IGCSE Accounting Paper-1: Specimen Questions with Answers 130 - 131 of 214

Question number: 130

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Short Answer Question▾

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Identify the nature of account for the following transactions:

Identify the nature of account

Finding nature of account

Transaction

Accounts Affected

Nature of Account

Purchased goods for cash

Purchases A/c

To Cash

………………………………

……………………………. .

Paid cash to Roser

Roser A/c

To Cash A/c

………………………………

……………………………. .

Paid rent to landlord

Rent A/c

To Cash A/c

………………………………

……………………………. .

Explanation

shows the nature of account

Finding nature of account in given table

Transaction

Accounts Affected

Nature of Account

Purchased goods for cash

Purchases A/c

To Cash

Real A/c

Real A/c

Paid cash to Roser

Roser A/c

To Cash A/c

Personal A/c

Real A/c

Paid rent to landlord

Rent A/c

To Cash A/c

Nominal A/c

Real A/c

The double entry system of book keeping show the scientific and complete system. Hence, the every transaction in the business should be recorded according to the specific rules. A transaction should be divided into two aspects:

  • Debit aspect
  • Credit aspect

Question number: 131

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Short Answer Question▾

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Fixed assets are shown at their net book value in the balance sheet. Explain how will you ascertain the net book value of the fixed assets?

Explanation

Fixed assets are always shown at the net book value of the firm in their balance sheet. Net book value can be ascertained by deducting the accumulated depreciation from the cost of an fixed assets. Hence