An original Thinka practice paper modelled on the structure and difficulty of the Nov 2023 (V3) Cambridge International A Level Accounting (0452) paper. Not affiliated with or reproduced from Cambridge.
卷一 選擇題
Answer all 35 multiple choice questions. Each question scores 1 mark.
35 題目 · 35 分
題目 1 · 選擇題
1 分
A payment of $450 to a trade payables supplier, J. Smith, was correctly recorded in the bank account but was debited to J. Smythe's account as $540. Which journal entry corrects this error?
A.Debit J. Smith $450, Debit Suspense $90, Credit J. Smythe $540
B.Debit J. Smith $450, Credit J. Smythe $450
C.Debit J. Smith $450, Credit J. Smythe $540, Credit Suspense $90
D.Debit J. Smith $540, Credit Suspense $90, Credit J. Smythe $450
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解題
The bank account was correctly credited with $450, so no correction is needed for bank. J. Smythe's account was incorrectly debited with $540, so J. Smythe's account must be credited with $540 to remove the error. J. Smith's account should have been debited with the actual payment of $450, so J. Smith is debited with $450. The difference between the debits and credits is corrected through the suspense account: Debit J. Smith $450 + Debit Suspense $90 = Credit J. Smythe $540.
評分準則
1 mark for selecting the correct journal entry: Debit J. Smith $450, Debit Suspense $90, and Credit J. Smythe $540.
題目 2 · 選擇題
1 分
A sole trader's draft profit for the year was $24,500 before correcting the following errors: 1. Purchase of office equipment costing $1,200 had been debited to the purchases account. 2. Depreciation of office equipment is charged at 20% per annum on cost. A full year's depreciation is charged in the year of purchase. 3. Rent prepaid of $350 had been treated as an accrued expense. What is the corrected profit for the year?
A.$24,760
B.$25,460
C.$26,160
D.$26,400
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解題
Draft profit: $24,500. Error 1: Correcting capital expenditure debited to revenue increases profit by $1,200. Error 2: Charging 20% depreciation on the new office equipment decreases profit by $240 ($1,200 * 20%). Error 3: Rent prepaid was incorrectly treated as accrued rent. This means rent expense was overstated by $700 (both the $350 prepaid not deducted and $350 accrued added in error). Correcting this decreases the expense and increases profit by $700. Corrected profit = $24,500 + $1,200 - $240 + $700 = $26,160.
評分準則
1 mark for the correct calculation of corrected profit: $26,160.
題目 3 · 選擇題
1 分
A manufacturer provided the following information for the year ended 30 June 2023: Carriage on raw materials $3,200; Purchases of raw materials $84,600; Direct wages $51,400; Factory supervisor's salary $24,000; Royalties $4,500; Opening inventory of raw materials $8,900; Closing inventory of raw materials $9,500; Depreciation of factory machinery $12,500. What is the prime cost?
A.$138,600
B.$139,900
C.$143,100
D.$167,100
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解題
Prime cost is the sum of direct materials consumed, direct labor, and direct expenses. Cost of raw materials consumed = Opening inventory of raw materials ($8,900) + Purchases ($84,600) + Carriage on raw materials ($3,200) - Closing inventory of raw materials ($9,500) = $87,200. Prime cost = Cost of raw materials consumed ($87,200) + Direct wages ($51,400) + Royalties (Direct expenses) ($4,500) = $143,100. Factory supervisor's salary and depreciation of factory machinery are indirect factory overheads and are excluded from the prime cost.
評分準則
1 mark for the correct calculation of prime cost: $143,100.
題目 4 · 選擇題
1 分
A manufacturer's records show the following information: Prime cost $220,000; Factory overheads $85,000; Opening work in progress $14,000; Closing work in progress $11,500; Opening finished goods $30,000; Closing finished goods $34,000. What is the cost of production?
A.$302,500
B.$303,500
C.$305,000
D.$307,500
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解題
Cost of production = Prime cost + Factory overheads + Opening work in progress - Closing work in progress = $220,000 + $85,000 + $14,000 - $11,500 = $307,500. Finished goods inventory values are used to calculate the cost of sales, not the cost of production.
評分準則
1 mark for the correct calculation of the cost of production: $307,500.
題目 5 · 選擇題
1 分
A limited company had the following balances in its statement of financial position: Ordinary shares of $0.50 each: $200,000; Share premium: $50,000. The company then issued 100,000 new ordinary shares of $0.50 each at a price of $0.80 per share. What are the balances of Ordinary Shares and Share Premium after this issue?
The value added to the Ordinary Shares account is the nominal value of the shares issued: 100,000 shares * $0.50 = $50,000. The new balance of Ordinary Shares = $200,000 + $50,000 = $250,000. The excess of the issue price over the nominal value is added to the Share Premium account: ($0.80 - $0.50) * 100,000 shares = $30,000. The new balance of Share Premium = $50,000 + $30,000 = $80,000.
評分準則
1 mark for identifying the correct balances: Ordinary Shares $250,000 and Share Premium $80,000.
題目 6 · 選擇題
1 分
Which statement is correct regarding debentures and ordinary shares of a limited company?
A.Debenture interest is an appropriation of profit, while ordinary share dividend is an expense.
B.Debenture interest is an expense in the income statement, while ordinary share dividend is an appropriation of profit.
C.Both debenture interest and ordinary share dividends are expenses in the income statement.
D.Both debenture interest and ordinary share dividends are appropriations of profit in the statement of changes in equity.
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解題
Debentures represent long-term loans, so debenture interest is a finance cost (expense) in the income statement. Ordinary shares represent equity, and ordinary share dividends are distributions/appropriations of profit, which are recorded in the statement of changes in equity.
評分準則
1 mark for selecting option B.
題目 7 · 選擇題
1 分
A trader bought goods on credit from a supplier, but returned some damaged goods to the supplier. Which document and which book of prime entry would the supplier use to record this return in their own books?
