IGCSE Accounting Paper-1: Specimen Questions with Answers 173 - 175 of 338

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Question 173

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Short Answer▾

Jasmine keeps her petty cash on the imprest system with an imprest of $ 120. She paid expenses in the month of December of $ 90.50.

(ii) How much cash was transferred to restore the imprest at 1st January?

Explanation

Usually petty cashier submits his account at the end of the period and the main cashier who examines them and hand over the cash which he spend during the specific period. Hence in the above case S 90.50 cash was transferred to restore the imprest at 1st January.

Question 174

Question

MCQ▾

A business paid $ 1800 for rent in 2015. A prepayment of $ 150 had been brought forward from 2014.

How much is charged to the Profit and Loss Account in 2015?

Choices

Choice (4)

a.

$ 1650

b.

$ 1850

c.

$ 1950

d.

$ 1800

Answer

c.

Explanation

The prepayment has to be brought forward from the previous year. During the year payment is inclusive of the previous year prepayment. Hence, the current payment $ 1800 should be added with the prepayment of previous year 2014.

Question 175

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Short Answer▾

Rectify the following errors:

Purchases book of Rahim was overcast by $ 1300

Explanation

Suspense account debit and purchase account credit with $ 1300

Rectification Effects in the Purchase Book
Nature of mistakesEffect of mistakeRectification
Overcasting of purchases bookExcess debit in Purchases A/CCredit the Purchases A/C

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