CIE Accounting Paper-1: Specimen Questions 145 - 146 of 214

Question number: 145

MCQ▾

Question

The bank statement shows an overdrawn balance of $2500. A cheque for $500 drawn in favour of a creditor has not yet been present for payment. When the creditor presents the cheque for payment the bank balance will be ________

Choices

Choice (4) Response
a.

$2000

b.

$3000 (Overdrawn)

c.

$3000

d.

$2000 (Overdrawn)

Answer

b.

Explanation

The bank statement shows an overdrawn balance of $2500. A cheque for $500 drawn in favour of a creditor has not yet been present for payment. When the creditor presents the cheque for payment the bank balance will be $3000

he creditors are presenting their cheque for payment and balance per pass book

shows a particuler amount in given table

Particulars

Amount $

Amount$

Balance as per pass book

(2500)

Less: Cheque drawn not yet presented for payment

500

500

Overdraft balance as per pass book

2500

Passage

Kiran has a trading business and pays the repair expenses of running a motor van. At 1st May 2015 he had accrued repair expenses of $300. For the year ended 30st April 2015 he paid repair expenses of $3400 by cheque and at 30 April 2015 he had an unpaid bill for repair of $500.

Question number: 146 (1 of 2 Based on Passage) Show Passage

Short Answer Question▾

Write in Short

Write up Kiran’s rent expenses account for the year ended 30st April 2015. Show the transfer to the income statement for the year and any balance carried down at 1 May 2015.

Explanation

Income statement as $3600 and Balance carried down at 1 May 2015 is $500

Repair expenses account of Kiran as on 30th April 2015

Calculate given this table values.

Repair Expenses Account

Date

Particular

Amoun$

Date

Particular

Amount $

1st May 2015

Balance b/d

300

30th April 2015

Bank

Balanced c/d

3400

500

3900

30th April 2015

Income Statement (Balancing figure)

3600

3900

Balance b/d

500

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