A.Document: Credit note; Book of prime entry: Purchases returns journal
B.Document: Credit note; Book of prime entry: Sales returns journal
C.Document: Debit note; Book of prime entry: Purchases returns journal
D.Document: Debit note; Book of prime entry: Sales returns journal
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解題
When a customer returns goods, the supplier issues a credit note to the customer to acknowledge the return. The supplier then records this return in their sales returns journal (also known as the returns inwards journal).
評分準則
1 mark for identifying the document as credit note and the book of prime entry as sales returns journal.
題目 8 · 選擇題
1 分
On 1 January 2022, a business had a provision for doubtful debts of $1,440. On 31 December 2022, trade receivables were $52,200 before writing off an irrecoverable debt of $1,200. The provision for doubtful debts is to be adjusted to 3% of trade receivables. What was the amount debited to the income statement for the provision for doubtful debts for the year ended 31 December 2022?
A.$90
B.$126
C.$1,290
D.$1,530
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解題
Before calculating the provision, any irrecoverable debts must be written off from the trade receivables balance: $52,200 - $1,200 = $51,000. The required provision for doubtful debts is 3% of $51,000 = $1,530. The increase in the provision to be debited to the income statement is the difference between the new provision and the old provision: $1,530 - $1,440 = $90.
評分準則
1 mark for calculating the correct increase in provision of $90.
題目 9 · 選擇題
1 分
A credit customer's payment of $120 was correctly entered on the debit side of the cash book, but no entry was made in the customer's account. A suspense account was opened to balance the trial balance. Which journal entry corrects this error?
A.Debit Customer $120, Credit Suspense $120
B.Debit Suspense $120, Credit Customer $120
C.Debit Bank $120, Credit Suspense $120
D.Debit Suspense $120, Credit Bank $120
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解題
The cash book was correctly debited with $120. However, the credit entry of $120 in the customer's account was omitted. This caused a trial balance imbalance, which was temporarily resolved by placing a credit of $120 in the suspense account. To correct the error, the customer's account must now be credited with $120, and the corresponding debit made to the suspense account.
評分準則
1 mark for the correct selection of the journal entry (Debit Suspense, Credit Customer).
題目 10 · 選擇題
1 分
Before correcting errors, the draft profit for the year of a business was $14,200. The following errors were then discovered: 1. The purchases book was undercast by $300. 2. A payment for motor vehicle repairs of $450 had been debited to the motor vehicles asset account. What is the corrected profit for the year?
A.$13,450
B.$14,050
C.$14,350
D.$14,950
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解題
Draft profit is \( $14,200 \). Error 1: Undercast purchases book means purchases and cost of sales were understated, so profit must be decreased by \( $300 \). Error 2: Motor repairs (revenue expenditure) were incorrectly capitalized as non-current assets, which understated expenses and overstated profit. Correcting this requires reducing the profit by \( $450 \). Corrected profit = \( $14,200 - $300 - $450 = $13,450 \).
評分準則
1 mark for correct calculation of corrected profit.
題目 11 · 選擇題
1 分
A manufacturer provided the following information for the financial year: Opening inventory of direct materials: $4,500; Purchases of direct materials: $42,000; Closing inventory of direct materials: $5,200; Direct wages: $18,500; Royalties paid: $3,000; Factory rent: $12,000. What was the prime cost?
A.$62,800
B.$63,500
C.$74,800
D.$64,200
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解題
Prime cost consists of cost of direct materials used + direct labor + direct expenses. Cost of direct materials used = Opening inventory (\( $4,500 \)) + Purchases (\( $42,000 \)) - Closing inventory (\( $5,200 \)) = \( $41,300 \). Prime Cost = Cost of direct materials used (\( $41,300 \)) + Direct wages (\( $18,500 \)) + Royalties (\( $3,000 \)) = \( $62,800 \). Factory rent is an indirect overhead and is excluded from the prime cost.
評分準則
1 mark for correct calculation of prime cost.
題目 12 · 選擇題
1 分
The prime cost of a manufacturing business was $85,000. Factory overheads were $34,000. The work in progress was: Opening work in progress $6,200; Closing work in progress $5,800. What was the cost of production?
A.$118,600
B.$119,000
C.$119,400
D.$131,000
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解題
Cost of production = Prime Cost (\( $85,000 \)) + Factory Overheads (\( $34,000 \)) + Opening Work in Progress (\( $6,200 \)) - Closing Work in Progress (\( $5,800 \)) = \( $119,400 \).
評分準則
1 mark for correct calculation of cost of production.
題目 13 · 選擇題
1 分
At 1 January, a limited company's retained earnings were $35,000. During the year, the profit for the year was $48,000, an ordinary share dividend of $15,000 was paid, and $10,000 was transferred to the general reserve. What were the retained earnings at 31 December?
A.$23,000
B.$58,000
C.$68,000
D.$78,000
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解題
Retained earnings at 31 December = Opening retained earnings (\( $35,000 \)) + Profit for the year (\( $48,000 \)) - Ordinary dividend paid (\( $15,000 \)) - Transfer to general reserve (\( $10,000 \)) = \( $58,000 \).
評分準則
1 mark for correct calculation of ending retained earnings.
題目 14 · 選擇題
1 分
Which statement correctly describes a difference between ordinary shares and debentures in a limited company?
A.Debenture interest is an appropriation of profit, while ordinary dividends are an expense.
B.Debentures carry voting rights, while ordinary shares do not.
C.Debenture holders receive a fixed rate of interest, while ordinary shareholders may receive a variable dividend.
D.Ordinary shares are a form of long-term loan, while debentures represent equity.
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解題
Debentures represent long-term loans, so debenture holders are creditors who receive a fixed rate of interest regardless of the company's profit. Ordinary shares represent equity, so ordinary shareholders are owners who receive a variable dividend paid out of profits only after debt obligations are met.
評分準則
1 mark for identifying the correct difference between ordinary shares and debentures.
題目 15 · 選擇題
1 分
Which transaction is recorded in the general journal?
