CIE Accounting Paper-1: Specimen Questions 196 - 198 of 214

Passage

Mr. Shah have the following transaction in the month of April 2015:

Mr. Shah have the following transaction in the month of April 2015

shows given table is represent aplril

April

1

Shah started business with cash $20000

2

Cash purchases $5000

3

Goods sold to Naresh on credit $4500

4

Paid carriage $1000

5

Purchases by cheque $6000

Question number: 196 (2 of 4 Based on Passage) Show Passage

Essay Question▾

Describe in Detail

In the table below, show how the transaction on 2 April should be posted to the ledger.

The ledger account of Mr. Shah

finding a Dr $, Cr $

Name of Account

Dr

$

Cr

$

Explanation

Name of Account, Dr $, Cr $

finding a Dr $, Cr $

Name of Account

Dr

$

Cr

$

Purchases

5000

The cash purchase only accepted and not the credit purchases. The purchases always entered in the debit side of the ledger account. The credit purchase will appear in the purchase book of the company.

Question number: 197 (3 of 4 Based on Passage) Show Passage

Essay Question▾

Describe in Detail

Write a short note on Contra Entry.

Explanation

When an entry affected in both cash and bank accounts it is called a contra entry. It is derived from Latin language Contra and its means opposite. In contra entries both the debit and credit aspects of a transaction are recorded in the cash book itself.

Question number: 198 (4 of 4 Based on Passage) Show Passage

Essay Question▾

Describe in Detail

Find the missing figure of the following:

Calculation of missing figures using accounting equation

in given table of missing figures using accounting equation

Type of business

Assets

$

Liabilities

$

Capital

$

Readymade Garments

…………. .

2000

18000

Book - seller

20000

………….

9000

Cycle mart

6000

2500

…………. .

Explanation

calculate Assets $, Liabilities $, Capital $

shows table in Type of business

Type of business

Assets

$

Liabilities

$

Capital

$

Readymade Garments

20000

2000

18000

Book - seller

20000

11000

9000

Cycle mart

6000

2500

4500

The following ways missing figures can be calculated by using formula:

Assets = Capital + Liabilities

Liabilities = Assets - Capital

Capital = Assets – Liabilities

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