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)
| Accounts | Debit Column | Credit Column |
| Purchases | ||
| Sales Return | ||
| Commission Received | ||
| Rent paid | ||
| Capital | ||
| Provision for bad debts |
Explanation
| Accounts | Debit Column | Credit Column |
| Purchases |  | |
| Sales Return | | |
| Commission Received | | |
| Rent paid | | |
| Capital | | |
| Provision for bad debts | |
- 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)
| Date | Details | $ | Date | Details | $ |
Explanation
Shri Ram
Cash Book (Bank Columns Only)
| Date | Details | $ | Date | Details | $ |
| 2019 Oct 31 | Balance b/d | 6180 | 2019 Oct 31 | Bank Charges | 10 |
| Interest | 300 | Zara | 550 | ||
| Error (Undercast) | 200 | Balance c/d | 6120 | ||
| 6680 | 6680 | ||||
| 2019 Nov 1 | Balance b/d | 6120 |