IGCSE Accounting Paper-2: Specimen Questions with Answers 150 - 151 of 189

Question number: 150

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Short Answer Question▾

Write in Short

Complete the extract below by filling the respective amounts in the blanks to show how Machinery appears in Suman’s Balance Sheet as at 30 June 2020. (Marks 3)

Extract from Balance Sheet as at 30 June 2020

Extract from Balance Sheet as at 30 June 2020Extract from Balance Sheet as at 30 June 2020

Assets

$

Fixed Assets:

Machinery at Cost ________

Less: Accumulated Depreciation ________

________

Explanation

Extract from Balance Sheet as at 30 June 2020

Extract from Balance Sheet as at 30 June 2020Extract from Balance Sheet as at 30 June 2020

Assets

$

Fixed Assets:

Machinery at Cost 120000

Less: Accumulated Depreciation 30150

89850

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 premises

45000

Stock of laptop

10000

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 number: 151 (1 of 5 Based on Passage) Show Passage

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Short Answer Question▾

Write in Short

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.

Date

Dr

$

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.

Date

Dr

$

Cr

$

2020

Jan (I)

Laptop

4000

Purchases

4000

(II)

Rohan

3000

Rehan

3000

(III)

Sales

180

Sanyukta

180

(IV)

Shop fitting

8500

Gautam Supplies

8500

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.

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