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Sanjaya Jayasundara
Sanjaya Jayasundara

Edexcel IGCSE Accounting May 2021 Edexcel Latest IGCSE/O Level Accounting Paper 1 Free download Paper 02: Financial Statements

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*P66469A0112* Turn over Candidate surname Other names Total Marks Centre Number Candidate Number Please check the examination details below before entering your candidate information Time Paper reference Pearson Edexcel International GCSE You do not need any other materials. P66469A ©2021 Pearson Education Ltd. 1/1/1/1 1 hour 15 minutes 4AC1/02 Accounting Level 1/2 PAPER 2: Financial Statements Instructions • Use black ink or ball-point pen. • Fill in the boxes at the top of this page with your name, centre number and candidate number. • Answer all questions. • Answer the questions in the spaces provided – there may be more space than you need. Information • The total mark for this paper is 50. • The marks for each question are shown in brackets – use this as a guide as to how much time to spend on each question. • Calculators may be used. Advice • Read each question carefully before you start to answer it. • Try to answer every question. • Check your answers if you have time at the end. • Good luck with your examination.
*P66469A0212* 2 Answer ALL questions. Write your answers in the spaces provided. 1 Leo, a manufacturer, provided the following information for the year ended 31 March 2021. 1 April 2020 $ 31 March 2021 $ Premises Cost Accumulated depreciation 500 000 100 000 500 000 To be calculated Plant and machinery Cost Accumulated depreciation 250 000 90 000 250 000 To be calculated Inventory Raw materials Work in progress Finished goods 56 000 64 000 108 000 44 000 68 400 112 000 Carriage inwards on raw materials 1 300 Carriage outwards 2 100 Direct wages 82 400 Electricity 18 000 Factory insurance paid 9 000 Indirect factory expenses 79 500 Indirect wages paid 83 650 Other payables – indirect wages 1 350 Other receivables – factory insurance 500 Purchases of raw materials 167 500 Returns inwards 12 000 Returns outwards 17 500 Revenue 630 000 Royalties 15 000 Plant and machinery is depreciated at 20% per annum using the reducing balance method. Premises are depreciated at 10% per annum using the straight line method. Both electricity and depreciation on premises are apportioned 75% to the factory.
*P66469A0312* Turn over 3 (a) Prepare the manufacturing account for the year ended 31 March 2021. (15) Leo Manufacturing account for the year ended 31 March 2021 .................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................... 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*P66469A0412* 4 (b) Prepare an extract of the income statement for the year ended 31 March 2021 showing the trading section only. (5) Leo Income statement for the year ended 31 March 2021 .................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................... ....................................................................................................................................................................................................................................................................................
*P66469A0512* Turn over 5 Leo believes that an increase in revenue for this year has led to an improvement in profitability, even though both his gross profit percentage and return on capital employed percentage have decreased. (c) Evaluate whether Leo is correct. (5) .................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................... (Total for Question 1 = 25 marks)
*P66469A0612* 6 2 Amira, a sole trader, does not keep full accounting records. She has provided the following information. 1 April 2020 $ 31 March 2021 $ Motor vehicle Cost Accumulated depreciation 40 000 19 520 50 000 To be calculated Land 31 670 31 670 Cash at bank 1 350 1 650 Cr Inventory 21 500 24 000 Other receivables - insurance 1 500 – Trade payables 32 000 31 000 Trade receivables 34 500 37 500 During the year ended 31 March 2021 Amira sold her motor vehicle for $22 940. In addition, she purchased a new motor vehicle costing $50 000. Motor vehicles are depreciated at 20% per annum using the reducing balance method. A full year's depreciation is charged in the year of purchase and none in the year of disposal. Amira borrowed $50 000 as an interest free loan repayable in five equal annual instalments. The first instalment was paid on 31 March 2021. Her cash drawings during the year amounted to $25 000 and she also took goods costing $5 000 for her personal use. At 31 March 2021 irrecoverable debts of $2 500 were to be written off. A provision for irrecoverable debts of 5% was to be created.
*P66469A0712* Turn over 7 BLANK PAGE
*P66469A0812* 8 (a) Prepare the statement of affairs (statement of financial position) at 1 April 2020. (4) Amira Statement of affairs at 1 April 2020 .................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................... ....................................................................................................................................................................................................................................................................................
*P66469A0912* Turn over 9 (b) Prepare the statement of affairs (statement of financial position) at 31 March 2021. (11) Amira Statement of affairs at 31 March 2021 .................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................... 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*P66469A01012* 10 (c) Prepare the equity account for the year ended 31 March 2021 to show the profit or loss for the year. (5) Equity Account Date Details $ Date Details $ (d) Explain, referring to a relevant accounting concept, why Amira: (i) introduced a provision for irrecoverable debts (2) .................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................... (ii) used the reducing balance method rather than the straight line method of depreciating her motor vehicle. (3) .................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................... (Total for Question 2 = 25 marks) TOTAL FOR PAPER = 50 MARKS
*P66469A01112* 11 BLANK PAGE
*P66469A01212* 12 BLANK PAGE

