Please check the examination details below before entering your candidate information.

Candidate surname Other names

chon rn
cheong
Pearson Edexcel International GCSE
Centre Number Candidate Number

a 4 3 3 F 8 0 3 5

Friday 2 May 2025

Time: 2 hours Paper Reference 4AC1/01

Accounting
Level 1/2
PAPER 1: Introduction to Bookkeeping and Accounting

You do not need any other materials. Total Marks

Instructions

 Use black ink or a 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 100.

 The marks for each question are shown in brackets – use this as a guide for how much time to spend on
each question.
 Calculators may be used.

Advice

 Please read each question carefully before you start to answer it.
 Try to answer every question.
 Check your answers if you have time in the end.
 SECTION A

Answer ALL questions in this section. Write your answers in the spaces provided.

For questions 1–10, choose an answer A, B, C or D, and put a cross in the box . If you change your mind
about an answer, put a line through the box and then mark your new answer with a cross .

1. Identify which transaction would affect a business’s profit. (1)

A. Sale of a non-current asset at book value

K B. Settlement of a business debt with discount
C. Settlement of a business debt in full v
D. Transfer of cash to the bank account

2. Identify which method of payment applies when a business instructs its bank to make a fixed payment of
$200 to its energy provider each month. (1)

A. Cheque
B. Credit transfer
C. Direct debit v
X D. Standing order

3. Identify which accounting concept is described in the statement.

‘Financial transactions of a similar nature should be recorded in the same way each year.’ (1)

A. Business entity
X B. Consistency
C. Materiality
v
D. Prudence

4. Identify which account would appear on the credit side of a trial balance. (1)

A. Carriage inwards
B. Carriage outwards
C. Discount allowed v
t D. Discount received

5. Which one of the following is not an asset? (1)

A. Inventory
B. Premises
K C. Trade payables v
D. Trade receivables

IGCSE Mock Examination (2025) – Page 2

6. Which one of the following is not a principle of professional ethics? (1)

A. Confidentiality
t B. Duality
v
C. Integrity
D. Objectivity

7. A trader purchases goods with a list price of $600. He receives a trade discount of 20% and a cash
discount of 5%. What amount should be entered in the purchases account? (1)

A. $600
B. $570
t C. $480 v
D. $456

8. A trader receivable, Lynn, settled her account by cheque, $1,350, after allowing for 10% cash discount.
He was given a 20% trade discount for buying in bulk.

How much was the invoice price of the goods that Lynn bought? (1)

A. $1,215 X . 90 . 8 %
% = 1350
成 B. $1,500
X C. $1,875 ie ×
80% :
Unvoiepriu × 90 % = 1350

D. $2,000 IP 13500 ÷
9
= 0 .

9. Identify which accounting concept is described in the statement ‘the revenue should only be recognised
when the ownership of a product is transferred to the customer.’ (1)

A. Business entity
B. Going concern
C. Materiality v
t D. Realisation

10. Identify where the account of a credit supplier is maintained. (1)

A. General journal
B. General ledger
t C. Payables ledger √
D. Receivables ledger

IGCSE Mock Examination (2025) – Page 3

11. On 31 March 2025 Pedal Bikes sold 10 bicycles, list price $200 each, on credit to Bike Town. All
customers receive a trade discount of 10% if 15 bicycles are sold each time.

On the same day the incorrect invoice below was prepared.

Pedal Bikes
Castro Road, Hamilton CV21 3TY

INVOICE
Bike Town Number 1123
Walker Way
Solihull
Date 21 March 2025
B14 4FT
Unit cost Total cost
Description Quantity
$ $

Bicycles 15 200 3,000

Trade discount 300

Net amount $2,700

(a) Prepare the corrected invoice. (4)

Pedal Bikes
Castro Road, Hamilton CV21 3TY

INVOICE
Bike Town Number 1123
Walker Way
Solihull
B14 4FT
Date 31 Mar
wrd
Unit cost Total cost
Description Quantity
$ $

Bicyches
0r 00
w
Trade discount
照
Net amount
w
(b) State the name of the book of original entry that Bike Town will record this transaction in. (1)

Purohasel
day od (Total for Question 11 = 5 marks)

IGCSE Mock Examination (2025) – Page 4

 12. Natalie prepared her trial balance at the end of the year 31 March 2024. The totals did not agree and she
had to open a suspense account.
① Corr
wrong
:
want
.

