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 Using the Straight Line Method of Depreciation
Furniture
Cost

$

Accumulated Depreciation

$

At 31 Dec 20165500011000
At 31 Dec 20175500016500

There were no new purchase or disposal during the year ended 31 Dec 2017.

Question 287 (1 of 5 Based on Passage)

Edit

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

State the Necessary Double Entry to Record the Depreciation Charge
DateDr

$

Cr

$

2018

Dec 31

Income Statement7000
Provision for depreciation on

Furniture A/c

7000

Question 288 (2 of 5 Based on Passage)

Edit

Write in Short

Short Answer▾

Calculate the rate of depreciation being applied by Anand? (Marks 3)

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.

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