Free Practice Questions for GCE A/L Accounting
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Key Facts: GCE A/L Accounting Exam
Subject 43
Official Department of Examinations Subject Code
Department of Examinations, Sri Lanka
50 MCQs
Paper 1 Multiple-Choice Questions Count
Department of Examinations, Sri Lanka
5 Hours
Total Examination Time (Paper 1: 2h + Paper 2: 3h)
Department of Examinations, Sri Lanka
Grade S
Minimum Passing Grade (35 Marks)
Department of Examinations, Sri Lanka
3 Languages
Administered in Sinhala, Tamil, and English
Ministry of Education, Sri Lanka
Sri Lanka GCE A/L Accounting (Subject Code 33) is the core Commerce stream subject tested via Paper 1 (50 MCQs, 2 hours) and Paper 2 (structured/computational problems, 3 hours). Scores directly determine university selection Z-scores for state management faculties.
Sample GCE A/L Accounting Practice Questions
Try these sample questions to review concepts for the GCE A/L Accounting exam. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.
1Sunil Traders had an opening trade receivables balance of LKR 450,000 and an opening allowance for impairment of trade receivables of LKR 22,500 on 1 April 2025. During the year ended 31 March 2026, credit sales were LKR 2,800,000, cash collections from debtors were LKR 2,620,000, and bad debts written off amounted to LKR 30,000. Sunil Traders maintains an impairment allowance of 5% on closing trade receivables. What is the increase in the allowance for impairment of trade receivables charged to the Statement of Profit or Loss for the year ended 31 March 2026?
2A retail business purchased a delivery vehicle on 1 April 2023 for LKR 1,200,000. It is depreciated at 20% per annum using the reducing balance method. On 31 March 2026, the vehicle was sold for LKR 580,000. What is the profit or loss on disposal of the vehicle?
3Under LKAS 1 (Presentation of Financial Statements), which of the following items must be presented separately on the face of the Statement of Financial Position?
4Kasun and Nuwan are partners sharing profits and losses in the ratio of 3:2. Their capital account balances are LKR 600,000 and LKR 400,000 respectively. On 1 January 2026, they admit Amal as a partner for a 1/5th share of profits. Goodwill of the firm is valued at LKR 300,000, and no goodwill account is to be maintained in the books. If Amal brings in LKR 250,000 as capital, what is the adjusted capital balance of Kasun immediately after Amal's admission?
5A manufacturing firm in Moratuwa provides the following data for the year ended 31 March 2026: Opening inventory of raw materials: LKR 180,000; Purchases of raw materials: LKR 920,000; Carriage inwards on raw materials: LKR 40,000; Closing inventory of raw materials: LKR 150,000; Direct factory wages: LKR 450,000; Royalties paid on production: LKR 60,000. What is the Prime Cost of the firm?
6A sole trader does not maintain full double-entry records. On 1 January 2025, his net business assets were LKR 850,000. On 31 December 2025, total assets were LKR 1,450,000 and total liabilities were LKR 350,000. During the year, he withdrew LKR 25,000 cash each month for personal use and introduced private savings of LKR 120,000 into the business bank account. What is the net profit or loss for the year 2025?
7Kandy Sports Club reported subscriptions received in cash of LKR 480,000 during 2025. Subscription details are as follows: - Subscriptions in arrears at 1 Jan 2025: LKR 40,000 - Subscriptions received in advance at 1 Jan 2025: LKR 25,000 - Subscriptions in arrears at 31 Dec 2025: LKR 55,000 - Subscriptions received in advance at 31 Dec 2025: LKR 30,000 All arrears were subsequently collected and none were written off. What is the subscription income to be recognized in the Statement of Income and Expenditure for 2025?
8Under LKAS 7 (Statement of Cash Flows), which of the following is classified as an Operating Activity when using the direct method?
9A private company limited by shares had 500,000 ordinary shares issued at LKR 20 each. On 1 October 2025, the company made a 1-for-5 rights issue at an issue price of LKR 25 per share. The issue was fully subscribed. On 15 February 2026, the company made a 1-for-6 bonus issue utilizing retained earnings. What is the total number of issued ordinary shares on 31 March 2026?
10A company reported a profit before tax of LKR 1,500,000 for the year ended 31 March 2026. The following items were included in determining profit: - Depreciation expense: LKR 320,000 - Gain on disposal of plant: LKR 45,000 - Interest expense: LKR 80,000 Working capital changes: - Increase in inventories: LKR 110,000 - Decrease in trade receivables: LKR 60,000 - Decrease in trade payables: LKR 75,000 What is the cash generated from operations before interest and tax payments under the indirect method (LKAS 7)?
About the GCE A/L Accounting Exam
The Sri Lanka General Certificate of Education (Advanced Level) Accounting (Subject Code 33) is the central subject of the Commerce stream, administered nationwide by the Department of Examinations, Sri Lanka. The syllabus equips students with comprehensive capabilities in financial reporting under Sri Lanka Accounting Standards (LKAS/SLFRS), cost determination and managerial decision-making, partnership restructuring, incomplete records, and auditing essentials. Performance in Accounting directly impacts university selection ranking (Z-score) for prestigious faculties of Management Studies, Commerce, and Accountancy at state universities such as the University of Sri Jayewardenepura, University of Colombo, and University of Kelaniya. This study bank provides 100 realistic practice questions featuring real-world computational problem solving in Sri Lankan Rupees (LKR).
