IGCSE Accounting Paper-1: Specimen Questions with Answers 84 - 86 of 338

Question 84

Question

MCQ▾

Which one of the following is also called Book of final entry or Book of secondary entry?

Choices

Choice (4)

a.

Trial Balance

b.

Journal

c.

Balance sheet

d.

Ledger

Answer

d.

Explanation

Ledger is also called as Book of final entry or Book of secondary entry. The ledger contains classified and permanent record of all transactions which are involved in the business. Thus ledger is collection of all transaction.

Passage

The following balances were taken from the books of Hason, a sole trader, at 30 April 2015. $

Revenue through rent 210 000

Purchases 75 000

Stock 1 May 2014 11 500

Bills receivables 2 300

Bills payables 2 900

Machinery 8 400

Office expenses 30 600

Bank (overdraft) 4 100

Capital 12 500

Drawings 6 600

Hason՚s inventory at 30 April 2015 was $ 20 100.

Question 85 (1 of 2 Based on Passage)

Write in Short

Short Answer▾

Complete the following trial balance for Hason at 30 April 2015.

Trial Balance of Hason as on th April 2015

Finding a DR and CR Value to the Table
DR

$

CR

$

Stock 1 May 2014
Bills receivables
Bills payables
Machinery
Office expenses
Bank (overdraft)
Capital
Drawings
Revenue through rent
Purchases
Suspense account

Explanation

The total balance of trial balance is $ 229500

Inseart in to DR and CR Value to the Table
DR

$

CR

$

Stock 1 May 201411 500
Bills receivables2 300
Bills payables2 900
Machinery8 400
Office expenses30 600
Bank (overdraft)4 100
Capital12 500
Drawings6 600
Revenue through rent210000
Purchases75000
Suspense account95100
229500229500

Question 86 (2 of 2 Based on Passage)

Edit

Write in Short

Short Answer▾

Write a short note on suspense account

Explanation

The suspense account is an imaginary and temporary account. It is created when difficult to locate the mistake before preparing the final account and the difference in the trial balance is transferred to the suspense account. This account is prepared to avoid delay in the preparation of final accounts.

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