IGCSE Accounting Paper-1: Specimen Questions with Answers 321 - 322 of 338

Question 321

Write in Short

Short Answer▾

Indicate with a tick where each of the following account would appear in the trial balance. (Marks 3)

Account Would Appear in the Trial Balance
AccountsDebit ColumnCredit Column
Purchases
Sales Return
Commission Received
Rent paid
Capital
Provision for bad debts

Explanation

Account Would Appear in the Trial Balance
AccountsDebit ColumnCredit Column
Purchases
The Right
Sales Return
The Right
Commission Received
The Right
Rent paid
The Right
Capital
The Right
Provision for bad debts
The Right
  • Purchases is an expense so, it has a debit balance.
  • Sales Return reduces sales which has a credit balance. So, sales return has a debit balance.
  • Commission received is an income and Incomes have a credit balance.
  • Rent paid is an expense so, it has a debit balance.
  • Capital is a liability. So it has a credit balance.
  • Provision for bad debts is considered as liability because it reduces assets (receivables) so, it has a credit balance.

Question 322

Write in Short

Short Answer▾

Update the cash book of Shri Ram. Bring down the updated balance on 1 December 2019. (Marks 5)

Shri Ram

Cash Book (Bank Columns Only)

Cash Book (Bank Columns Only)
DateDetails$DateDetails$

Explanation

Shri Ram

Cash Book (Bank Columns Only)

Cash Book (Bank Columns Only)
DateDetails$DateDetails$
2019

Oct 31

Balance b/d61802019

Oct 31

Bank Charges10
Interest300Zara550
Error (Undercast)200Balance c/d6120
66806680
2019

Nov 1

Balance b/d6120

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