0452/23/O/N/25 Question Paper – Accounting Oct/Nov 2025 Paper 23

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Cambridge Accounting (0452) question paper for paper 23, Oct/Nov 2025 — 0452/23/O/N/25, file 0452_w25_qp_23.pdf.

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ACCOUNTING

0452/23

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 (PQ) 340342/5
© UCLES 2025

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Sid owns a business selling cars. He operates a petty cash system and maintains the float at
$350. The float is restored on the first day of each month from the business bank account.
Sid has provided the following information:
2025
April 1
3
4
9
11
12
14
27
30

$
Balance b/d
Bought petrol
Bought tea, coffee and juice – for staff
Paid taxi fare for customer
Paid AB Autoparts, a credit supplier
Paid for printer paper
Paid window cleaner
Bought train ticket for member of staff
Paid office cleaner

350
36
34
24
78
8
30
8.50
45

REQUIRED

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0452/23/O/N/25

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(a) Prepare Sid’s petty cash book for the month of April on page 3. Balance the petty cash book at
30 April 2025 and bring down the balance at 1 May 2025. Restore the float to the agreed level.

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2
,

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0452/23/O/N/25

350

Total
received
$

Date

Details

Total
paid
$

Cleaning
$

Fuel
$

Office
expenses
$

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Travel
expenses
$

[12]

Ledger
accounts
$

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Balance

Details

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April 1

Date

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4
,

(b) State the name of the system used to maintain petty cash books.
[1]
(c) State one advantage of operating a petty cash account.

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[2]
Sid made the following transactions during the month of May 2025:

•

withdrew $1500 cash from the business bank account for his own personal use

•

bought car parts on credit from AB Autoparts. The list price of the parts was $830 but was
subject to 20% trade discount.

REQUIRED
(e) Show the journal entries to record these transactions. Narratives are not required.

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(d) State two reasons why there might be a difference between the balance on the petty cash
account and the money in the petty cash box.

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[1]

Debit
$

Credit
$

[4]
[Total: 20]

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ĬáûóÙĦđēàćČÝúÒæ¼ýĂ
ĥµõĕµµĥõąåĕąąõĥµĥÕ

0452/23/O/N/25

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Details

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Sid
Journal

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5
,

Jenny maintains a full set of accounting records and prepares control accounts at the end of each
month. She has provided the following information:
2025

January 31

Sales ledger control account balance

February 28

Totals for the month
Sales journal
Cash sales
Sales returns journal
Bank transfers received from credit customers
Discount allowed
Irrecoverable debts
Contra entries
Interest charged on overdue accounts

March

Sales ledger control account balance

1 895

debit

42 600
2 300
7 300
?
1 265
1 040
2 850
510
750

credit

REQUIRED:
(a) Prepare Jenny’s sales ledger control account for the month ended 28 February 2025. Balance
the account and bring down the balance at 1 March 2025.
Jenny
Sales ledger control account
Date

Details

2025

Date

Details

2025

[9]

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ĥµąÕõÕąĕĕÕÅąąĕąõõÕ

0452/23/O/N/25

[Turn over

6
,

(b) State one advantage of maintaining a sales journal.

[1]
(c) Complete the following table by indicating the name of the source document that Jenny would
use to make entries in her books of prime entry.

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Book of prime entry

Source document

Issued or Received

Sales journal
Purchases returns journal
[2]
(d) State what is meant by the following terms:

[1]
(ii)

trade discount.

[1]

Jenny has received goods from one of her credit suppliers. When she inspected the goods, she
found they were faulty.
REQUIRED
(e) Name the document Jenny would issue to her supplier to record the receipt of these faulty
goods.
[1]

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ĬáûôÎĪõĩÑöĈđ¾ÒēĔýĂ
ĥĥåÕõõąµÕµĥąÅĕåµåÕ

0452/23/O/N/25

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cash discount

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(i)

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State whether the source document is issued or received by Jenny.

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7
,

Jenny currently does not maintain a provision for doubtful debts. When all reasonable steps to
obtain payment from credit customers have failed, she writes off the debt. Her colleague has
advised her that she should create a provision for doubtful debts when she prepares her next set
of financial statements.
REQUIRED
(f)

Advise Jenny whether or not she should create and maintain a provision for doubtful debts.
Justify your answer by providing two arguments for and two arguments against maintaining
a provision for doubtful debts.

