IGCSE Accounting Paper-1: Specimen Questions with Answers 147 - 148 of 338

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Passage

Kiran has a trading business and pays the repair expenses of running a motor van. At 1st May 2015 he had accrued repair expenses of $ 300. For the year ended 30st April 2015 he paid repair expenses of $ 3400 by cheque and at 30 April 2015 he had an unpaid bill for repair of $ 500.

Question 147 (2 of 2 Based on Passage)

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Write in Short

Short Answer▾

Write up Kiran՚s rent expenses account for the year ended 30st April 2015. Show the transfer to the income statement for the year and any balance carried down at 1 May 2015.

Explanation

Income statement as $ 3600 and Balance carried down at 1 May 2015 is $ 500

Repair Expenses Account of Kiran as on 30th April 2015
Repair Expenses Account
DateParticularAmoun $DateParticularAmount $
1st May 2015Balance b/d300
30th April 2015Bank

Balanced c/d

3400

500

3900

30th April 2015Income Statement (Balancing figure)3600

3900

Balance b/d500

Question 148

Question

MCQ▾

Zenith owed Ali $ 600. Zenith was only able to pay Ali $ 200. Ahmed wrote the balance off as a bad debt.

Which entries record this in Ahmed՚s ledger?

Choices

Choice (4)

a.

Journal Entry in the Ahmeds Ledger
Account to be debited $Account to be credited $
Bad debts 600Bank 200

Zenith 400

b.

Showing Account to Debited in a Given Table
Account to be debited $Account to be credited $
Zenith 400

Bank 200

Bad debts 600

c.

Showing in Journal Entry in the Ahmeds Ledger
Account to be debited $Account to be credited $
Bad debts 400

Bank 200

Zenith 600

d.

Account to Debited in a Given Table
Account to be debited $Account to be credited $
Bad debts 400

Zenith 200

Bank 600

Answer

c.

Explanation

The bad debt refers to the trade accounts which are not receivable during the year. The trade account receivable is also known as accounts receivable. The amount receivable debts which became bad are known as bad debts.

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