Free ACCA Mock Test 211 — 20 Questions + Full Answers
Association of Chartered Certified Accountants · Accountancy students · Exams: Mar, Jun, Sep, Dec
Sections: Financial Accounting · Applaa proprietary paper — free to download and print
No sign-up required · 100% free · Applaa proprietary content
Applaa ACCA Mock Test 211
applaa-acca-mock-211.pdf · 20 questions
Applaa proprietary content · Free to download and print · No sign-up required
Save PDFSample Questions — ACCA Mock 211
8 of 20 shownCorrect answers highlighted in green. Full explanations included.
At 31 March, the bank statement of Genesis Enterprises Ltd shows a credit balance of £24,000. Unpresented checks total £6,000, and outstanding uncleared lodgements total £3,000. What is the reconciled balance that should appear in Genesis Enterprises Ltd's cash book?
- A.£21,000
- B.£27,000
- C.£33,000
- D.£15,000
✓ Worked Explanation
Core Concept: Bank Reconciliation Statement A bank reconciliation explains the difference between the *cash book balance* (company's records) and the *bank statement balance* (bank's records). Timing differences - unpresented cheques and uncleared lodgements - cause these differences. Step-by-Step Resolution: 1. Start with Bank Statement Balance: £24,000 (credit balance, meaning the bank shows this as a positive balance for the company). 2. Add Uncleared Lodgements: Deposits sent by Genesis Ent
A retail store, Crest Hotels Ltd, purchased inventories for a gross total of £8,400 inclusive of standard-rate VAT at 20%. What are the net purchase cost and the input VAT amount recoverable by Crest Hotels Ltd?
- A.Net Cost: £7,000, VAT Recoverable: £1,400
- B.Net Cost: £8,400, VAT Recoverable: £1,680
- C.Net Cost: £6,720, VAT Recoverable: £1,680
- D.Net Cost: £7,000, VAT Recoverable: £0 (VAT is non-recoverable on inventories)
✓ Worked Explanation
Core Concept: Extracting VAT from a VAT-Inclusive (Gross) Price When a price is VAT-inclusive, you must use the VAT fraction to extract the tax element. You cannot simply multiply the gross price by 20% - that would over-calculate the VAT because you would be applying the rate to an amount that already contains VAT. Step-by-Step Resolution: 1. Identify the Problem: The gross (VAT-inclusive) price is £8,400. Standard rate VAT = 20%. 2. Apply the VAT Fraction: Net = Gross ÷ (1 + VAT rate) = £8,40
A grocery distributor, Meridian Distributors Ltd, recorded net sales of £132,000 for standard-rate products (20% VAT) and £66,000 for zero-rated food products. What is the total output VAT generated on these sales?
- A.£26,400
- B.£39,600
- C.£13,200
- D.£0 (all food products are exempt from output VAT)
✓ Worked Explanation
Core Concept: Zero-Rated vs. Standard-Rated VAT Supplies In UK VAT, there are multiple categories of supply: standard-rated (20%), zero-rated (0%), reduced-rated (5%), and exempt. Both standard-rated and zero-rated are *taxable* supplies, but zero-rated generates £0 output VAT. Step-by-Step Resolution: 1. Standard-Rate Sales (£132,000): Output VAT = £132,000 × 20% = £26,400 2. Zero-Rate Sales (£66,000): Output VAT = £66,000 × 0% = £0 3. Total Output VAT = £26,400 + £0 = £26,400 Common Mistakes
Alpha Properties Ltd completed two projects during the year: 1) Purchased and installed a new warehouse conveyor belt system for £180,000, and 2) Had the exterior of the existing office block repainted for £18,000. How should these expenditures be classified?
- A.Both projects are Capital Expenditure.
- B.Warehouse system: Capital Expenditure (£180,000), Repainting: Revenue Expenditure (£18,000)
- C.Warehouse system: Revenue Expenditure (£180,000), Repainting: Capital Expenditure (£18,000)
- D.Both projects are Revenue Expenditure.
✓ Worked Explanation
Core Concept: Capital Expenditure vs. Revenue Expenditure Capital Expenditure (CapEx) creates or enhances a long-term non-current asset and is capitalised on the balance sheet, then depreciated over its useful life. Revenue Expenditure (RevEx) relates to day-to-day operations, maintenance, or restoration and is expensed immediately in profit or loss. Step-by-Step Resolution: 1. Warehouse Conveyor Belt System (£180,000): - This is a *new* asset installed to generate future economic benefits.
Genesis Enterprises Ltd completed two projects during the year: 1) Purchased and installed a new warehouse conveyor belt system for £8,000, and 2) Had the exterior of the existing office block repainted for £800. How should these expenditures be classified?
