IGCSE Accounting Paper-1: Specimen Questions with Answers 322 - 324 of 338

Question 322

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

Explanation

Shri Ram

Cash Book (Bank Columns Only)

Cash Book (Bank Columns Only) Cash Book (Bank Columns Only)
DateDetails$DateDetails$
2019 Oct 31Balance b/d61802019 Oct 31Bank Charges10
Interest300Zara550
Error (Undercast)200Balance c/d6120
66806680
2019 Nov 1Balance b/d6120

Question 323

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Question

MCQ▾

The list price of a product is $15 000 and a trade discount of 10 % is offered to the customer. The customer pays his invoice within a week and also avails a cash discount of 3%.

By what amount the Discount Received A/c be credited in the customer’s ledger? (Marks 1)

Choices

Choice (4)
a.$1905
b.$405
c.$1950
d.$1500

Answer

b.

Explanation

Trade Discount is not recorded. In accounts, only cash discount is recorded. So, discount received A/c will be credited by the amount of cash discount only.

Question 324

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Write in Brief

One Liner▾

Explain with an example each of the following types of error. (Marks 4)

(I) Error of Commission

(II) Error of Principle

Explanation

  • Error of Commission: Error of Commission is made when a transaction is entered in a wrong account or with a wrong amount or when a transaction is partially omitted. Such errors arise due to the carelessness or ignorance of the accountant. For Example- Sales of $360 entered as $630 in Sales Day book is an error of commission. Here, although the transaction is recorded at the right place but the amount is not right.
  • Error of Principle: Errors of Principle when any of the accounting principles is violated while entering the transaction. For Example- Paid $40 for the repair of an old machinery debited to Machinery A/c. Here, repair is a revenue item (recurring expense) but is wrongly treated as a capital item and violates the accounting principle.

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