Please check the examination details below before entering your candidate information

Candidate surname Other names

Centre Number Candidate Number

Pearson Edexcel
International GCSE
Time 2 hours
Paper
reference 4AC1/01
Accounting
Level 1/2
PAPER 1: Introduction to Bookkeeping and
Accounting

You do not need any other materials. Total Marks

Instructions
• Use black ink or ball-point pen.
• Fill in the boxes at the top of this page with your name,
centre number and candidate number.
• Answer all questions.
• Answer the questions in the spaces provided
– there may be more space than you need.
• Calculators may be used.
Information
• The total mark for this paper is 100.
• The marks for each question are shown in brackets
– use this as a guide as to how much time to spend on each question.

Advice
• Read each question carefully before you start to answer it.
• Try to answer every question.
• Check your answers if you have time at the end.
• Good luck with your examination.

Turn over

*P66468RA0120*
P66468RA
©2021 Pearson Education Ltd.

1/1/1/1/1

SECTION A
Answer ALL questions in this section. Write your answers in the spaces provided.
For questions 1–10, choose an answer A, B, C or D, and put a cross in the box .
If you change your mind about an answer, put a line through the box and then mark
your new answer with a cross .
1 A trader issues a credit note. Where would he record it?

A Purchases day book

B Purchases returns day book

C Sales day book

D Sales returns day book

(Total for Question 1 = 1 mark)

2 Where are the personal accounts of customers buying goods on credit maintained?

A Purchases day book

B Sales day book

C Trade payables ledger

D Trade receivables ledger

(Total for Question 2 = 1 mark)

3 Where are the entries in the purchases day book taken from?

A Credit notes

B Purchase invoices

C Purchase order

D Statement of account

(Total for Question 3 = 1 mark)

2
*P66468RA0220*


4 Which item would be recorded as a credit entry in a trade payables ledger control
account?

A Amounts paid to credit suppliers

B Contra with the trade receivables ledger control account

C Discount received from credit suppliers

D Interest charged on late payment

(Total for Question 4 = 1 mark)

5 Where would the total discounts on the debit side of a cash book be posted?

A Credit discounts allowed

B Credit discounts received

C Debit discounts allowed

D Debit discounts received

(Total for Question 5 = 1 mark)

6 Which document from a supplier reduces the amount owed by a customer?

A Credit note

B Invoice

C Purchase order
D Statement

(Total for Question 6 = 1 mark)

7 Which account always has a credit balance?

A Carriage inwards

B Carriage outwards

C Returns inwards

D Returns outwards

(Total for Question 7 = 1 mark)

3
*P66468RA0320* Turn over

8 Where would the purchase of a motor vehicle on credit be recorded?

A Cash book

B Journal

C Petty cash book

D Purchases day book

(Total for Question 8 = 1 mark)

9 Barney has $25 left in the petty cash box and vouchers totalling $35.
How much does Barney need to restore the imprest to $60?

A $10

B $25

C $35

D $60

(Total for Question 9 = 1 mark)

10 A payment for rent, $20, had been posted to the credit of the rent received account.
Which entry would correct the error?

Debit Credit

Rent paid $20 Suspense $40

A Rent received $20

B Rent received $20 Suspense $20

C Suspense $20 Rent paid $20

Suspense $40 Rent paid $20

D
Rent received $20

(Total for Question 10 = 1 mark)

4
*P66468RA0420*


11 Complete the document.

(5)

Invoice
DH Trading
25 Swallow Lane
Birmingham
B27 3MH
Myhill Co Invoice No 1503
Westwood Road
Beverley
HU17 7AB Date 14 July 2020

Unit Cost Total Cost

Quantity Description
$ $

150 Packing cases 6.80

.................. . . . . . . . . . . . . .

48 Rolls of tape 2.50

.................. . . . . . . . . . . . . .

Subtotal
.................. . . . . . . . . . . . . .

Trade discount 25%

.................. . . . . . . . . . . . . .

Total
.................. . . . . . . . . . . . . .

(Total for Question 11 = 5 marks)

5
*P66468RA0520* Turn over

12 At 30 September 2020 the balance of Rashida’s trade receivables ledger control
account was $39 650. A debt of $730 due from Lee was irrecoverable.
(a) Prepare a journal entry in Rashida's books to write off the irrecoverable debt.
A narrative is not required.
(2)

Debit Credit
Date Account
$ $

30/09/20

Rashida maintains a provision for irrecoverable debts of 5% of trade receivables.

At 1 October 2019 the balance of the provision for irrecoverable debts account
was $1 635.
(b) Calculate the increase or decrease in the provision for irrecoverable debts at
30 September 2020.
(2)

................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(c) State in which section of the statement of financial position the provision for
irrecoverable debts would appear.
(1)

................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(Total for Question 12 = 5 marks)

6
*P66468RA0620*


13 (a) State two benefits of preparing a bank reconciliation statement.