A.Cash sales of goods
B.Credit purchase of inventory
C.Purchase of office machinery on credit
D.Return of inventory by a credit customer
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解題
The general journal is used to record transactions that do not fit into any other book of prime entry. Credit purchases of inventory go to the purchases journal, cash sales go to the cash book, and returns of inventory go to the sales returns journal. A credit purchase of a non-current asset (office machinery) does not involve cash or inventory, so it must be recorded in the general journal.
評分準則
1 mark for identifying that purchase of office machinery on credit is recorded in the general journal.
題目 16 · 選擇題
1 分
At 1 January, a business's provision for doubtful debts was $1,200. On 31 December, trade receivables were $38,000. This included an irrecoverable debt of $2,000 which needed to be written off. The provision for doubtful debts was then adjusted to 5% of the remaining trade receivables. What was the charge to the income statement for the provision for doubtful debts for the year ended 31 December?
A.$600
B.$700
C.$1,800
D.$2,600
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解題
Step 1: Write off the irrecoverable debt from trade receivables: \( $38,000 - $2,000 = $36,000 \). Step 2: Calculate the required ending provision: \( 5\% \times $36,000 = $1,800 \). Step 3: Determine the change in provision: New provision (\( $1,800 \)) - Old provision (\( $1,200 \)) = \( $600 \) increase. This increase of \( $600 \) is the charge to the income statement.
評分準則
1 mark for correct calculation of the increase in the provision for doubtful debts.
題目 17 · 選擇題
1 分
The draft profit for the year of a sole trader was \(\$42,500\). It was later discovered that cash drawings of \(\$800\) had been debited to the general expenses account, and no adjustment had been made for accrued rent of \(\$300\). What is the corrected profit for the year?
A.\(\$41,400\)
B.\(\$42,000\)
C.\(\$43,000\)
D.\(\$43,600\)
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解題
Draft profit: \(\$42,500\). Correction of drawings debited to expenses: add \(\$800\) (as expenses were overstated). Correction of accrued rent: deduct \(\$300\) (as expenses were understated). Corrected profit = \(\$42,500 + \$800 - \$300 = \$43,000\).
評分準則
1 mark for the correct option. Method: \(\$42,500 + \$800 - \$300 = \$43,000\).
題目 18 · 選擇題
1 分
Which error would result in a difference in a trial balance?
A.A payment for motor repairs, \(\$120\), was debited to the motor vehicles account.
B.A sale of goods on credit to J. Hood, \(\$85\), was entered in the account of J. Wood.
C.A cash receipt for commission, \(\$90\), was entered in the cash book but no entry was made in the commission received account.
D.A purchase of goods on credit, \(\$150\), was completely omitted from the books.
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解題
Options A, B, and D are errors of principle, commission, and omission respectively, which do not affect the agreement of the trial balance because debit and credit entries of equal value are made. Option C is a single-entry error (debit entry in cash book, no credit entry in ledger), which results in unequal debit and credit totals, causing a difference in the trial balance.
評分準則
1 mark for identifying that a single-entry omission results in a trial balance mismatch.
題目 19 · 選擇題
1 分
A manufacturer provided the following information for a financial year: cost of raw materials consumed \(\$84,000\), direct wages \(\$31,500\), factory overheads \(\$19,200\), work-in-progress at start \(\$6,400\), work-in-progress at end \(\$7,100\). What was the cost of production?
A.\(\$115,500\)
B.\(\$134,000\)
C.\(\$134,700\)
D.\(\$135,400\)
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解題
Prime Cost = Raw materials consumed + Direct wages = \(\$84,000 + \$31,500 = \$115,500\). Total factory cost = Prime Cost + Factory overheads = \(\$115,500 + \$19,200 = \$134,700\). Cost of production = Total factory cost + Opening WIP - Closing WIP = \(\$134,700 + \$6,400 - \$7,100 = \$134,000\).
評分準則
1 mark for correct option. Calculation: \(\$84,000 + \$31,500 + \$19,200 + \$6,400 - \$7,100 = \$134,000\).
題目 20 · 選擇題
1 分
Which of the following is classified as a factory overhead in a manufacturing account?
A.Carriage inwards on raw materials
B.Wages of the factory delivery van driver
C.Lubricants used on factory machinery
D.Royalties paid per unit of production
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解題
Carriage inwards is part of the cost of raw materials. Wages of the delivery van driver are a distribution cost. Royalties are a direct expense. Lubricants used on factory machinery are indirect materials, which are classified as factory overheads.
評分準則
1 mark for the correct option identifying factory machinery lubricants as factory overheads.
題目 21 · 選擇題
1 分
A company has an issued share capital of 400,000 ordinary shares of \(\$0.50\) each. The company's profit for the year was \(\$62,000\). The directors transferred \(\$15,000\) to the general reserve and declared a dividend of \(\$0.08\) per share. What was the retained profit for the year?
A.\(\$15,000\)
B.\(\$31,000\)
C.\(\$47,000\)
D.\(\$62,000\)
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解題
Total dividend declared = \(400,000 \text{ shares} \times \$0.08 = \$32,000\). Retained profit for the year = Profit for the year (\(\$62,000\)) - Transfer to general reserve (\(\$15,000\)) - Dividends (\(\$32,000\)) = \(\$15,000\).
評分準則
1 mark for correct calculation: \(\$62,000 - \$15,000 - (400,000 \times \$0.08) = \$15,000\).
題目 22 · 選擇題
1 分
Which statement about ordinary shares and debentures is correct?
A.Debenture interest is an appropriation of profit; ordinary dividend is an expense.
B.Debenture holders have voting rights; ordinary shareholders do not.
C.Debentures are part of equity; ordinary shares are non-current liabilities.
D.Debenture interest must be paid even if no profit is made; ordinary dividends are only paid if profit is available and declared.
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解題
Debentures are long-term loans (liabilities), so debenture interest is an expense that must be paid regardless of profit. Ordinary dividends are paid only if there are distributable profits and the directors declare them (appropriation of profit).
