IGCSE Accounting Paper-1: Specimen Questions with Answers 321 - 321 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 balanceAccount would appear in the trial balance
Accounts	Debit Column	Credit Column
Purchases
Sales Return
Commission Received
Rent paid
Capital
Provision for bad debts

Explanation

Account would appear in the trial balanceAccount would appear in the trial balance
Accounts	Debit Column	Credit Column
Purchases	The Image of Right Loading image•••
Sales Return	The Image of Right Loading image•••
Commission Received		The Image of Right Loading image•••
Rent paid	The Image of Right Loading image•••
Capital		The Image of Right Loading image•••
Provision for bad debts		The Image of Right Loading image•••

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.

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