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
| $ | ||
| Opening stock of raw materials | 50,000 | |
| Add: Purchases | 18,00, 000 | |
| Add: carriage on Purchase | 12,000 | 17,72, 000 |
| 16,00, 000 | ||
| 18,62, 000 | 33,72, 000 | |
| Less: Closing stock of raw materials | 90,000 | |
| 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