IGCSE Accounting Paper-1: Specimen Questions with Answers 212 - 215 of 338
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Passage
The following errors were found out after preparing the trial balance of the Mathew as on 31 - 03 - 2015
- Purchases $ 5000 from Sheethal wrongly entered in the sales book.
- Goods taken by the proprietor $ 1500 not recorded in the books at all.
- $ 5200 paid for the purchase of furniture was charged to office account.
Question 212 (1 of 3 Based on Passage)
Describe in Detail
Essay▾From the following table put a tick mark (√) under the correct heading to show how
Correcting each of the above errors would change the profit for the year.
| Increase | Decrease | No effects | |
| Error 1 | |||
| Error 2 | |||
| Error 3 |
Explanation
| Increase | Decrease | No effects | |
| Error 1 | √ | ||
| Error 2 | √ | ||
| Error 3 | √ |
Question 213 (2 of 3 Based on Passage)
Describe in Detail
Essay▾ass journal entries for rectification of errors:
Mathew
Journal
| S. No | Details | Dr $ | Cr $ |
| a. | |||
| b. | |||
| c. |
Explanation
Mathew
Journal
| S. No | Details | Dr $ | Cr $ |
| a. | Purchases A/c Dr Sales A/c To Sheethal | 5000 5000 | 5000 |
| b. | Drawings A/c Dr To Purchases A/C | 1500 | 1500 |
| c. | Furniture A/c Dr To Office expenses A/c | 5200 | 5200 |
Question 214 (3 of 3 Based on Passage)
Explanation
Error not disclosed by trial balance:
- Errors of complete omission
- Errors in the books of original entry
- Errors of principle
- Compensating errors
- Errors of posting to wrong account in the right side with correct amount.
Question 215
Question
MCQ▾Mahira has the following Assets and Liabilities-
| $ | |
| Machinery | 18000 |
| Inventory | 12000 |
| Receivables | 7000 |
| Payables | 11200 |
| Cash | 6000 |
She has invested fresh capital $ 5000 in the business. What is her new capital now?
Choices
| Choice (4) | |
|---|---|
a. | $ 48000 |
b. | $ 16200 |
c. | $ 26800 |
d. | $ 21800 |