CIE Accounting Paper-1: Specimen Questions with Answers 146 - 147 of 214

Passage

Kiran has a trading business and pays the repair expenses of running a motor van. At 1st May 2015 he had accrued repair expenses of $300. For the year ended 30st April 2015 he paid repair expenses of $3400 by cheque and at 30 April 2015 he had an unpaid bill for repair of $500.

Question number: 146 (1 of 2 Based on Passage) Show Passage

Short Answer Question▾

Write in Short

Write up Kiran’s rent expenses account for the year ended 30st April 2015. Show the transfer to the income statement for the year and any balance carried down at 1 May 2015.

Explanation

Income statement as $3600 and Balance carried down at 1 May 2015 is $500

Repair expenses account of Kiran as on 30th April 2015

Calculate given this table values.

Repair Expenses Account

Date

Particular

Amoun$

Date

Particular

Amount $

1st May 2015

Balance b/d

300

30th April 2015

Bank

Balanced c/d

3400

500

3900

30th April 2015

Income Statement (Balancing figure)

3600

3900

Balance b/d

500

Question number: 147 (2 of 2 Based on Passage) Show Passage

Short Answer Question▾

Write in Short

In the below table, put a tick (√) mark under the heading to show the right category of each asset shown on Kiran’s balance sheet

Findout asset value in the table

calculate number of assets columns

Assets

Non-current intangible asset

Non-current tangible asset

Current asset

Goodwill

Patent

Furniture and fixtures

Pre-paid Insurance Premium

Table Title: List of assets shown on Kiran’s balance sheet

Explanation

Finding a table in assets values of the table.

Calculate asset table value.

Assets

Non-current intangible asset

Non-current tangible asset

Current asset

Goodwill

Patent

Furniture and fixtures

Pre-paid Insurance Premium

Goodwill and patent are non-current intangible assets and Furniture and fixtures are comes under the non-current tangible asset. This is also known as fixed assets. The current assets includes pre-paid insurance premium.