CIE Accounting Paper-1: Specimen Questions with Answers 193 - 195 of 214

Passage

Rahul and Husain are agreed to form the partnership from 1 April 2014 to sell Furnitures.

Question number: 193 (2 of 3 Based on Passage) Show Passage

Short Answer Question▾

Write in Short

State the rules applicable in the absence of partnership deed.

Explanation

  1. Profit sharing ratio
  2. Interest on Loan
  3. Interest on Capital
  4. Salary to partners
  5. Interest on Drawings.

Question number: 194 (3 of 3 Based on Passage) Show Passage

Short Answer Question▾

Write in Short

Partners in a partnership firm are charged with interest on drawings at 12 % p. a during the year ended 31st December 2015, a partner drew as follows:

$

Feb 1 2500

May 1 3500

June 30 2000

October 31 5000

December 31 4500

Calculate the interest chargeable to the partner?

Calculation of interest on drawings

calculate the given table and find out the interest on drawings

Date of Drawings

Amount

Months upto 31st December 2015

Products

$

Explanation

$775

finding a value of Date of Drawings, Amount, Months upto 31st December 2015 and Products $

showing a given table in Date of Drawings, Amount, Months upto 31st December 2015 and Products $

Date of Drawings

Amount

Months upto 31st December 2015

Products

$

01 - 02 - 2015

2500

11

27500

01 - 05 - 2015

3500

8

28000

30 - 06 - 2015

2000

6

12000

31 - 10 - 2015

5000

2

10000

31 - 12 - 2015

4500

0

0

Total

77500

= $775

Passage

Mr. Shah have the following transaction in the month of April 2015:

Mr. Shah have the following transaction in the month of April 2015

shows given table is represent aplril

April

1

Shah started business with cash $20000

2

Cash purchases $5000

3

Goods sold to Naresh on credit $4500

4

Paid carriage $1000

5

Purchases by cheque $6000

Question number: 195 (1 of 4 Based on Passage) Show Passage

Essay Question▾

Describe in Detail

In the table below, show how the transaction on 2 April should be posted to the ledger.

The ledger account of Mr. Shah

finding a Dr $, Cr $

Name of Account

Dr

$

Cr

$

Explanation

Name of Account, Dr $, Cr $

finding a Dr $, Cr $

Name of Account

Dr

$

Cr

$

Purchases

5000

The cash purchase only accepted and not the credit purchases. The purchases always entered in the debit side of the ledger account. The credit purchase will appear in the purchase book of the company.