CIE Accounting Paper-1: Specimen Questions 138 - 139 of 214

Question number: 138

Short Answer Question▾

Write in Short

Complete the amount and quantity of the following Ordinary Share Capital:

25, 000 Ordinary Shares at $2 $ ________

50, 000 Ordinary Shares at $3 $ ________

________ Ordinary Shares at $5 $300, 000

Explanation

$50, 000, $150000, 60000

The Company holds 25, 000 numbers of Ordinary Shares with a cost of $2 for each share. Therefore, TheamountofOrdinaryShareCapitalis=Numberofshares×Ratepershare

=25000×$2

=$50, 000.

TheamountofOrdinaryShareCapitalis=Numberofshares×Ratepershare

=50000×$3

=$150, 000.

Number of share =TheamountofOrdinaryShareCapitalRatepershare

=300000$5

=60, 000.

Question number: 139

MCQ▾

Question

Shalini sublets part of her premises to Renu.

A cheque for rent has been paid by Renu.

How will Renu record this in her ledger?

Choices

Choice (4) Response
a.

Calculate debit and creadited value in a table

shows table in credit and debit

account to be debited

account to be credited

Rent receivable

Bank

b.

Calculate accountingto be Debited

shows table in credit and debit

account to be debited

account to be credited

Bank

Rent Paid

c.

Calculate accounting in credit and debited

shows table in credit and debit

account to be debited

account to be credited

Rent Paid

Bank

d.

Calculate debit and creadit value in a table

shows table in credit and debit

account to be debited

account to be credited

Bank

Rent receivable

Answer

c.

Explanation

Rent is being expenses for the Renu. Hence debit all expenses and credit all income to the business. The rent paid is debited and bank is credited in the book of Renu. The same transaction is income for the Sahlini.

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