2025 Edexcel IGCSE Accounting 模擬試題連答案詳解

Revenue expenditure is money spent on the day-to-day running costs of a business. Repairs and maintenance of delivery vehicles (Option C) represents revenue expenditure because it maintains the existing condition of the asset. The other options are examples of capital expenditure as they involve buying or improving non-current assets.

Award 1 mark for the correct option. No partial marks are available.

The prudence concept states that assets and profits should not be overstated. Therefore, closing inventory must be valued at the lower of cost and net realisable value (NRV). By valuing damaged inventory at its higher cost, the business overstates both its assets and profits, violating the prudence concept.

Award 1 mark for the correct option.

A credit note is issued by a seller (supplier) to a customer to reduce the amount the customer owes, typically because they have returned faulty goods. A debit note is sent by the customer to request this reduction.

Award 1 mark for the correct option.

The bank charges of $45 must be credited to the cash book to update the balance: $1 450 (debit balance) - $45 (bank charges) = $1 405 (debit balance).

Award 1 mark for the correct option.

An error of principle occurs when a transaction is entered in the wrong class of account (in this case, entering capital expenditure for an asset in a revenue expenditure expense account).

Award 1 mark for the correct option.

The general journal is used for non-routine transactions that do not fit into other specialized journals. The purchase of a non-current asset on credit is recorded in the general journal, whereas credit sales go to the sales journal, credit purchases of goods go to the purchases journal, and wages payments go to the cash book.

Award 1 mark for the correct option.

Total residual profit to be shared = Profit for the year - Salary - Total Interest on Capital = $45 000 - $5 000 - ($2 000 + $1 000) = $37 000. Partner Y's share = 2/5 of $37 000 = $14 800.

Award 1 mark for the correct option.

Year 1 depreciation charge = 20% of $20 000 = $4 000. Net book value at start of Year 2 = $20 000 - $4 000 = $16 000. Year 2 depreciation charge = 20% of $16 000 = $3 200.

Award 1 mark for the correct option.

Trade discount is deducted from the list price to calculate the invoice price, which is then recorded in the sales journal. Cash discount is only recorded if and when the customer pays within the specified period. Trade discount = 10% of £800 = £80. Invoice price recorded in the sales journal = £800 - £80 = £720.

1 mark for the correct answer (B).

A suspense account is used to temporarily balance the books when a trial balance does not agree due to a single-sided entry or unequal debit and credit entries. In Option C, a payment of rent has a debit of £520 and a credit of £250, resulting in an unequal trial balance. Options A, B, and D are double-entry errors where equal debit and credit entries were made, so they do not affect the trial balance agreement and do not require a suspense account to correct.

1 mark for the correct answer (C).

To complete the invoice, the calculations are as follows:

1. **Value (A)**: Multiply quantity by unit price for Item X:
\( 40 \times \$15.00 = \$600.00 \)

2. **Value (B)**: Sum the totals of Item X and Item Y to find the sub-total:
\( \$600.00 + \$500.00 = \$1,100.00 \)

3. **Value (C)**: Calculate 15% trade discount on the sub-total:
\( \$1,100.00 \times 15\% = \$165.00 \)

4. **Value (D)**: Subtract trade discount from the sub-total to find the net total:
\( \$1,100.00 - \$165.00 = \$935.00 \)

5. **Value (E)**: Add the carriage charge to the net total to get the total invoice value:
\( \$935.00 + \$30.00 = \$965.00 \)

Award 1 mark for each correct calculated value:
- **(A)** $600.00 [1] (Accept 600)
- **(B)** $1,100.00 [1] (Accept 1100, or own figure (OF) based on A)
- **(C)** $165.00 [1] (Accept 165, or OF based on B)
- **(D)** $935.00 [1] (Accept 935, or OF based on B and C)
- **(E)** $965.00 [1] (Accept 965, or OF based on D)

### Explanation of classifications:

* **(i) Purchase of a delivery van:** This is **Capital Expenditure** because it is the acquisition of a non-current asset which will be used in the business for more than one accounting period.
* **(ii) Cost of painting the company logo on the van upon purchase:** This is **Capital Expenditure** because it is a one-off cost directly incurred to bring the non-current asset into its intended condition and ready for use in the business.
* **(iii) Annual insurance premium for the van:** This is **Revenue Expenditure** because it is a regular, recurring expense incurred for the day-to-day running of the business and maintaining the asset.
* **(iv) Repairing a broken wing mirror on the van:** This is **Revenue Expenditure** because it is a maintenance and repair cost incurred to keep the non-current asset in its normal working order, without increasing its earning capacity.
* **(v) Cost of fuel for the van:** This is **Revenue Expenditure** because it is a day-to-day operating expense of running the vehicle.

