A & O CENTRE OF EXCELLENCE

TRIAL EXAMINATION 2025

Y11 ACCOUNTING
Paper 1 Multiple Choice
1 hour 15 minutes

You must answer on the multiple-choice answer sheet.

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 on the multiple-choice answer sheet in the spaces provided unless this
has been done for you.
 Do not use correction fluid.
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.

For the examiner’s use

Paper Marks Final
Marks
1 /35 /30
2 /100 /70
1. How is owner’s equity calculated?

A total assets − total liabilities

B total assets + total liabilities
C current assets − current liabilities
D non-current assets − non-current liabilities

2. 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?
A to ascertain the market value of the non-current assets
B to check if all the transactions had been recorded
C to find out about job satisfaction among the workers
D to see if the profit was greater than his previous earnings

3. The double entry system of book-keeping consists of processing accounting data in a

certain order. What is the correct order?

A business documents, books of prime entry, ledgers, trial balance

B business documents, ledgers, trial balance, books of prime entry
C books of prime entry, business documents, trial balance, ledgers
D books of prime entry, ledgers, trial balance, business documents

4. An account in Peter’s books of account was as follows:

Which statement is correct?

A Peter received a discount for buying in bulk.
B Peter received a discount for paying early.
C Rami received a discount for buying in bulk.
D Rami received a discount for paying early.

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5. At the end of her financial year, Jasmine balanced her cash book and ledger accounts and
made appropriate year-end transfers.
Which statements are correct?
1) The debit balance on the account of a credit customer will be shown as an asset in
the statement of financial position.

2) The debit balance on the bank column in the cash book will be shown as a liability
in the statement of financial position.

3) The total of the discount received account will be included in the cost of sales in
the income statement.

4)The total of the general expenses account will be deducted from gross profit in the
income statement.

A 1, 2 and 3 C 1 and 4 only

B 1, 3 and 4 D 2 and 3 only

6. Alisha entered the credit notes she received in March in the correct returns journal. How
was the total of this journal recorded in the ledger at the end of March?

A credit purchases returns account

B credit sales returns account
C debit purchases returns account
D debit sales returns account

7. Which statements about trade discount are correct?

1) It is debited to the supplier’s account.
2) It is only given if the invoice is paid within the period allowed by the supplier.
3) It is shown as a deduction from the price of the goods on an invoice.
4) It is used to encourage bulk buying.
A 1 and 2 C 2 and 4
B 1 and 3 D 3 and 4

8. 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?

A $18 credit C $154 credit

B $18 debit D $154 debit

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9. Sameer calculated that his profit for the year was $6 300. He then found two errors.
1) A cheque for $3250, received from a credit customer, had only been recorded in
the cash book.
2) 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 $2 450 C $5 700
B $2 750 D $6 000

10. Jamal’s bank statement at 1 May showed a bank overdraft of $1 460. At that date, there
were unpresented cheques of $385 and uncredited deposits of $255.
What was the cash book balance at 1 May?

A $1 330 credit C $1 590 credit

B $1 330 debit D $1 590 debit

11. 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
B by subtracting both unpresented cheques and uncredited deposits
C by adding unpresented cheques and subtracting uncredited deposits
D by subtracting unpresented cheques and adding uncredited deposits

12. The cash book provides information for which control account item?
A discount allowed to credit customers C irrecoverable debts written off
B interest charged on overdue accounts D purchases returns

13. George is preparing his purchases ledger control account. Which information would he
obtain from his general journal in order to do this?

A contra entries with the sales ledger

B goods returned to credit suppliers
C irrecoverable debts written off
D refunds received from credit suppliers

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14. Javid’s sales ledger control account had a debit balance of $12 000. Interest of $40 on an
overdue account and also discount allowed of $150 had been omitted.
What was the correct balance on the sales ledger control account?

A $11 810 C $12 110

B $11 890 D $12 190

15. After preparing his financial statements, Jonty discovered two errors had been made in his
accounting records.

error 1 Vehicle repair costs of $1 500 had been debited to the vehicles account.
error 2 Legal fees of $2 100, relating to the purchase of new premises, had been
included in expenses.

Ignoring depreciation, what was the effect of these errors on Jonty’s profit for the year?
A $600 overstated C $3 600 overstated
B $600 understated D $3 600 understated

16. Which item is a revenue receipt?

A cash invested by the owner of the business
B proceeds from the sale of a non-current asset at book value
C rent received from letting part of the premises
D short-term loan received from a finance company

17. Samuel started his business on 1 January 2023 and bought two delivery vans for $12 000
each. He depreciates all vehicles at the rate of 10% per annum, calculated monthly, using
the straight-line method.

