IGCSE Accounting Paper-1: Specimen Questions with Answers 274 - 279 of 338

Passage

Bhargav Traders provides the following information for the year ended 31 March 2,020-

The Year Ended 31 March 2,020
$

Closing Stock

42,000

Carriage Inwards

15,000

Selling Expenses

3,600

Wages

37,000

Opening Stock

30,000

Income Tax

10,000

Purchases

140,000

Sales

240,000

Administrative Expenses

8,400

Profit on Sale of Machinery

4,000

Question 274 (2 of 5 Based on Passage)

Edit

Write in Brief

One Liner▾

Calculate showing your workings

Operating Profit Ratio (Marks 1)

Explanation

Question 275 (3 of 5 Based on Passage)

Edit

Write in Short

Short Answer▾

Calculate showing your workings

Gross Profit Ratio (Marks 4)

Explanation

Question 276 (4 of 5 Based on Passage)

Edit

Write in Short

Short Answer▾

Calculate showing your workings

Net Profit Ratio

Explanation

Question 277 (5 of 5 Based on Passage)

Edit

Write in Short

Short Answer▾

Calculate showing your workings

Operating Ratio (Marks 3)

Explanation

Question 278

Question

MCQ▾

Purchases book was overcast by $ 300. Which of the following journal entry would correct this error? (Marks 1)

Choices

Choice (4)

a.

Debit- Purchases $ 300, Credit- Purchases Returns $ 300,

b.

Debit- Suspense $ 300, Credit- Purchases $ 300,

c.

Debit- Purchases $ 300, Credit- Trial Balance $ 300,

d.

Debit- Purchases $ 300, Credit- Suspense $ 300,

Answer

b.

Explanation

Purchases A/c has a normal debit balance. So, when purchases is overcast, Purchases A/c will be credited to reduce the overcast. Since, overcasting or under casting is one sided error, for the other side we use suspense A/c. Suspense A/c will be debited.

Question 279

Question

MCQ▾

Which among the following is an external user of accounting information? (Marks 1)

Choices

Choice (4)

a.

Director of Research & Development

b.

Customer

c.

Purchasing Officer

d.

Inventory Clerk

Answer

b.

Explanation

  • External Users are the parties which are present outside the business organization whereas the internal users are the parties present inside the business organization.
  • Customer is an external user. Purchasing Officer, Director of Research & Development are part of internal management of the business and inventory clerk is an employee. These are internal users.

Image of the Internal Users

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