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ACCA · Free Mock Test 97 of 250

Free ACCA Mock Test 9720 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 97

applaa-acca-mock-97.pdf · 20 questions

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Sample Questions — ACCA Mock 97

8 of 20 shown

Correct answers highlighted in green. Full explanations included.

1
Financial Accounting

A bookkeeper at Omega Foodstuffs plc prepared a trial balance which failed to agree, with the credit side exceeding the debit side by £150. A suspense account was opened. Which of the following errors, when corrected, could explain this difference?

  • A.A purchase invoice for £75 was completely omitted from the books.
  • B.A cash payment of £75 to a supplier was debited to the purchases account but not credited to the cash account.
  • C.Sales of £75 were recorded by debiting Receivables Control and debiting Sales Account.
  • D.A purchase return of £75 was debited to the Purchase Returns account and credited to Receivables Control.

✓ Worked Explanation

Core Concept: Trial Balance Errors and the Suspense Account A trial balance fails to agree when a transaction is posted with unequal debits and credits. The difference is placed in a suspense account until the error is found and corrected. Errors that cause the trial balance to fail include: single-sided entries, casting errors, and transposition errors on one side only. Step-by-Step Resolution: 1. Analyse the Symptom: Credits exceed debits by £150. This means the debit side is £150 *too small*

2
Financial Accounting

A bookkeeper at Solar Energy plc prepared a trial balance which failed to agree, with the credit side exceeding the debit side by £800. A suspense account was opened. Which of the following errors, when corrected, could explain this difference?

  • A.A purchase invoice for £400 was completely omitted from the books.
  • B.A cash payment of £400 to a supplier was debited to the purchases account but not credited to the cash account.
  • C.Sales of £400 were recorded by debiting Receivables Control and debiting Sales Account.
  • D.A purchase return of £400 was debited to the Purchase Returns account and credited to Receivables Control.

✓ Worked Explanation

Core Concept: Trial Balance Errors and the Suspense Account A trial balance fails to agree when a transaction is posted with unequal debits and credits. The difference is placed in a suspense account until the error is found and corrected. Errors that cause the trial balance to fail include: single-sided entries, casting errors, and transposition errors on one side only. Step-by-Step Resolution: 1. Analyse the Symptom: Credits exceed debits by £800. This means the debit side is £800 *too small*

3
Financial Accounting

The trial balance of Nova Tech Solutions Ltd balanced perfectly. However, it was later discovered that a purchase of equipment costing £18,000 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

4
Financial Accounting

The trial balance of Genesis Enterprises 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

5
Financial Accounting

Beacon Logistics LLP disposed of a delivery vehicle for £86,400. The vehicle had originally cost £144,000 and had accumulated depreciation of £72,000 at the date of disposal. What is the gain or loss on disposal to be recorded in profit or loss?

  • A.Gain on disposal of £14,400
  • B.Loss on disposal of £14,400
  • C.Gain on disposal of £-57,600
  • D.Loss on disposal of £72,000

✓ Worked Explanation

Core Concept: Profit or Loss on Disposal of a Non-Current Asset When a non-current asset is sold, the gain or loss is measured as Disposal Proceeds minus the Carrying Value (Net Book Value). It is *not* compared to the original cost. Only the written-down value at the disposal date is relevant. Step-by-Step Resolution: 1. Find the Carrying Value (NBV) at disposal date: NBV = Original Cost Accumulated Depreciation = £144,000 £72,000 = £72,000 2. Compare to Disposal Proceeds: £86,400 (rece

6
Financial Accounting

Genesis Enterprises Ltd disposed of a delivery vehicle for £40,320. The vehicle had originally cost £67,200 and had accumulated depreciation of £33,600 at the date of disposal. What is the gain or loss on disposal to be recorded in profit or loss?

  • A.Gain on disposal of £6,720
  • B.Loss on disposal of £6,720
  • C.Gain on disposal of £-26,880
  • D.Loss on disposal of £33,600

✓ Worked Explanation

Core Concept: Profit or Loss on Disposal of a Non-Current Asset When a non-current asset is sold, the gain or loss is measured as Disposal Proceeds minus the Carrying Value (Net Book Value). It is *not* compared to the original cost. Only the written-down value at the disposal date is relevant. Step-by-Step Resolution: 1. Find the Carrying Value (NBV) at disposal date: NBV = Original Cost Accumulated Depreciation = £67,200 £33,600 = £33,600 2. Compare to Disposal Proceeds: £40,320 (recei

7
Financial Accounting

Genesis Enterprises Ltd disposed of a delivery vehicle for £72,000. The vehicle had originally cost £120,000 and had accumulated depreciation of £60,000 at the date of disposal. What is the gain or loss on disposal to be recorded in profit or loss?

  • A.Gain on disposal of £12,000
  • B.Loss on disposal of £12,000
  • C.Gain on disposal of £-48,000
  • D.Loss on disposal of £60,000

✓ Worked Explanation

Core Concept: Profit or Loss on Disposal of a Non-Current Asset When a non-current asset is sold, the gain or loss is measured as Disposal Proceeds minus the Carrying Value (Net Book Value). It is *not* compared to the original cost. Only the written-down value at the disposal date is relevant. Step-by-Step Resolution: 1. Find the Carrying Value (NBV) at disposal date: NBV = Original Cost Accumulated Depreciation = £120,000 £60,000 = £60,000 2. Compare to Disposal Proceeds: £72,000 (rece

8
Financial Accounting

An entity purchased a machine on 1 January Year 1 for £6,000. The residual value of the machine is estimated to be £600 with an estimated useful life of 12 years. The entity uses the straight-line method of depreciation. What is the carrying value (net book value) of the machine on 31 December Year 2?

  • A.£5,550
  • B.£5,100
  • C.£4,500
  • D.£4,950

✓ Worked Explanation

Core Concept: Straight-Line Depreciation The straight-line method spreads the depreciable amount (Cost Residual Value) equally over the asset's useful life. The same charge is recognised in *every* period. After 2 complete years, two annual depreciation charges are deducted from the original cost. Step-by-Step Resolution: 1. Calculate Annual Depreciation: (Cost Residual Value) ÷ Useful Life = (£6,000 £600) ÷ 12 years = £450 per year 2. Calculate Accumulated Depreciation at 31 Dec Year

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Paper Info

Exam
ACCA
Mock number
97 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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