On 1 April 2024, he sold one of the vans and replaced it with a larger one costing $24 000.
What was the balance on the provision for depreciation of delivery vehicles account on 31
December 2024?

A $3 300 C $5 700
B $4 200 D $6 600

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18. A carpenter uses the revaluation method of depreciation for the hand tools used in the
business. All hand tools in use at the end of the financial year, including those bought
during the year, are revalued.
New hand tools were purchased during the year, but no hand tools were disposed of.
Which value of hand tools shows the calculation of the depreciation for the year?

A value at the start of the year less cost of new tools less value at the end of the year
B value at the start of the year less value at the end of the year
C value at the start of the year plus value at the end of the year less new hand tools
purchased
D value at the start of the year plus new hand tools purchased less value at the end of the
year

19. T Limited rents out part of its premises. At the start of the year, the tenant was $600 in
arrears. During the year, T Limited received $8 650 in rent from the tenant. T Limited’s
income statement showed rent receivable for the year as $7 900.
What was the balance brought down on the rent receivable account at the start of the
following year?

A $150 on the credit side C $1350 on the credit side

B $150 on the debit side D $1350 on the debit side

20. Anjum rents part of her premises to Ajay for $6 120 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?
A $3 570 C $6 630
B $5 610 D $8 670

21. 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
B because the credit customer has not paid their account by the due date
C because the credit customer is no longer buying goods from the trader
D because the credit customer is not able to pay their account

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22. A provision for doubtful debts of 5% of trade receivables is maintained.
At 1 January 2024, the provision for doubtful debts account had a credit balance of $240.
At 31 December 2024, trade receivables owed $5 200. It was decided that $200 of this
amount was irrecoverable. Which entry was made in the provision for doubtful debts
account on 31 December 2024?

A debit $10 C debit $20

B credit $10 D credit $20

23. How should a business value its inventory?

A at the higher of cost and net realisable value
B at the lower of cost and net realisable value
C at the higher of selling price and cost
D at the lower of cost and net book value

24. Tony has prepared an inventory calculation statement at the end of the financial period.

What is the value of Tony’s inventory?

A $2 060 C $2 510
B $2 200 D $2 650

25. What is a disadvantage of running a business as a sole trader?

A The owner does not have to pay interest on drawings.
B The owner is entitled to all the profits made by the business.
C The owner must share the decision-making and the profits.
D The owner’s personal possessions are at risk if the business should fail.

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26. 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 C $16 000

B $15 000 D $31 000

27. Frankie is a partner. He has both a capital account and a current account.
Which statement is correct?
A Any loans he makes to the partnership are added to his capital account balance.
B He can have a debit balance on his current account but not on his capital account.
C Interest on drawings would increase a credit balance on his current account.
D The balance on his capital account falls when his drawings exceed his share of profit.

28. What is included in the equity of a limited company?

1 debentures
2 general reserve
3 goodwill
4 ordinary share capital
A 1, 2 and 3 C 2 and 4 only
B 1, 2 and 4 D 4 only

29. The bank account kept by a sports club shows that subscriptions totalling $2 695 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 $2 355 C $2 550
B $2 500 D $2 695

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

Work in progress at 30 April 2024 was $8 990.

What is the production cost of goods completed for the year ended 30 April 2025?

A $361 050 C $475 900

B $474 800 D $477 000

31. A trader does not maintain a full set of accounting records. How could he calculate the
profit for the year?

A closing capital – opening capital – drawings – capital introduced

B closing capital – opening capital + drawings – capital introduced
C closing capital – opening capital + drawings + capital introduced
D closing capital – opening capital – drawings + capital introduced

32. Why might a trader wish to increase his trade payables turnover days?

1) to improve his total working capital

2) to keep funds available for other purposes
3) to receive more cash discounts

A 1, 2 and 3 C 2 only
B 1 only D 3 only

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33. A business provided the following information

What was the percentage mark-up?

A 20% C 75%
B 25% D 80%

34. Sally’s business has reached its bank overdraft limit of $1 500. Sally is considering the
following actions.

1) asking the bank to increase the bank overdraft limit to $2 000

2) borrowing $2 000 from a relative and paying the money back in six months
3) obtaining a loan of $2 000 from the bank, repayable in two years
4) paying $2 000 from Sally’s personal bank account into the business bank account

Which actions will improve the working capital of the business?

A 1 and 2 C 2 and 3
B 1 and 4 D 3 and 4

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

B the relevance of the financial statements
C the reliability of the financial statements
D the understandability of the financial statements

END OF PAPER

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