AQA A-level ACCOUNTING Paper 1 Financial Accounting May 2023

AQA A-level ACCOUNTING Paper 1 Financial Accounting Friday 26 May 2023 Morning Time allowed: 3 hours Materials For this paper you must have: • a calculator. Instructions • Use black ink or black ball-point pen. • Fill in the boxes at the top of this page. • Answer all questions. • You must answer the questions in the spaces provided. Do not write outside the box around each page or on blank pages. • If you need extra space for your answer(s), use the lined pages at the end of this book. Write the question number against your answer(s). • Do all rough work in this answer book. Cross through any work you do not want to be marked. Information • The marks for each question are shown in brackets. • The maximum mark for this paper is 120. *jun* IB/G/Jun23/E14 7127/1 Section A Answer all questions in this section. box Which stakeholder will not find the schedule of non-current assets useful? [1 mark] A Debenture holders B Existing shareholders C Local community D Potential investors Which of the following is an example of an error of principle? A An invoice for machinery repairs posted to the machinery cost account. [1 mark] B An invoice for machinery repairs posted to the rent and rates account. C A sales invoice not recorded in the sales journal. D A sales invoice posted to the debit of the sales account and credit of the bank account. 0 3 Which items would be included on the debit side of the purchase ledger control account? [1 mark] A Contra entry; discounts allowed; interest charged B Contra entry; discounts received; purchase returns C Discounts allowed; payment to suppliers; purchase returns D Discounts received; interest charged; purchase returns 0 4 Which of the following is an example of capital income? [1 mark] A Commission received B Credit note received for cancellation of maintenance contract C Credit sales D Trade in value of machinery used in part exchange Turn over for the next question Turn over ► 0 5 Which is the correct formula for the calculation of interest cover? [1 mark] A Interest payable Profit after interest and tax B Interest payable Profit before interest and tax C Profit after interest and tax Interest payable D Profit before interest and tax Interest payable 0 6 Which book of prime entry will be used to record a cheque received from a previously written off irrecoverable debt? [1 mark] A Cash book B General journal C Sales journal D Sales returns journal 0 7 A sole trader has prepared her income statement for the year ended 31 March 2023 which showed a profit for the year of £35 360. However, it was discovered that interest received of £2 250 had been debited to the interest paid account. What is the corrected profit for the year? [1 mark] A £30 860 B £33 110 C £37 610 D £39 860 Marge has provided the following information for the year ended 31 January 2023. £ Dishonoured cheque 145 Receipts from trade receivables 58 100 Trade receivables at 1 February 2022 6 330 Trade receivables at 31 January 2023 6 870 What is the value of the credit sales for the year ended 31 January 2023? [1 mark] A £57 415 B £57 705 C £58 495 D £58 785 Turn over ► 0 9 The motor vehicles provision for depreciation account for the year ended 31 December 2022 contains the entries: £ Balance at 1 January 2022 40 512 Balance at 31 December 2022 22 293 Depreciation charge for the year 7 922 On 31 October 2022 a motor vehicle was sold. There were no other additions or disposals of motor vehicles during the year. What entry will be made in the motor vehicles provision for depreciation account to record the depreciation on the motor vehicle sold? [1 mark] A £10 297 Credit B £10 297 Debit C £26 141 Credit D £26 141 Debit 1 0 The following information is available for the year ended 31 January 2023. £ Provision for doubtful debts account at 1 February 2022 5 942 Trade receivables at 31 January 2023 148 700 A provision for doubtful debts of 3% is required at the year end. What is the income statement entry for doubtful debts for the year ended 31 January 2023? [1 mark] A Expense of £1 481 B Other income of £1 481 C Expense of £4 461 D Other income of £4 461 A bookkeeper received a purchase invoice that has not been recorded in the accounts. Explain why this error might not be discovered. [3 marks] Turn over for the next question *07* Turn over ► box £ Inventory at 1 February 2022 34 195 Inventory at 31 January 2023 29 785 Purchases 155 000 Returns inwards 16 440 Revenue 225 000 *0* Turn over ► box Workings box Turn over for the next question DO NOT WRITE ON THIS PAGE ANSWER IN THE SPACES PROVIDED box Turn over ► box Interest on capital 5.5% of the balance on the partner’s capital account at the year end. Interest on drawings 6% of the balance on the partner’s drawings account at the year end. Salaries £28 000 per annum each for Angela and Bennett only. Profits and losses Shared in proportion to the balance on the partner’s capital account at the year end. Angela £ Bennett £ Christoff £ Capital account 67 000 45 000 38 000 Drawings 11 000 12 000 26 000 Prepare the current account for Bennett, clearly showing the balance brought down at 1 June 2022. Dates are not required. box [10 marks] Dr Current account - Bennett Cr Details £ Details £ Workings Turn over ► box