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 Sami returns goods bought on credit from Javed.
How is this recorded in Javed’s books?
2 A business buys goods on credit.
Which document is used to record this in the buyer's books?
B purchases invoice
statement of account
3 A business allows its customers cash discount.
Where is this first recorded?
A Cash Book
B Sales Journal
D Purchases Journal
4 A purchaser was given the following discounts on a sale of goods, list price $4000.
Which amount would have been shown in the discount received column of the purchaser’s Cash
Book when payment was made?
5 A Cash Book bank column has a credit balance of $1700.
Included in the Cash Book are cheques drawn, but not yet presented, of $2100