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 2020-

The year ended 31 March 2020The year ended 31 March 2020
$
Closing Stock42000
Carriage Inwards15000
Selling Expenses3600
Wages37000
Opening Stock30000
Income Tax10000
Purchases140000
Sales240000
Administrative Expenses8400
Profit on Sale of Machinery4000

Question 274 (2 of 5 Based on Passage)

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Write in Short

Short Answer▾

Calculate showing your workings

Net Profit Ratio

Explanation

Question 275 (3 of 5 Based on Passage)

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Write in Short

Short Answer▾

Calculate showing your workings

Gross Profit Ratio (Marks 4)

Explanation

Question 276 (4 of 5 Based on Passage)

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Write in Short

Short Answer▾

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Operating Ratio (Marks 3)

Explanation

Question 277 (5 of 5 Based on Passage)

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Write in Brief

One Liner▾

Calculate showing your workings

Operating Profit Ratio (Marks 1)

Explanation

Question 278

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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

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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

Image of the Internal Users

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