IGCSE Accounting Paper-1: Specimen Questions with Answers 32 - 34 of 338

Which one of the following provides periodic contribution by members of the organization?

Answer

c.

Explanation

Subscription is one of the periodic contributions by members of the organization.

Admission and entrance fees are collected only at the time of admission into the organization whereas donation is voluntary contribution.

Amounts owed by a trader for Rent are given below.

Amounts Owed by a Trader for Rent Are Given

	$
1 January 31 January	20000 25000

The charge for rent shown in the income statement for the year ended 31 December was

$ 25 500. What was the amount paid for rent during the year?

Answer

c.

Explanation

The amount paid during year is 20500.

The basis for double entry system of book-keeping which is universally used.

Which accounting principle is being applied?

Answer

d.

Explanation

The dual aspect of concept is basis for double entry system of book-keeping which is universally used. The dual aspect includes receiving benefit and giving of benefit. These both transactions should be recorded in the appropriate account.