CIE Accounting Paper-1: Specimen Questions 98 - 100 of 214

Question number: 98

Short Answer Question▾

Write in Short

Give brief meaning of the following terms.

Profit and Loss account:

Explanation

All gains and losses are ascertained in order to analyses the excess gain or losses. The profit and loss account is started with crediting the balancing amount of trading account and ended with the net profit of the business. The net profit or net loss is transferred to capital

shows Debit side of the p and L accounts

shows Debit side of the p and L accounts

Shows Debit side of the p and L accounts and creadit side of the P and L accounts.

Question number: 99

MCQ▾

Question

On January 1st 2015, $10000 given to petty cashier. He has spent $8600 during the month of January. On February 1st to make the imprest, he will receive cheque for $ ________.

Choices

Choice (4) Response
a.

$1000

b.

$10000

c.

$8600

d.

$1400

Answer

c.

Explanation

Money advanced on loan against the imprest method of petty cash system. The amount required to meet out various petty expenses is estimated and given to petty cashier at the beginning of the month.

Question number: 100

Short Answer Question▾

Write in Short

Monisha is a customer. Her trader issues three business documents to Monisha. Mention the book in which prime entry will be recorded.

Calculate the record in given table.

shows Book of prime entry

Document

Book of prime entry

Purchase invoice

Purchase Journal

Debit note

Purchase return

Statement of affairs

No entry

Explanation

Calculate the record in given table like book of prime entry. .

shows Book of prise entry

Document

Book of prime entry

Purchase invoice

Purchase Journal

Debit note

Purchase return

Statement of affairs

No entry

Purchase invoice is issued when the goods are purchased on credit. The transaction automatically recorded in the purchase journal. Debit note will be issued when goods are returned to the traders.

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