IGCSE Accounting Paper-1: Specimen Questions with Answers 249 - 251 of 338

Question 249

Question

MCQ▾

According to accrual concept of accounting, financial or business transaction is recorded (Marks 1)

Choices

Choice (4)

a.

When cash is received or paid

b.

When profit is computed

c.

When transaction occurs

d.

When balance sheet is prepared

Answer

c.

Explanation

  • The concept in accrual basis of accounting is that accounting transactions should be recorded in the accounting periods when they actually occur rather than in the period when there are cash flows associated with them.
  • When transactions are recorded in their accrual period, it affects the profits of that accounting year alone and not any other period.

Question 250

Edit

Write in Brief

One Liner▾

Name the ledger account in which the transaction of 17 - 10 - 2019 will be recorded.

________. (Marks-1)

Explanation

Stationery

Question 251

Describe in Detail

Essay▾

Make the rectification entries for each error. One has already been done for you. (Marks 6)

Make the Rectification Entries for Each Error
ErrorsRectification Entries
DebitCredit
A/c$A/c$
1.Repair Expenses of machinery debited to Machinery A/cRepair Expenses90Machinery90
2.Direct Wages, $ 100 debited to Indirect Wages A/c
3.Purchases Journal overcast by $ 2000
4.Sales $ 960 credited to Sales A/c as $ 690

Explanation

Make the Rectification Entries for Each Error
ErrorsRectification Entries
DebitCredit
A/c$A/c$
1.Repair Expenses of machinery debited to Machinery A/cRepair Expenses90Machinery90
2.Direct Wages, $ 100 debited to Indirect Wages A/cDirect Wages100Indirect Wages100
3.Purchases Journal overcast by $ 2000Suspense2000Purchases2000
4.Sales $ 690 credited to Sales A/c as $ 960Sales270Suspense270

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