CIE Accounting Paper-1: Specimen Questions 68 - 70 of 214

Question number: 68

Short Answer Question▾

Write in Short

Rectify the following errors:

Name the classification of errors.

Explanation

Single sided errors and double sided errors.

The errors which affect one side of an account are known as single side errors account. The errors which affect both the accounts in a transaction are known as double side errors.

Question number: 69

Short Answer Question▾

Write in Short

Jasmine keeps her petty cash on the imprest system with an imprest of $120. She paid expenses in the month of December of $90.50.

(i) What was the amount of petty cash remaining at 31 December?

Explanation

$29.50

Under the imprest system the amount which may be needed during the specific period with respect to the small payments is ascertained and fixed as ’Imprest sytem”. Thus it is calculated as

=$120$90.50

=$29.50

Passage

Income statement of the Paul Jackson as on 31st march 2015.

Income statement of the Paul Jackson as on 31st march 2015

Calculate value of Income statement of the Paul Jackson

Particulars

$

$

Revenue – Credit Sales

Cash sales

135300

26800

162100

Less Cost Sales

Opening stock

Purchases

Carriage inwards

Closing stock

17800

95600

2800

116200

19200

________

97000

Gross Profit

65100

Rent

Electricity

Insurance

Wages

6000

3600

5800

1370

29100

Net Profit

36000

Question number: 70 (1 of 3 Based on Passage) Show Passage

Short Answer Question▾

Write in Short

Calculate Paul Jackson’s percentage of gross profit to sales for the year ended 31st March 2015.

Explanation

40 %

Gross profit is calculated at the end of the trading accounts. The gross profit ratio always calculated on the total sales. Hence Gross Profit ratio is

GrossProfitratio=Grossprofitsales×100

GrossProfitratio=65100162100×100

GrossProfitratio=40%

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