IGCSE Accounting Paper-1: Specimen Questions with Answers 129 - 130 of 338

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Question 129

Question

MCQ▾

The credit side of a business՚s cash book includes the following payments.

Credit Side of a Businesss Cash Book
$
cash paid for fuel for proprietor՚s motor car for business purposes600
cash taken by proprietor for personal use6000
cash taken by proprietor to purchase private stationery500

How much will be recorded as proprietor՚s drawings?

Choices

Choice (4)

a.

$ 6500

b.

$ 6000

c.

$ 6600

d.

$ 500

Answer

a.

Explanation

Drawing is the account created when the proprietor used business money for the personal uses or private purposes. Hence

Question 130

Write in Short

Short Answer▾

Identify the nature of account for the following transactions:

Identify the Nature of Account
TransactionAccounts AffectedNature of Account
Purchased goods for cashPurchases A/c

To Cash

Paid cash to RoserRoser A/c

To Cash A/c

Paid rent to landlordRent A/c

To Cash A/c

Explanation

Shows the Nature of Account
TransactionAccounts AffectedNature of Account
Purchased goods for cashPurchases A/c

To Cash

Real A/c

Real A/c

Paid cash to RoserRoser A/c

To Cash A/c

Personal A/c

Real A/c

Paid rent to landlordRent 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

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