilpa make on 31 March 2025?
debit

credit

income statement

Tahir

irrecoverable debts

income statement

irrecoverable debts

Tahir

irrecoverable debts

19 Tony has prepared an inventory calculation statement at the end of the financial period.
cost
$

net realisable value
$

cricket bats

600

750

cricket gloves

400

320

cricket helmets

900

1 200

cricket pads

300

240

What is the value of Tony’s inventory?
A

$2060

$2200

$2510

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$2650

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20 Which statement is correct?
A

The income statement is part of the double entry system and shows a trader’s financial
performance.

The income statement is part of the double entry system and shows a trader’s financial position.

The statement of financial position is part of the double entry system and shows assets and
liabilities only.

The statement of financial position is part of the double entry system and shows owner’s capital
only.

21 Draft financial statements prepared at the end of the first year of trading show:
•

draft profit for the year of $24 000

•

trade receivables of $6300.

An amount of $200 is to be written off as irrecoverable.
A provision for doubtful debts is to be set at 1% of the remaining trade receivables.
What is the revised profit for the year?
A

$23 737

$23 739

$23 800

$23 939

22 Ann and Bob are in partnership and share profits in the ratio 3 : 2 respectively. Ann is entitled to
a salary of $20 000 per annum. There is no interest on capital or interest on drawings. The profit
for the year is $75 000. Ann’s share of the residual profit was $24 000.
What salary was Bob entitled to?
A

$13 333

$15 000

$16 000

$31 000

23 What are the advantages to shareholders of operating as a limited company?
1

It has a separate legal identity.

It makes it easier to prepare financial statements.

It makes it quicker to prepare financial statements.

It protects personal assets.

1, 2, 3 and 4

1 and 2 only

1 and 4 only

2, 3 and 4 only

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24 During the year ended 31 March 2025, subscriptions received by a club amounted to $2500, of
which $120 related to the next financial year. On 31 March 2025, subscriptions accrued amounted
to $280.
What entries would be made in the club’s statement of financial position on 31 March 2025?
current assets
$

current liabilities
$

120

280

120

400

no entry

400

25 The bank account kept by a sports club shows that subscriptions totalling $2695 were received
during the financial year.
This figure includes arrears of subscriptions owing from last year of $145. It also includes an
outstanding lodgement of subscriptions of $195.
What amount for subscriptions is included in the receipts and payments account of the sports club?
A

$2355

$2500

$2550

$2695

26 A tennis club sells refreshments on match days.
At the end of the first accounting period, the receipts and payments account included the following:
$
receipts from sales of refreshments

2300

payments to suppliers of refreshments

1400

wages paid

300

Refreshments which were unsold at the end of the year cost $200.
A bill for refreshments purchased of $75 had not been paid.
What is the profit from sale of refreshments to be included in the income and expenditure account?
A

$600

$725

$800

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$875

9
27 A manufacturing business calculated the following amounts for the year ended 30 April 2025.
item

prime cost

360 000

factory overheads

114 850

work in progress at 30 April 2025

7 940

purchase of finished products

1 100

Work in progress at 30 April 2024 was $8990.
What is the production cost of goods completed for the year ended 30 April 2025?
$361 050

$474 800

$475 900

$477 000

28 Which items are included in the calculation of prime cost in a manufacturing account?
A

direct and indirect costs

direct materials cost and direct labour cost only

direct materials cost only

direct production costs only

29 A manufacturer’s work in progress at the start of the year was valued at $850. At the end of the
year it was valued at $10 200.
What was the effect of this increase on the cost of production and the cost of sales?
cost of production

cost of sales

decrease

increase

decrease

increase

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30 Gustav began a business on 1 January 2023 with $50 000 capital.
He provided the following information for the year ended 31 December 2024.
$
capital opening balance

58 000

additional capital introduced

2 000

drawings for the year

9 880

capital closing balance

60 156

How much profit did Gustav make in 2024?
A

$4156

$8000

$10 036

$18 036

31 The following information is available at the end of Savid’s first year of trading.
$
Amount owed by credit customers
Amount owed to credit suppliers

9 600
12 800

Total sales for the year are $220 000, of which cash sales are $24 000.
What is the trade receivables turnover in days?
A

16 days

18 days

21 days

22 days

32 Which statement is a limitation of the comparison of the accounting ratios of different businesses?
A

Accounting records include a value for the skills of the workforce.

Businesses may have the same accounting policies.

Businesses may have different sales prices.

The available information may not relate to a typical year.

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33 Maluti has a trading business that has a bank overdraft and makes a profit.
Why would the government be most interested in the financial statements of Maluti?
A

to compile business statistics

to estimate trade payable days for Maluti

to plan remedial action where necessary

to see whether Maluti can repay his debts when due

34 Vikram wanted to apply the principle of consistency when accounting for the use of his delivery
van.
What did this require?
A

making the same number of deliveries each year

paying the same amount for repairs each year

providing the same amount of depreciation each year

using the same method of depreciation each year

35 Benson wanted to compare his profitability with that of his competitors. However, the completion
of his financial statements was significantly delayed due to a fire in the room where the files were
kept.
What does this delay affect?
A

the comparability of the financial statements

the relevance of the financial statements

the reliability of the financial statements

the understandability of the financial statements

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Cambridge Assessment International Education is part of Cambridge Assessment. Cambridge Assessment is the brand name of the University of Cambridge
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Accounting (0452) · May/June 2025 · Question paper 12

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