CIE Accounting Paper-1: Specimen Questions 59 - 60 of 214

Question number: 59

MCQ▾

Question

A business has a suspense account. It is found that the amount in the suspense account is in respect of a cash purchase to Tom, which was omitted from the purchase account.

Choices

Choice (4) Response
a.

Rectification of error in respect of goods purchased

Value is given in table.

Account debited

Account credited

Suspense

Purchase

b.

Rectification of error in respect of goods purchased

Value is given in table.

Account debited

Account credited

Tom

Suspense

c.

Rectification of error in respect of goods purchased

Value is given in table.

Account debited

Account credited

Purchase

Suspense

d.

Rectification of error in respect of goods purchased

Value is given in table.

Account debited

Account credited

Suspense

Tom

Answer

c.

Explanation

The suspense account are created when transaction are recorded in the single side error. Hence purchase was omitted, it should be debited and suspense account should be credited because the purchase in made on cash basis.

Question number: 60

MCQ▾

Question

On which side the deposits in Bank Account are recorded in passbook?

Choices

Choice (4) Response
a.

Right

b.

Debit

c.

Credit

d.

Left

Answer

c.

Explanation

The deposits in Bank Account are recorded in passbook on the credit side and on debit side in the cash book. Likewise the withdrawals from bank are recorded on credit side in the cash book and on debit side in the pass book.

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