CIE Accounting Paper-1: Specimen Questions with Answers 112 - 115 of 214

Passage

Roshan had the following transaction:

a. Roshan started business with $25000

b. Purchased goods on credit from Sohan $10000

c. Solds goods to Sam costing $1500 for $1800 on credit.

Question number: 112 (1 of 2 Based on Passage) Show Passage

Short Answer Question▾

Write in Short

Calculate assets on the basis of accounting equation:

Explanation

$35300

Assets includes cash from capital, stock on credit purchase, deduct cost stock amount sold and add credit sale amount. Thus assets includes

Question number: 113 (2 of 2 Based on Passage) Show Passage

Short Answer Question▾

Write in Short

Show your calculation regarding the accounting equation.

Explanation

Assets = $35300 Liabilities $10000; Capital $25300

Solution: The accounting equation includes:

Accounting equation of Roshan

Table of Accounting equation of Roshan

Sl No

Equities

Assets

Capital

creditors

Cash

Stock

Debtors

a.

25000

25000

b.

10000

10000

c.

300

10000 - 1500

35300

35300

Question number: 114

MCQ▾

Question

When a bill is accepted, it will be entered by the acceptor in ________

Choices

Choice (4) Response

a.

Bills book

b.

Bills accepted book

c.

Bills Receivable book

d.

Bills Payable book

Answer

d.

Explanation

Bills receivable book records the receipts of bill from the customers and bills payable book records the bills accepted by the trader. If the holder of bill is in need of money he can convert into cash through the bank.

Passage

Ryno has a business selling spare parts for cars. He lost many of his financial records in a flood but has been able to provide the following information.

1 November 2015 31 October 2015

$ $

Non-current (fixed) assets 10 000 12 000

Current assets 100 000 90 500

Current liabilities 25 000 23 000

Question number: 115 (1 of 4 Based on Passage) Show Passage

Short Answer Question▾

Write in Short

Prepare Ryno’s statement of affairs on 1 November 2015 showing his total capital at that date.

Ryno’s – Statement of Affairs at 1 November 2015

Explanation

Statement of affairs at 1 November 2015

Statement of affairs as on 1st November 2015

Calculate value in given table

Particulars

$

$

Fixed Assets

Current Assets

Less: Current Liabilities

100000

25000

10000

75000

———

85000

The statement of affairs shows the present value of assets in hand. It includes the both fixed and current assets of the firm. This type of system of book keeping comes under the ‘Single entry system’ of book keeping.