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-
| $ | |
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)
Explanation
Question 275 (3 of 5 Based on Passage)
Explanation
Question 276 (4 of 5 Based on Passage)
Question 277 (5 of 5 Based on Passage)
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.
