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

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 270

Edit

Write in Brief

One Liner▾

State any two methods of depreciation

(I) ________

(II) ________ (2)

Explanation

(I) Straight line Method

(II) Diminishing Balance Method

The various methods of depreciation are-

The Various Methods of Depreciation

Question 271

Edit

Write in Brief

One Liner▾

State the meaning of provision. (Marks 1)

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

Edit

Write in Brief

One Liner▾

Explain any two characteristic of accounting. (Marks 2)

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.

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