CIE Accounting Paper-1: Specimen Questions 171 - 172 of 214

Question number: 171

MCQ▾

Question

From the following which document is prepared by a trader when he sells goods on credit?

Choices

Choice (4) Response
a.

Voucher

b.

Receipt

c.

Invoice

d.

Debit note

Answer

c.

Explanation

Invoice is issued when a trader sells goods on credit. The trader prepares a sale invoice which contain full details of the credit sales like name of the customer, the term of payment and address of the seller and buyer etc. ,

Question number: 172

MCQ▾

Question

Sale of old furniture for $2000 treated as sale of goods.

How is this error corrected?

Choices

Choice (4) Response
a.

Passing rectified entry in respect of sale of sales

Finding a accont to debit in sales

account to be debited

account to be credited

Sales

Furniture

b.

Passing rectified entry in respect of sale of old furniture

Finding a accont to debit in Furniture.

account to be debited

account to be credited

Furniture

Sales

c.

Passing rectified entry in respect of sale of cash

Finding a accont to debit in cash

account to be debited

account to be credited

Cash

Sales

d.

Passing rectified entry in respect of sale of Furniture and cash

Finding a accont to debit in Furniture and cash

account to be debited

account to be credited

Furniture

Cash

Answer

a.

Explanation

The following is recorded:

Wrong entry recorded

shows cash and sales

account to be debited

account to be credited

Cash

Sales

in given table of Correct entry

shows cash and Furniture

account to be debited

account to be credited

Cash

Furniture

in given table of Rectified entry

shows sales and Furniture

account to be debited

account to be credited

Sales

Furniture

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