IGCSE Accounting Paper-1: Specimen Questions with Answers 266 - 268 of 338

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Passage

The bank column of Abhay Nigam՚s cash book had a credit balance brought down of $ 1450 on 1 April 2019. The bank statement on the same date showed a debit balance of $ 230.

Following things were discovered by Abhay when he compared his cash book with the bank statement-

Items on the Bank Statement but Not in the Cash Book

Bank charges of $ 100

Dividend received $ 500

Insurance premium paid by bank $ 200

Direct deposit of $ 1000 by Robert, a customer

Items in the Cash Book but Not in the Bank Statement

Cheque received from Kundan of $ 250 was recorded twice in the cash book.

Cheque issued to Namrata $ 850, a credit supplier

Cash deposited $ 120

Question 266 (3 of 6 Based on Passage)

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Write in Brief

One Liner▾

What is meant by the debit balance in the bank statement? (Marks 1)

Explanation

Debit balance in the bank statement indicates bank overdraft i.e.. amount due to the bank or the excess amount withdrawn/issued payment over the amount deposited in the bank.

Question 267 (4 of 6 Based on Passage)

Write in Short

Short Answer▾

Prepare the bank reconciliation statement at 1 April 2019. (Marks 4)

Abhay

Bank Reconciliation Statement at 1 April 2019

Bank Reconciliation Statement at 1 April 2019
$

Explanation

Bank Reconciliation Statement at 1 April 2019

Bank Reconciliation Statement at 1 April 2019
$
Bank Balance as per Cash Book(500)
Add: Chque issued to Namrata but not yet presented850
350
Less: Cash deposited but not yet credited(120)
Bank Balance as per Bank Statement230

Question 268 (5 of 6 Based on Passage)

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Write in Brief

One Liner▾

State any two differences between single column and triple column cash book. (Marks 2)

Explanation

  • Single column cash book has only one amount column (cash column) in each side and records cash receipts and cash payments whereas triple column cash book has three columns (cash, bank & Discount) in each side and records receipts and payments in cash & in bank and discount as well.
  • Single Column cash book does not show contra entries whereas Triple column cash book also shows contra entries.

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