Bank qw Bank 40 juspense

Natalie later discovered the following errors. 7 K 4ω
saran 个 R 4w ? Sarah -
- .

(1) A bank transfer, $420, received from a credit customer Sarah had been correctly recorded in the
bank but no other entry had been made.② want Uenicle 200 o wrong capital 2000
"
:

tonance 7000
Vehoilemain
capital t 0 oo
(2) Natalie contributed a personal vehicle to the business valued at $7,000. This had been debited to
the capital account and credited to the vehicle maintenance account.

(3) Purchases of $270 had been correctly entered in the suppliers account but had been debited as
$207 in the purchases account. U Want purcnases 2Ao wrongs
purchato corrsuspenseuoma
:

7P m
(4) Discount received, $400, had been debited to the discount allowed account. m

Dp 40corr suspase ,
.
④ want Yp 400 wong
:

∞
(5) The electricity account had been undercast by $500. DR 400 Dte
Prepare the suspense account. Dr Electriily (2 R ar
.

waut
suuspense
cr
Suspense

Date Details $ Date Details $

saraV ,
4
⑩
Wi
Trade receirable
Balancela ( Balifi
-

Mar 31 1 65 年
Dis count reeived 4 ℃ purchases
v 照
Discount
allowed⑩ √
Electricity 5
1220 1220

(Total for Question 12 = 5 marks)

IGCSE Mock Examination (2025) – Page 5

十
一
一
 13. At the close of business on 31 March 2025, the business bank account of Albert showed a credit balance
of $3,200.

On investigation he identified the following reasons for the difference.

(1) Bank charges of $200 had not been entered in the cash book.

(2) Payment of Joshua through credit transfer was shown on the bank statement only, $1,500.

(3) Cash taking, $2,250, banked on 31 March 2025 had not yet appeared on the bank statement as at 31
March 2025.

(4) Two cheques sent to suppliers during March 2024 had not yet been presented for payment:

-
-
Cheque 2080 to Philip, $1,200
Cheque 2085 to Bowen, $3,200.
} unpresented cheque
Prepare a bank reconciliation statement as at 31 March 2025.

$ 中
book ( 200 ) Wo + 1500
per bank Statement
Balance as cash -

Add :

Outstanding lodgement
Bank wo
charges
Joshua 1500

( v 250 )
Add :
cash
taling
Us ' :Unpresented
negue
wo 出 1 woe

W 85 t 3 wud

Bulanve as book
per new cash V

bank statement 250

(Total for Question 13 = 5 marks)

TOTAL FOR SECTION A = 25 MARKS

IGCSE Mock Examination (2025) – Page 6

一
一
一
This page has deliberately left blank.

IGCSE Mock Examination (2025) – Page 7

 SECTION B

Answer ALL questions in this section. Write your answers in the spaces provided.

14. Kims Store provided the following information for the month ended 31 March 2025.

Kims Store has a policy of offering a cash discount of 5% on any invoices settled within 20 days of sale.

There is no trade discount.

Balances as at 1 March 2025:

$
Trade receivable: Stephen 600
Trade receivable: Thomas 3,400

m
Sales 120,000
Bank overdraft 1,200
Cash 400

The following transactions occurred in March 2025.

2 March 2025 Sold goods to Thomas on credit, $1,200.

5 March 2025 Thomas returned goods that were sold on 2 March 2025, $200.

7 March 2025 Sold goods for cash, $12,000.

10 March 2025 Received payment from Thomas in full settlement of balance owing in March.

11 March 2025 Banked cash in hand except $500.

12 March 2025 Paid personal insurance by internet banking, $600.

19 March 2025 Sent an invoice to Stephen for sale of goods, $9,000.

(a) Prepare the sales day book for April 2025. (3)

