CIE Accounting Paper-1: Specimen Questions 76 - 77 of 214

Question number: 76

Short Answer Question▾

Write in Short

Put tick in the correct column with respect to the expenses in petty cash book:

Items in petty cash book

calculate Items in petty cash book

Particulars

Postage and Telegrams

Printing and stationery

Office expenses

Inland letter

Carbon paper

Repairing charges

Registered letter

Explanation

Finding Items in petty cash book

calculate Items in petty cash book

Particulars

Postage and Telegrams

Printing and stationery

Office expenses

Inland letter

Carbon paper

Repairing charges

Registered letter

The postal expense includes post card, envelope, inland letter, postage stamps, registered letter, parcel, telegrams and telephone charges. Printing and stationery includes paper, ink, pencil, eraser, carbon paper and other items of stationery. An office expense includes the minor office expense.

Question number: 77

MCQ▾

Question

A trader purchases a machinery to deliver goods to his customers.

How will he record this?

Choices

Choice (4) Response
a.

Transaction in the book of trader regarding delivery of goods

A trader purchases a machinery to deliver goods to his customers

account to be debited

account to be credited

Bank

Machinery

b.

Calculate Account to be credit and debiteded

A trader purchases a machinery to deliver goods to his customers

account to be debited

account to be credited

Purchase

Bank

c.

Calculate Account to be credited

A trader purchases a machinery to deliver goods to his customers

account to be debited

account to be credited

Bank

Purchase

d.

Calculate Account to be credited

A trader purchases a machinery to deliver goods to his customers

account to be debited

account to be credited

Machinery

Bank

Answer

d.

Explanation

Being fixed assets are purchased during the accounting year will be treated by debiting the machinery and credit the bank account. Hence Machinery account is debited and bank account is credited by the trade.

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