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

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)

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

 Date Dr\$ Cr\$ 2018Dec 31 Income Statement 7000 Provision for depreciation onFurniture 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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