Sales Day Book

Date Customers $
W5

Marl
Thomas

Mar 19 stephenN
Mar 3 l

IGCSE Mock Examination (2025) – Page 8

一
 (b) Prepare the cash book for March 2025. (8)

+ Cash Book
Discount Cash Bank Discount Cash Bank
Date Details Date Details
A31 $
.
$ $ Rec $ $ $

Ws
简 Balanceld 40
⑩ marl
Balanced
⑩

mart salesl 12000 marll )

Bankld 1190
4350
Marl 8
Thomad 50 1000
—

MarlL
Personal
insurance
→
Drawings
600
Marll cush ( φ )
119 mars 1
√
Borlanceld
√
50 wool
14450
Maz 19 Stephen 9000

50 12400 19 oo 1240 ~ 1900

哭
16 v 50

Aprl Balancelod 500 W 100

(c) Prepare the sales account for March 2025. You are required to transfer the balance of Statement of
Profit or Loss. uum (3)
w

Sales
+

Date Details $ Date Details $

w2
Mar co
cushbrt 1000
Wis
Marl
Balancebld 1200 ⑩
SOPL 142 w 0

Balancead 129 wo Mar 31 sales

cday √
10200

130
wt cash book 1000)
14v 200 142200

=
Aprl bld Balance
129 wo

IGCSE Mock Examination (2025) – Page 9

二
」
一
人
。
」
」
」
一
 (d) Prepare the account of Stepehen for the month of March 2025. (2)

f
Stephen

Date Details $ Date Details $

, Bulone 以 @ Balanu选 9600

mari 9 sales
⑩
v
√
吧
9000

Apul
Balaned 90

(Total for Question 14 = 15 marks)

IGCSE Mock Examination (2025) – Page 10

」
一
This page has been deliberately left blank

IGCSE Mock Examination (2025) – Page 11

 15. Arch Decorations provided the following information for the year ended 31 December 2024. All receipts
and payments were through the bank account.

Rent receivable

Date Details $ Remarks

1 January 2024 Balance 4,000 1 month in advance, paid in December 2023.
1 February 2024 Receipts 12,000 for 3 months ended 30 April 2024
蹦 4

7 May 2024 Receipts 12,000 for 3 months ended 31 July 2024 公

T
6

5000 @ 1
1 August 2024 Receipts 15,000 for 3 months ended 31 October 2024
㮺91
o

1 November 2024 Receipts 25,000 for 5 months ended 31 March 2025 2123

崩
(a) Prepare the Rent Receivable account for the year ended 31 December 2024. Balance the accounts
and bring down the balances on 1 January 2025. (5)

Rent Receivable
t

Date Details $ Date Details $

W24 W 24

Janl
Balanceld 4000
Febl cashbof 100
℃

↑
febl Other paryables 8000 mayt cash bork 1200
y

May 7 Other pay ables 8000 Angl cash book

5
Augl Other payubles … cash book

Nov 1 Other pary ables w 0 oo

Decbl Balance 9d 14000

68000 →
64000 68000
6
W25

53000 Janl Balancebld 14000

SOPO

Balanu φd ( 25000 ÷ 5 × 3 )

IGCSE Mock Examination (2025) – Page 12

一」一一一
。
一
一
一
一
一
一一
 Accounting Fees

Date Details $
1 January 2024 Balance 1,200 Cr
29 February 2024 Payment 8,500
2 March 2024 Refund 1,000
31 May 2024 Payment 9,000
31 October 2024 Payment 12,000

Accounting fees for the year ended 31 December 2024 was $32,000.

(b) Prepare the Accounting Fees account for the year ended 31 December 2024. Balance the accounts and
bring down the balances on 1 January 2025. (6)

Accounting Fees
+

Date Details $ Date Details $

29 cashbook 8500
W24
Janl
BalanceY 1 rw 0
mary31 cash bouk 9000 Marz kefund cash book ℃
100

Out 3 l cash bouk 1200 pecyl SoPL sw

Decbl
Balaneld 40
34 ω 0

3400

Balane 迦
些
Juni

(c) State in which financial statement the balance in the Accounting Fees account would be shown. (1)

SOFy

IGCSE Mock Examination (2025) – Page 13

「
一
一
一一
(d) Explain how the accrual accounting concept applies in the preparation of Accounting Fees account.
(3)

states that transuctions in the

-
Accnval
acvounting concepe should be recwgnised

period when
they vccur , even if the velating cash receipts andcash payments ocour

in a
dffer ent accouneing period .

