IGCSE Accounting Paper-1: Specimen Questions with Answers 248 - 250 of 338

Question number: 248

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One Liner Question▾

Write in Brief

At what figure the cash at bank would appear in the balance sheet of Shri Ram on 31 October 2019. Name the section in which it would appear. ________ (Marks 2)

Explanation

The Cash at bank would appear at the figure of balance C/D of the bank column of the cash book on 31 October 2019 i. e. at 6120.

Further, the cash at bank is shown under ‘Current Assets’ on the Assets side of the balance sheet.

Question number: 249

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MCQ▾

Question

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 number: 250

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One Liner Question▾

Write in Brief

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

________. (Marks-1)

Explanation

Stationery

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