IGCSE Accounting Paper-1: Specimen Questions with Answers 14 - 16 of 338

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Question 14

Question

MCQ▾

How will partners interest on capital be shown in the partnership՚s financial statements?

Choices

Choice (4)

a.

Credit appropriation account

b.

Debit income statement

c.

Debit appropriation account

d.

Credit income statement

Answer

c.

Explanation

Interest on capital will be allowed to the partners when the partnership deed provides so. Profit and Loss appropriation account is simple extension of the profit and loss account. Interest on capital will be shown in the debit of the appropriation account.

Question 15

Question

MCQ▾

What amount should be debited in the Sushan account when sales to Sushan $ 152 posted to her account as $ 125?

Choices

Choice (4)

a.

$ 152

b.

$ 27

c.

$ 72

d.

$ 162

Answer

b.

Explanation

Under casting is error which was posted with less amount compare to the original amount. Sushan account is debited with $ 125 instead of $ 152 which shows that $ 27 is short debit.

Question 16

Question

MCQ▾

Who perform analyzing financial information of the company?

Choices

Choice (4)

a.

Lawyer

b.

Accountant

c.

Cashier

d.

Shareholder

Answer

b.

Explanation

An accountant performs the task of analyzing the financial information of the company.

They verify each and every transaction involved in the day to day activity of the company during the accounting year.

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