1 Ayesha is a trader who maintains a full set of accounting records and prepares control accounts at the end of each month. She provided the following information for the month of August 2021. $ On 1 August Sales ledger control account debit balance 9 800 Sales ledger control account credit balance 420 Purchases ledger control account credit balance 7 700 Totals for the month Credit sales 88 850 Credit purchases 55 400 Cash purchases 1 860 Receipts from customers 82 100 Payments to credit suppliers 50 600 Discount received 600 Discount allowed 900 Irrecoverable debt written off 300 Provision for doubtful debts 450 Sales returns 2 400 Interest charged to customer on overdue account 90 Contra between sales ledger and purchases ledger 2 920 The sales ledger control account credit balance brought down on 1 September 2021 was $350. REQUIRED (a) Prepare the sales ledger control account and the purchases ledger control account for August 2021. Balance the accounts and bring down the balances on 1 September 2021. Ayesha Sales ledger control account Date Details $ Date Details $ 2021 2021 … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … Purchases ledger control account Date Details $ Date Details $ 2021 2021 … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … [14] (b) Name the book of prime entry which Ayesha would use to obtain the following information when preparing her sales ledger control account. Item Book of prime entry Returns Discount allowed Interest charged to customer on overdue account Contra entry [4] (c) Suggest two reasons why the sales ledger control account had a credit balance of $420 on 1 August 2021. 1 … … 2 … … [2] [Total: 20]

1(a) Ayesha Sales ledger control account Date Details $ Date Details $ 2021 2021 Aug 1 Balance b/d 9 800 Aug 1 Balance b/d 420 31 Sales (1) 88 850 31 Bank (1) 82 100 Interest (1) 90 Discount allowed (1) 900 Balance c/d 350 Irrecoverable debts (1) 300 Sales returns (1) 2 400 Contra (1) 2 920 Balance c/d 10 050 99 090 99 090 2021 2021 Sep 1 Balance b/d (1)OF 10 050 Sep 1 Balance b/d (1) 350 Purchases ledger control account Date Details $ Date Details $ 2021 2021 Aug 31 Bank (1) 50 600 Aug 1 Balance b/d 7 700 Discount received (1) 600 31 Purchases (1) 55 400 Contra (1) 2 920 Balance c/d 8 980 63 100 63 100 2021 Sep 1 Balance b/d (1)OF 8 980 14 1(b) Item Book of prime entry Returns Sales returns journal (1) Discount allowed Cash book (1) Interest charged to customer on overdue account General journal/Journal (1) Contra entry General journal/Journal (1) 4 1(c) Overpayment by credit customer (1) Credit customer returned goods after settling the account (1) Credit customer paid for goods in advance (1) Payment by credit customer before cash discount was deducted (1) Max (2) 2 To earn marks for the sales ledger control account, you need to correctly identify and place the opening debit and credit balances, credit sales, interest, receipts from customers, discount allowed, irrecoverable debts, sales returns, and contra entry. For the purchases ledger control account, correctly place the opening credit balance, credit purchases, payments to credit suppliers, discount received, and contra entry. Both accounts must be balanced correctly, and the closing balances brought down to the next period.

3 Rachel prepared her trial balance at 31 January. The total of the debit side was more than the total of the credit side. Rachel entered the difference in a suspense account. (a) Explain how the use of a suspense account allows a draft statement of financial position to be prepared. … … … … … [2] Rachel later discovered the following errors. 1 A repair to the premises, $220, had been debited to the premises account. 2 The purchase of a motor vehicle, $3400, on credit from Neil’s Wheels, had not been recorded in the accounting records. 3 Both the sales journal and the purchases journal had been overcast by $100. 4 Returns inwards, $19, had not been recorded in the returns inwards account. 5 Bank interest received, $25, had been debited to the bank charges account. The entry in the bank account had been correctly made. REQUIRED (b) Prepare the journal entries to correct errors 1–5. Narratives are not required. Rachel Journal Error number Details Debit $ Credit $ … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … [11] (c) State the number of the error which is (i) a compensating error … [1] (ii) an error of omission … [1] (d) Complete the table to indicate the effect of each error on gross profit and on profit for the year. The first one has been completed as an example. Error number Gross Profit Profit for the year No effect Understated $ Overstated $ No effect Understated $ Overstated $ 1 3 220 2 3 4 5 [4] (e) State why a balance may remain on the suspense account after errors 1–5 have been corrected. … … … [1] [Total: 20]

3(a) The suspense account balance is entered on the trial balance (1) This means that there are equal debits and credits on the trial balance/the trial balance will balance (1) 2 3(b) Rachel Journal Error number Details Debit $ Credit $ 1 Premises repairs Premises 220 (1) 220 (1) 2 Motor vehicles Neil’s Wheels 3400 (1) 3400 (1) 3 Sales Purchases 100 (1) 100 (1) 4 Sales returns Suspense 19 (1) 19 (1) 5 Suspense Bank interest received Bank charges 50 (1) 25 (1) 25 (1) 11 3(c)(i) Error 3 (1). 1 3(c)(ii) Error 2 (1). 1 To earn marks for explaining the suspense account, you must state that its balance is entered on the trial balance, which then makes the trial balance balance. For the journal entries, you need to correctly identify the accounts to debit and credit for each error and the correct amounts. For identifying errors that affect only one side of the ledger, you need to correctly state the error numbers. For the table, you must correctly indicate whether each error overstates, understates, or has no effect on gross profit and profit for the year. Finally, for the last part, you need to state that other errors might still exist in the accounting records.

