IGCSE Accounting Paper-1: Specimen Questions with Answers 286 - 288 of 338

Get unlimited access to the best preparation resource for Bank-PO : get questions, notes, tests, video lectures and more- for all subjects of Bank-PO.

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 Brief

One Liner▾

Give the journal entry for eliminating the accumulated depreciation on the furniture sold on 15 June 2019. (Marks 2)

Explanation

State the Necessary Double Entry to Record the Depreciation Charge
DateDr

$

Cr

$

2019

June 15

Provision for depreciation on

Furniture A/c

1800
Disposal A/c1800

🎯 Select Paper 📂

🚀 Consider Exploring

Developed by: