CIE Accounting Paper-1: Specimen Questions 3 - 5 of 214

Question number: 3

Short Answer Question▾

Write in Short

The total of the sales journal is posted to the sales account in the ledger.

In the table below, place a tick (√) to show whether this entry is a debit or a credit.

Transaction of the entry

Complete the Transaction of the entry

Debit

Credit

Transaction of the entry

Complete the Transaction of the entry

Debit

Credit

Explanation

The sales transaction involves the journal will always credit in the sales account in the ledger. The sales create an inward of cash transaction in the business and the finished good will be supplied to the customer of the business.

Question number: 4

MCQ▾

Question

In which book of prime (original) entry are invoices received by a trader recorded?

Choices

Choice (4) Response
a.

Sales returns journal

b.

Purchases returns journal

c.

Purchases journal

d.

Sales journal

Answer

c.

Explanation

Purchases journal is used when the trader received invoice towards his/her purchases. The Purchase journal always shows the credit purchase of the trader. It is always written with help of the invoice made during the year.

Question number: 5

MCQ▾

Question

Vinodh bought goods on credit from Jacob, $2000. Vinodh paid Jacob by cheque after deducting 2 % cash discount. Which entries record this payment in Jacob’s books?

Choices

Choice (4) Response
a.

Payment record in respect of credit purchases in Jacobs book

Payment record in respect of credit purchases in Jacobs book is given in this.

Account debited

$

Account credited

$

bank

discount allowed

1960

40

Vinodh

2000

b.

Payment record in respect of credit purchases in Jacobs book

Payment record in respect of credit purchases in Jacobs book is given in this.

Account debited

$

Account credited

$

Vinodh

2000

bank

discount received

1960

40

c.

Payment record in respect of credit purchases in Jacobs book

Payment record in respect of credit purchases in Jacobs book is given in this.

Account debited

$

Account credited

$

Bank

discount received

1960

40

Vinodh

2000

d.

Payment record in respect of credit purchases in Jacobs book

Payment record in respect of credit purchases in Jacobs book is given in this.

Account debited

$

Account credited

$

Vinodh

2000

bank

discount allowed

1960

40

Answer

a.

Explanation

Vinodh paid $1960 in the form of cheque against his credit value of $2000.

Vinodh received 2 % as cash discount.

Cash discount is $40[2000X2100=40]

Hence the Bank is debited with $1960 with discount amount $40.

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