CIE Accounting Paper-1: Specimen Questions 50 - 51 of 214
Question number: 50
Which is a current liability?
Long term loan
Unpaid call amount
Equity share capital
The liabilities which are repayable within one year or during the normal course of business is known as current liability. Some of the examples are Bills payable, accrued expenses, bank overdraft, provision for taxation, proposed dividend etc. ,
Question number: 51
A trader purchases a supply of office pen and pencil on credit.
How should this transaction be recorded?
Stationery being purchased from the suppliers on credit. Hence the supplier is credited because he is the giver of stationery materials like pen and pencil. The stationery items are debited because pen and pencils are purchased by the trader during the year.