0452/22/O/N/25 Question Paper – Accounting Oct/Nov 2025 Paper 22

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Cambridge Accounting (0452) question paper for paper 22, Oct/Nov 2025 — 0452/22/O/N/25, file 0452_w25_qp_22.pdf.

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ACCOUNTING

0452/22

Paper 2 Structured Written Paper

October/November 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 20 pages. Any blank pages are indicated.
DC (WW) 340341/6
© UCLES 2025

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2
,

On 31 March 2025, Zac’s bank statement showed an overdrawn balance of $1665, but the bank
column of his cash book showed a debit balance of $825 on the same date.
Upon investigation, he discovered that the following items appeared on his bank statement, but
not in his cash book.
Payment received by bank transfer from Zoe, a credit customer
Electricity charges paid by direct debit
Bank charges
A standing order for insurance had been deducted in error
Interest received

$
310
936
58
1121
45

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March
20
23
25
29
30

The following items appeared in his cash book, but not on his bank statement.
March
27
30

A cheque payable to AC Motors had not been presented
Cash and cheques deposited into the bank

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$
480
1210

REQUIRED

Date

Details

Date

Details

[7]

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ĥÅµĕõÕąµÕĕÅąąÕåõõÕ

0452/22/O/N/25

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Zac
Cash Book – bank columns

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Balance the account and bring down the balance at 1 April 2025.

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(a) Update the bank columns of Zac’s cash book.

DFD

3
,

(b) Prepare a bank reconciliation statement at 31 March 2025.
Zac
Bank reconciliation at 31 March 2025
$

[5]

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ĥÅÅÕµµĥÕÅĥĕąąµÅµĥÕ

0452/22/O/N/25

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4
,

Currently, Zac completes a bank reconciliation statement twice every year but is now considering
completing one every three months.
REQUIRED
(c) Advise Zac whether he should be completing a bank reconciliation statement every three
months. Justify your answer by considering advantages and disadvantages of doing so.

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DFD

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[5]
(d) State what is meant by the term ‘dishonoured cheque’.

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[1]

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ĬáíúÖĝĕďÓċć¾āĕĪôąĂ
ĥõĕÕõµĥõåÅĥąÅµĥµõÕ

0452/22/O/N/25

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DFD

5
,

On 5 April, Zac was notified that a cheque paid into his business bank account during March had
been dishonoured. The cheque for $128 was from Ali, a credit customer.
REQUIRED
(e) Complete the following table to show the journal entry required to record the dishonoured
cheque in Zac’s accounts. A narrative is not required.
Zac
Journal

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Details

Debit
$

Credit
$

[2]

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[Total: 20]

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ĬáîùÎīęğæíúċÕĝ®ôõĂ
ĥõĥĕµÕąĕµµµąÅÕąõĥÕ

0452/22/O/N/25

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6
,

Jaya is a trader. Her financial year ends on 31 July.
The totals of her trial balance at 31 July 2025 did not agree.
REQUIRED
(a) (i)

Name the account that Jaya would need to open to enable her trial balance totals to
agree.

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State the primary purpose of this account.
[1]

Jaya later discovered the following five errors:
No entry had been made for distribution costs of $320 paid by bank transfer.

Closing inventory had been recorded as $12 200 instead of $12 900.

Purchases returns of $95 had been correctly entered in the credit supplier’s account but had
been debited to the sales returns account.

A cheque for $225 received from ABC wholesalers, a credit customer, had been correctly
entered in the cash book, but no other entry had been made.

Property maintenance costs of $1220 had been incorrectly charged to the land and buildings
account.

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ĥåÅĕµõąµõÕĕąąÕåµµÕ

0452/22/O/N/25

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(ii)

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[1]

DFD

7
,

REQUIRED
(b) Prepare the journal entries to correct errors 1 to 5. Narratives are not required.
Jaya
Journal
Error number

Details

Debit
$

Credit
$

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[9]

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ĬáîúÙħíĕÛĀö·ġĝċÜõĂ
ĥåµÕõĕĥÕĥåÅąąµÅõåÕ

0452/22/O/N/25

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8
,

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(d) Complete the table by entering the amount by which Jaya’s profit for the year would be
overstated or understated if each error is left uncorrected. If an error has no effect on profit,
enter zero (0) in the ‘no effect’ box.
Error 1 has been completed as an example.
Profit for the year
Error

Overstated
$

Understated
$

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No effect

320

3
4
5
[7]

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ĬáîûÙĝÿĔàĂí°ÃÁéÌýĂ
ĥĕĥÕµĕĥõąąµąÅµĥõµÕ

0452/22/O/N/25

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[Total: 20]

