accounts Mcq's

[adnanj]

plz help in http://www.xtremepapers.me/CIE/Cambridg ... 3_qp_1.pdf

mcq 15

 

[adnanj]

anyone???? :/

 

[123add1]

i think 5000

 

[adnanj]

i think 5000

yeah correct.. but how??? :unknown:

 

[rafae]

Okay, so this is how to do it:

The old machine he had has a net book value of $6000 right?
But, he sells it for $5000 so he has a $1000 loss.
Loss is debited to P&L as it is an expense.

Secondly, depreciation is charged on his NEW machine at 20% so 20% x $20000= $4000
This is $4000 depreciation which will also be debited to thie P&L account.

Therefore, the total amount debited to your P&L is $4000 [Depreciation] + $1000 [Loss on disposal]
=$5000, option D.

Hope I helped

 

[adnanj]

oh got it now thanks a lot.. i was missing the depreciation part..

 

[rafae]

Np. Hows your tiyari?
I really get confused in two types of MCQ's.
The ones where they ask how many entries will go in the general ledger, and secondly the trial balance ones, where they ask which errors will affect a trial balance.

 

[adnanj]

Np. Hows your tiyari?
I really get confused in two types of MCQ's.
The ones where they ask how many entries will go in the general ledger, and secondly the trial balance ones, where they ask which errors will affect a trial balance.

preparation is good.. and yeah the trial balance mcqs r difficult to understand though they r easy