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[5]
[Total: 20]

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0452/23/O/N/25

[Turn over

Non-current assets

220 000

Current assets
Inventory
Trade receivables
Other receivables
Cash

34 000
44 000
6 500
8 400

Capital and liabilities
Capital – opening balance
Profit for the year

92 900
312 900

199 100
36 000
235 100
12 000

223 100

Non-current liabilities
Long-term bank loan

49 000

Current liabilities
Trade payables
Bank

31 000
9 800

Less: Drawings

40 800
312 900

Rushil has provided the following additional information:
1

Inventory at 1 October 2024 was $30 000.

The profit for the year in his statement of financial position was after having deducted loan
interest charges of $2450.

For the year ended 30 September 2025:

•

sales totalled $482 000 ($387 000 were on credit; the remainder were cash sales)

•

purchases totalled $310 000 (all on credit).

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ĬáüòÖĦċĐÓþòÏ¼ĆĥĄąĂ
ĥÕąĕõĕĥõåĥÅąąõĥõåÕ

0452/23/O/N/25

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Rushil is a trader and has provided his statement of financial position at 30 September 2025.

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8
,

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9
,

REQUIRED
(a) Complete the following table.
Return on capital employed (ROCE)
Workings

Rate of inventory turnover

Answer (correct to
two decimal places)

Workings

Trade receivables turnover (days)

Answer (round up to
the next whole day)

Workings

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Trade payables turnover (days)

Answer (round up to
the next whole day)

Workings

Current ratio

Answer (correct to
two decimal places)

Workings
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Answer (correct to
two decimal places)

[8]

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ĥÕõÕµõąĕµĕĕąąĕąµµÕ

0452/23/O/N/25

[Turn over

10
,

(b) (i)

Suggest two ways that Rushil might improve his return on capital employed (ROCE).
1

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[2]
Included in Rushil’s closing inventory valuation were some items that had been damaged. These
were included at a reduced value.
REQUIRED
State why the inventory was included at a reduced value.

[1]
(ii)

Name the accounting principle that is being applied.

[1]

(iii)

Complete the table by indicating with a tick (3) the effect on Rushil’s gross profit of
including his damaged inventory at a reduced value.
effect on Rushil’s gross profit
increase

decrease

[1]

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ĥąĥÕõĕÅõąÕÅÅąÕĥõĕÕ

0452/23/O/N/25

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Suggest two ways that Rushil might improve his inventory turnover rate.

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(ii)

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[2]

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11
,

Rushil is concerned that his credit customers are taking too long to pay him. He is considering
allowing a 2.5% cash discount on all credit sales if paid within 21 days.
REQUIRED
(d) Advise Rushil whether or not he should allow his credit customers a cash discount if they
make payment to him within 21 days. Justify your answer with arguments for and against
Rushil allowing his credit customers a cash discount if they make payment to him within
21 days.

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[5]

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[Total: 20]

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Ĭáúñ×ĢÿúìóĈ´ĄðÕ¼ýĂ
ĥąĕĕµõåĕĕåĕÅąµąµąÕ

0452/23/O/N/25

[Turn over

Talula owns a hairdressing salon. She also rents out part of her property to Sheila, who offers a range
of beauty treatments. Talula provided the following information for the year ended 30 September 2025.
Salaries
Electricity charges
Water charges
Income from hairdressing
Insurance
General expenses
Property tax
Rent received from Sheila

$
81 500
23 500
4 150
124 700
2 067
952
3 045
6 400

Additional information:
1

Insurance of $2067 is for the period from 1 October 2024 to 31 October 2025.

Sheila commenced renting property from Talula on 1 October 2024. There remains two months
of rental payments in arrears.

Property tax of $3045 is for the period 1 October 2024 to 31 December 2025.
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REQUIRED
(a) Prepare Talula’s income statement for the year ended 30 September 2025.

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Talula
Income Statement for the year ended 30 September 2025

[5]

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Ĭáúô×ĬíïÏíÿ»âÔ÷ìõĂ
ĥµÅĕõõåµõąĥÅÅµåµĕÕ

0452/23/O/N/25

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12
,

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13
,

Talula has been notified by her electricity supplier that costs of electricity will increase by 15% with
effect from January 2026.
REQUIRED
(b) Suggest two courses of action that Talula might take to ensure that her profit for the year is
not affected. For each course of action, state what impact the course of action might have on
Talula’s business. An example has been provided in the table.
Suggested course of action

Impact on the business

Increase service prices

Reduced number of customers

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[4]

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ĬáùóÏĞñÿêċòîöìãìąĂ
ĥµµÕµĕÅÕĥõµÅÅÕÅõąÕ

