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

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Short Answer Question▾

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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

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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

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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

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 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

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