CIE Accounting Paper-1: Specimen Questions 185 - 187 of 214

Passage

Aiona’s trial balance at 31st March 2015 included the following items:

perticulars item name

perticuler doller values

Particulars

$

Sales

150000

Sales returns

20000

Opening stock

30000

Purchases

70000

Purchases returns

10000

Closing stock

5000

Question number: 185 (2 of 2 Based on Passage) Show Passage

One Liner Question▾

Write in Brief

Calculate Aiona’s gross profit ratio. Show your calculation and give your answer to decimal places.

Explanation

34.62%

Grossprofitratio=GrossProfitNetsales×100

=45000130000×100

=4500000130000

=34.62%

GrossProfit=NetsalesCostofgoodssold

Netsales=SalesReturn

=15000020000

=130000

GrossProfit=13000085000

=45000

Question number: 186

One Liner Question▾

Write in Brief

Ramesh is a retailer. Complete the following table by using a (√) to specify how each item would be classified as capital expenditure or revenue expenditure:

The list of capital and revenue expenditure

find our capital and revenue expenditure

Particular

Capital expenditure

Revenue expenditure

Delivery costs

Repair costs

Installation costs

Renewal expenses

Replacement costs

Explanation

shows this table in list of capital and revenue expenditure

shows given table in find our capital and revenue expenditure

Particular

Capital expenditure

Revenue expenditure

Delivery costs

Repair costs

Installation costs

Renewal expenses

Replacement costs

Passage

Terry and Candy are partners of a firm sharing profit and loss in the ratio of 7: 5.

The Goodwill is to be valued at 2 years purchases of four years average profit which were $40000, $32000, $15000 and $13000 respectively.

Question number: 187 (1 of 2 Based on Passage) Show Passage

One Liner Question▾

Write in Brief

Find the four years average profit:

Explanation

$25000

Solution: The four years average profit is as follows:

Profit for four years:

Find the four years average profit

Find the four years average profit is 25000

I year

40000

II Year

32000

III Year

15000

IV Year

13000

Total

100000

Averageprofit=1000004

=25000

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