Award 1 mark for each correctly classified row.

| Transaction | Capital Expenditure | Revenue Expenditure |
| :--- | :---: | :---: |
| **(i)** Purchase of a delivery van | \checkmark (1) | |
| **(ii)** Cost of painting the company logo on the van upon purchase | \checkmark (1) | |
| **(iii)** Annual insurance premium for the van | | \checkmark (1) |
| **(iv)** Repairing a broken wing mirror on the van | | \checkmark (1) |
| **(v)** Cost of fuel for the van | | \checkmark (1) |

Total: 5 marks

(i) Bank charges not yet recorded must be entered in the Cash Book as an expense to update the balance. (ii) Unpresented cheques have already been recorded in the Cash Book, so they are only included in the Bank Reconciliation Statement. (iii) Direct debits are bank payments that have not yet been recorded, so they require an update in the Cash Book. (iv) Credit transfers or receipts from customers shown on the bank statement must be entered in the Cash Book to update the balance. (v) Uncredited deposits have already been entered in the Cash Book and only require entry in the Bank Reconciliation Statement.

Award 1 mark for each correct classification as follows: (i) Update Cash Book (1 mark). (ii) Bank Reconciliation Statement (1 mark). (iii) Update Cash Book (1 mark). (iv) Update Cash Book (1 mark). (v) Bank Reconciliation Statement (1 mark).

Part (a) J. Patel Account in Maria's Ledger: Debit side: 1 Apr Balance b/d \(£800\); 5 Apr Sales \(£450\) (calculation: \(£500\) less 10% trade discount). Total debits = \(£1,250\). Credit side: 12 Apr Sales Returns \(£90\) (calculation: \(£100\) less 10% trade discount); 28 Apr Bank \(£760\) (calculation: \(£800\) opening balance less 5% cash discount of \(£40\)); 28 Apr Discount Allowed \(£40\); 30 Apr Balance c/d \(£360\). Total credits = \(£1,250\). On 1 May, Balance b/d is \(£360\) on the debit side. Part (b) Books of original entry and source documents: 5 April: Sales Journal, Invoice. 12 April: Sales Returns Journal, Credit Note. 28 April: Cash Book, Bank Statement. Part (c) Evaluation: Trade discounts encourage credit customers to buy in larger quantities and reward loyalty, which increases total sales volume, but they directly reduce the net selling price and gross profit margin. Cash discounts encourage customers to pay their accounts more quickly, which improves the business's liquidity, reduces the working capital cycle, and lowers the risk of irrecoverable debts. However, cash discounts represent a financial cost that further reduces the net cash received and net profit. Overall, Maria's combined policy is beneficial because trade discounts secure market share and volume, while cash discounts ensure that liquidity is maintained, provided she sets her base prices high enough to absorb both discounts.

Part (a) [6 marks]: 1 mark for correct opening balance b/d on Debit. 1 mark for Sales entry of \(£450\) on Debit. 1 mark for Sales Returns entry of \(£90\) on Credit. 1 mark for Bank entry of \(£760\) on Credit. 1 mark for Discount Allowed entry of \(£40\) on Credit. 1 mark for correct balancing c/d of \(£360\) and bringing it down as Dr. on 1 May. Part (b) [3 marks]: 1 mark for Sales Journal and Invoice. 1 mark for Sales Returns Journal and Credit Note. 1 mark for Cash Book and Bank Statement. Part (c) [6 marks]: 2 marks for discussing trade discounts (advantages and disadvantages). 2 marks for discussing cash discounts (advantages and disadvantages). 2 marks for a reasoned, balanced conclusion.

