IGCSE Accounting Paper-1: Specimen Questions with Answers 269 - 271 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: 269 (6 of 6 Based on Passage) Show Passage
Write in Short
Prepare the bank reconciliation statement at 1 April 2019. (Marks 4)
Abhay
Bank Reconciliation Statement at 1 April 2019
$ |
Explanation
Bank Reconciliation Statement at 1 April 2019
$ | |
Bank Balance as per Cash Book | (500) |
Add: Chque issued to Namrata but not yet presented | 850 |
350 | |
Less: Cash deposited but not yet credited | (120) |
Bank Balance as per Bank Statement | 230 |
Question number: 270
Write in Brief
State any two methods of depreciation
(I) ________
(II) ________ (2)
Explanation
(I) Straight line Method
(II) Diminishing Balance Method
The various methods of depreciation are-
The Various Methods of Depreciation
Question number: 271
Write in Brief
State the meaning of provision. (Marks 1)
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.