IGCSE Accounting Paper-1: Specimen Questions with Answers 286 - 288 of 338
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Question 286
Question
MCQ▾A second hand car was purchased on credit from Ahmad Brothers for $ 20,000 will be recorded in which of the following books or prime entry
Choices
| Choice (4) | |
|---|---|
a. | Cash Book |
b. | Purchase Day Book |
c. | Assets Book |
d. | Journal |
Answer
d.Explanation
- Transactions which are not recorded in either of the other books of prime entry- (Cash book, sales day book, purchase day book, Sales returns day book, Purchase return day book, Bills Receivable book, Bills Payable Book) are recorded in Journal.
- Purchase Day book records credit purchase of GOODS only & NOT OTHER ASSETS.
- Cash Book records CASH purchases (of goods and other assets) only
Passage
Anand depreciates his furniture using the straight line method of depreciation. He provides a full year depreciation in the year of purchase and none in the year of disposal. He provided the following information:
| Furniture | ||
| Cost $ | Accumulated Depreciation $ | |
| At 31 Dec 2016 | 55000 | 11000 |
| At 31 Dec 2017 | 55000 | 16500 |
There were no new purchase or disposal during the year ended 31 Dec 2017.
Question 287 (1 of 5 Based on Passage)
Write in Brief
One Liner▾State the necessary double entry to record the depreciation charge for the year ended 31 December 2018. (Marks 2)
Explanation
| Date | Dr $ | Cr $ | |
| 2018 Dec 31 | Income Statement | 7000 | |
| Provision for depreciation on Furniture A/c | 7000 |
Question 288 (2 of 5 Based on Passage)
Explanation
Annual Depreciation charge for the year ended 31 December 2017: $
Accumulated Dep. as at 31 Dec 2017 16500
Less: Accumulated Dep. as at 31 Dec 2016 (11000)
Depreciation charge 5500
Further Information:
On 1 April 2018, Anand purchased a new furniture, cost $ 15000.
On 15 June 2019, he sold old furniture costing $ 6000 and on which three years depreciation had been provided.