0452/23/O/N/25

[Turn over

Talula currently operates on a cash only basis. The hairdressers are required to calculate a
customer’s bill and to take payment. Talula banks the cash taken twice a week. Over the last year,
Talula has received many requests from customers who would prefer to pay using a debit or credit
card.
To allow debit and credit card payments, Talula would need to incur the following costs:
Digital cash register

$550

Card payment machine (hired)

$20 per month

Transaction charge

1.5% of the value of each transaction

REQUIRED
(c) Advise Talula whether or not she should accept card payments. Justify your answer by
providing two arguments for and two arguments against Talula accepting debit and credit
card payments.

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14
,

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[5]

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ĬáúñÎĤþ÷ÜýõÑÚñçĜýĂ
ĥĕµĕõõąõąĥµąąĕĥµÕÕ

0452/23/O/N/25

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DFD

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* 0000800000015 *

15
,

Sheila, who rents part of Talula’s premises, has asked Talula if she would be interested in forming
a partnership.
REQUIRED
(d) State three advantages for Talula of forming a partnership with Sheila.
1

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[3]

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(e) Identify three clauses (other than how profit or loss will be shared) that the partnership
agreement should cover if Talula agrees to the partnership with Sheila.
1

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[3]
[Total: 20]

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0452/23/O/N/25

[Turn over

16
,

P Limited is a retail company with a financial year end of 30 June. The accounts department of the
company is looking into some recent capital and revenue expenditure and receipts.
REQUIRED
(a) State what is meant by the following terms:
(i)

capital expenditure

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[1]
(ii)

revenue expenditure

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(iii)

capital receipts

[1]

(iv)

revenue receipts.

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[1]

[1]
(b) Complete the table by indicating with a tick (3) how the following items of income and
expenditure will be classified.
item

capital
expenditure

revenue
expenditure

capital
receipt

revenue
receipt

delivery charges for new
office equipment
repairs to the roof of an
existing building
painting of a new extension
to the factory
proceeds from the sale of a
motor vehicle
© UCLES 2025

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ĬáùóÖĠôĂÚõăďàåÑČąĂ
ĥåĕÕõĕĥµõµĕąÅõåõÕÕ

[4]
0452/23/O/N/25

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17
,

P Limited has provided an extract from their statement of changes in equity for the year ended
30 June 2024.
P Limited
Statement of Changes in Equity (extract) for the year ended 30 June 2024

Balance at 30 June 2024

Ordinary
share capital
$

General
reserve
$

Retained
earnings
$

Total
$

230 000

16 300

46 220

292 520

P Limited’s profit after interest for the year ended 30 June 2025 was $37 350.
After preparing the trial balance at 30 June 2025, P Limited’s directors decided to transfer $8000
to the general reserve and to pay an interim dividend to their ordinary shareholders of $36 400.
REQUIRED
(c) Prepare the retained earnings column only of the statement of changes in equity of P Limited
for the year ended 30 June 2025.
P Limited
Statement of Changes in Equity (retained earnings)
for the year ended 30 June 2025
Retained earnings
$

[3]

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ĬáúôÎĪðòßăîÚüÍąČõĂ
ĥåĥĕµõąÕĥÅÅąÅĕÅµÅÕ

0452/23/O/N/25

[Turn over

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18
,

Additional information at 30 June 2025:
$
205 000
59 600
83 000
11 324
23 030
44 890
57 040
5 700
2 282
2 100
5 044
32 000
22 000
33 000

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Land and buildings
Equipment
Vehicles
Provision for depreciation – equipment
Provision for depreciation – vehicles
Trade payables
Trade receivables
Other payables
Provision for doubtful debts
Cash
Bank overdrawn
6% Debentures
Bank loan (5 years)
Inventory
REQUIRED

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ĬáüóÏĞüĘØîČµÄçµ´íĂ
ĥõõĕõĕÅµÕąĕÅÅÕåõĥÕ

0452/23/O/N/25

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P Limited
Statement of Financial Position at 30 June 2025

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(d) Prepare the statement of financial position for P Limited at 30 June 2025.

DFD

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* 0000800000019 *

19
,

[9]
[Total: 20]

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Ĭáûô×ĬøĨáČõôĘÏġ´ýĂ
ĥõąÕµõåÕÅõÅÅÅµÅµõÕ

0452/23/O/N/25

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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0452/23/O/N/25

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Accounting (0452) · Oct/Nov 2025 · Question paper 23

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