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
| 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
| DR $ | CR $ | |
| 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 | |
| Revenue through rent | 210000 | |
| Purchases | 75000 | |
| Suspense account | 95100 | |
| 229500 | 229500 |
Question 86 (2 of 2 Based on Passage)
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.