IGCSE Accounting Paper-1: Specimen Questions with Answers 3 - 5 of 338

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Question 3

Write in Short

Short Answer▾

The total of the sales journal is posted to the sales account in the ledger.

In the table below, place a tick (√) to show whether this entry is a debit or a credit.

Transaction of the Entry
DebitCredit
Transaction of the Entry
DebitCredit

Explanation

The sales transaction involves the journal will always credit in the sales account in the ledger. The sales create an inward of cash transaction in the business and the finished good will be supplied to the customer of the business.

Question 4

Question

MCQ▾

In which book of prime (original) entry are invoices received by a trader recorded?

Choices

Choice (4)

a.

Purchases returns journal

b.

Sales returns journal

c.

Sales journal

d.

Purchases journal

Answer

d.

Explanation

Purchases journal is used when the trader received invoice towards his/her purchases. The Purchase journal always shows the credit purchase of the trader. It is always written with help of the invoice made during the year.

Question 5

Question

MCQ▾

Vinodh bought goods on credit from Jacob, $ 2000. Vinodh paid Jacob by cheque after deducting 2 % cash discount. Which entries record this payment in Jacob՚s books?

Choices

Choice (4)

a.

Payment Record in Respect of Credit Purchases in Jacobs Book
Account debited$Account credited$
bank

discount allowed

1960

40

Vinodh2000

b.

Payment Record in Respect of Credit Purchases in Jacobs Book
Account debited$Account credited$
Vinodh2000bank

discount allowed

1960

40

c.

Payment Record in Respect of Credit Purchases in Jacobs Book
Account debited$Account credited$
Vinodh2000bank

discount received

1960

40

d.

Payment Record in Respect of Credit Purchases in Jacobs Book
Account debited$Account credited$
Bank

discount received

1960

40

Vinodh2000

Answer

a.

Explanation

Vinodh paid $ 1960 in the form of cheque against his credit value of $ 2000.

Vinodh received 2 % as cash discount.

Cash discount is

Hence the Bank is debited with $ 1960 with discount amount $ 40.

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