DFD

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9
,

Ahmed has a vehicle breakdown recovery business. He owns a recovery vehicle and has provided
the following information about the vehicle:

•
•
•
•

Purchase date: 1 October 2021
Purchase price: $80 000 paid by bank transfer
Estimated residual value: $30 000
Estimated working life: 5 years

Ahmed provides a full year’s depreciation in the year of purchase but charges no depreciation in
the year of disposal. He depreciates his vehicles using the reducing balance method at 20% per
annum.
His recovery vehicle is now 4 years old and is no longer reliable. Ahmed considered replacing his
recovery vehicle on 31 August 2025.
Ahmed’s financial year ends on 30 April.
REQUIRED
(a) Calculate the depreciation charge for each year of the recovery vehicle’s working life,
assuming Ahmed replaces the recovery vehicle on 31 August 2025. Show your workings.
$

[4]

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ĥĕĕĕõõąĕĕõĥąÅÕąµåÕ

0452/22/O/N/25

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10
,

(b) State one advantage and one disadvantage of the reducing balance method of depreciation.
Advantage

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DFD

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[2]
On 1 February 2025, a local dealer offered to buy the recovery vehicle from Ahmed for $35 000
cash.
REQUIRED

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Disadvantage

Show your workings, and state whether it would have been a ‘profit’ or ‘loss’.

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(c) Calculate the profit or loss on disposal if Ahmed had sold his recovery vehicle to the local
dealer on 1 February 2025.

[3]

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ĬáïûÔğćĆâĉöĖßÃ½ôõĂ
ĥÅąĕµĕÅõåµµÅÅĕĥõąÕ

0452/22/O/N/25

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DFD

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* 0000800000011 *

11
,

(d) (i)

Prepare Ahmed’s motor vehicles account for the year ended 30 April 2025 if Ahmed had
sold his recovery vehicle to the local dealer on 1 February 2025.
Ahmed
Motor vehicles account

Date

Details

Date

Details

[2]

(ii)

Prepare Ahmed’s disposal of motor vehicles account for the year ended 30 April 2025 if
Ahmed had sold his recovery vehicle to the local dealer on 1 February 2025.
Ahmed
Disposal of motor vehicles account

Date

Details

Date

Details

[4]

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ĬáðüÜĩċö×ïċÓû»ęôąĂ
ĥÅõÕõõåĕµÅĥÅÅõąµĕÕ

0452/22/O/N/25

[Turn over

Ahmed sold his recovery vehicle. Since the sale, he has been hiring a recovery vehicle capable of
recovering larger vehicles and is now considering buying a similar vehicle.
He would finance the purchase of this new vehicle using the money received from selling his old
recovery vehicle, and the balance will come from a bank loan repayable in 5 years. Delivery of the
new vehicle is estimated to be in 6 months.
REQUIRED
(e) Advise Ahmed whether he should buy this new recovery vehicle. Justify your answer by
providing advantages and disadvantages of buying the new recovery vehicle.

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12
,

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DFD

* 0000800000012 *

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ĬáðùÜģùóäñĄÜÙė»ĤíĂ
ĥõåÕµõåµÕĥĕÅąõåµąÕ

0452/22/O/N/25

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[Total: 20]

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[5]

DFD

13
,

BLANK PAGE

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ĬáïúÔĥõăÕćíčýğğĤýĂ
ĥõÕĕõĕÅÕÅĕÅÅąĕÅõĕÕ

0452/22/O/N/25

[Turn over

AY Limited has provided the following performance data for the last two years of trading.
Ratio

Year 1

Year 2

ended
31 March 2024

ended
31 March 2025

10.67%

10.05%

Gross margin

22%

23.5%

Profit margin

11.5%

11.0%

9.46 times

11.45 times

Trade payables turnover

34 days

30 days

Trade receivables turnover

32 days

36 days

1.42:1

0.95:1

Return on capital employed (ROCE)

Rate of inventory turnover

Liquid (acid test) ratio

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14
,

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DFD

* 0000800000014 *

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ĬáðüÑīĊûçāú²á¶īÔąĂ
ĥÕÕÕµõąõåąÅąÅÕĥµÅÕ

0452/22/O/N/25

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All sales and purchases are on credit and are subject to a 30‑day credit period.

DFD

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* 0000800000015 *

15
,

REQUIRED
(a) Complete the following table by indicating whether the ratio has improved or deteriorated at
the end of year 2, and give two reasons which may have caused the change.
The Return on capital employed (ROCE) has been completed as an example.

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Ratio

Return
on capital
employed
(ROCE)

Improved or
deteriorated

Deteriorated

Possible reasons for the change

Introduction of additional capital or loans.
Profit for the year has decreased.