Part (a) Journal Entries: Error 1: Debit Suspense \(£180\), Credit Sales \(£180\) (correction of undercast credit side of sales). Error 2: Debit Office Equipment \(£1,200\), Credit Purchases \(£1,200\) (correction of error of principle). Error 3: Debit Bank Charges \(£45\), Credit Bank \(£45\) (correction of error of omission). Error 4: Debit Suspense \(£240\), Credit Rent Received \(£240\) (correction of incorrect debit to rent received). Part (b) Suspense Account: Debit side entries: 31 Dec Sales \(£180\), 31 Dec Rent Received \(£240\). Total Debit = \(£420\). Credit side entry: 31 Dec Difference on trial balance \(£420\). Total Credit = \(£420\). The account balances and is cleared. Part (c) Evaluation: Implementing a computerised accounting system offers benefits such as automatic preparation of double entries, ensuring the trial balance always balances and eliminating errors of single-entry or incorrect calculations (like Error 1 and Error 4 which affected the suspense account). However, it cannot prevent human data-entry errors such as entering transactions in the wrong class of account (Error 2, principle) or completely forgetting to record transactions (Error 3, omission). Furthermore, Alan will face software acquisition costs, staff training costs, and potential security or backup concerns. In conclusion, while a computerised package will not completely eliminate errors, it is highly recommended because it vastly increases efficiency and prevents arithmetic errors, provided staff receive proper training.

Part (a) [8 marks]: 2 marks for each correct journal entry (1 mark for debits, 1 mark for credits). Part (b) [3 marks]: 1 mark for opening credit balance of \(£420\). 1 mark for debit entries of \(£180\) and \(£240\). 1 mark for correctly balancing and closing the account. Part (c) [4 marks]: 1 mark for stating benefits of computerisation (e.g. automatic trial balance agreement). 1 mark for identifying limitations (e.g. error of omission/principle still occur). 1 mark for referencing implementation costs or training. 1 mark for a reasoned final judgment.

Part (a) Partnership Profit and Loss Appropriation Account for the year ended 31 December 2023: Net Profit: \(£42,000\). Add Interest on Drawings: Zara \(£600\), Yumna \(£400\) (Total \(£1,000\)). Total adjusted profit: \(£43,000\). Less Interest on Capital: Zara \(£4,000\) (5% of \(£80,000\)), Yumna \(£2,500\) (5% of \(£50,000\)) (Total \(£6,500\)). Less Yumna Salary: \(£8,000\). Residual Profit available for distribution: \(£28,500\). Share of Profit: Zara (3/5) \(£17,100\), Yumna (2/5) \(£11,400\). Part (b) Yumna's Current Account: Debit side: 31 Dec Drawings \(£10,000\); 31 Dec Interest on drawings \(£400\); 31 Dec Balance c/d \(£13,000\). Total Debit = \(£23,400\). Credit side: 1 Jan Balance b/d \(£1,500\); 31 Dec Interest on capital \(£2,500\); 31 Dec Salary \(£8,000\); 31 Dec Share of profit \(£11,400\). Total Credit = \(£23,400\). 1 Jan 2024 Balance b/d \(£13,000\). Part (c) Evaluation: Yumna's current account shows a very healthy and strengthened position, with her credit balance increasing significantly from \(£1,500\) to \(£13,000\). This represents retained profits left inside the firm which increases its overall working capital. The reason for this improvement is that Yumna's total credit allocations (interest on capital \(£2,500\), salary \(£8,000\), and profit share \(£11,400\) totaling \(£21,900\)) far exceeded her drawings and interest on drawings (totaling \(£10,400\)). To maintain or further improve this position, Yumna should continue to control her drawings, keeping them within sustainable limits. However, she should also ensure that the business has enough physical cash to support these high credit balances, as current account balances are book entries and do not equal cash in hand.

Part (a) [6 marks]: 1 mark for adding Interest on Drawings (\(£1,000\)). 1 mark for Interest on Capital calculation and entry (\(£4,000\) and \(£2,500\)). 1 mark for deducting Salary of \(£8,000\). 1 mark for calculating correct residual profit of \(£28,500\). 2 marks for correct share of profits (Zara \(£17,100\), Yumna \(£11,400\)). Part (b) [4 marks]: 1 mark for correct opening balance. 1 mark for debit side items (Drawings and Interest on Drawings). 1 mark for credit side items (Interest, Salary, Share of Profit). 1 mark for correct balancing c/d of \(£13,000\) and bringing it down. Part (c) [5 marks]: 1 mark for identifying the increase in current account balance. 1 mark for comparing total earnings to drawings. 1 mark for recognizing the contribution of salary/profit share. 1 mark for recommending drawings discipline. 1 mark for noting the difference between current account balances and cash.

