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ACCA · Free Mock Test 61 of 250

Free ACCA Mock Test 6120 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

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Applaa ACCA Mock Test 61

applaa-acca-mock-61.pdf · 20 questions

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Sample Questions — ACCA Mock 61

8 of 20 shown

Correct answers highlighted in green. Full explanations included.

1
Financial Accounting

For the last quarter, Beacon Logistics LLP had net credit sales of £140,000 (excluding VAT). Gross purchases inclusive of 20% VAT were £84,000. What is the net VAT amount payable to (or reclaimable from) the tax authority?

  • A.£14,000 Payable
  • B.£14,000 Reclaimable
  • C.£28,000 Payable
  • D.£11,200 Payable

✓ Worked Explanation

Core Concept: VAT Return - Output VAT vs. Input VAT A VAT-registered business acts as a tax collector for HMRC. It charges Output VAT on sales and reclaims Input VAT on purchases. The *net VAT payable* is the difference: Output VAT Input VAT. Step-by-Step Resolution: 1. Calculate Output VAT (tax charged to customers on sales): - Sales are NET (exc. VAT): £140,000 × 20% = £28,000 2. Calculate Input VAT (tax paid to suppliers on purchases): - Purchases are GROSS (inc. VAT): use VAT fracti

2
Financial Accounting

The Receivables Ledger Control Account of Summit Manufacturing Ltd is shown in the diagram. Credit sales of £6,000 were recorded, and cash of £4,800 was received from credit customers. What is the correct closing balance (balance c/f) of the account?

  • A.£4,200 Debit closing balance
  • B.£4,200 Credit closing balance
  • C.£9,000 Debit closing balance
  • D.£4,800 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 £3,000 - money already owed by customers. 2. Credit Sales (+): New credit sales of £6,000 increase the amount owed, s

3
Financial Accounting

The trial balance of Alpha Properties Ltd balanced perfectly. However, it was later discovered that a purchase of equipment costing £2,400 was entered into the repairs and maintenance account. What type of error has occurred?

  • A.Error of Omission
  • B.Error of Commission
  • C.Error of Principle
  • D.Error of Reversal

✓ Worked Explanation

Core Concept: The Six Types of Accounting Errors There are six classic types of bookkeeping errors. Some cause the trial balance to disagree; others do not. This question tests recognition of errors that *hide* behind a balanced trial balance - meaning both sides are still equal, but the accounting treatment is fundamentally wrong. Step-by-Step Resolution: 1. Analyse the Error: Equipment (a non-current asset / capital expenditure) was posted to Repairs & Maintenance (a revenue expense accou

4
Financial Accounting

The trial balance of Genesis Enterprises Ltd balanced perfectly. However, it was later discovered that a purchase of equipment costing £22,000 was entered into the repairs and maintenance account. What type of error has occurred?

  • A.Error of Omission
  • B.Error of Commission
  • C.Error of Principle
  • D.Error of Reversal

✓ Worked Explanation

Core Concept: The Six Types of Accounting Errors There are six classic types of bookkeeping errors. Some cause the trial balance to disagree; others do not. This question tests recognition of errors that *hide* behind a balanced trial balance - meaning both sides are still equal, but the accounting treatment is fundamentally wrong. Step-by-Step Resolution: 1. Analyse the Error: Equipment (a non-current asset / capital expenditure) was posted to Repairs & Maintenance (a revenue expense accou

5
Financial Accounting

Before correcting the year-end errors, the draft profit of Crown Paper Ltd was £120,000. An error was discovered: Closing inventory was overstated by £15,000. What is the revised profit after correcting this error?

  • A.£135,000
  • B.£105,000
  • C.£120,000 (no effect on profit)
  • D.£90,000

✓ 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

6
Financial Accounting

For the year ended 31 December, Nexus Media plc paid rent of £54,000. At the year-end, the company had an outstanding electricity invoice of £4,500 which has not yet been paid. What are the adjusting entries required at the year-end to record this accrual?

  • A.Debit Accruals £4,500, Credit Electricity Expense £4,500
  • B.Debit Electricity Expense £4,500, Credit Accruals (Liabilities) £4,500
  • C.Debit Cash £4,500, Credit Electricity Expense £4,500
  • D.Debit Electricity Expense £4,500, Credit Prepayments (Assets) £4,500

✓ Worked Explanation

Core Concept: Accruals (Expenses Incurred but Not Yet Paid) Under the accruals concept (IAS 1), expenses must be recognised in the period they are *incurred*, not when they are *paid*. An accrual is a current liability - the business owes this amount but hasn't yet paid the invoice. Step-by-Step Resolution: 1. Identify the Issue: The electricity expense of £4,500 was incurred during the accounting year but remains unpaid at year-end. 2. Apply the Accruals Concept: The expense belongs to this ye

7
Financial Accounting

At 31 March, the bank statement of Summit Manufacturing Ltd shows a credit balance of £9,600. Unpresented checks total £2,400, and outstanding uncleared lodgements total £1,200. What is the reconciled balance that should appear in Summit Manufacturing Ltd's cash book?

  • A.£8,400
  • B.£10,800
  • C.£13,200
  • D.£6,000

✓ 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: £9,600 (credit balance, meaning the bank shows this as a positive balance for the company). 2. Add Uncleared Lodgements: Deposits sent by Summit Manuf

8
Financial Accounting

The sole trader of Solar Energy plc took goods costing £12,500 from the business for personal use. These goods had a selling price of £18,750. What is the correct double entry to record this transaction?

  • A.Debit Drawings £12,500, Credit Purchases £12,500
  • B.Debit Drawings £18,750, Credit Revenue £18,750
  • C.Debit Purchases £12,500, Credit Drawings £12,500
  • D.Debit Inventory £12,500, Credit Drawings £12,500

✓ Worked Explanation

Core Concept: Owner's Drawings of Inventory at Cost When a sole trader takes goods from the business for personal use, this is treated as drawings - a withdrawal of capital by the owner. The key rule is that drawings of goods are always valued at cost price, never at selling price. Step-by-Step Resolution: 1. Identify the Economic Event: The owner has taken goods worth £12,500 (cost) for personal use. This is a capital withdrawal. 2. Choose the Correct Value: Goods are recorded at cost (£12,500

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Paper Info

Exam
ACCA
Mock number
61 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

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