IGCSE Accounting Paper-1: Specimen Questions with Answers 105 - 107 of 214

Question number: 105

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Short Answer Question▾

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In which final account will carriage outwards be shown?

Explanation

Profit and loss account.

Final accounts took place in the last step of the accounting cycle. A trader prepares final accounts when the errors are rectified in the extracted trial balance. The final accounts include a number of accounts such as

  • Trading accounts
  • Profit and loss account

Passage

Susan’s statement was as follows:

WESTERN COMMERCIAL COMPANY

STATEMENT OF ACCOUNT

Western Commercial Company.

Shows given table is Western Commercial Company statement of account.

Date

Particular

Dr

$

Cr

$

Balance

$

September 1

Balance b/f

4000.00

4000.00

September 7

Sales – invoice 401

66.50

4066.50

September 10

Sales – invoice 402

117.00

4183.5

September 15

Sales return – credit note 39

17.50

4166

September 19

Bank –Susan

3920.00

246

September 30

Balance c/f

246

Terms: 2 % discount for settlement within 20 days.

Question number: 106 (1 of 5 Based on Passage) Show Passage

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Short Answer Question▾

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Give the entries in the Western Commercial Company’s accounts for the month of September to record the sales account transaction.

Explanation

Sales account

Sales account in the book of Western Commercial Company.

Shows in table Sales account in the book of Western Commercial Company.

Date

Particular

Amount

$

Date

Particular

Amount

$

September 7

Susan

66.50

September 10

Susan

117.00

Sales accounts are created in order to show the current year sales of the business. Normally it involves both cash and credit sales of the business. The transaction are entered when actual sales took place in the business.

Question number: 107 (2 of 5 Based on Passage) Show Passage

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Short Answer Question▾

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State for what purpose of sending a statement of account to a customer.

Explanation

The main purpose of sending a statement of account to a customer:

  • The statement will provide information about the amount due to the supplier.
  • The customer will be reminded through the statements.

The total record of statement was provided to the Susan in order to show that there is no error have been made by customer or by the supplier with amount payable or receivable by them.