IGCSE Accounting Paper-1: Specimen Questions with Answers 149 - 151 of 214

Question number: 149

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Question

Y had a capital of $60000 throughout the year. Interest on capital is charged at 5 % p. a. Choose the interest on capital due to him.

Choices

Choice (4) Response

a.

$4000

b.

$5000

c.

$2000

d.

$3000

Answer

d.

Explanation

Interest on capital is allowed to the partner’s capital account only if the partnership agreement specifically allows at a particular rate per annum.

Question number: 150

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Question

Choose the source document from the following options?

Choices

Choice (4) Response

a.

Journal

b.

Transaction

c.

Voucher

d.

Ledger

Answer

c.

Explanation

Voucher is considered as source document of the business. Source documents are the evidences of business transaction through which we can get information about the nature of the transaction involved in the business.

Question number: 151

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Question

Which should be matched under matching concept?

Choices

Choice (4) Response

a.

Cost and revenue earned

b.

Cost and profit earned

c.

Cost and loss earned

d.

Cost and income earned

Answer

a.

Explanation

The revenue earned during the period of accounting year should be matched with the cost involved with the period in order to ascertain the profit earned during the year. Hence under matching concept cost and revenue earned are suitable in the above situation.