# CIE Accounting Paper-1: Specimen Questions with Answers 68 - 71 of 214

## Question number: 68

### Write in Short

Rectify the following errors:

Name the classification of errors.

### Explanation

Single sided errors and double sided errors.

The errors which affect one side of an account are known as single side errors account. The errors which affect both the accounts in a transaction are known as double side errors.

## Question number: 69

### Write in Short

Jasmine keeps her petty cash on the imprest system with an imprest of \$120. She paid expenses in the month of December of \$90.50.

(i) What was the amount of petty cash remaining at 31 December?

### Explanation

\$29.50

Under the imprest system the amount which may be needed during the specific period with respect to the small payments is ascertained and fixed as ‘Imprest sytem”. Thus it is calculated as

## Passage

Income statement of the Paul Jackson as on 31st march 2015.

 Particulars \$ \$ Revenue – Credit Sales Cash sales 135300 26800 162100 Less Cost Sales Opening stock Purchases Carriage inwards Closing stock 17800 95600 2800 116200 19200 ________ 97000 Gross Profit 65100 Rent Electricity Insurance Wages 6000 3600 5800 1370 29100 Net Profit 36000

## Question number: 70 (1 of 3 Based on Passage) Show Passage

### Write in Short

Calculate Paul Jackson’s percentage of net profit to sales for the year ended 31st March 2015. Show your calculation with exact percentage.

### Explanation

22%

Net profit is calculated after deducting the operation expenses and adding the operating income with the gross profit of the business.