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

## Passage

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

 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▾

## 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:

 Particular Capital expenditure Revenue expenditure Delivery costs Repair costs Installation costs Renewal expenses Replacement costs

### Explanation

 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:

 I year 40000 II Year 32000 III Year 15000 IV Year 13000 Total 100000

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