CIE Accounting Paper-1: Specimen Questions 181 - 184 of 214

Question number: 181

One Liner Question▾

Write in Brief

Explain what is meant by “Petty Cash Book”?

Explanation

The word Petty means ‘small’. The small recurring payments are maintained in the Petty cash book. Small recurring payments like carriage, postage and telegram, printing and stationery are recorded and maintained by the petty cashier. Petty cashier is a person other than main cashier.

Passage

The following transaction were took place in the book of Manisha:

shows following transaction were took place in the book

given table in following transaction were took place in the book

Sold goods to Angel on credit

$17500

Bought goods for cash from Charles

$22500

Met travelling expenses

$2000

Received $40000 from Santosh as loan

-

Paid wages to workers

$3000

Question number: 182 (1 of 2 Based on Passage) Show Passage

One Liner Question▾

Write in Brief

List out the items which will involve cash transaction

Explanation

  1. Purchases
  2. Travelling expenses
  3. Wages
  4. Santosh’s loan

The following transactions were involved in cash treatment:

shows table in finding a transaction were took place in the book

shows table in finding a transaction were took place in the book and values

Bought goods for cash from Charles

$22500

Met travelling expenses

$2000

Received $40000 from Santosh as loan

-

Paid wages to workers

$3000

Question number: 183 (2 of 2 Based on Passage) Show Passage

One Liner Question▾

Write in Brief

Mention any two sources of documents.

Explanation

The few examples of source documents are

  • Cash memo
  • Invoice or bill
  • Receipts
  • Debit note
  • Credit Note
  • Pay-in-slip
  • Cheque
  • Vouchers
  • Bills receivables
  • Bills payable
  • Wage sheet
  • Salary register
  • Correspondence

Passage

Aiona’s trial balance at 31st March 2015 included the following items:

perticulars item name

perticuler doller values

Particulars

$

Sales

150000

Sales returns

20000

Opening stock

30000

Purchases

70000

Purchases returns

10000

Closing stock

5000

Question number: 184 (1 of 2 Based on Passage) Show Passage

One Liner Question▾

Write in Brief

Calculate Aiona’s Cost of goods sold:

Explanation

$85000

Solution: Calculation of Cost of goods sold:

Costofgoodssold=Openingstock+NetPurchasesClosingstock

Costofgoodssold=30000+(7000010000)5000

=30000+600005000

=900005000

=85000

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