IGCSE Accounting Paper-1: Specimen Questions with Answers 277 - 279 of 338

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Passage

Bhargav Traders provides the following information for the year ended 31 March 2020-

The 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 277 (5 of 5 Based on Passage)

Edit

Write in Brief

One Liner▾

Calculate showing your workings

Operating Profit Ratio (Marks 1)

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.
The Internal Users

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