評分準則
1 mark for the correct comparison statement.
題目 23 · 選擇題
1 分
A customer returned goods with a list price of \(\$600\) to a supplier. The customer had received a \(15\%\) trade discount when purchasing the goods. Which document is issued by the supplier, and what is the amount recorded in the sales returns journal?
A.Credit note, \(\$510\)
B.Credit note, \(\$600\)
C.Debit note, \(\$510\)
D.Debit note, \(\$600\)
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解題
When a customer returns goods, the supplier issues a credit note to decrease the amount the customer owes. The amount recorded must be net of trade discount: \(\$600 - (15\% \times \$600) = \$510\).
評分準則
1 mark for correct document (Credit note) and correct net value calculation ($510).
題目 24 · 選擇題
1 分
On 1 January 2022, a business had trade receivables of \(\$48,000\) and a provision for doubtful debts of \(\$1,440\). On 31 December 2022, trade receivables totaled \(\$52,000\), which included an irrecoverable debt of \(\$2,000\) that needs to be written off. The business maintains its provision for doubtful debts at \(3\%\) of trade receivables. What was the total charge for bad and doubtful debts in the income statement for the year ended 31 December 2022?
A.\(\$2,060\)
B.\(\$2,120\)
C.\(\$2,000\)
D.\(\$1,940\)
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解題
1. Irrecoverable debt written off = \(\$2,000\). 2. Adjusted trade receivables = \(\$52,000 - \$2,000 = \$50,000\). 3. New provision required = \(3\% \times \$50,000 = \$1,500\). 4. Increase in provision = \(\$1,500 - \$1,440 = \$60\). 5. Total charge in income statement = Irrecoverable debt written off (\(\$2,000\)) + Increase in provision (\(\$60\)) = \(\$2,060\).
評分準則
1 mark for correct calculation: \(\$2,000 + ((\$50,000 \times 0.03) - \$1,440) = \$2,060\).
題目 25 · 選擇題
1 分
The draft profit for the year of a business was \( \$18,400 \). The following errors were subsequently discovered:
1. The sales journal had been undercast by \( \$500 \). 2. Motor expenses of \( \$350 \) had been debited to the Motor Vehicles account. No depreciation had been charged on motor vehicles. 3. A discount allowed of \( \$80 \) had been correctly entered in the customer's account but credited to the discounts received account.
What is the corrected profit for the year?
A.\( \$18,390 \)
B.\( \$18,470 \)
C.\( \$18,550 \)
D.\( \$18,710 \)
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解題
First, adjust for the sales journal undercast by adding \( \$500 \) to the profit. Second, adjust for the motor expenses incorrectly capitalized as an asset by subtracting \( \$350 \) from the profit. Third, adjust for the discount allowed error. The discount allowed of \( \$80 \) was incorrectly credited to discount received. To correct this: 1) Debit discount received \( \$80 \) to reverse the incorrect income (decreases profit by \( \$80 \)), and 2) Debit discount allowed \( \$80 \) to record the expense (decreases profit by \( \$80 \)). The total decrease in profit is \( \$160 \). Corrected Profit = \( \$18,400 + \$500 - \$350 - \$160 = \$18,390 \).
評分準則
1 mark for the correct option A. Method: \( 18,400 (draft) + 500 (sales) - 350 (motor expenses) - 160 (discount adjustment) = 18,390 \).
題目 26 · 選擇題
1 分
A trial balance failed to agree, and a suspense account was opened with a credit balance. The following errors were subsequently found:
1. Credit sales to J. Wilson of \( \$450 \) had been debited to the account of J. Watson. 2. Rent received of \( \$200 \) had been correctly entered in the cash book but debited to the Rent Received account. 3. The purchases journal was overcast by \( \$150 \).
After correcting these errors, the suspense account was cleared. What was the opening balance on the suspense account?
A.\( \$250 \) credit
B.\( \$250 \) debit
C.\( \$550 \) credit
D.\( \$550 \) debit
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解題
Error 1 is an error of commission and does not affect the agreement of the trial balance, so it requires no entry in the suspense account. Error 2: Rent received of \( \$200 \) should have been credited to Rent Received but was debited. The correction requires a credit of \( \$400 \) to Rent Received and a corresponding debit of \( \$400 \) to the Suspense account. Error 3: The purchases journal total was overcast by \( \$150 \), meaning the debit to the Purchases account was too high. The correction requires a credit of \( \$150 \) to Purchases and a debit of \( \$150 \) to the Suspense account. To clear the Suspense account, total debits of \( \$400 + \$150 = \$550 \) were posted to it. Therefore, the opening balance must have been a credit of \( \$550 \).
評分準則
1 mark for the correct option C. Method: Rent received correction = \( \$400 \) debit to Suspense; Purchases journal correction = \( \$150 \) debit to Suspense. Total debit to clear Suspense = \( \$550 \), indicating an opening credit balance of \( \$550 \).
題目 27 · 選擇題
1 分
A manufacturer provided the following information for the financial year ended 30 June 2024:
- Direct materials purchased: \( \$72,000 \) - Direct factory wages: \( \$48,000 \) - Factory rent and rates: \( \$12,000 \) (of which 25% is allocated to the administration office) - Factory machinery depreciation: \( \$8,500 \) - Inventory at 1 July 2023: - Raw materials: \( \$6,400 \) - Work in progress: \( \$4,200 \) - Inventory at 30 June 2024: - Raw materials: \( \$5,800 \) - Work in progress: \( \$3,900 \)
What was the cost of production?
