CIE Accounting Paper-1: Specimen Questions 199 - 201 of 214

Passage

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

finding a table value of the doller values

shows given values of the doller

Particulars

$

Sales

150000

Sales returns

20000

Opening stock

30000

Purchases

70000

Purchases returns

10000

Closing stock

5000

Question number: 199 (1 of 2 Based on Passage) Show Passage

Essay Question▾

Describe in Detail

Calculate Aiona’s Cost of goods sold:

Explanation

$85000

Calculation of Cost of goods sold:

Costofgoodssold=Openingstock+NetPurchasesClosingstock

Costofgoodssold=30000+(7000010000)5000

=30000+600005000

=900005000

=85000

Question number: 200 (2 of 2 Based on Passage) Show Passage

Essay Question▾

Describe in Detail

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: 201

Short Answer Question▾

Write in Short

From the following table tick the correct heading under which the item is income or expense:

The item of income or expense

find out The item of income or expense

Income

Expense

Outstanding expenses

Rates and insurance Premium

Bank interest

Explanation

finding a income and expense

shows income and expense

Income

Expense

Outstanding expenses

Rates and insurance Premium

Bank interest

An income and expenditure account is similar in form of the Profit and Loss account of a business account. The revenue incomes for the period are shown on the credit side of the income and expenditure account. Hence, outstanding expenses and rates and insurance premium are expenses in nature and bank interest is income of the particular period.

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