3 Anil is a trader. The totals of the trial balance he prepared on 31 December 2020 did not agree. The debits exceeded the credits by $5140. The following errors were later discovered. 1 The sales account had been undercast by $7100. 2 Sales returns of $520 had been posted as a credit to the purchases account. The correct entry had been made in the customer’s account. 3 Bank charges of $320 had been correctly entered in the cash book, but had not been entered in the bank charges account. 4 A cheque refund of $600 for insurance overpaid had been entered on the wrong side of the bank account and no entry had been made in the insurance account. REQUIRED (a) Prepare journal entries to correct errors 1 to 4. Narratives are not required. Anil Journal Error number Details Debit $ Credit $ … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … [12] (b) Complete the suspense account. Anil Suspense account Date Details $ Date Details $ … … … … Difference on trial balance 5140 … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … [6] (c) Name two types of error not disclosed by a trial balance. 1 … 2 … [2] [Total: 20] PLEASE TURN OVER

3(a) Anil Journal Error Details Debit $ Credit $ 1 Suspense Sales 7100 7100 (1) (1) 2 Sales returns Purchases Suspense OR Sales returns Suspense Purchases Suspense 520 520 520 520 1040 520 520 (1) (1) (2) (1) (1) (1) (1) 3 Bank charges Suspense 320 320 (1) (1) 4 Bank Suspense Insurance OR Bank Suspense Suspense Insurance 1200 1200 600 600 600 1200 600 (2) (1) (1) (1) (1) (1) (1) 12 (a) For each error, you must identify the correct accounts to debit and credit, and the correct amount, often involving the suspense account. For example, an undercast sales account requires a debit to suspense and a credit to sales. Some errors, like sales returns posted to purchases, require multiple entries or a combined entry to suspense. (b) To prepare the suspense account, you must list the difference on the trial balance and then post the debit and credit entries from the journal corrections, ensuring the account balances. (c) You need to identify two types of errors from the list provided, such as commission, compensating, complete reversal, omission, original entry, or principle.

3 Anil is a trader. The totals of the trial balance he prepared on 31 December 2020 did not agree. The debits exceeded the credits by $5140. The following errors were later discovered. 1 The sales account had been undercast by $7100. 2 Sales returns of $520 had been posted as a credit to the purchases account. The correct entry had been made in the customer’s account. 3 Bank charges of $320 had been correctly entered in the cash book, but had not been entered in the bank charges account. 4 A cheque refund of $600 for insurance overpaid had been entered on the wrong side of the bank account and no entry had been made in the insurance account. REQUIRED (a) Prepare journal entries to correct errors 1 to 4. Narratives are not required. Anil Journal Error number Details Debit $ Credit $ … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … [12] (b) Complete the suspense account. Anil Suspense account Date Details $ Date Details $ … … … … Difference on trial balance 5140 … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … [6] (c) Name two types of error not disclosed by a trial balance. 1 … 2 … [2] [Total: 20] PLEASE TURN OVER

3(a) Anil Journal Error Details Debit $ Credit $ 1 Suspense Sales 7100 7100 (1) (1) 2 Sales returns Purchases Suspense OR Sales returns Suspense Purchases Suspense 520 520 520 520 1040 520 520 (1) (1) (2) (1) (1) (1) (1) 3 Bank charges Suspense 320 320 (1) (1) 4 Bank Suspense Insurance OR Bank Suspense Suspense Insurance 1200 1200 600 600 600 1200 600 (2) (1) (1) (1) (1) (1) (1) 12 (a) For each error, you must identify the correct accounts to debit and credit and the correct amount. For error 1, debit Suspense and credit Sales. For error 2, debit Sales Returns, credit Purchases, and credit Suspense, or debit Sales Returns and Suspense, and credit Purchases and Suspense. For error 3, debit Bank Charges and credit Suspense. For error 4, debit Bank and credit Suspense and Insurance, or debit Bank and Suspense, and credit Suspense and Insurance. (b) To prepare the suspense account, you must correctly post the difference on the trial balance and the debit/credit entries from the journal corrections for each error, ensuring the account balances. (c) You need to identify any two types of errors from the list provided, such as commission, compensating, complete reversal, omission, original entry, or principle.

8 Which transaction is recorded in the general journal? A correction of an error in recording sales returns B drawings in cash by the owner C purchase of a motor vehicle by cheque D purchase of goods on credit

Answer: A To earn this mark, a student must identify that a correction of an error is recorded in the general journal.

Cambridge IGCSE Accounting · 0452

IGCSE Accounting (0452) Verification of accounting records past paper questions

Questions on the trial balance, bank reconciliation, and control accounts.

167 free questions from 2017–2021, each with its marking scheme. Open the full topical bank to filter by subtopic, paper, and year.

Verification of accounting records in IGCSE Accounting 0452 exams, 2020–2025

Across 2020–2025, Verification of accounting records accounted for 339 questions worth 1,479 marks in Cambridge IGCSE Accounting (0452) papers.

By year
Year	Questions	Marks
2020	53	243
2021	42	194
2022	53	243
2023	69	278
2024	68	296
2025	54	225

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2021 Oct/Nov · Paper 2 · Q1 · 20 marks
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2021 Feb/Mar · Paper 1 · Q8 · 1 mark
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