CIE Accounting Paper-1: Specimen Questions 65 - 67 of 214

Question number: 65

Short Answer Question▾

Write in Short

Rectify the following errors

Salary of $1000 paid to Musin has been debited to his personal account.

Show the journal entries required to correct the above errors. The date and narrative are not required.

Find out error and Dr and Cr values

Calculate the given table value like Dr and Cr values

Error

Dr

$

Cr

$

Explanation

Find out errors in given table.

Calculate the given table value like Dr and Cr values

Error

Dr

$

Cr

$

Salaries A/C

1000

To Musin A/C

1000

The salary of Musin is wrongly debited to his personal account. Hence we have to eliminate the Musin account from the debit side of the journal entry. Hence, the Musin account is credited with salaries as debit entry.

Question number: 66

MCQ▾

Question

What is an intangible asset?

Choices

Choice (4) Response
a.

Cash

b.

Good will

c.

Furniture

d.

Machinery

Answer

b.

Explanation

Intangible assets are those assets which will increase the value of the assets indirectly. Goodwill, patent and copyrights are intangible assets which will increase the assets value of the company.

Question number: 67

Short Answer Question▾

Write in Short

In the table below, place a tick (√) under the correct heading to show whether the item is income or expense.

List of items appeared in the income and expenditure accounts.

Table of List of items appeared in the income and expenditure accounts.

Income

Expenses

Sale of old sports materials

Purchase of books and Periodicals

Entrance fees

Explanation

List of items appeared in the income and expenditure accounts

shows table List of items appeared in the income and expenditure accounts.

Income

Expenses

Sale of old sports materials

Purchase of books and Periodicals

Entrance fees

Solution: - Sale of old sports materials and entrance fees are income of the firm whereas Purchase of books and periodicals are the expenses to the firm. The firm has to pay with respect to the purchase of books and periodicals.

Solution: - Sale of old sports materials and entrance fees are income of the firm whereas Purchase of books and periodical

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