A.\( \$137,800 \)
B.\( \$138,100 \)
C.\( \$138,400 \)
D.\( \$141,400 \)
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解題
1. Cost of raw materials consumed: Opening raw materials \( (\$6,400) + \text{Purchases} (\$72,000) - \text{Closing raw materials} (\$5,800) = \$72,600 \). 2. Prime cost: Raw materials consumed \( (\$72,600) + \text{Direct factory wages} (\$48,000) = \$120,600 \). 3. Factory overheads: Factory rent and rates \( (75\% \text{ of } \$12,000 = \$9,000) + \text{Factory machinery depreciation} (\$8,500) = \$17,500 \). 4. Cost of production before work in progress adjustment: \( \$120,600 + \$17,500 = \$138,100 \). 5. Adjustment for work in progress: \( \text{Add opening WIP} (\$4,200) - \text{Less closing WIP} (\$3,900) = +\$300 \). 6. Cost of production: \( \$138,100 + \$300 = \$138,400 \).
評分準則
1 mark for the correct option C. Method: Raw materials consumed \( \$72,600 \) + Direct wages \( \$48,000 \) + Factory overheads \( \$17,500 \) + Opening WIP \( \$4,200 \) - Closing WIP \( \$3,900 \) = \( \$138,400 \).
題目 28 · 選擇題
1 分
Which item is classified as a factory overhead in a manufacturing account?
A.Carriage inwards on raw materials
B.Wages of the factory canteen staff
C.Royalties paid per unit of production
D.Wages of factory assembly line workers
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解題
Factory overheads consist of all indirect factory costs. The wages of the factory canteen staff are indirect labor because canteen staff are not directly involved in the physical manufacture of the goods. Carriage inwards is added to the cost of raw materials (direct cost), royalties are direct expenses (prime cost), and assembly line wages are direct labor (prime cost).
評分準則
1 mark for correct option B. Wages of factory canteen staff represents indirect labor, which is classified as a factory overhead.
題目 29 · 選擇題
1 分
A limited company provided the following information at the end of its first year of trading on 31 December 2023:
- Profit for the year: \( \$45,000 \) - Transfer to general reserve: \( \$10,000 \) - Interim ordinary dividend paid: \( \$6,000 \) - Proposed final ordinary dividend: \( \$9,000 \)
What is the retained earnings balance shown in the Statement of Financial Position on 31 December 2023?
A.\( \$20,000 \)
B.\( \$29,000 \)
C.\( \$30,000 \)
D.\( \$39,000 \)
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解題
The retained earnings balance at the end of the year is calculated by taking the profit for the year and subtracting any transfers to reserves and dividends paid during the year. Under standard international accounting conventions applicable to the IGCSE syllabus, proposed dividends are not recognized as a liability or deducted from equity because they are not yet authorized at the reporting date. Thus: Retained earnings = Profit for the year \( (\$45,000) - \text{Transfer to general reserve} (\$10,000) - \text{Interim ordinary dividend paid} (\$6,000) = \$29,000 \).
評分準則
1 mark for the correct option B. Method: \( 45,000 - 10,000 - 6,000 = 29,000 \). Note that the proposed dividend of \( \$9,000 \) is excluded.
題目 30 · 選擇題
1 分
Which statement regarding limited company financing is correct?
A.Debenture interest is an appropriation of profit, while ordinary dividend is an expense.
B.Debentures represent ownership in a company, while ordinary shares represent a loan.
C.Ordinary shareholders receive a fixed rate of return, while debenture holders receive a variable rate of return.
D.Ordinary shareholders have voting rights, while debenture holders do not have voting rights.
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解題
Ordinary shareholders are the owners of the company and have voting rights at annual general meetings. Debenture holders are long-term lenders of the company, do not have voting rights, and receive a fixed rate of interest (which is treated as a finance cost expense, not an appropriation of profit).
評分準則
1 mark for correct option D.
題目 31 · 選擇題
1 分
A business bought office equipment on credit from Office Supplies Ltd for \( \$1,200 \). Which book of prime entry and accounts should be used to record this transaction?
A.Book of prime entry: Purchases Journal; Account to debit: Purchases; Account to credit: Office Supplies Ltd
B.Book of prime entry: Purchases Journal; Account to debit: Office Equipment; Account to credit: Office Supplies Ltd
C.Book of prime entry: General Journal; Account to debit: Office Equipment; Account to credit: Office Supplies Ltd
D.Book of prime entry: General Journal; Account to debit: Office Supplies Ltd; Account to credit: Office Equipment
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解題
Office equipment is a non-current asset. Purchases of non-current assets on credit are not recorded in the purchases journal (which only records credit purchases of goods intended for resale) but in the General Journal (Journal). The entry required is to debit the non-current asset account (Office Equipment) to record the asset increase, and credit the supplier's account (Office Supplies Ltd) to record the liability increase.
評分準則
1 mark for correct option C.
題目 32 · 選擇題
1 分
On 1 January 2023, the provision for doubtful debts of a business was \( \$1,500 \). At 31 December 2023, the trade receivables balance was \( \$42,000 \). This included an amount of \( \$2,000 \) owed by a customer who had gone bankrupt and whose debt was to be written off. The provision for doubtful debts was to be adjusted to 4% of the remaining trade receivables.
What was the amount debited or credited to the income statement for the provision for doubtful debts?
A.\( \$100 \) credited to the income statement
B.\( \$100 \) debited to the income statement
C.\( \$180 \) debited to the income statement
D.\( \$1,600 \) debited to the income statement
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解題
First, calculate the remaining trade receivables after the write-off of the irrecoverable debt: \( \$42,000 - \$2,000 = \$40,000 \). Next, calculate the new provision required: \( \$40,000 \times 4\% = \$1,600 \). Compare this with the opening provision of \( \$1,500 \) to find the required adjustment: \( \$1,600 - \$1,500 = \$100 \). Because the provision must increase, this \( \$100 \) is treated as an expense and debited to the Income Statement.
評分準則
1 mark for the correct option B. Method: Remaining receivables = \( \$40,000 \); New provision = \( \$1,600 \); Increase in provision = \( \$100 \) debit.
題目 33 · 選擇題
1 分
A business prepared its draft financial statements showing a profit for the year of \$32,500. The following errors were later discovered:
1. A payment for motor vehicle repairs of \$520 had been debited to the motor vehicles asset account. 2. The closing inventory was overvalued by \$1,100.
