CIE Accounting Paper-1: Specimen Questions 127 - 129 of 214

Question number: 127

Short Answer Question▾

Write in Short

Give brief meaning of the following terms.

Trading account:

Explanation

Trading account is created for a particular period of time to know the trading activity and their results of the business. The transaction which is direct relation to the good dealt in by the business are recorded under the trading accounts.

Items which are appeared in the trading accounts

Items which are appeared in the trading accounts

shows image of Items which are appeared in the trading accounts

Question number: 128

Short Answer Question▾

Write in Short

State the two types of shares issued by the limited company.

Explanation

Equity share capital and preference share capital

The capital of the company is divided into different units of fixed amount. These units are called as Shares. The share capitals can be further classified as equity shares and preference shares.

Question number: 129

MCQ▾

Question

The credit side of a business’s cash book includes the following payments.

Credit side of a businesss cash book

finding a doller columen values

$

cash paid for fuel for proprietor’s motor car for business purposes

600

cash taken by proprietor for personal use

6000

cash taken by proprietor to purchase private stationery

500

How much will be recorded as proprietor’s drawings?

Choices

Choice (4) Response
a.

$6600

b.

$500

c.

$6000

d.

$6500

Answer

d.

Explanation

Drawing is the account created when the proprietor used business money for the personal uses or private purposes. Hence

Drawings=cashtakenbyproprietorforpersonaluse+cashtakenbyproprietortopurchaseprivatestationery

=6000+500

=$6500

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