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Gross margin

Profit margin

Rate of
inventory
turnover
(times)

Liquid (acid
test) ratio

[10]

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ĥÕåĕõĕĥĕµõĕąÅµąõÕÕ

0452/22/O/N/25

[Turn over

16
,

The directors at AY Limited were concerned that the trade receivables turnover rate had
deteriorated and so increased the provision for doubtful debts from 2% to 3% for the year ended
31 March 2025. The trade receivables balances were as follows:
31 March 2024
31 March 2025

$
346 000
399 000

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DFD

* 0000800000016 *

Balance the account and bring down the balance at 1 April 2025.
AY Limited
Provision for doubtful debts account
Date

Details

Date

Details

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(b) Write up the provision for doubtful debts account in AY Limited’s ledger for the year ended
31 March 2025.

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REQUIRED

Explain what is meant by ‘a provision for doubtful debts’.

[1]

(ii)

Name the accounting principle being applied when creating a provision for doubtful
debts.
[1]

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ĬáïúÙħøþåùĀð×ĢčÄýĂ
ĥĥõĕµĕĥµÕÕĥąąµåõÅÕ

0452/22/O/N/25

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[3]

DFD

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* 0000800000017 *

17
,

The directors of AY Limited have been considering buying a new piece of equipment costing
$75 000. A machinery supplier has approached them, offering a 15% discount on this equipment
if they make an immediate purchase. The supplier has indicated that the purchase would need to
be on a cash basis. AY Limited’s accountant has suggested that they may be able to finance the
purchase of the equipment by delaying payments to their trade payables.
REQUIRED
(d) Advise the directors of AY Limited whether or not delaying payments to their trade payables
would be a good way to secure the purchase of the equipment. Justify your answer by
providing points for and against delaying payments to their trade payables.

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[5]
[Total: 20]

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ĬáðùÑġüîÔÿñ¹ăĚÉÄíĂ
ĥĥąÕõõąÕÅåµąąÕÅµÕÕ

0452/22/O/N/25

[Turn over

$
Revenue
Raw materials
Inventory at 1 April 2024
Inventory at 31 March 2025
Finished goods
Inventory at 1 April 2024
Inventory at 31 March 2025
Salaries and wages
Operatives’ wages
Factory supervisors’ salaries
Office staff salaries
Purchases of raw materials
Purchases of finished goods
Carriage in on finished goods
Factory machinery at cost
Accumulated depreciation of factory machinery
Rent and rates
Electricity charges
Insurance
Factory general expenses

1 107 272

Work in progress at 1 April 2024
Work in progress at 31 March 2025

21 700
16 400
76 370
49 660
241 200
48 240
64 350
280 050
122 430
2 242
427 000
187 000
10 060
9 344
18 400
27 640
83 440
92 510

Additional information
1

Depreciation on factory machinery is to be provided at 15%, using the reducing balance
method.

Rent and rates – 60% relate to the factory, with the remainder being for the office.

Electricity charges are to be split in the ratio 5 : 3 between factory and office.

Insurance is split equally between factory and office.

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ĬáîúÔĥðĜëòćÖ»ĤùüõĂ
ĥµĕÕµĕÅµõĥĥÅąĕåõõÕ

0452/22/O/N/25

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GH Company manufactures car parts and has provided the following information relating to the
year ended 31 March 2025.

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18
,

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DFD

* 0000800000018 *

DFD

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* 0000800000019 *

19
,

REQUIRED
(a) Prepare the manufacturing account for GH Company for the year ended 31 March 2025.
GH Company
Manufacturing Account for the year ended 31 March 2025
$

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ĬáíùÜģôĬÎĈúēğĜÝüąĂ
ĥµĥĕõõåÕĥĕµÅąõÅµĥÕ

0452/22/O/N/25

[13]
[Turn over

GH Company
Income Statement (Trading section) for the year ended 31 March 2025
$

[7]
[Total: 20]

Permission to reproduce items where third‑party owned material protected by copyright is included has been sought and cleared where possible. Every
reasonable effort has been made by the publisher (UCLES) to trace copyright holders, but if any items requiring clearance have unwittingly been included, the
publisher will be pleased to make amends at the earliest possible opportunity.
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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ĬáíüÜĩĂĝéĊñĜ½¸ÿĬíĂ
ĥąµĕµõåõąµÅÅÅõĥµõÕ

0452/22/O/N/25

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(b) Prepare the trading section of the income statement for GH Company for the year ended
31 March 2025.

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REQUIRED

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20
,

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DFD

* 0000800000020 *

Accounting (0452) · Oct/Nov 2025 · Question paper 22

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