IGCSE Accounting Paper-1: Specimen Questions with Answers 269 - 272 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 269 (6 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
| $ |
Explanation
Bank Reconciliation Statement at 1 April 2019
| $ | |
| Bank Balance as per Cash Book | (500) |
| Add: Chque issued to Namrata but not yet presented | 850 |
| 350 | |
| Less: Cash deposited but not yet credited | (120) |
| Bank Balance as per Bank Statement | 230 |
Question 270
Explanation
(I) Straight line Method
(II) Diminishing Balance Method
The various methods of depreciation are-
Question 271
Explanation
- Provision is an amount of set aside from profits to cover a known liability that may arise in future.
- For Ex- making a provision for bad debts when it is known that some of the debtors may fail to pay their debts.
Question 272
Explanation
The two characteristics of accounting are-
- Identification: It involves identifying those events or transactions which are monetary in nature. i.e.. they are measurable in terms of money.
- Recording: It implies entering the transactions in journal or the books of prime entry.