(2)

1 ............................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2 ............................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(b) Define the following terms.
(3)

Term Definition

Unpresented cheques

Outstanding lodgements

Dishonoured cheque

(Total for Question 13 = 5 marks)

TOTAL FOR SECTION A = 25 MARKS

7
*P66468RA0720* Turn over

SECTION B
Answer ALL questions in this section. Write your answers in the spaces provided.
14 (a) State one advantage and one disadvantage of preparing a trial balance.
(2)
Advantage

................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Disadvantage

................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b) Complete the table, using a tick (), to identify in which column of the trial
balance each item would be entered. The first item has been completed as
an example.
(10)

Debit Credit

Inventory 

Bank overdraft

Carriage inwards

Discount received

Drawings

Equity

Machinery – provision for depreciation

Provision for irrecoverable debts

Rent received

Returns inwards

Trade receivables

8
*P66468RA0820*


(c) Identify the type of error in each scenario.

(3)

Scenario Type of error

A payment for general expenses had

been posted to the drawings account.

A payment for stationery had been

posted to the rent paid account.

An invoice for $320 had been recorded

in the purchases day book as $230.

(Total for Question 14 = 15 marks)

9
*P66468RA0920* Turn over

15 Lee maintains a three-column cash book. On 1 August 2020 the balances were: bank
overdraft $248, cash $45
The following transactions took place in August 2020.

August Transaction

3 Paid by direct debit to Mobilecom, $115

8 Cash sales, $1 420

9 Paid cash into the bank, $800

16 Paid Sophia by cheque, $475, in full settlement of an invoice after taking

5% cash discount.

23 Received a cheque from Folan, a credit customer, $225

28 Paid wages by cash, $540

29 Received notice from the bank that the cheque from Folan, $225, had
been dishonoured.
30 Received a cheque from Chan in full settlement of an invoice for $880.
Chan had taken a 5% cash discount.

(a) Enter the above transactions in the three-column cash book on page 11.
Balance the cash book at 31 August 2020 and bring the balances down on
1 September 2020.
(15)

10
*P66468RA01020*


Cash book

Date Details Discount Cash Bank Date Details Discount Cash Bank
2020 $ $ $ 2020 $ $ $

*P66468RA01120*
Turn over
11
(Total for Question 15 = 15 marks)

16 Eldin provided the following information relating to his trade receivables ledger
control account for the month ended 31 August 2020.

Credit sales 29 535

Customer overpayment refunded by cheque 160

Discount allowed 984

Interest charged 119

Irrecoverable debts 597

Receipts from credit customers 36 250

Returns inwards 380

Trade payables set-off 665

Credit balances at 31 August 2020 240

(a) Prepare the trade receivables ledger control account for the month ended
31 August 2020. Balance the account on this date and bring the balances down
at 1 September 2020.
(10)
Trade Receivables Ledger Control Account

Date Date
Details $ Details $
2020 2020

Aug 1 Balance b/d 46 220

12
*P66468RA01220*


Eldin currently makes all of his sales on a credit basis. He is considering making cash
sales only in the future.
(b) Explain one advantage and one disadvantage of this proposal and advise Eldin
whether or not he should make the change.
(5)

................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(Total for Question 16 = 15 marks)

13
*P66468RA01320* Turn over

17 During the year ended 30 September 2020 the following cheque payments were
made for rent at $300 per month.

Date paid Period covered

1 November 2019 1 September 2019 to 31 December 2019

1 January 2020 1 January 2020 to 30 June 2020

1 July 2020 1 July 2020 to 31 December 2020

(a) Prepare the rent payable account for the year ended 30 September 2020. Balance
the account on that date and bring the balance down on 1 October 2020.
(5)
Rent Payable Account

Date Details $ Date Details $

14
*P66468RA01420*


(b) State, giving a reason, where the balance of the rent payable account in part (a)
would appear in the statements of financial position at:
(i) 30 September 2019
(2)

................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(ii) 30 September 2020

(2)

................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(c) State three accounting concepts together with a brief description of each.
(6)

Accounting concept Description

(Total for Question 17 = 15 marks)

15
*P66468RA01520* Turn over

18 (a) Identify, indicating with a tick (), how each would be classified.
(3)

Revenue expenditure Capital expenditure

Machine delivery

Machine installation

Machine operatives’ wages

(b) Explain what distinguishes revenue expenditure from capital expenditure.

(5)

................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

16
*P66468RA01620*


Hunter started in business on 1 April 2018. On that date he purchased Machine A for
$26 000 and on 1 December 2018 he purchased Machine B for $16 000.
Depreciation is charged at 10% per annum using the reducing balance method.
A full year’s depreciation is charged in the year of purchase and none in the year of
disposal.
(c) Calculate the balance on the machinery – provision for depreciation account at
31 March 2019.
(1)

................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

On 1 January 2020 Hunter sold Machine A for $18 000

(d) Calculate the profit or loss on the disposal of Machine A.
(2)

................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(e) Prepare the machinery – provision for depreciation account for the year ended
31 March 2020. Balance the account on this date and bring the balance down on
1 April 2020.
(4)
Machinery – Provision for Depreciation Account

Date Details $ Date Details $

(Total for Question 18 = 15 marks)

TOTAL FOR SECTION B = 75 MARKS

TOTAL FOR PAPER = 100 MARKS

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*P66468RA01720*

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*P66468RA01820*


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*P66468RA01920*

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*P66468RA02020*