IGCSE Accounting Paper-1: Specimen Questions with Answers 101 - 104 of 338

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Passage

Johnson՚s trial balance at 31 March 2015 included the following items:

Trial Balance of Johnson as on 31st March 2015
Particulars$
Bills payables15000
Bills receivables12000
Bank (Dr)25000
Drawings28000
Inventory19000
Provision for depreciation20000

Question 101 (1 of 2 Based on Passage)

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Write in Short

Short Answer▾

Calculate Johnson՚s working capital. Show your workings.

Explanation

$ 41000

Question 102 (2 of 2 Based on Passage)

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Write in Short

Short Answer▾

Calculate Johnson՚s quick ratio with workings

Explanation

1.947: 1

Quick Ratio =

=

Question 103

Question

MCQ▾

When does a business recognize the expense from a purchase of goods on credit?

Choices

Choice (4)

a.

When the goods are ordered by the firm

b.

When the supplier send invoice for the goods

c.

When it receives a statement from the supplier

d.

When the goods are received by the firm

Answer

d.

Explanation

A business recognizes the expense from a purchase of goods on credit when the goods are received by them. The payment of the goods should be made once the goods are received by the customers.

Question 104

Question

MCQ▾

It was discovered that a credit customer had been charged $ 47 for a purchase instead of $ 74.

Which document will be issued by the seller to correct the error?

Choices

Choice (4)

a.

Credit note

b.

Balance Sheet

c.

Debit note

d.

Invoice

Answer

a.

Explanation

Credit note is prepared by the seller in order to show the details of the goods and the value of the goods retained with them. On the basis of credit note the customer՚s account is credited in the books.

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