Part (a) Updated Cash Book (Bank columns only): Debit side: 31 Oct Balance b/d \(£2,450\); 31 Oct S. Malik (Bank transfer) \(£380\). Total Debit = \(£2,830\). Credit side: 31 Oct Bank charges \(£45\); 31 Oct Standing order (Insurance) \(£120\); 31 Oct Dishonoured cheque (J. Dunn) \(£250\); 31 Oct Balance c/d \(£2,415\). Total Credit = \(£2,830\). 1 Nov Balance b/d \(£2,415\). Part (b) Bank Reconciliation Statement at 31 October 2023: Balance as per Bank Statement (credit) \(£1,960\). Add: Outstanding deposits / Uncredited deposits \(£1,705\). Subtotal = \(£3,665\). Less: Unpresented cheques \(£1,250\). Balance as per updated cash book \(£2,415\) (debit). Part (c) Evaluation: Online bank feeds would automatically load transaction data into Tariq's system, reducing data-entry errors, saving bookkeeping time, and providing an instant picture of cash flow. This prevents delays in identifying problems like dishonoured cheques (Error 4) or unrecorded charges (Error 2). However, bank feeds still require manual classification to prevent wrong allocations, software costs will rise, and there is a dependency on internet access and bank security protocols. In conclusion, the benefits of timely decision-making and reduced processing errors heavily outweigh the financial and security costs, making the transition highly recommended.

Part (a) [5 marks]: 1 mark for correct opening debit balance of \(£2,450\). 1 mark for debiting \(£380\) from S. Malik. 1 mark for crediting Bank charges (\(£45\)) and Standing order (\(£120\)). 1 mark for crediting Dishonoured cheque (\(£250\)). 1 mark for correct calculated balance c/d of \(£2,415\) brought down as Dr. balance. Part (b) [5 marks]: 1 mark for starting with correct bank statement balance of \(£1,960\). 1 mark for showing addition of outstanding deposits and subtraction of unpresented cheques. 1 mark for correct outstanding deposit amount of \(£1,705\). 1 mark for correct unpresented cheque amount of \(£1,250\). 1 mark for arriving at reconciled total of \(£2,415\) matching the updated cash book. Part (c) [5 marks]: 1 mark for explaining benefits of automated feeds (e.g. speed, accuracy). 1 mark for noting practical bookkeeping advantages (faster identification of dishonoured cheques). 1 mark for identifying drawbacks (subscription fees, manual classification still needed). 1 mark for mentioning security/technical risk. 1 mark for a well-justified recommendation.

Part (a) Classification and Calculation: Capital Expenditure (one-off costs to acquire and bring the asset into use): (1) Cost of van \(£15,000\), (2) Delivery charges \(£350\), and (3) Sign-writing \(£450\). Total debited to Delivery Van cost account = \(£15,800\). Revenue Expenditure (regular running/operating costs): (4) Road motor tax \(£180\), (5) Motor insurance \(£420\), and (6) Diesel fuel \(£80\). Total Revenue Expenditure = \(£680\). Part (b) Ledger Entries: Journal: Debit Bank \(£240\), Debit Irrecoverable Debts \(£560\) (calculation: 70% of \(£800\)), Credit H. Vance \(£800\). H. Vance Account: Debit side: Balance b/f \(£800\). Credit side: 31 Oct Bank \(£240\); 31 Oct Irrecoverable Debts \(£560\). Irrecoverable Debts Account: Debit side: 31 Oct H. Vance \(£560\). (Note: This balance is transferred to the Debit of the Income Statement at year-end). Part (c) Evaluation: Offering credit terms is beneficial because it helps attract customers, increases sales volume, and maintains competitiveness. However, it exposes Liam to the risk of bad debts, as seen with the \(£560\) loss on H. Vance, which reduces profitability and harms cash flow. To mitigate this risk, Liam should not stop offering credit entirely, as that would damage sales. Instead, he should implement credit control measures: performing rigorous credit checks on new customers; setting strict credit limits; preparing aging schedules to monitor overdue payments; chasing outstanding debts promptly; and offering cash discounts for prompt payment. This allows Liam to expand sales while protecting liquidity.