- A.Both projects are Capital Expenditure.
- B.Warehouse system: Capital Expenditure (£8,000), Repainting: Revenue Expenditure (£800)
- C.Warehouse system: Revenue Expenditure (£8,000), Repainting: Capital Expenditure (£800)
- D.Both projects are Revenue Expenditure.
✓ Worked Explanation
Core Concept: Capital Expenditure vs. Revenue Expenditure Capital Expenditure (CapEx) creates or enhances a long-term non-current asset and is capitalised on the balance sheet, then depreciated over its useful life. Revenue Expenditure (RevEx) relates to day-to-day operations, maintenance, or restoration and is expensed immediately in profit or loss. Step-by-Step Resolution: 1. Warehouse Conveyor Belt System (£8,000): - This is a *new* asset installed to generate future economic benefits. It
The Receivables Ledger Control Account of Falcon Engineering Ltd is shown in the diagram. Credit sales of £15,000 were recorded, and cash of £12,000 was received from credit customers. What is the correct closing balance (balance c/f) of the account?
- A.£10,500 Debit closing balance
- B.£10,500 Credit closing balance
- C.£22,500 Debit closing balance
- D.£12,000 Credit closing balance
✓ Worked Explanation
Core Concept: Receivables Ledger Control Account The Receivables Ledger Control Account is an asset account that tracks money owed to the business by credit customers. As an asset, it follows the fundamental debit rule: increases are recorded on the debit side and decreases on the credit side. Step-by-Step Resolution: 1. Opening Balance: The account opens with a debit balance of £7,500 - money already owed by customers. 2. Credit Sales (+): New credit sales of £15,000 increase the amount owed,
Before correcting the year-end errors, the draft profit of Vanguard Retail Ltd was £120,000. An error was discovered: Closing inventory was overstated by £6,000. What is the revised profit after correcting this error?
- A.£126,000
- B.£114,000
- C.£120,000 (no effect on profit)
- D.£108,000
✓ Worked Explanation
Core Concept: Impact of Inventory Errors on Profit The relationship between inventory and profit is one of the most important concepts in financial accounting. Closing inventory is deducted from Cost of Sales. If closing inventory is overstated, Cost of Sales is *understated*, which means Gross Profit is *overstated*. Correcting the overstatement increases COGS and reduces profit. Step-by-Step Resolution: 1. Recall the COGS Formula: Cost of Sales = Opening Inventory + Purchases Closing Invent
Before correcting the year-end errors, the draft profit of Vanguard Retail Ltd was £120,000. An error was discovered: Closing inventory was overstated by £2,400. What is the revised profit after correcting this error?
- A.£122,400
- B.£117,600
- C.£120,000 (no effect on profit)
- D.£115,200
✓ Worked Explanation
Core Concept: Impact of Inventory Errors on Profit The relationship between inventory and profit is one of the most important concepts in financial accounting. Closing inventory is deducted from Cost of Sales. If closing inventory is overstated, Cost of Sales is *understated*, which means Gross Profit is *overstated*. Correcting the overstatement increases COGS and reduces profit. Step-by-Step Resolution: 1. Recall the COGS Formula: Cost of Sales = Opening Inventory + Purchases Closing Invent
Download the PDF for all 20 questions + full mark scheme
Download PDFFrequently Asked Questions
Is this ACCA mock test free?+
Yes. All 250 Applaa ACCA mock tests are completely free — no sign-up, no payment required. Download PDF or view in browser.
Which ACCA papers do these mocks cover?+
Applaa ACCA mock tests cover F1 (Accounts Preparation) and F2 (Management Accounting) — the Applied Knowledge level papers, formerly known as BT and MA.
Do the ACCA mock papers include worked explanations?+
Yes. Every ACCA practice question on this page includes the correct answer and a worked explanation explaining why each option is right or wrong.
How many questions are in each ACCA mock test?+
Each Applaa ACCA mock test contains 20 multiple-choice questions across the F1 and F2 syllabus areas, with full worked explanations.
Download This Mock
Free PDF — 20 questions with worked answers. Print it or attempt offline.
Download PDF FreeNo sign-up · No paywall · Applaa proprietary
Paper Info
- Exam
- ACCA
- Mock number
- 211 of 250
- Questions
- 20
- Format
- Multiple Choice (MCQ)
- Sections
- 1
- Audience
- Accountancy students
- Timing
- Exams: Mar, Jun, Sep, Dec
- Copyright
- Applaa Proprietary
Sections Covered
- Financial Accounting
AI step-by-step guidance
Appy Buddy in the Applaa desktop app guides you through every question with Socratic AI tutoring — explains why each answer is right or wrong.
Download Applaa Free