IGCSE Accounting Paper-1: Specimen Questions with Answers 218 - 220 of 338
Question 218
Answer
Explanation
Capital Expenditure is the expenditure on the purchase, upgradation, extension or improvement of fixed assets such as land & building, machinery, equipment etc. These expenditures are expected provide economic benefits to the business for more than one accounting period.
Passage
Kamran is a trader who maintains a three column cash book.
He had the following transactions for November 2,019.
Nov 2: Purchased goods worth $ 500 for cash.
Nov 7: Received a cheque from Abrar, $ 400 in full settlement of his debt of $ 415
Nov 12: Issued a cheque to Rabia, $ 291 for settlement of her account less 3% cash discount.
Nov 16: Deposited $ 300 into the bank
Nov 18: Sold an old furniture for cash in $ 800
Nov 22: Withdrawn cash, $ 250 for personal use
Nov 26: Cash sales, $ 320 of which $ 120 was paid directly into the bank
Nov 30. Cash in excess of $ 2,000 was deposited into the bank
Question 219 (1 of 5 Based on Passage)
Explanation
- Cash book is a book of original entry whereas Cash A/c is a ledger Account. First of all, transactions are recorded under books original entry then after that they are posted to the ledger accounts.
Further, we can have a double column or triple column (Cash column, bank column & discount Column) cash book but Cash A/c can have only one column (relating to cash alone) .
Question 220 (2 of 5 Based on Passage)
Question
MCQ▾State the ledger under which each of the following accounts would appear (Marks 4)
Choices
| Choice (4) | |
|---|---|
a. | Sales A/c |
b. | Abrar (a credit customer) |
c. | Discount Allowed A/c |
d. | Rabia (a credit supplier) |
Answer
b.Explanation
- Purchases and Trade Payables ledger
General Ledger
General Ledger
Sales and Trade Receivables Ledger