CIE Accounting Paper-1: Specimen Questions with Answers 78 - 79 of 214

Question number: 78

Short Answer Question▾

Write in Short

From the following data calculate sales made during the year by preparing the Memorandum Trading Account.

$

Stock on 1 - 1-2015 50000

Stock on 31 - 12 - 2015 40000

Purchases during the year 2015 500000

Rate of gross profit on sale 20%

Wages paid 20000

Explanation

Memorandum Trading account for the year ending 31 - 12 - 2015

Memorandum trading account for the year ending 31 - 12 - 2015

Calculate values in Memorandum trading account for the year ending 31 - 12 - 2015

Particular

$

Particular

$

To Opening stock

50000

By sales (Balancing figure)

662500

To Purchases

500000

By Closing stock

40000

To Wages

20000

To Gross profit

132500

702500

702500

Gross profit is calculated on the balance of cost of goods sold. The following formula is used in calculating the gross profit:

Question number: 79

Short Answer Question▾

Write in Short

Give two examples of non-current (intangible) assets.

Explanation

The non-current (intangible) assets are

  • Goodwill
  • Patents
  • Trade marks.
  • Copy rights

A non-physical assets which have useful life more than one year is known as intangible assets. Hence goodwill, patents, trademarks and copy rights are example of intangible assets.