CIE Accounting Paper-1: Specimen Questions 78 - 79 of 214

Question number: 78

Short Answer Question▾

Write in Short

From the following data calculate sales made during the year by preparing the Memorandum Trading Account.

$

Stock on 1 - 1-2015 50000

Stock on 31 - 12 - 2015 40000

Purchases during the year 2015 500000

Rate of gross profit on sale 20%

Wages paid 20000

Explanation

Memorandum Trading account for the year ending 31 - 12 - 2015

Memorandum trading account for the year ending 31 - 12 - 2015

Calculate values in Memorandum trading account for the year ending 31 - 12 - 2015

Particular

$

Particular

$

To Opening stock

50000

By sales (Balancing figure)

662500

To Purchases

500000

By Closing stock

40000

To Wages

20000

To Gross profit

(530000×2080)

132500

702500

702500

Gross profit is calculated on the balance of cost of goods sold. The following formula is used in calculating the gross profit:

Costofgoodsold=Openingstock+Purchases+WagesClosingstock

=50000+500000+2000040000

=530000

Question number: 79

Short Answer Question▾

Write in Short

Give two examples of non-current (intangible) assets.

Explanation

The non-current (intangible) assets are

  • Goodwill
  • Patents
  • Trade marks.
  • Copy rights

A non-physical assets which have useful life more than one year is known as intangible assets. Hence goodwill, patents, trademarks and copy rights are example of intangible assets.

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