IGCSE Accounting Paper-1: Specimen Questions with Answers 284 - 285 of 338
Question 284
Question
MCQ▾Which of the following item would appear on the debit column of Trial Balance? (Marks 1)
Choices
Choice (4) | |
---|---|
a. | Purchases Returns |
b. | Bad debts |
c. | Provision for Bad debts |
d. | Trade Payables |
Answer
b.Explanation
- Bad debts are that part of receivables which become irrecoverable because of bankruptcy of debtors etc. Bad debts is in nature of a loss/expense. So, it has a debit balance.
- Purchases Returns reduces purchases. It is a contra purchases A/c so it has a credit balance.
- Provision for bad debts is contra asset (receivables) a/c so it has a credit balance.
- Trade Payable represents amount owed by the business to its credit suppliers of goods or services. It is a liability so it has a credit balance.
Question 285
Question
MCQ▾ABC Ltd. provides the following information: (Marks 1)
$ | |
Machinery | 80000 |
Patent | 30000 |
Stock | 15000 |
Furniture | 20000 |
Equipment | 30000 |
Prepaid Expenses | 2000 |
What is the total tangible fixed assets?
Choices
Choice (4) | |
---|---|
a. | $ 167000 |
b. | $ 130000 |
c. | $ 197000 |
d. | $ 160000 |
Answer
b.Explanation
Note-
Patent is an intangible fixed asset.
Stock and Prepaid Expenses are current assets.