Part (a) [5 marks]: 2 marks for correctly identifying and totaling capital expenditure items (\(£15,800\)). 2 marks for correctly identifying and totaling revenue expenditure items (\(£680\)). 1 mark for clear explanation of the difference between capital and revenue expenditure. Part (b) [4 marks]: 1 mark for correct double entry journal (Debits: Bank \(£240\), Irrecoverable \(£560\); Credit: H. Vance \(£800\)). 1 mark for crediting H. Vance with Bank and Irrecoverable Debts. 1 mark for debiting Irrecoverable Debts account. 1 mark for referencing year-end income statement transfer. Part (c) [6 marks]: 1 mark for explaining benefits of credit sales. 1 mark for explaining disadvantages/risks of credit. 2 marks for proposing specific control mechanisms (credit limits, checks, aging analysis). 2 marks for a reasoned final recommendation.

Part (a) Sienna Income Statement for the year ended 31 December 2023:

Revenue: £185,000
Less: Cost of Sales
Opening Inventory: £11,500
Purchases: £94,200
Carriage inwards: £2,100
Goods available for sale: £107,800
Less: Closing Inventory: (£14,200)
Cost of Sales: (£93,600)
Gross Profit: £91,400

Expenses:
Wages and salaries (\(24,000 + 1,500\)): £25,500
General expenses (\(16,800 - 800\)): £16,000
Irrecoverable debts: £500
Increase in provision for doubtful debts: £300
Depreciation on motor vehicles: £3,600
Total Expenses: (£45,900)
Profit for the year: £45,500

Calculations:
- Provision for doubtful debts: Adjusted Receivables = \(18,500 - 500 = 18,000\). Required provision = \(18,000 \times 5\% = 900\). Existing provision = \(600\). Increase to income statement = \(900 - 600 = 300\).
- Depreciation on motor vehicles: Carrying amount = \(30,000 - 12,000 = 18,000\). Depreciation charge = \(18,000 \times 20\% = 3,600\).

Part (b) Evaluation of changing depreciation method:
- The reducing balance method is appropriate for motor vehicles as they lose more value in the early years of ownership (due to rapid initial obsolescence and physical deterioration).
- The straight-line method assumes equal loss of value over time, which does not match the actual economic reality of vehicle usage and market value deterioration.
- Changing the method would violate the Consistency Concept, which states that accounting methods should be applied consistently from one period to the next to allow for meaningful comparison.
- Sienna should only change the method if the straight-line method provides a fairer presentation of the economic benefits consumed, which is unlikely for motor vehicles. Thus, Sienna should continue using the reducing balance method.

Part (c) Capital vs Revenue Expenditure:
- Capital expenditure is spending on purchasing or improving non-current assets (e.g., £15,000 delivery van) which will benefit the business for more than one accounting period.
- Revenue expenditure is spending on the day-to-day running costs of the business (e.g., £350 fuel and insurance) which is fully consumed within the current accounting period.
- If the fuel and insurance (£350) were incorrectly treated as capital expenditure: Profit for the year would be overstated by £350 (since expenses are understated), and Non-Current Assets (and capital) in the Statement of Financial Position would be overstated by £350.

Part (a) (15 marks):
- Revenue £185,000 (1 mark)
- Opening inventory £11,500 (1 mark)
- Purchases £94,200 + Carriage inwards £2,100 (1 mark for both with carriage added to purchases)
- Closing inventory subtracted £14,200 (1 mark)
- Correct Cost of Sales £93,600 and Gross Profit £91,400 (1 mark OF)
- Wages and salaries £25,500 (2 marks, 1 for correct adjust of 1,500 accrued)
- General expenses £16,000 (2 marks, 1 for correct adjust of 800 prepaid)
- Irrecoverable debts £500 written off (1 mark)
- Provision for doubtful debts increase £300 (2 marks, 1 for calculating 900 new provision and 1 for showing the change of 300)
- Depreciation of motor vehicles £3,600 (2 marks, 1 for correct net book value base of 18,000)
- Profit for the year £45,500 (1 mark OF)

Part (b) (6 marks):
- Up to 4 marks for analyzing both methods (e.g., reducing balance matches higher early-year usage/depreciation; straight line is simpler but less realistic for vehicles; consistency concept argument).
- Up to 2 marks for a reasoned conclusion (Sienna should not change the method as reducing balance matches the consumption of benefits better and complies with consistency).