What is the corrected profit for the year?
A.\$30,880
B.\$31,920
C.\$33,080
D.\$34,120
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解題
To find the corrected profit for the year, we must adjust for the two errors:
1. **Motor vehicle repairs (\$520)**: This is revenue expenditure (an expense) but was incorrectly recorded as capital expenditure (asset). Correcting this requires debiting the motor repairs expense account by \$520, which decreases the profit for the year.
2. **Closing inventory overvaluation (\$1,100)**: Overvaluing closing inventory understates the cost of sales, thereby overstating the gross profit and the profit for the year. Correcting this requires reducing closing inventory by \$1,100, which decreases the profit for the year.
- Correct option: A (\$30,880) - Distractor B (\$31,920) incorrect treatment of repairs as an increase in profit. - Distractor C (\$33,080) incorrect treatment of inventory overvaluation as an increase in profit. - Distractor D (\$34,120) both errors treated as additions to profit.
題目 34 · 選擇題
1 分
A manufacturer provided the following information for the financial year ended 31 December:
| Item | \$ | | :--- | :--- | | Direct materials consumed | 45,000 | | Direct wages | 28,000 | | Factory overheads | 19,500 | | Work in progress (1 January) | 4,200 | | Work in progress (31 December) | 3,800 | | Royalties paid on units produced | 1,500 |
What is the cost of production for the year?
A.\$74,500
B.\$92,900
C.\$93,600
D.\$94,400
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解題
The cost of production is calculated by finding the prime cost first, then adding factory overheads and adjusting for the change in work in progress:
- Correct option: D (\$94,400) - Distractor A (\$74,500) represents only the prime cost. - Distractor B (\$92,900) omits royalties from the calculations. - Distractor C (\$93,600) reverses the work in progress adjustment (subtracts opening WIP and adds closing WIP).
題目 35 · 選擇題
1 分
On 1 January 2023, the equity of a limited company included ordinary share capital of \$150,000 (consisting of shares with a nominal value of \$0.50 each), a general reserve of \$20,000, and retained earnings of \$35,000.
During the year ended 31 December 2023, the following occurred: - The profit for the year was \$48,000. - An interim ordinary dividend of \$0.05 per share was paid. - A transfer of \$10,000 was made to the general reserve.
What was the balance of retained earnings on 31 December 2023?
A.\$58,000
B.\$65,500
C.\$68,000
D.\$75,500
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解題
To calculate the closing retained earnings balance:
1. Find the number of ordinary shares in issue: \[\n\text{Number of shares} = \frac{\\$150,000}{\\$0.50} = 300,000\text{ shares}\n\]
2. Calculate the total dividend paid: \[\n\text{Dividend} = 300,000\text{ shares} \times \\$0.05 = \\$15,000\n\]
3. Calculate the closing retained earnings: \[\n\begin{aligned}\n\text{Closing Retained Earnings} &= \text{Opening balance} + \text{Profit for the year} - \text{Dividend} - \text{Transfer to general reserve} \n&= \\$35,000 + \\$48,000 - \\$15,000 - \\$10,000 \n&= \\$58,000\n\end{aligned}\n\]
評分準則
Award 1 mark for the correct option A.
- Correct option: A (\$58,000) - Distractor B (\$65,500) uses incorrect dividend calculation based on nominal share capital value (\$150,000 \times \$0.05 = \$7,500). - Distractor C (\$68,000) omits the transfer to the general reserve. - Distractor D (\$75,500) combines both errors from B and C.
卷二 Structured Written
Answer all five structured questions. Each question is worth 20 marks.
5 題目 · 100 分
題目 1 · Structured Calculation & Analysis
20 分
Zara is a sole trader whose trial balance on 31 December 2023 did not balance. The credit side exceeded the debit side by \($170\). A suspense account was opened to record the difference.
Subsequently, the following errors were discovered: 1. A purchase of office equipment of \($1,200\) was debited to the office expenses account. 2. Rent paid of \($500\) was entered in the rent account as \($50\). The bank entry was correctly recorded. 3. The sales journal was undercast by \($280\). 4. Cash received from a credit customer, J. Wood, \($410\), was credited to the account of J. Ward. 5. A credit sale of \($150\) to B. Green was completely omitted from the accounting records.
Required: (a) Prepare the journal entries to correct errors 1 to 5. (Narratives are not required). (b) Prepare the Suspense Account to show how the balance is cleared. (c) Calculate Zara's corrected profit for the year, starting with the draft profit of \($18,400\) before any corrections.
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解題
(a) Journal Entries: 1. Office Equipment Dr \($1,200\) / Office Expenses Cr \($1,200\) 2. Rent Dr \($450\) / Suspense Cr \($450\) 3. Suspense Dr \($280\) / Sales Cr \($280\) 4. J. Ward Dr \($410\) / J. Wood Cr \($410\) 5. B. Green Dr \($150\) / Sales Cr \($150\)
(c) Corrected Profit Statement: Draft Profit: \($18,400\) Add: Office equipment error (reduction in expenses): +\($1,200\) Add: Undercast sales: +\($280\) Add: Omitted credit sale to B. Green: +\($150\) Less: Rent understatement (increase in expenses): -\($450\) Corrected Profit: \($19,580\) (Note: J. Ward/J. Wood error has no profit effect).
評分準則
(a) Journal Entries: 10 marks total (2 marks for each correct debit/credit pair with correct values). (b) Suspense Account: 4 marks total (1 mark for opening balance, 1 mark for Rent, 1 mark for Sales, 1 mark for correct balancing presentation). (c) Corrected Profit Statement: 6 marks total (1 mark for starting draft profit, 1 mark each for correct adjustment of error 1 (+1200), error 2 (-450), error 3 (+280), error 5 (+150), and 1 mark for correct final total of \($19,580\)).
