0452/12/O/N/25 Question Paper – Accounting Oct/Nov 2025 Paper 12

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Cambridge Accounting (0452) question paper for paper 12, Oct/Nov 2025 — 0452/12/O/N/25, file 0452_w25_qp_12.pdf.

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Cambridge IGCSE™
ACCOUNTING

0452/12

Paper 1 Multiple Choice

October/November 2025
1 hour 15 minutes

You must answer on the multiple choice answer sheet.

*3519534413*

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.
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© UCLES 2025

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1

What is not an example of a book-keeping entry?
A

an entry made in the bank column of the cash book for a cheque received

any goods returned by a customer entered in the sales returns journal

cost of goods purchased on credit entered in the supplier’s account

expenses paid during the year entered in the income statement

What are liabilities?
A

amounts that are owed to or owned by a business

amounts that are owed to others for resources provided

amounts that need to be written off

amounts that the owner owes to the business

Sally maintains a full set of accounting records.
She has entered the following transactions in her cash book.
1

A cheque for $200 was received from a credit customer.

An insurance premium of $200 was paid by cheque.

Petrol for the delivery van was paid for in cash.

Total cash sales of $400 were received.

Which transactions will then be entered into the nominal ledger?
A

1 and 4

1 only

2, 3 and 4

2 and 3 only

An account in the purchases ledger of X Limited has a debit balance.
What does this balance represent?
A

an amount owed by X Limited

an amount paid to X Limited

a prepayment made by X Limited

total purchases made by X Limited

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3
5

The following account appeared in the books of Mary.
Paul account
$
April 1
14

balance b / d
sales

April 21

150

returns

bank

discount
___

balance c / d

240

2
125
240

Which statement is correct?

On 1 April, Paul owed Mary $90.

On 14 April, Paul sold goods for $150 to Mary.

On 21 April, Mary returned goods for $25 to Paul.

On 30 April, Mary owed Paul $125.

A supplier has received a debit note from a customer.
What does the supplier use this debit note for?

to complete a statement of account

to correct the sales journal

to make an entry in the sales returns journal

to prepare a credit note

Sue allows 2% cash discount to credit customers who settle their account within 28 days.
Jane purchased goods for $200 from Sue on 10 September but returned these goods to Sue on
15 September.
Which entry did Sue make for the transaction on 15 September?
A

purchases returns journal $196

purchases returns journal $200

sales returns journal $196

sales returns journal $200

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8

A trader prepared their trial balance which showed the debit column total of $45 000 and the credit
column total of $40 000.
The following errors were then discovered.
1

The discount received account balance of $500 was listed in the debit column of the
trial balance.

The returns outwards account balance of $250 was omitted from the trial balance.

The debit column of the trial balance was overcast by $3750.

All errors were corrected and the trial balance totals agreed.
What were the trial balance totals after the correction of errors?
A

$40 500

$40 750

$41 000

$ 44 500

Ahmed’s trial balance totals did not agree. He entered the difference in a suspense account.
The following errors were later discovered.
1

A payment of $200 for a vehicle repair had been debited to the motor vehicles
account.

Drawings of $150, correctly recorded in the cash book, had not been posted to the
drawings account.

The sales journal had been undercast by $900.

What was the original balance on Ahmed’s suspense account?
A

$550

$750

$950

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$1050

5
10 Susanne is a trader. She received a cheque from Zahir, a credit customer, for $300. This cheque
was incorrectly debited to Zahir’s account and credited to the bank account.
Which journal entry corrects this error?
debit
$
A
B
C
D

bank
Zahir

300

bank
Zahir

600

Zahir
bank

300

Zahir
bank

600

credit
$

300
600
300
600

11 A trial balance does not agree, and a suspense account is opened.
Which statement is not correct?
A

Errors of commission and errors of original entry are entered in the suspense account.

The trial balance difference is entered in the suspense account.

