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
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Debit balance in the bank statement indicates bank overdraft i. e. amount due to the bank or the excess amount withdrawn/issued payment over the amount deposited in the bank.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
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
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)
Date | Details | $ | Date | Details | $ |
Explanation
Abhay
Cash Book (Bank Columns Only)
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 |