A-AS Level (CIE) Accounting Paper-2: Specimen Questions with Answers 49 - 50 of 53
Passage
Following is the trial balance of Joan՚s ltd.
Particulars | Debit | Credit |
Stock as on 01 - 04 - 2016 | 2,00, 000 | |
Purchases and sales | 22,00, 000 | 35,00, 000 |
Bills receivables | 50,000 | |
Returns | 1,00, 000 | 50,000 |
Carriage inwards | 50,000 | |
Debtors and creditors | 2,00, 000 | 4,00, 000 |
Carriage outwards | 40,000 | |
Discounts | 5,000 | 5,000 |
Salaries and wages | 2,20, 000 | |
Insurance | 60,000 | |
Rent | 60,000 | |
Wages and salaries | 80,000 | |
Bad debts | 10,000 | |
Furniture | 4,00, 000 | |
Brijesh՚s capital | 5,00, 000 | |
Brijesh՚s Drawing | 70,000 | |
Loose tools | 1,00, 000 | |
Printing and stationary | 30,000 | |
Advertising | 50,000 | |
Cash in hand | 45,000 | |
Cash at bank | 2,00, 000 | |
Petty cash | 5,000 | |
Machinery | 3,00, 000 | |
Commission | 10,000 | 30,000 |
Total | 44,85, 000 | 44,85, 000 |
Adjustments:
- Stock on 31st March was valued at cost price $ 4,20, 000 and market price $ 4,00, 000.
- Depreciate furniture@10% p. a. and machinery@20% p. a. on reducing balance method.
- Rent of $ 5000 was paid in advance
- Salaries and wages due but not paid $ 30,000
- Make a provision for doubtful debts@5% on debtors
- Commission receivable $ 5,000
Question 49 (1 of 3 Based on Passage)
Explanation
Trading account for the year ended 31st March 2017
Particulars | Amount ($) | Amount ($) | Particulars | Amount ($) | Amount ($) | |
Opening Stock | Sales | 35,00, 000 | ||||
Finished goods | 2,00, 000 | Less: Sales return | 1,00, 000 | 3,40, 000 | ||
Purchases | 22,00, 000 | |||||
Less: Purchase returns | 50,000 | 21,50, 000 | ||||
Carriage inwards | 50,000 | Closing Stock | ||||
Wages and salaries | 80,000 | Finished Goods | 4,00, 000 | |||
Gross Profit c/d | 13,20, 000 | |||||
38,00, 000 | 38,00, 000 |
Question 50 (2 of 3 Based on Passage)
Explanation
Profit and Loss account for the year ended 31st March 2017
Particulars | Amount ($) | Amount ($) | Particulars | Amount ($) | Amount ($) |
Administrative expenses: | Gross Profit b/d | 13,20, 000 | |||
Salaries and wages Add: not paid | 2,20, 000 30,000 | 2,50, 000 | Discount received | 5,000 | |
Depreciation on Furniture | 40,000 | Commission received Add: receivable | 30,000 5,000 | 35,000 | |
Depreciation on Machinery | 60,000 | ||||
Insurance | 60,000 | ||||
Rent Less: Paid in advance | 60,000 5,000 | 55,000 | |||
Printing and Stationery | 30,000 | ||||
Selling and Distribution expenses: | |||||
Advertising | 50,000 | ||||
Carriage outwards | 40,000 | ||||
Discounts | 5,000 | ||||
Bad debts | 10,000 | ||||
Commission | 10,000 | ||||
Provision for doubtful debts | 10,000 | ||||
Net profit | 740,000 | ||||
13,60, 000 | 13,60, 000 |