Part (c) (4 marks):
- 1 mark for defining capital expenditure (purchase of delivery van).
- 1 mark for defining revenue expenditure (fuel and insurance).
- 2 marks for stating the effect of incorrect treatment (1 mark for profit being overstated, 1 mark for non-current assets being overstated).

Part (a) S&G Traders - Partnership Appropriation Account for the year ended 31 December 2023: Profit for the year: £46,400. Add Interest on Drawings: Sophia (£15,000 * 4%) = £600; George (£10,000 * 4%) = £400; Total Interest on Drawings = £1,000. Profit available for appropriation = £47,400. Less Interest on Capital: Sophia (£80,000 * 5%) = £4,000; George (£50,000 * 5%) = £2,500; Total Interest on Capital = (£6,500). Less Partner Salary: Sophia = (£12,000). Total appropriations = (£18,500). Residual profit for division = £28,900. Share of Profit: Sophia (3/5 of £28,900) = £17,340; George (2/5 of £28,900) = £11,560. Part (b) Partners' Current Accounts: Sophia Debit side: Drawings £15,000; Interest on drawings £600; Balance c/d £21,940. Sophia Credit side: Balance b/f £4,200; Interest on Capital £4,000; Salary £12,000; Share of Profit £17,340. Total Sophia debits & credits balance at £37,540. Sophia Balance b/d on 1 January 2024 = £21,940 (Cr). George Debit side: Balance b/f £1,500; Drawings £10,000; Interest on drawings £400; Balance c/d £2,160. George Credit side: Interest on Capital £2,500; Share of profit £11,560. Total George debits & credits balance at £14,060. George Balance b/d on 1 January 2024 = £2,160 (Cr). Part (c) Three reasons for interest on drawings: (1) It discourages partners from withdrawing cash excessively from the business, keeping cash within the business for working capital. (2) It ensures fairness where one partner makes larger or earlier drawings than another. (3) It penalizes partners who make high drawings, compensating the other partner who leaves funds in the business. Part (d) When no Goodwill account is to be maintained: (1) The value of Goodwill is first credited to the old partners' Capital Accounts in their old profit-sharing ratio. (2) The same value of Goodwill is then debited to all partners' Capital Accounts (including the new partner) in their new profit-sharing ratio. (3) This ensures the Goodwill is written off immediately so it does not appear as an asset on the Statement of Financial Position, while effectively adjusting the partners' capitals to reflect the incoming partner's share of acquired reputation.

Part (a): [10 Marks total] - Profit for the year £46,400 (1) - Interest on drawings: Sophia £600 (1), George £400 (1) - Subtotal profit available £47,400 (1) - Interest on capital: Sophia £4,000 (1), George £2,500 (1) - Partner salary Sophia £12,000 (1) - Residual profit £28,900 (1) - Share of Profit: Sophia £17,340 (1), George £11,560 (1). Part (b): [8 Marks total] - Sophia opening balance £4,200 (Cr) and George opening balance £1,500 (Dr) (1 mark for both correct) - Interest on capital posted to Credit: Sophia £4,000, George £2,500 (1 mark) - Salary posted to Credit: Sophia £12,000 (1 mark) - Profit share posted to Credit: Sophia £17,340, George £11,560 (1 mark) - Drawings posted to Debit: Sophia £15,000, George £10,000 (1 mark) - Interest on drawings posted to Debit: Sophia £600, George £400 (1 mark) - Closing balances calculated and brought down correctly: Sophia £21,940 Cr (1 mark), George £2,160 Cr (1 mark). Part (c): [3 Marks total] - 1 mark for each valid point explaining why interest on drawings is charged (up to maximum 3 marks). Part (d): [4 Marks total] - Credit old partners' Capital Accounts (1) in old profit-sharing ratio (1) - Debit all partners' Capital Accounts (1) in new profit-sharing ratio (1).