A-AS Level (CIE) Accounting Paper-1: Specimen Questions with Answers 23 - 24 of 93

Question 23

Question

MCQ▾

From the following data what will be the value of prime cost

Stock of material on 1st Jan. 2018 - 50,000

Stock of material on 31st Dec. 2018 - 90,000

Purchases of raw materials- 18,00, 000

Carriage on purchases- 12,000

Office on cost -3,77, 000

Productive wages -16,00, 000

Choices

Choice (4)

a.

37,72, 000

b.

41,49, 200

c.

4,00, 000

d.

33,72, 000

Answer

d.

Explanation

From the Following Data What Will be the Value of Prime Cost
Dollar $
Opening stock of raw materials50,000
Add: Purchases18,00, 000
Add: carriage on Purchase12,00017,72, 000
16,00, 000
18,62, 00033,72, 000
Less: Closing stock of raw materials90,000
Cost of raw material consumed
Add: Productive wages
Prime Cost

Question 24

Question

MCQ▾

Double entry of which of the following transactions is completed in the Cash Book itself:

Choices

Choice (4)

a.

Paid rent by cheque

b.

A cheque received from a customer deposited into bank on the same day.

c.

Cash deposited into the bank

d.

Withdrew from bank for personal use

Answer

c.

Explanation

Double entry is a method of preparing accounts in such a manner that the dual aspect of accounting would be expressed by a debit account equally offset by a credit amount. It is a method in which a business enter amount on both sides of a transaction. For every debit, there is a credit. For every giver there is a receiver.

The advantages of double entry system are:

  • Drawing the Trial balance out of the ledger account gets easy
  • More accurate and reliable position is provided
  • Facilitates comparison of the business performance

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