IGCSE Accounting Paper-1: Specimen Questions with Answers 251 - 252 of 338

Question number: 251

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Essay Question▾

Describe in Detail

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

Make the rectification entries for each errorMake the rectification entries for each error

Errors

Rectification Entries

Debit

Credit

A/c

$

A/c

$

1.

Repair Expenses of machinery debited to Machinery A/c

Repair Expenses

90

Machinery

90

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 errorMake the rectification entries for each error

Errors

Rectification Entries

Debit

Credit

A/c

$

A/c

$

1.

Repair Expenses of machinery debited to Machinery A/c

Repair Expenses

90

Machinery

90

2.

Direct Wages, $100 debited to Indirect Wages A/c

Direct Wages

100

Indirect Wages

100

3.

Purchases Journal overcast by $2000

Suspense

2000

Purchases

2000

4.

Sales $690 credited to Sales A/c as $960

Sales

270

Suspense

270

Question number: 252

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Short Answer Question▾

Write in Short

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 A comparison of the cash book and the bank statement revealed

$

(i) Interest Credited by the bank but not yet recorded in the cash book

300

(ii) Bank Charges debited by the bank but not recorded in the cash book

10

(iii) Cheque from Abhinandan deposited in the bank but not yet collected by the bank

400

(iv) Cheque paid to Shaurya not yet presented for Payment

300

(v) Cheque from Zara dishonoured

550

(vi) Debit side of Cash book was undercast

200

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