CIE Accounting Paper-1: Specimen Questions with Answers 102 - 104 of 214

Passage

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

Trial balance of Johnson as on 31st March 2015

calculate value of the given table.

Particulars

$

Bills payables

15000

Bills receivables

12000

Bank (Dr)

25000

Drawings

28000

Inventory

19000

Provision for depreciation

20000

Question number: 102 (2 of 2 Based on Passage) Show Passage

Short Answer Question▾

Write in Short

Calculate Johnson’s working capital. Show your workings.

Explanation

$41000

Question number: 103

MCQ▾

Question

When does a business recognize the expense from a purchase of goods on credit?

Choices

Choice (4) Response

a.

When the goods are ordered by the firm

b.

When the goods are received by the firm

c.

When it receives a statement from the supplier

d.

When the supplier send invoice for the goods

Answer

b.

Explanation

A business recognizes the expense from a purchase of goods on credit when the goods are received by them. The payment of the goods should be made once the goods are received by the customers.

Question number: 104

MCQ▾

Question

It was discovered that a credit customer had been charged $47 for a purchase instead of $74.

Which document will be issued by the seller to correct the error?

Choices

Choice (4) Response

a.

Invoice

b.

Balance Sheet

c.

Debit note

d.

Credit note

Answer

d.

Explanation

Credit note is prepared by the seller in order to show the details of the goods and the value of the goods retained with them. On the basis of credit note the customer’s account is credited in the books.