-
Even though the business had not paid the
acvonnting fees of 4 to 0 in the
year

ended 31 Der w 04 ,
the business Stillneededto rewrd the amount owing because the

business used the serrile providedby its auountant before the

yeur ended There fore .
,

& Cl
the business should regonise
the transaction as
expense (
acvomting fees)
( other
pary able )

Failure to the business s wouldbecomeiverstated bo total expenses had

'
- do so
prfit
been understated .

(Total for Question 15 = 15 marks)

IGCSE Mock Examination (2025) – Page 14

This page has deliberately left blank.

IGCSE Mock Examination (2025) – Page 15

16. Leigh maintains a control account.

The following information is available for the year ended 31 March 2025.

$
Balance at 1 April 2024

v Trade receivable debit balance 5,000

For the year ended 31 March 2025
v Credit sales 90,000
Cash sales 10,000

v
Discount allowed 2,000

vInterest charged on overdue accounts 200

占
Dishonoured cheque 800
Contra/Set off to Trade Payable Ledger Control 1,000
Return intwards 1,500
Balance at 31 March 2025
Trade receivable credit balance 200
Trade receivable debit balance ?

IGCSE Mock Examination (2025) – Page 16

 (a) Prepare the trade receivable ledger control account for the year ended 31 March 2025. Balance the
account on this date and bring the balances down on 1 April 2025. (7)

Trade receivable ledger control account

4

Date Details $ Date Details $

W 34

Apry
Balance 出 300 Disountalowed
vwo@
W5
Mar 3 l sales day lik
9 contra o

Interes tnarge d c keturns inwards

day book e
15

Journal ( Dis ,
(
hq .
)
㉘ Balana
4 d
9

Balaneld l 9 i 700
√
9
uw auwol

Aprl Balanceld 9350091700 AprBalnneyar wol

(b) State two reasons why there are dishonoured cheques. (2)

1. cheque is not
signed

2. There have
wrong inforng uns written the
may
on
cheque .

stale cheque
(c) State one reason why there is a credit balance in the trade receivable ledger control account. (1)

overpay menet

IGCSE Mock Examination (2025) – Page 17

一」
一
一
(d) Evaluate the decision of preparing a trade receivable ledger control account. (5)

providingn more ale fotal amount of 7 k that be the

-

can

preparation of financial statements ,

-
prevent frand
TRLA
as the is done
by differentstuff
a .

tima
e
bee fit the lot
overall , preparing TKrot Cn
-
.

However , hit allevors can be identified for

,
instance ervor of omiszion .

trade veceivabes total is noe 1007 % cwrreut

Therefore the
acunrary of
the .

(Total for Question 16 = 15 marks)

IGCSE Mock Examination (2025) – Page 18

 d
× 凫
23 / 3 / 3 ) 16000 ×γ 话 ≥ 40v 0 → zovw

2 V / 1011
W -
ω
200 o

17. Tam provided with you the following information. W 24 / 3/ 3 / ( 16000 4000) × 25 % - ⑳
30
W 231411
- -

3500
Balance as at 1 April 2024 w 24 / 41 - w2 h/
31
⑩ 5500

$
old
Computers (cost) 50,000 16000
7 3655
-

5000
Computers (accumulated depreciation) 20,000 -

2000

On 1 January 2025, Tam sold a computer for $10,000 in exchange for a new computer costing $20,000.

The old computer had been purchased on 1 October 2022 for $16,000.

