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*jun25 71271 01* IB/M/Jun25/G4005/V6 7127/1
For Examiner’s Use Section Mark A B C TOTAL
Thursday 22 May 2025 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.
Please write clearly in block capitals.Centre number
Candidate number
Surname
Forename(s)
Candidate signature
I declare this is my own work.A-level
ACCOUNTING
Paper 1 Financial Accounting 1 / 4
2 *02* IB/M/Jun25/7127/1 Do not write outside the boxSection A Answer all questions in this section.For multiple- choice questions onlyoneanswer per question is allowed.For each question completely fill in the circle alongside the appropriate answer.If you want to change your answer you must cross out your original answer as shown.If you wish to return to an answer previously crossed out, ring the answer you now wish to select as shown.01 Which transaction would be recorded in the purchases journal?[1 mark] ACash purchase of a non-current asset BCash purchase of goods for resale CCredit purchase of a non-current asset DCredit purchase of goods for resale 02 Which is the formula for gross profit margin?[1 mark] A Cost of sales Gross profit
× 100
B Gross profit Cost of sales
× 100
C Gross profit Revenue ×100 D Revenue Gross profit
× 100
CORRECT METHODWRONG METHODS 2 / 4
3
*03* Turn over ►
IB/M/Jun25/7127/1
Do not write outside the box
- 3
Revenue should be recorded when the legal title passes between the buyer and seller.
Which accounting concept is being applied?
[1 mark]
A Accruals
B Money measurement
C Prudence
D Realisation
- 4
Which is the formula for trade receivables days?[1 mark] A Credit sales Trade receivables
× 365
B Total sales Trade receivables
× 365
C Trade receivables Credit sales
× 365
D Trade receivables Total sales
× 365
- 5
Which source of finance will increase the capital gearing ratio?[1 mark]
A Bank overdraft
B Bonus issue of shares
C Mortgage
D Rights issue of shares
- / 4
4
*04* IB/M/Jun25/7127/1
Do not write outside the box
- 6
Carriage inwards has been wrongly recorded in the income statement as carriage outwards.
What is the impact of this error on profit in the income statement?
[1 mark]
A Gross profit overstated
B Gross profit understated
C Profit for the year overstated
D Profit for the year understated
- 7
A business has expenses in relation to revenue of 65%. Profit for the year is £42 000.
How much are the expenses for the year?[1 mark]
A £14 700
B £27 300
C £78 000
D £120 000
- 8
A business maintains a provision for doubtful debts at 3% of trade receivables.
At the beginning of the year trade receivables were £68 000 and at the end of the year trade receivables were £62 000.
What entry will be made in the provision for doubtful debts account to record the transfer to the income statement?[1 mark]
A £180 credit
B £180 debit
C £1 860 credit
D £1 860 debit
- / 4
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