The suspense account remains open until all the errors preventing the agreement of the trial
balance have been corrected.

When all of the errors found have been corrected, there will be no balance carried down
in the suspense account.

12 After receiving her bank statement, Lyn updated her cash book.
Which items would reduce the overdrawn balance in the cash book?

bank interest received

credit transfer received

direct debit payment

1 and 2

1 and 3

2 and 3

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3 only

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13 Natalie is both a customer of and a supplier to Gustav.
On 28 June, Gustav’s account in Natalie’s purchases ledger had a credit balance of $295,
and his account in Natalie’s sales ledger had a debit balance of $140.
Gustav wishes to offset one amount against the other.
Which entries will Gustav make in his control accounts?
debit

credit

purchases ledger control account $140

sales ledger control account $140

purchases ledger control account $155

sales ledger control account $155

sales ledger control account $140

purchases ledger control account $140

sales ledger control account $155

purchases ledger control account $155

14 Johnny prepared his sales ledger control account. The figures in it came from several different
sources.
Which statements are correct?

The source of the opening balance was the sales account.

The discount allowed was totalled in the three-column cash book.

The irrecoverable debts were posted from the general journal.

1 and 2

1 and 3

2 and 3

3 only

15 At the beginning of the year on 1 January, Zac paid $420 for an equipment repair. He entered this
amount in the equipment account.
At the end of the year on 31 December, depreciation of 20% per annum was charged on the balance
of the equipment account, using the straight-line method.
What was the overall effect on the book value of the equipment on 31 December?
A

$84 understated

$336 overstated

$420 overstated

$504 understated

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16 Why does a business need to provide for depreciation in its accounting records?
A

to ensure availability of funds to replace its old non-current assets

to ensure that its current assets value is not overstated

to record as an expense the amount of the non-current assets used up during the year

to show its non-current assets at their market value

17 An asset originally costing $20 000 had been depreciated by $15 000 when it was sold for $3000.
Which entry will be shown in the disposal account to record the amount to be transferred to the
income statement?
A

$2000 credit

$2000 debit

$8000 credit

$8000 debit

18 Why should prepaid income be shown in the financial statements of a business?
A

so that credit customers pay the correct amount

so that payments to credit suppliers are correctly recorded

so that the statement of financial position shows the correct current assets

so that the total income is matched against the total costs of the same period

19 What is the effect on total assets and on equity in the statement of financial position if the value
of closing inventory is overstated?
total assets

equity

overstated

understated

overstated

understated

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20 Who works in a service business?
1

a hairdresser

an estate agent

a car mechanic

a car salesperson

1, 2 and 3

1 and 2 only

2, 3 and 4

3 and 4 only

21 At the beginning of the year on 1 January, Keith was owed $1500 commission by clients.
During the year, Keith received $18 000 commission.
At the end of the year on 31 December, Keith was owed $800 commission by clients.
How much commission did Keith record in his income statement for the year ended 31 December?
A

$15 700

$17 300

$18 700

$20 300

22 Jack and Gill are setting up in business as partners and are considering writing up a partnership
agreement.
What is not included in any partnership agreement drawn up by them?
A

the rate of interest to be charged on drawings

the rate of interest to be paid on a loan from a partner

the rate of interest to be paid on a loan received from the bank

the rate of interest to be paid on the capital invested by each partner

23 Raj and Rohit are in partnership sharing profits and losses in the ratio of 2 : 1. Raj is entitled to an
annual salary of $3000. The profit for the year was $14 100 for the year ended 31 December 2024.
On 1 January 2024, Raj’s current account had a debit balance of $1800.
What was the credit balance on Raj’s current account on 1 January 2025?
A