題目 2 · Structured Calculation & Analysis
20 分
Healy Manufacturers produces customized industrial parts. The following information is available for the financial year ended 30 June 2024:
Inventory at 1 July 2023: - Raw materials: \($18,500\) - Work in progress: \($14,200\) - Finished goods (at transfer value): \($26,400\)
Transactions during the year: - Purchases of raw materials: \($124,600\) - Carriage on raw materials: \($3,200\) - Direct factory wages: \($86,400\) - Factory indirect wages: \($34,800\) - Factory general expenses: \($21,600\) - Depreciation of factory machinery: \($12,500\)
Inventory at 30 June 2024: - Raw materials: \($19,300\) - Work in progress: \($15,600\) - Finished goods (at transfer value): \($28,800\)
Additional Information: Finished goods are transferred from the factory to the retail outlet at factory cost plus a markup of 20% for factory profit.
Required: (a) Prepare the Manufacturing Account for Healy Manufacturers for the year ended 30 June 2024, showing clearly the prime cost and the cost of production. (b) Calculate the provision for unrealized profit on finished goods inventory at 30 June 2024 and identify the net change to be debited or credited to the Income Statement. (c) State the difference between a direct cost and an indirect cost in a manufacturing business, giving one example of each.
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解題
(a) Manufacturing Account: Raw materials consumed: Opening inventory of raw materials: \($18,500\) Add: Purchases of raw materials: \($124,600\) Add: Carriage on raw materials: \($3,200\) Less: Closing inventory of raw materials: \(($19,300)\) Cost of raw materials consumed: \($127,000\) Direct wages: \($86,400\) PRIME COST = \($213,400\)
Factory Overheads: Factory indirect wages: \($34,800\) Factory general expenses: \($21,600\) Depreciation of factory machinery: \($12,500\) Total Overheads: \($68,900\)
Total factory cost = \($282,300\) Add: Opening Work in Progress: \($14,200\) Less: Closing Work in Progress: \(($15,600)\) COST OF PRODUCTION = \($280,900\) Factory Profit (20%): \($56,180\) Value of goods transferred: \($337,080\)
(b) Provision for Unrealized Profit (PUP): Closing PUP (30 June 2024) = \(28,800 \times \frac{20}{120} = \$4,800\) Opening PUP (1 July 2023) = \(26,400 \times \frac{20}{120} = \$4,400\) Net change = Increase of \($400\). This is debited to the Income Statement.
(c) Direct cost: traceable directly to the unit of production (e.g., raw materials). Indirect cost: incurred for the whole factory and cannot be traced directly (e.g., factory rent).
評分準則
(a) Manufacturing Account: 12 marks total (3 marks for cost of raw materials consumed, 2 marks for Prime Cost label and amount, 3 marks for factory overheads listed, 2 marks for Work in Progress adjustments, 2 marks for correct Cost of Production label and amount). (b) PUP Calculations: 4 marks total (1 mark for closing PUP of \($4,800\), 1 mark for opening PUP of \($4,400\), 1 mark for net increase of \($400\), 1 mark for specifying it is a debit to the Income Statement). (c) Direct/Indirect Theory: 4 marks total (1 mark for direct definition, 1 mark for direct example, 1 mark for indirect definition, 1 mark for indirect example).
題目 3 · Structured Calculation & Analysis
20 分
Apex Opticals Limited had the following equity balances on 1 April 2023: - Ordinary Shares of \($0.50\) each: \($200,000\) (400,000 shares) - Share Premium: \($40,000\) - General Reserve: \($15,000\) - Retained Earnings: \($35,600\)
During the year ended 31 March 2024, the company recorded the following events: 1. Paid an interim ordinary dividend of \($0.02\) per share on 1 October 2023. 2. Made a rights issue of 100,000 ordinary shares on 1 December 2023 at \($0.65\) per share. The issue was fully subscribed. 3. Transferred \($10,000\) to the general reserve on 1 March 2024. 4. Generated a profit for the year ended 31 March 2024 of \($48,200\). 5. Proposed a final ordinary dividend of \($0.03\) per share on 31 March 2024.
Required: (a) Calculate the total amount of the interim ordinary dividend paid. (b) Prepare the Statement of Changes in Equity for Apex Opticals Limited for the year ended 31 March 2024. (c) Prepare the Equity section of the Statement of Financial Position at 31 March 2024. (d) Explain how the proposed final ordinary dividend should be treated in the financial statements for the year ended 31 March 2024.
(b) Statement of Changes in Equity: | Description | Share Capital (\($\)) | Share Premium (\($\)) | General Reserve (\($\)) | Retained Earnings (\($\)) | Total (\($\)) | | --- | --- | --- | --- | --- | --- | | Balances at 1 Apr 2023 | 200,000 | 40,000 | 15,000 | 35,600 | 290,600 | | Rights Issue | 50,000 | 15,000 | - | - | 65,000 | | Profit for the Year | - | - | - | 48,200 | 48,200 | | Dividends Paid | - | - | - | (8,000) | (8,000) | | Transfer to Reserve | - | - | 10,000 | (10,000) | - | | **Balances at 31 Mar 2024** | **250,000** | **55,000** | **25,000** | **65,800** | **395,800** |
(c) SOFP Equity Section at 31 March 2024: Equity: - Ordinary Shares of \($0.50\) each: \($250,000\) - Share Premium: \($55,000\) - General Reserve: \($25,000\) - Retained Earnings: \($65,800\) Total Equity: \($395,800\)
(d) Proposed Final Dividend: Under accounting standards, dividends proposed after the reporting period are not recognized as a liability because there is no present obligation on the reporting date. It must not be entered in the books, but disclosed as a note to the financial statements.
評分準則
(a) Interim Dividend: 2 marks total (1 mark for correct working, 1 mark for correct amount of \($8,000\)). (b) Statement of Changes in Equity: 12 marks total (1 mark for opening balances, 1 mark for Rights Issue Share Capital, 1 mark for Rights Issue Share Premium, 1 mark for Profit, 1 mark for Dividend paid, 2 marks for General Reserve transfer double entry, 4 marks for each correct ending balance column, 1 mark for ending Total column sum of \($395,800\)). (c) SOFP Section: 3 marks total (1 mark for listing correct elements, 1 mark for correct individual totals, 1 mark for final Total Equity of \($395,800\)). (d) Proposed Dividend Theory: 3 marks total (1 mark for stating it is not recognized as a liability/not entered in ledger, 1 mark for stating it is not a present obligation at year-end, 1 mark for stating it is disclosed in notes).
