CIE Accounting Paper-1: Specimen Questions 158 - 159 of 214

Question number: 158

MCQ▾

Question

The following information is available in respect of a sole trader.

Statement of affairs of the business 31 - 12 - 2015

shows in table of Opening capital can be found by preparing the statement of affairs of the business

$

Net Profit for the year

Drawings during the year

Capital at the end of year

Capital introduced during the year

230000

180000

900000

50000

Find out the capital at the beginning of the year

Choices

Choice (4) Response
a.

$100000

b.

$600000

c.

$800000

d.

$400000

Answer

c.

Explanation

Opening capital can be found by preparing the statement of affairs of the business. The statement of affairs is prepared as follow:

Format of statement of the affairs of the business

showing a value in doller in a given table

$

Closing Capital

Add: Drawings xxxxx

Less: Additional Capital introduced xxxxx

Opening Capital xxxxx

________

Net Profit

Xxxx

xxxx

Question number: 159

Short Answer Question▾

Write in Short

From the following table put a tick mark under the suitable headings:

List of current assets and liabilities

Finding List of current assets and liabilities

Particulars

Current Assets

Current Liabilities

Bank Over draft

Cash at Bank

Short term bank loan

Explanation

calculate Current assets and current Liabilities

shows List of current assets and liabilities

Particulars

Current Assets

Current Liabilities

Bank Over draft

Cash at Bank

Short term bank loan

Current assets and current liabilities are ascertained according to the nature of occurrence within a year. Bank overdrafts and short term bank loan are the current liabilities whereas Cash at Bank is the current asset.

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