# 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

 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

 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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