題目 4 · Structured Calculation & Analysis
20 分
Dylan's financial records showed a debit balance of \($14,600\) in his Sales Ledger Control Account on 1 May 2023.
He compiled the following summaries for the year ended 30 April 2024: - Credit sales: \($118,400\) - Cash sales: \($12,500\) - Cheques and bank transfers received from credit customers: \($109,200\) - Sales returns from credit customers: \($3,150\) - Cash discount allowed to credit customers: \($1,850\) - Irrecoverable debts written off: \($950\) - Contra entry with Purchases Ledger Control Account: \($1,000\) - Interest charged on late payment of credit customer accounts: \($150\)
On 30 April 2024, Dylan's provision for doubtful debts was to be adjusted to 3% of trade receivables. The balance on the provision account on 1 May 2023 was \($400\).
Required: (a) Identify the book of prime entry used to record: (i) Credit sales (ii) Cash discount allowed (iii) Contra entry (b) Prepare the Sales Ledger Control Account for the year ended 30 April 2024 to determine the closing balance of trade receivables. (c) Calculate the provision for doubtful debts required at 30 April 2024. (d) Prepare the journal entry to record the adjustment to the provision for doubtful debts on 30 April 2024. A narrative is required.
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解題
(a) Books of Prime Entry: (i) Credit sales: Sales Journal (ii) Cash discount allowed: Cash Book (iii) Contra entry: General Journal
(d) Journal Entry: Date: 30 April 2024 Debit: Income Statement: \($110\) Credit: Provision for Doubtful Debts: \($110\) (Calculation: \(\$510 - \$400 = \$110\) increase) Narrative: Being the adjustment to increase the provision for doubtful debts to 3% of trade receivables at the year-end.
評分準則
(a) Books of Prime Entry: 3 marks total (1 mark for each correct book). (b) Sales Ledger Control Account: 9 marks total (1 mark for opening balance, 1 mark for each of the 6 transaction postings, 1 mark for correct closing balance of \($17,000\), 1 mark for showing correct balance b/d on 1 May 2024). (c) Provision Calculation: 3 marks total (1 mark for identifying closing receivables, 1 mark for percentage, 1 mark for final result of \($510\)). (d) Journal Entry: 5 marks total (1.5 marks for correct debit account & amount, 1.5 marks for correct credit account & amount, 2 marks for clear and accurate narrative).
題目 5 · Structured Calculation & Analysis
20 分
Maya is a sole trader. Her trial balance on 31 December 2023 included the following information: - Revenue: \($165,000\) - Purchases: \($92,400\) - Rent and Rates: \($14,400\) - Wages and Salaries: \($28,600\) - Motor Vehicles at cost: \($45,000\) - Provision for depreciation on motor vehicles (1 January 2023): \($18,000\) - Advertising: \($5,200\) - Inventory at 1 January 2023: \($11,500\)
Additional information at 31 December 2023: 1. Inventory was valued at \($13,200\). 2. Rent of \($1,200\) was prepaid. 3. Wages and salaries of \($1,400\) were accrued. 4. Motor vehicles are depreciated at 20% per annum using the reducing balance method. 5. Advertising includes \($800\) paid for a campaign running in early 2024.
Required: (a) Classify each of the following transactions as Capital Expenditure, Revenue Expenditure, Capital Receipt, or Revenue Receipt: (i) Cost of repairing a delivery van damaged in an accident. (ii) Purchase of a new security system for the warehouse. (iii) Proceeds from the sale of an old office computer at book value. (iv) Insurance premium paid for the business premises. (b) Prepare Maya's Income Statement for the year ended 31 December 2023. (c) Prepare the Non-Current Assets section of Maya's Statement of Financial Position at 31 December 2023.
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解題
(a) Classifications: (i) Repairing delivery van: Revenue Expenditure (ii) New security system: Capital Expenditure (iii) Proceeds from sale of computer: Capital Receipt (iv) Insurance premium: Revenue Expenditure
(b) Maya - Income Statement for the year ended 31 December 2023: Revenue: \($165,000\) Less: Cost of Sales: Opening Inventory: \($11,500\) Add: Purchases: \($92,400\) Less: Closing Inventory: \(($13,200)\) Cost of Sales: \($90,700\) Gross Profit: \($74,300\)
Less: Expenses: Rent and Rates (\(\$14,400 - \$1,200\)): \($13,200\) Wages and Salaries (\(\$28,600 + \$1,400\)): \($30,000\) Depreciation of Motor Vehicles (\(20\% \times (\$45,000 - \$18,000)\)): \($5,400\) Advertising (\(\$5,200 - \$800\)): \($4,400\) Total Expenses: \($53,000\) Profit for the Year: \($21,300\)
(c) Non-Current Assets section of Statement of Financial Position at 31 December 2023: - Motor Vehicles (Cost): \($45,000\) - Accumulated Depreciation (\(\$18,000 + \$5,400\)): \($23,400\) - Net Book Value: \($21,600\)
評分準則
(a) Classifications: 4 marks total (1 mark for each correct classification). (b) Income Statement: 12 marks total (1 mark for Revenue, 2 marks for Cost of Sales details, 1 mark for Gross Profit, 2 marks for Rent & Rates calculation, 2 marks for Wages & Salaries calculation, 2 marks for Depreciation charge calculation, 1 mark for Advertising adjustment, 1 mark for final Profit for the year). (c) SOFP Non-Current Assets: 4 marks total (1 mark for Cost column, 2 marks for Accumulated Depreciation column with correct math, 1 mark for Net Book Value).
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