Practise 129 real questions on Financial statements: sole traders, partnerships, companies and clubs from 2021 to 2026. See the answer and explanation as soon as you answer.
Financial statements: sole traders, partnerships, companies and clubs is one of the 6 main topics in our O Level Accounting (Cambridge (CAIE) 7707) question bank, and about 29% of its real questions come from it. Tayyari Karo has 129 real questions on this topic from 2021 to 2026, from Paper 1, Paper 2; 106 are multiple choice and marked instantly, and the rest are structured questions with a model answer. By difficulty: 69 medium, 44 hard, 16 easy.
Work through the questions below, then open the explanation for each one. Redo the ones you missed a few days later.
These are real past-paper questions. Think of your answer first, then open the explanation.
What does an income statement for a sole trader show?
Answer: A. the revenue and expenses for the year
The income statement reports revenue and expenses (hence profit) for the period.
BCD Limited has ordinary shares $300 000, retained earnings $200 000 and debentures $170 000. How much was the equity and the capital employed of BCD Limited?
Answer: D. equity $500 000, capital employed $670 000
Equity is shares plus reserves ($500 000); capital employed adds the non-current liability of $170 000.
X Limited: ordinary share capital $300000, general reserve $50000, retained earnings $35000, 8% debenture $60000. Total equity?
Answer: C. $385000
Equity = 300000 + 50000 + 35000 = 385000 (debenture is liability).
Capital $24400, NCA $16100, current liabilities $4500, no NCL. Current assets?
Answer: C. $12800
CA = capital + CL - NCA = 24400 + 4500 - 16100 = 12800.
Jerry started his business on 1 January 2022 with no opening inventory. On 19 April 2022, a fire destroyed all his inventory. Information 1 Jan to 19 Apr: revenue $30200, purchases $25600, gross margin 25%. What was the value of inventory destroyed on 19 April 2022?
Answer: B. $2950
COGS = 30200 x 75% = 22650; inventory = 0 + 25600 - 22650 = 2950.
What is added to owner's capital to calculate capital employed?
Answer: D. non-current liabilities
| Session | Paper 1 | Paper 2 |
|---|---|---|
| May/June 2026 | 10 | 2 |
| May/June 2025 | 8 | 2 |
| Oct/Nov 2025 | 9 | 1 |
| May/June 2024 | 9 | 2 |
| Oct/Nov 2024 | 11 | 3 |
| May/June 2023 | 8 | 2 |
| Oct/Nov 2023 | 10 | 3 |
| May/June 2022 | 8 | 2 |
| Oct/Nov 2022 | 9 | 2 |
| May/June 2021 | 13 | 2 |
| Oct/Nov 2021 | 11 | 2 |
129 real O Level Accounting (7707) questions on Financial statements: sole traders, partnerships, companies and clubs from 2021 to 2026, from Paper 1, Paper 2. Each one shows the year, session and paper it came from.
Yes. Every question shows the correct answer and a short explanation the moment you answer.
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