CIE Accounting Paper-2: Specimen Questions 101 - 102 of 103

Passage

The following entries are found in the books of Mr. Iyer for the year ending 31.12. 2010.

Purchases £1500000, Sales £2500000, Opening stock £500000, Returns Outward £45000, Returns Inward £20000, Carriage Inwards £ 45000, Cash in hand £778000, Cash at bank £608000, Wages £24000, Printing & Stationery £45000, Discount allowed £4000, Bad debts £15000, Insurance £25000, Investments £320000, Debtors £530000, Bills receivable £200000, Postage £4000, Commission £2000, Interest £10000, Repairs £4400, Lighting Charges £5000, Telephone £ 1000, Carriage outwards £4000, Car £250000, Interest received £35000, Discount received £4000, Creditors £1250000, Bills Payable £60400, Capital £1000000

He also stated the below mentioned adjustments, which are to be taken into consideration.

(i) Further bad debts £10000, Provision for doubtful [email protected] % and discount on debtors £5000

(ii) Interest is received on [email protected]%

(iii) Depreciation on car [email protected]%

(iv) Interest and wages was outstanding at £2000 and £1000 respectively

(v) Closing stock was valued at £325000

Question number: 101 (3 of 5 Based on Passage) Show Passage

Essay Question▾

Describe in Detail

What is the Gross profit of Mr. Iyer for the year ending 31.12. 2010?

Explanation

The Gross profit of Mr. Iyer for the year ending 31.12. 2010 is £775000 Trading Account of Mr. Iyer for the year ended 31.12. 2010

calculate Trading Account of Mr. Iyer for the year ended 31.12. 2010

Trading Account of Mr. Iyer for the year ended 31.12. 2010

calculate Trading Account of Mr. Iyer for the year ended 31.12. 2010

Trading Account of Mr. Iyer for the year ended 31.12. 2010

calculate Trading Account of Mr. Iyer for the year ended 31.12. 2010

PARTICULARS

AMOUNT

AMOUT

PARTICULARS

AMOUNT

AMOUNT

To Opening Stock

500000

By Sales

2500000

To Purchases

1500000

Less: Returns Inwards

20000

2480000

Less: Returns Outwards

45000

1455000

By Closing Stock

325000

To Carriage inwards

45000

To Wages

24000

Add: O/S Wages

1000

25000

To Lighting Charges

5000

To Gross Profit

775000

2805000

2805000

Question number: 102 (4 of 5 Based on Passage) Show Passage

Essay Question▾

Describe in Detail

Help Mr. Iyer in preparing the Final balance sheet as on 31.12. 2010?

Explanation

Balance sheet of Mr. Iyer as on 31.12. 2010

Table of Balance sheet of Mr. Iyer as on 31.12. 2010

LIABILITIES

AMOUNT

AMOUNT

ASSETS

AMOUNT

AMOUNT

Capital

1000000

Cash in hand

778000

Add: Net profit

660100

1660100

Cash at bank

608000

Creditors

1250000

Bills receivable

200000

Bills Payable

60400

Clsoing stock

325000

O/S Wages

1000

Car

250000

O/S Interest

2000

Less: [email protected]%

12500

237500

Investments

320000

Add: [email protected]%

16000

336000

Debtors

530000

Less: Bad debts

10000

520000

Less: Provision for doubtful [email protected]%

26000

494000

Less: Discount on debtors

5000

489000

2973500

2973500

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