IGCSE Accounting Paper-1: Specimen Questions with Answers 126 - 128 of 338

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Passage

Mosses started a business on 1 December 2015 printing designs on Sarees and bought a printing machine for $ 32000.

He decided to depreciate the printing machine on the straight line basis over 10 years and expected the machine to have a scrap value of $ 7000 after that time.

Question 126 (5 of 5 Based on Passage)

Write in Short

Short Answer▾

Complete the following extract from Mosses՚s balance sheet at as on 2017.

Extract of Mosses Balance Sheet as on 2017
Cost $Provision for Depreciation $Net book value $
Fixed assets
Machinery

Explanation

Mosses Balance Sheet as on 2017 (extract)

Extract of Mosses Balance Sheet as on 2017
Cost $Provision for Depreciation $Net book value $
Fixed assets
Machinery32000500027000

The fixed assets will not disclose a true and fair view of the firm, if depreciation is not provided by the firm. The fixed assets will show a true value only when the depreciation is provided at the end of every year.

Question 127

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Write in Short

Short Answer▾

Give brief meaning of the following terms.

Trading account:

Explanation

Trading account is created for a particular period of time to know the trading activity and their results of the business. The transaction which is direct relation to the good dealt in by the business are recorded under the trading accounts.

Items Which Are Appeared in the Trading Accounts

Question 128

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Write in Short

Short Answer▾

State the two types of shares issued by the limited company.

Explanation

Equity share capital and preference share capital

The capital of the company is divided into different units of fixed amount. These units are called as Shares. The share capitals can be further classified as equity shares and preference shares.

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