IGCSE Accounting Paper-1: Specimen Questions with Answers 221 - 223 of 338

Passage

Kamran is a trader who maintains a three column cash book.

He had the following transactions for November 2019.

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Nov 22: Withdrawn cash, $250 for personal use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 $2000 was deposited into the bank

Question 221 (3 of 5 Based on Passage)

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Short Answer▾

Which type of entries are those on 16th and 30th November? (Marks 1)

Contra Entries

Explanation

  • A Contra Entry is an entry for a transaction that affects both cash and bank A/c. If one of the accounts is debited, the other will be credited and vice versa. Examples- Cash deposited into bank or Cash withdrawn from bank.
  • On 30 Nov, Kamran’s bank statement showed a bank balance of $220. He compared the cash book with the bank statement found that transactions relating to 7,12 and 30 November had not been recorded by the bank

Question 222 (4 of 5 Based on Passage)

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Short Answer▾

State any two differences between Cash A/c and Cash book (Marks 2)

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 223 (5 of 5 Based on Passage)

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Short Answer▾

Prepare a BRS at 30 November 2019. (Marks 5)

Kamran

Bank Reconciliation Statement at 30 November 2019

Explanation

Kamran

Bank Reconciliation Statement at 30 November 2019

Bank Reconciliation Statement at 30 November 2019Bank Reconciliation Statement at 30 November 2019
$$
Bank Balance as per the cash book3779
Add: Cheques issued to Rabia but not yet presented291
4070
Less: Amounts not credited-
Cheque from Abrar not yet collected(400)
Cash deposited but not yet credited(3450)(3850)
Bank balance as per the bank statement220

Kamran’s ledger is divided into a sales ledger, a purchases ledger and a general ledger.

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