Exam sponsor: Department of Examinations, Sri Lanka (doenets.lk). The requirements and fees below concern the certification or admission exam, separate from our free practice resources.
Assessment
The examination consists of two papers: Paper 1 has 50 compulsory multiple-choice questions (2 hours, 100 marks). Paper 2 consists of Part A (compulsory structured questions) and Part B (computational problems and financial statements) administered over 3 hours (100 marks). Marks are combined to produce the final grade and contribute directly to the candidate's national university admission Z-score.
Time Limit
Paper 1: 2 hours; Paper 2: 3 hours (Total 5 hours)
Passing Score
Grade S or higher
Exam / Certification Fees
Free for school candidates; nominal fee for private candidates
Exam sponsor websiteReported exam pass rate: Approximately 68% to 74% of Commerce stream candidates achieve a Grade S or higher nationally.. This describes exam candidates, not OpenExamPrep users or results from using our resources. Exam sponsor website
Fees, eligibility, and exam policies can change. Confirm them with the exam sponsor before applying or paying.
Our practice resources: topics covered
We aim to reflect publicly available exam outlines and topic information in our study resources. Coverage, format, and difficulty may differ from the actual exam, and we cannot guarantee that every detail is accurate or current. Confirm exam requirements, fees, and policies with the official exam sponsor.
Financial Accounting and Statements
Company financial statements under LKAS 1 and LKAS 7, partnership accounting (admission, retirement, revaluation, goodwill, dissolution), manufacturing accounts, incomplete records, and not-for-profit organizations.
Cost and Management Accounting
Cost classifications, inventory valuation (FIFO, Weighted Average), marginal vs absorption costing, cost-volume-profit (CVP) analysis, standard costing and variance analysis, budgeting, and capital investment appraisal.
Regulatory Framework and Accounting Standards
Sri Lanka Accounting Standards (LKAS/SLFRS framework harmonized with international reporting), conceptual framework, qualitative characteristics, depreciation accounting, and LKAS 37 provisions and contingencies.
Financial Statement Analysis and Auditing
Financial ratio analysis (profitability, liquidity, efficiency, solvency, investor ratios), cash flow interpretation, audit objectives, internal controls, and verification of financial statements.
Preparing for the GCE A/L Accounting Exam
What You Need to Know
- Passing score: Grade S or higher
- Assessment: The examination consists of two papers: Paper 1 has 50 compulsory multiple-choice questions (2 hours, 100 marks). Paper 2 consists of Part A (compulsory structured questions) and Part B (computational problems and financial statements) administered over 3 hours (100 marks). Marks are combined to produce the final grade and contribute directly to the candidate's national university admission Z-score.
- Time limit: Paper 1: 2 hours; Paper 2: 3 hours (Total 5 hours)
- Exam / certification fees: Free for school candidates; nominal fee for private candidates Official sources
Using Our Practice Resources
- Work through all 100 available questions
- Review every answer and explanation
- Track weak areas and revisit them
- Use our AI tutor for tough concepts
Frequently Asked Questions
What is the format and structure of the GCE A/L Accounting examination?
The examination comprises two written papers: Paper 1 contains 50 compulsory multiple-choice questions (2 hours, 100 marks converted to 50% weighting). Paper 2 is a 3-hour written paper containing structured questions in Part A and detailed computational problems (company financial statements, cost accounting, and partnership accounting) in Part B. Both papers are conducted under strict national examination conditions.
Which accounting standards are tested in GCE A/L Accounting?
The examination tests Sri Lanka Accounting Standards (LKAS and SLFRS) as issued by the Institute of Chartered Accountants of Sri Lanka (CA Sri Lanka) and incorporated into the National Institute of Education (NIE) syllabus. Key standards include LKAS 1 (Presentation of Financial Statements), LKAS 2 (Inventories), LKAS 7 (Statement of Cash Flows), LKAS 16 (Property, Plant and Equipment), and LKAS 37 (Provisions, Contingent Liabilities and Contingent Assets).
Are non-programmable calculators permitted in GCE A/L Accounting?
Yes. Non-programmable scientific calculators are permitted for G.C.E. Advanced Level Accounting according to Department of Examinations guidelines. Candidates must ensure calculators have no text storage or communication capabilities.
How are grades awarded and how do they affect university admission?
Composite marks from Paper 1 and Paper 2 are graded on a scale: Grade A (Distinction, 75–100), Grade B (Very Good Pass, 65–74), Grade C (Credit Pass, 55–64), Grade S (Ordinary Pass, 35–54), and Grade F (Fail, 0–34). Raw marks are standardized against the national cohort to calculate the Z-score, which the University Grants Commission (UGC) uses for competitive university admission into Management and Commerce degree programs.
In what media of instruction is the examination available?
The Department of Examinations administers GCE A/L Accounting in Sinhala, Tamil, and English. Question terminology and accounting presentation formats follow uniform national conventions across all three media.