IGCSE Accounting Paper-1: Specimen Questions with Answers 264 - 266 of 338

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 number: 264 (1 of 6 Based on Passage) Show Passage

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One Liner Question▾

Write in Brief

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Debit balance in the bank statement indicates bank overdraft i. e. amount due to the bank or the excess amount withdrawn/issued payment over the amount deposited in the bank.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 number: 265 (2 of 6 Based on Passage) Show Passage

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One Liner Question▾

Write in Brief

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.

Question number: 266 (3 of 6 Based on Passage) Show Passage

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Short Answer Question▾

Write in Short

Update the bank column of Abhay’s cash book on 1 April 2019 and bring down the bank balance. (Marks 7)

Abhay

Cash Book (Bank Columns Only)

Update the bank column of Abhay’s cash book Update the bank column of Abhay’s cash book

Date

Details

$

Date

Details

$

Explanation

Abhay

Cash Book (Bank Columns Only)

Update the bank column of Abhay’s cash book Update the bank column of Abhay’s cash book

Date

Details

$

Date

Details

$

2019

April 1

Dividend

500

2019

April 1

Balance b/d

1450

Robert

1000

Bank Charges

100

Balance c/d

500

Insurance Premium

200

Kundan (Error)

250

2000

2000

April 1

Balance b/d

500

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