IGCSE Accounting Paper-1: Specimen Questions with Answers 83 - 85 of 338
Passage
Aieno bought fixed asset at a cost of $50000 on 1st Aprils 2014. Calculate its net book value as on 31st March 2016 if it is depreciated:
Question number: 83 (4 of 4 Based on Passage) Show Passage
Short Answer Question▾
Write in Short
Which method of depreciation is used for live –stock and state your reason also
Explanation
Revaluation method.
The revaluation method is suitable for asset like live – stock because which call for special consideration and no other method are suitable for secure satisfactory results. It is very simple to understand and use. The difference between the asset value at the beginning and at the end is depreciated and charged to profit and loss account. If the value of asset at the end of year are higher than the beginning then the difference is ignored.
Question number: 84
MCQ▾
Question
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 number: 85 (1 of 2 Based on Passage) Show Passage
Short Answer Question▾
Write in Short
Complete the following trial balance for Hason at 30 April 2015.
Trial Balance of Hason as on 30th 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 |