IGCSE Accounting Paper-2: Specimen Questions with Answers 8 - 11 of 189

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Passage

Mr. Tendulkar՚s trial balance showed a suspense A/C of £ 32600 on the debit side. On rechecking the books, the following errors were discovered:

(i) An amount of £ 10000 received from Mr. Ganguly was posted to the debit side of Mr. Ashwin as £ 12000.

(ii) Salary paid to driver £ 4000 was debited to his personal A/C as £ 2400

(iii) Drawings of £ 2000 was credited to sales A/C as £ 3200

(iv) An amount of £ 6000 accounting for depreciation on car was posted as £ 600

(v) Sale of an old bat £ 20000 was credited to sales A/C as £ 12000

Question 8 (3 of 5 Based on Passage)

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Write in Short

Short Answer▾

What does Mr. Tendulkar mean by Suspense A/C?

Explanation

In order to avoid the delay in the preparation of final statements such as the profit & loss A/C and the Balance sheet, the amount of difference in the trial balance is put into a temporary A/C called suspense A/C.

Question 9 (4 of 5 Based on Passage)

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Describe in Detail

Essay▾

State the basis on which Mr. Tendulkar classifies the above said errors?

Explanation

Mr. Tendulkar classifies the above errors as follows:

(i) Error of Commission

(ii) Error of Omission (Partial)

(iii) Error of Principle

(iv) Error of Commission

(v) Error of Omission (Partial)

Question 10 (5 of 5 Based on Passage)

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Describe in Detail

Essay▾

What are the types of errors that usually occur in accounting?

Explanation

The errors can be classified into 4 types

  • Error of Commission
  • Error of omission
  • Error of complete omission
  • Error of partial omission
  • Error of Principle
  • Compensating Errors

Passage

ABC & Co. started business on 1st January 2014 with a capital of £ 240000.

During the month, the following transactions took place:

2nd Bought goods from XYZ on credit £ 60000

5th Sold goods to MNO £ 75000

5th Cash Purchases £ 75000

8th Cash Sales £ 45000

9th Goods returned to XYZ £ 6000

15th Bought Furniture £ 45000

16th Cash paid to XYZ £ 36000

16th Loan taken from Mr. K £ 90000

17th Goods Returned by MNO £ 9000

20th ABC takes stock for personal use £ 9000

21st Cash received from MNO £ 36000

25th Salary paid £ 15000

28th Purchase of Stationery £ 3000

29th Amount paid to Mr. K on loan Account £ 54000

30th Interest received £ 12000

Question 11 (1 of 5 Based on Passage)

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Describe in Detail

Essay▾

From the above details prepare the cash ledger A/C

Explanation

Cash Ledger a/C in the Books of ABC & Co
DATEPARTICUALRSJFAMOUNT

£

DATEPARTICUALRSJFAMOUNT

£

01.01. 2014To Capital A/C24000005.01. 2014By goods A/c75000
08.01. 2014To stock A/C4500015.01. 2014By furniture A/C45000
16.01. 2014To XYZ A/C3600021.01. 2014By MNO A/C36000
16.01. 2014To loan from Mr. K A/C9000025.01. 2014By Salaries A/C15000
30.01. 2014To Interest A/C1200028.01. 2014By Stationeries A/C3000
29.01. 2014By loan from Mr. K A/C54000
31.01. 2014By Balance C/D195000
423000423000
01.02. 2014To balance B/D195000

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