UNIVERSITY OF CAMBRIDGE INTERNATIONAL EXAMINATIONS
General Certificate of Education Ordinary Level
PRINCIPLES OF ACCOUNTS
Paper 1 Multiple Choice
1 hour 15 minutes
Additional Materials: Multiple Choice Answer Sheet
Soft clean eraser
Soft pencil (type B or HB is recommended)
READ THESE INSTRUCTIONS FIRST
Write in soft pencil.
Do not use staples, paper clips, highlighters, glue or correction fluid.
Write your name, Centre number and candidate number on the answer sheet in the spaces
provided unless this has been done for you.
There are forty 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 separate answer sheet.
Read the instructions on the Answer Sheet very carefully.
Each correct answer will score one mark. A mark will not be deducted for a wrong answer.
Any rough working should be done in this booklet.
Calculators may be used.
This document consists of 11 printed pages and 1 blank page.
1 What is the purpose of double entry bookkeeping?
to apply the dual aspect concept
to avoid errors
to prepare books of prime entry accurately
to record revenue and capital transactions correctly
2 What is the original document for sales returns?
A a credit note from the purchaser
B a credit note from the supplier
C an invoice from the purchaser
D an invoice from the supplier
3 A business buys stock on credit for $500. It is allowed trade discount of 10 % and cash discount
of 4 %.
Which amount will be entered in the purchases account?
4 Goods returned to a supplier were entered in the supplier’s appropriate journal.
Which account should be debited in the supplier’s general ledger?
5 After the cash book is updated, a bank reconciliation statement is prepared.
What is shown in the bank reconciliation s