IGCSE Accounting Paper-1: Specimen Questions with Answers 258 - 260 of 338

Passage

Shri Ram maintains a columnar Petty Cash Book on the imprest system. The imprest amount is $10. From the following information, show how his petty cash book would appear for the month of October 2019.

Shri Ram maintains a columnar Petty Cash Book on the imprest system. Shri Ram maintains a columnar Petty Cash Book on the imprest system.

1 - 10 - 2019

Balance in hand

$2

Received Cash to make up the imprest

Bought Printing Papers

$1

8 - 10 - 2019

Miscellaneous Expenses

$1

10 - 10 - 2019

Repairs

$2

13 - 10 - 2019

Travelling

$1

17 - 10 - 2019

Stamps

$1

30 - 10 - 2019

Miscellaneous Expenses

$2

Repairs

$1

Question number: 258 (2 of 2 Based on Passage) Show Passage

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One Liner Question▾

Write in Brief

State the amount required to restore the imprest on 1stOctober 2019

________ (Marks 1)

Explanation

The imprest amount is $10 while the opening balance of petty cash is $2. So Shri Ram needs to restore the imprest.

Question number: 259

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MCQ▾

Question

Mr. Vishal started business with $1000. He purchased goods for $400, furniture for $200 and plant & machinery of $300 and $100 remains in hand. What would be the assets of the business?

Choices

Choice (4)

a.

$1900

b.

$2000

c.

$900

d.

$1000

Answer

d.

Explanation

Question number: 260

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Short Answer Question▾

Write in Short

(I) State one merit of sole proprietorship form of business.

________

(II) State one demerit of company form of business.

________

Explanation

  • Sole Profit Earner: The sole proprietor is the only owner of his business. Whatever profit the business earns goes to his pocket only. He does not share the profits with anybody. This motivates people to take this form of business at the first.

  • Many Legal Restrictions: It is not easy to open a company form of business. One has to fulfil many legal requirements to register a company. This takes a lot of time and effort.

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