Sole traders: past paper questions
Real questions on sole traders
The newest 11 of 11 written questions. Open one to see it on the real paper.
- 9706/22 · February/March 2024 · Q3b[5]
Calculate Rahul’s cash drawings for the year ended 31 January 2024. Additional information Rahul’s accountant has suggested he should start keeping full accounting records and that he should use an accounting software package.
See it on the paper → - 9706/22 · February/March 2024 · Q3c[2]
State two ways in which Rahul will benefit from the accountant’s suggestions.
See it on the paper → - 9706/22 · February/March 2024 · Q3d[4]
Explain two possible reasons for not accepting the accountant’s suggestions.
See it on the paper → - 9706/23 · May/June 2023 · Q1d[2]
State the double entry required to record goods withdrawn by an owner for personal use. Debit: Credit: Additional information Hamza is concerned that the performance of the business has declined in recent months. He is considering two options to increase the gross profit of the business. Option A: Purchase goods from a...
See it on the paper → - 9706/23 · May/June 2023 · Q1e[7]
Advise Hamza which option he should choose. Justify your answer by considering both financial and non‑financial factors.
See it on the paper → - 9706/32 · February/March 2022 · Q4a[4]
Explain two reasons why Javeed should ask for commission based on gross sales. Additional information 1 Both parties later agreed that the commission of Javeed should be based on gross sales. 2 After incurring repair costs of $5 for each defective unit, all the returned goods can be sold for $160 each.
See it on the paper → - 9706/21 · October/November 2020 · Q1b[4]
Calculate the balance on Ismail’s capital account at 31 December 2019. Additional information Ismail would like to expand his business. He will need additional finance of $25 000. He is considering two options to raise this amount: option 1: apply for a bank loan option 2: form a partnership with Seema, a friend. Seema...
See it on the paper → - 9706/32 · October/November 2020 · Q3b(i)[3]
the capital account of Babak
See it on the paper → - 9706/32 · October/November 2020 · Q3b(ii)[6]
the capital account of Alice.
See it on the paper → - 9706/22 · May/June 2019 · Q1c[4]
State two benefits and two drawbacks of operating as a sole trader. Benefit 1 Benefit 2 Drawback 1 Drawback 2 Additional information Lee’s friend Marvin has offered to contribute $50 000 to repay Lee’s business loan and to provide additional working capital. Marvin has suggested two options. Option 1: Form a limited co...
See it on the paper → - 9706/22 · May/June 2019 · Q1d[5]
Advise Lee which option he should choose. Justify your answer.
See it on the paper →
What examiners said
Many candidates stated at least one correct entry for recording goods withdrawn by an owner for personal use. Some candidates incorrectly stated purchases, owner and sales for the debit and drawings, bank and expenses for the credit.
— Examiner report, May/June 2023, 9706/23 Q1(d) (Cambridge)
Few candidates made comment on the question reference to increase gross profit however other valid comments were made. Frequent reference was correctly made to storage and quality aspects for option A. Effectiveness of advertising and the impact of increasing selling price were common correct responses for option B. Some candidates responded on their chosen option only.
— Examiner report, May/June 2023, 9706/23 Q1(e) (Cambridge)
Most candidates identified two reasons but few developed these sufficiently to be awarded marks for explanation.
— Examiner report, February/March 2022, 9706/32 Q4(a) (Cambridge)
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