CIE Accounting Paper-1: Specimen Questions 114 - 116 of 214

Question number: 114

MCQ▾

Question

When a bill is accepted, it will be entered by the acceptor in ________

Choices

Choice (4) Response
a.

Bills book

b.

Bills accepted book

c.

Bills Receivable book

d.

Bills Payable book

Answer

d.

Explanation

Bills receivable book records the receipts of bill from the customers and bills payable book records the bills accepted by the trader. If the holder of bill is in need of money he can convert into cash through the bank.

Passage

Ryno has a business selling spare parts for cars. He lost many of his financial records in a flood but has been able to provide the following information.

1 November 2015 31 October 2015

$ $

Non-current (fixed) assets 10 000 12 000

Current assets 100 000 90 500

Current liabilities 25 000 23 000

Question number: 115 (1 of 4 Based on Passage) Show Passage

Short Answer Question▾

Write in Short

Prepare Ryno’s statement of affairs on 31 October 2015 showing his total capital at that date.

He decided to increase the provision for doubtful debts by $1500 on 31 October 2015

Ryno’s – Statement of Affairs at 31st October 2015

Explanation

Statement of affairs at 31st October 2015

Statement of affairs as on 31st October 2015

Calculate Particular value in given table.

Particulars

$

$

Fixed Assets

Current Assets

Less: Current Liabilities

100000 - 9500 = 90500

23000

12000

67500

———

79500

The statements of affairs are prepared when business maintained the incomplete record of business transaction. Hence profit or loss of the business can be ascertained through the Statement of affairs method.

Question number: 116 (2 of 4 Based on Passage) Show Passage

Short Answer Question▾

Write in Short

Prepare Ryno’s statement of affairs on 1 November 2015 showing his total capital at that date.

Ryno’s – Statement of Affairs at 1 November 2015

Explanation

Statement of affairs at 1 November 2015

Statement of affairs as on 1st November 2015

Calculate value in given table

Particulars

$

$

Fixed Assets

Current Assets

Less: Current Liabilities

100000

25000

10000

75000

———

85000

The statement of affairs shows the present value of assets in hand. It includes the both fixed and current assets of the firm. This type of system of book keeping comes under the ‘Single entry system’ of book keeping.

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