IGCSE Accounting Paper-2: Specimen Questions with Answers 150 - 151 of 189
Question number: 150
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
Assets | $ |
Fixed Assets: | |
Machinery at Cost ________ | |
Less: Accumulated Depreciation ________ | ________ |
Explanation
Extract 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:
$ | |
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
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
Date | Dr $ | Cr $ | |
2020 Jan |
Explanation
Pihu
Journal
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.