IGCSE Accounting Paper-1: Specimen Questions with Answers 250 - 252 of 338

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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

Question 252

Edit

Write in Short

Short Answer▾

Why is a bank reconciliation statement prepared? State any two reasons. (Marks-1)

Explanation

  • Bank Reconciliation Statement is prepared to reconcile the bank balances shown by cash book and pass book.
  • Two reasons for preparing a BRS may be-
    • To detect and prevent fraud and errors in accounting.
    • To identify any undue delay in clearance of cheque.

A comparison of the cash book and the bank statement revealed the following.

A Comparison of the Cash Book and the Bank Statement Revealed
$
(i) Interest Credited by the bank but not yet recorded in the cash book300
(ii) Bank Charges debited by the bank but not recorded in the cash book10
(iii) Cheque from Abhinandan deposited in the bank but not yet collected by the bank400
(iv) Cheque paid to Shaurya not yet presented for Payment300
(v) Cheque from Zara dishonoured550
(vi) Debit side of Cash book was undercast200

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