IGCSE Accounting Paper-2: Specimen Questions with Answers 153 - 153 of 189

Passage

Pihu Jaiswal opened a laptop shop on 1 Jan 2020 with the following assets:

Pihu Jaiswal opened a laptop shop on 1 Jan 2020 Pihu Jaiswal opened a laptop shop on 1 Jan 2020
$
Freehold shop premises45000
Stock of laptop10000
Cash (paid into a business bank account)4000

Pihu obtained a loan of $12000 from her friend, Komal on the same date and paid this into the bank account.

Question 153 (4 of 5 Based on Passage)

Edit

Write in Short

Short Answer▾

Make the rectification entries in Pihu’s Journal to correct each of the above errors.

(Marks 8)

Pihu

Journal

Pihu’s Journal to correct each of the above errors. Pihu’s Journal to correct each of the above errors.
DateDr$Cr$
2020 Jan

Explanation

Pihu

Journal

Pihu’s Journal to correct each of the above errors. Pihu’s Journal to correct each of the above errors.
DateDr$Cr$
2020 Jan (I)Laptop4000
Purchases4000
(II)Rohan3000
Rehan3000
(III)Sales180
Sanyukta180
(IV)Shop fitting8500
Gautam Supplies8500

Explanation: (I) Laptop is an Asset here. To record increase in this assets, Laptop A/c will be debited. Purchases A/c was previously debited, so to nullify this effect, it would be credited.

(II) Rehan is the actual supplier. So, Rehan’s A/c would be credited. To nullify the credit entry in Rohan’s A/c, Rohan’s A/c would be debited.

(III) Normally, in a credit sales entry, Customer’s A/c is debited while the Sales A/c is credited. Since, the amount was overstated, the entry would be reversed to rectify this error.

(IV) Rectification entry for omission error is the same as normal entry.

Choose Paper