CIE Accounting Paper-1: Specimen Questions 35 - 36 of 214

Question number: 35

MCQ▾

Question

Hyundai Motors sold a delivery car on credit to M. Jacob.

Which entries will be made in the books of Hyundai Motors?

Choices

Choice (4) Response
a.

Sale entry in the books of Hyundai Motors.

Value is given in table.

Account debited

Account credited

M. Jacob

Car

b.

Sale entry in the books of Hyundai Motors.

Value is given in table.

Account debited

Account credited

Sales

M. Jacob

c.

Sale entry in the books of Hyundai Motors.

Value is given in table.

Account debited

Account credited

M. Jacob

Sales

d.

Sale entry in the books of Hyundai Motors.

Value is given in table.

Account debited

Account credited

Car

M. Jacob

Answer

c.

Explanation

When goods are sold on credit then the customer name should be debited and sales account should be credited. In cash sales, the cash will be debited and sales will be credited in the book of seller.

Question number: 36

MCQ▾

Question

A trader provided the following information.

Purchase transaction of the trade information as on 30th April

Purchase transaction of the trade information as on 30th April is given

$

1 April Purchase ledger control account balance

9600 credit

30 April totals for the month:

Credit Purchase

11300

Purchase return

800

Cheque paid to creditor

8700

What was the balance on the purchase ledger control account on 30 April?

Choices

Choice (4) Response
a.

$11400

b.

$7000

c.

$15000

d.

$6500

Answer

a.

Explanation

The traders have to take all transactions which are related to the purchase of the company.

Hence Openingbalance+CreditPurchasePurchasereturnChequepaidtocreditor.

Thus 9600+113008008700=11400

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