IGCSE Accounting Paper-1: Specimen Questions with Answers 111 - 114 of 214
Question number: 111
Write in Short
Explain the modifying principles.
Explanation
To make the accounting information useful to various interested parties, the basic assumptions and concepts of accounting principles are modified. These modified principles are as:
- Cost Benefit Principle
- Materiality Principle
- Consistency Principle
Passage
Roshan had the following transaction:
a. Roshan started business with $25000
b. Purchased goods on credit from Sohan $10000
c. Solds goods to Sam costing $1500 for $1800 on credit.
Question number: 112 (1 of 2 Based on Passage) Show Passage
Write in Short
Calculate assets on the basis of accounting equation:
Explanation
$35300
Assets includes cash from capital, stock on credit purchase, deduct cost stock amount sold and add credit sale amount. Thus assets includes
Question number: 113 (2 of 2 Based on Passage) Show Passage
Write in Short
Show your calculation regarding the accounting equation.
Explanation
Assets = $35300 Liabilities $10000; Capital $25300
Solution: The accounting equation includes:
| Sl No | Equities | Assets | |||
| Capital | creditors | Cash | Stock | Debtors | |
| a. | 25000 | 25000 | |||
| b. | 10000 | 10000 | |||
| c. | 300 | 10000 - 1500 | |||
| 35300 | 35300 | ||||
Question number: 114
Question
When a bill is accepted, it will be entered by the acceptor in ________
Choices
| Choice (4) | Response | |
|---|---|---|
| a. | Bills Receivable book |
|
| b. | Bills Payable book |
|
| c. | Bills book |
|
| d. | Bills accepted book |
|
Answer
b.Explanation
Bills receivable book records the receipts of bill from the customers and bills payable book records the bills accepted by the trader. If the holder of bill is in need of money he can convert into cash through the bank.