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4 ac1 02_que_20210505

  • 1. *P66469A0112* Turn over Candidate surname Other names Total Marks Centre Number Candidate Number Please check the examination details below before entering your candidate information Time Paper reference Pearson Edexcel International GCSE You do not need any other materials. P66469A ©2021 Pearson Education Ltd. 1/1/1/1 1 hour 15 minutes 4AC1/02 Accounting Level 1/2 PAPER 2: Financial Statements Instructions • Use black ink or ball-point pen. • Fill in the boxes at the top of this page with your name, centre number and candidate number. • Answer all questions. • Answer the questions in the spaces provided – there may be more space than you need. Information • The total mark for this paper is 50. • The marks for each question are shown in brackets – use this as a guide as to how much time to spend on each question. • Calculators may be used. Advice • Read each question carefully before you start to answer it. • Try to answer every question. • Check your answers if you have time at the end. • Good luck with your examination.
  • 2. *P66469A0212* 2 Answer ALL questions. Write your answers in the spaces provided. 1 Leo, a manufacturer, provided the following information for the year ended 31 March 2021. 1 April 2020 $ 31 March 2021 $ Premises Cost Accumulated depreciation 500 000 100 000 500 000 To be calculated Plant and machinery Cost Accumulated depreciation 250 000 90 000 250 000 To be calculated Inventory Raw materials Work in progress Finished goods 56 000 64 000 108 000 44 000 68 400 112 000 Carriage inwards on raw materials 1 300 Carriage outwards 2 100 Direct wages 82 400 Electricity 18 000 Factory insurance paid 9 000 Indirect factory expenses 79 500 Indirect wages paid 83 650 Other payables – indirect wages 1 350 Other receivables – factory insurance 500 Purchases of raw materials 167 500 Returns inwards 12 000 Returns outwards 17 500 Revenue 630 000 Royalties 15 000 Plant and machinery is depreciated at 20% per annum using the reducing balance method. Premises are depreciated at 10% per annum using the straight line method. Both electricity and depreciation on premises are apportioned 75% to the factory.
  • 3. *P66469A0312* Turn over 3 (a) Prepare the manufacturing account for the year ended 31 March 2021. (15) Leo Manufacturing account for the year ended 31 March 2021 .................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................... 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  • 4. *P66469A0412* 4 (b) Prepare an extract of the income statement for the year ended 31 March 2021 showing the trading section only. (5) Leo Income statement for the year ended 31 March 2021 .................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................... ....................................................................................................................................................................................................................................................................................
  • 5. *P66469A0512* Turn over 5 Leo believes that an increase in revenue for this year has led to an improvement in profitability, even though both his gross profit percentage and return on capital employed percentage have decreased. (c) Evaluate whether Leo is correct. (5) .................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................... (Total for Question 1 = 25 marks)
  • 6. *P66469A0612* 6 2 Amira, a sole trader, does not keep full accounting records. She has provided the following information. 1 April 2020 $ 31 March 2021 $ Motor vehicle Cost Accumulated depreciation 40 000 19 520 50 000 To be calculated Land 31 670 31 670 Cash at bank 1 350 1 650 Cr Inventory 21 500 24 000 Other receivables - insurance 1 500 – Trade payables 32 000 31 000 Trade receivables 34 500 37 500 During the year ended 31 March 2021 Amira sold her motor vehicle for $22 940. In addition, she purchased a new motor vehicle costing $50 000. Motor vehicles are depreciated at 20% per annum using the reducing balance method. A full year's depreciation is charged in the year of purchase and none in the year of disposal. Amira borrowed $50 000 as an interest free loan repayable in five equal annual instalments. The first instalment was paid on 31 March 2021. Her cash drawings during the year amounted to $25 000 and she also took goods costing $5 000 for her personal use. At 31 March 2021 irrecoverable debts of $2 500 were to be written off. A provision for irrecoverable debts of 5% was to be created.
  • 8. *P66469A0812* 8 (a) Prepare the statement of affairs (statement of financial position) at 1 April 2020. (4) Amira Statement of affairs at 1 April 2020 .................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................... ....................................................................................................................................................................................................................................................................................
  • 9. *P66469A0912* Turn over 9 (b) Prepare the statement of affairs (statement of financial position) at 31 March 2021. (11) Amira Statement of affairs at 31 March 2021 .................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................... 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  • 10. *P66469A01012* 10 (c) Prepare the equity account for the year ended 31 March 2021 to show the profit or loss for the year. (5) Equity Account Date Details $ Date Details $ (d) Explain, referring to a relevant accounting concept, why Amira: (i) introduced a provision for irrecoverable debts (2) .................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................... (ii) used the reducing balance method rather than the straight line method of depreciating her motor vehicle. (3) .................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................... (Total for Question 2 = 25 marks) TOTAL FOR PAPER = 50 MARKS