$8600

$10 400

$12 200

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$12 400

9
24 BCD Limited provided the following information.
$
ordinary shares

300 000

retained earnings

200 000

debentures

170 000

How much was the equity and the capital employed of BCD Limited?
equity
$

capital employed
$

300 000

470 000

300 000

670 000

500 000

470 000

500 000

670 000

25 Which statement correctly describes called-up share capital?
A

all share capital which has been issued to shareholders

shares which have been issued and those not yet issued

the share capital for which payment has been requested

the value of shares for which payment has been received

26 A sports club was established on 1 January. It has a clubhouse and also runs a snack bar for its
members.
Which items would be included in the receipts and payments account for the first year ended
31 December?

new furniture to be used in the clubhouse, paid by credit transfer

subscriptions paid by club members in advance for the next financial year

subscriptions owing by club members at the end of the financial year

snack bar wages owing at the end of the financial year

1 and 2

1 and 4

2 and 3

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3 and 4

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27 A sports club started running a café, selling hot and cold drinks and confectionery, on 1 January 2024.
The following information is given for the year ended 31 December 2024.

$
sales

3200

purchases

1750

wages paid to café assistant

500

inventory at 31 December 2024

250

What is the profit on the café for the year ended 31 December 2024?
A

$700

$950

$1200

$1450

28 A manufacturing business provided the following information.
$
236 000

prime cost
factory overheads

42 000

opening work in progress

8 000

closing work in progress

6 000

What was the factory cost of production transferred to the income statement?
A

$234 000

$238 000

$276 000

$280 000

29 Gem has been in business for many years. On 1 March, Gem purchased a new factory. On
that date, he paid three months’ insurance on his factory, totalling $900.
What should Gem enter for insurance in his statement of financial position on 31 March?
A

$300 in current assets

$300 in current liabilities

$600 in current assets

$600 in current liabilities

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30 Munira has not maintained a full set of accounting records.
How would she calculate her credit purchases figure for a month?
A

payments to credit suppliers + closing trade payables – discounts received – opening
trade payables

payments to credit suppliers – closing trade payables + discounts received + opening
trade payables

payments to credit suppliers – closing trade payables – discounts received + opening
trade payables

payments to credit suppliers + closing trade payables + discounts received – opening
trade payables

31 The assets of a business increased by $22 000 and its liabilities decreased by $6000 over a
one-year period.
During this period, the owner invested an additional $4000 of private funds into the business and
withdrew $7000 for personal use.
How much was the profit for the year?
A

$13 000

$17 000

$19 000

$31 000

1.95 : 1

32 Jonny provided the following information.
$
inventory

3500

cash

100

bank overdraft

1900

trade receivables

2400

trade payables

2100

What was Jonny’s current ratio?
A 1.33 : 1

1.50 : 1

1.58 : 1

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33 Jose runs a business providing accounting and book-keeping services.
What is not relevant in analysing his business financial statements?
A

current ratio

profit margin

rate of inventory turnover

return on capital employed

34 Jamila’s business sells one type of product only. She provided the following information.
year 1

year 2

number of units sold

1000

sales revenue

$8000

$10 800

28 days

31 days

rate of inventory turnover
What happened in year 2?
A

The sales price decreased, and goods were sold faster.

The sales price decreased, and goods were sold more slowly.

The sales price increased, and goods were sold faster.

The sales price increased, and goods were sold more slowly.

35 Antionette decides to treat a calculator bought for her large business as an expense instead of as
a non-current asset even though it will be used for several years.
Which principle did Antionette apply in deciding to account for the calculator as an expense?
A

duality

historic cost

materiality

money measurement

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To avoid the issue of disclosure of answer-related information to candidates, all copyright acknowledgements are reproduced online in the Cambridge
Assessment International Education Copyright Acknowledgements Booklet. This is produced for each series of examinations and is freely available to download
at www.cambridgeinternational.org after the live examination series.
Cambridge Assessment International Education is part of Cambridge Assessment. Cambridge Assessment is the brand name of the University of Cambridge
Local Examinations Syndicate (UCLES), which is a department of the University of Cambridge.

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Accounting (0452) · Oct/Nov 2025 · Question paper 12

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