A-AS Level (CIE) Accounting Paper-2: Specimen Questions with Answers 49 - 50 of 53

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Passage

Following is the trial balance of Joan՚s ltd.

Following is the Trial Balance of Joan՚s Ltd
ParticularsDebitCredit
Stock as on 01 - 04 - 20162,00, 000
Purchases and sales22,00, 00035,00, 000
Bills receivables50,000
Returns1,00, 00050,000
Carriage inwards50,000
Debtors and creditors2,00, 0004,00, 000
Carriage outwards40,000
Discounts5,0005,000
Salaries and wages2,20, 000
Insurance60,000
Rent60,000
Wages and salaries80,000
Bad debts10,000
Furniture4,00, 000
Brijesh՚s capital5,00, 000
Brijesh՚s Drawing70,000
Loose tools1,00, 000
Printing and stationary30,000
Advertising50,000
Cash in hand45,000
Cash at bank2,00, 000
Petty cash5,000
Machinery3,00, 000
Commission10,00030,000
Total44,85, 00044,85, 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)

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Short Answer▾

Prepare Balance sheet as on 31st March 2017

Explanation

Balance Sheet as on 31st March 2017

Balance Sheet as on 31st March 2017
LiabilitiesAmount ($)Amount ($)AssetsAmount ($)Amount ($)
Joan՚s Capital5,00, 000Fixed Assets:
Less: Drawings70,000Furniture4,00, 000
Add: Net profit of the year7,40, 000Less: Depreciation40,0003,60, 000
11,70, 000
Machinery3,00, 000
Less: Depreciation60,0002,40, 000
1,00, 000
Long term Liabilities:
Current liabilities:Current assets:
Stocks4,00, 000
Sundry debtors2,00, 000
Less: provision for doubtful debts10,0001,90, 000
Bills receivables50,000
Cash in hand45,000
Cash at bank2,00, 000
Petty cash5,000
Prepaid rent5,000
Commission receivables5,000
Sundry Creditors4,00, 000
Outstanding salaries and wages30,000
16,00, 00016,00, 000

Question 50 (2 of 3 Based on Passage)

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Write in Short

Short Answer▾

Prepare profit and loss account for the year ended 31st March 2017

Explanation

Profit and Loss account for the year ended 31st March 2017

Profit and Loss Account for the Year Ended 31st March 2017
ParticularsAmount ($)Amount ($)ParticularsAmount ($)Amount ($)
Administrative expenses:Gross Profit b/d13,20, 000
Salaries and wages

Add: not paid

2,20, 000

30,000

2,50, 000Discount received5,000
Depreciation on Furniture40,000Commission received

Add: receivable

30,000

5,000

35,000
Depreciation on Machinery60,000
Insurance60,000
Rent

Less: Paid in advance

60,000

5,000

55,000
Printing and Stationery30,000
Selling and Distribution expenses:
Advertising50,000
Carriage outwards40,000
Discounts5,000
Bad debts10,000
Commission10,000
Provision for doubtful debts10,000
Net profit740,000
13,60, 00013,60, 000

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