IGCSE Accounting Paper-1: Specimen Questions with Answers 270 - 275 of 338
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.
Passage
Bhargav Traders provides the following information for the year ended 31 March 2020-
$ | |
Closing Stock | 42000 |
Carriage Inwards | 15000 |
Selling Expenses | 3600 |
Wages | 37000 |
Opening Stock | 30000 |
Income Tax | 10000 |
Purchases | 140000 |
Sales | 240000 |
Administrative Expenses | 8400 |
Profit on Sale of Machinery | 4000 |