Tam depreciates computers at 25% per annum using the diminishing balance method. Monthly
m
depreciation is charged in the year of purchase but none in the year of disposal.
m

(a) Prepare the following accounts for the year ended 31 March 2025. (7)

Computers – Accumulated Depreciation

T

Date Details $ Date Details $

7v25
5500
W24
Janl Disposal 2 ooo Bul anuld w 0oo√
Apr 1
ω巧
c

Marml Balane 4 d w 6r 5 V1625

marrsl Dep -

computer 6125 焉
U 125 28675 26125 ft
5

W 625

Apr 1 Balanceld 21675

Disposal of Computers

Date Details $ Date Details $

5500
W 25

Jarl Ust computer

-
√ ℃ 箭
160 Acc dep compnter
.
-

too
cush book 10000 Nen computer wow
10000

Goain on diisposal lossondispobal 500

r 7 NoU 20 o 0

16000 16 o 00

(b) Calculate the latest balance of computers – cost account as at 31 March 2025. (2)

州
- 1600 0
5000
:
54000

IGCSE Mock Examination (2025) – Page 19

一
一
一
一
一
一
一
一
。
 (c) State one cause of depreciation. (1)

neplutiond
Tam considered changing the depreciation on computers to straight-line method.

(d) Evaluate the effect on the business’s financial statements of a change in the depreciation method for
computers to straight-line method. (5)

method to strnighe line method will inurease the proffe

Chanying the depreciation
,

particutarly for new compners ae the

beginning of its useful l
fe
. ,
bec ause the

method
depreciation charge assets
nsing straightr line is smaller
on .

Fur ther more ,

the
crrry ing amount of
the computr wmill also increase because of a

will increasethe
Smaller depre cintion charge . Ismaller Ace .dep )This vame

of btal assets .

In whlusion , it is beneficinlIr change from diminishingbalance merthod to

Straight line method ; if the assets ave at its
early years ofnseful life ,

he wever , The beve fitdiminishesas

time passesbeoase the deprecineion

Uharge using diminishing bul anceflillsin later years of useful life .

(Total for Question 17 = 15 marks)

IGCSE Mock Examination (2025) – Page 20

 18. Johnson is a sole trader and he is responsible for preparing his business’s final accounts.

(a) Explain one difference between capital expenditure and revenue expenditure. (2)

Capital expenditurers suFp

kew
xpendieurey
.
SUP
(b) Identify, indicating with a tick (), how each would be classified when a new motor vehicle is
purchased. (2)

Capital expenditure Revenue expenditure

(i) Sign-writing cost

(ii) Annual insurance

1 …
(c) Explain the effect on a business’s financial statements of incorrect treatment of capital expenditure
and revenue expenditure. (3)

If the business does CE & RE

totreht the fina ninl statementsmil
corve
otly ,

hotbe accurate .

N UA will beome overstated RE is trealed as LE

"
if .

witl also be overseiled

Profit if REis treated ws CE .

NUA are
regarded expenses
"
,
as .

IGCSE Mock Examination (2025) – Page 21

、
一
 The following information is provided by Johnson.

1 April 2024 31 March 2025

$ $
Trade receivable control 12,000 15,000
Provision for irrecoverable debts 600 To be calculated
Irrecoverable debt ru 0 --- 2,500

On 31 March 2025, a customer, Peter, declared bankruptcy and could no longer be able to pay his
account of $500.

Johnson maintains the provision for irrecoverable debts at 2% of trade receivables.

(d) Prepare the Provision for Irrecoverable Debts account for the year ended 31 March 2025. (3)

√
Provision for Irrecoverable Debts
f

Date Details $ Date Details $

W25
Mar1
De crease in ADD 310 Balanceld 600
N
Balaneld uo to

“ ℃

Apr 1 Balancebld
2409
(e) The provisional profit for the year ended 31 March 2025, before deducting any irrecoverable debt,
was $25,000.

Calculate the revised profit after considering the information in part (d) above. (3)

5 U 00 _ 2500 -

500 -

240

60
$ VT ( 2500 + 500 ) +
-

2 006 360

2231

IGCSE Mock Examination (2025) – Page 22

儿
二
月
(f) Explain one advantage of computerised accounting system for a business. (2)

more V
accuray 不
finaninl statements
1
reace the time

,
preporing
for many

dinety the
prgramme

(Total for Question 18 = 15 marks)

TOTAL FOR SECTION B = 75 MARKS

TOTAL FOR PAPER = 100 MARKS

IGCSE Mock Examination (2025) – Page 23