IGCSE Accounting Paper-1: Specimen Questions with Answers 306 - 308 of 338

Passage

Iqbal is a trader whose financial year ends on 30 June. All the purchases and sales are on credit basis.

He provides the following information for the year ending 30 June 2019.

Information for the year ending 30 June 2019Information for the year ending 30 June 2019

1 July 2018-

$

Inventory

4600

Debtors

6000

30 June 2019-

5600

Debtors

During the year-

Cheque received from debtors

54300

Discount Allowed

2400

Carriage Inward

1300

Bad debts written off

250

Total Purchases

42650

On 30 June, some goods were stolen from the warehouse of Iqbal and goods worth $1300 were left. The profit mark up of Mr. Iqbal is 20%.

Question number: 306 (2 of 4 Based on Passage) Show Passage

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One Liner Question▾

Write in Brief

Calculate the sales for the year ended 30 June 2019 (Marks 6)

Explanation

Calculate the sales for the year ended 30 June 2019Calculate the sales for the year ended 30 June 2019

Sales

$

$

Cheque received from debtors

54300

Add: Discount Allowed

2400

Bad debts written off

250

Closing Debtors

5600

8250

62550

Less: Opening Debtors

(6000)

Sales

56550

Question number: 307 (3 of 4 Based on Passage) Show Passage

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One Liner Question▾

Write in Brief

Calculate the inventory turnover ratio of Mr. Iqbal upto two decimal places. (Marks 2)

Explanation

Question number: 308 (4 of 4 Based on Passage) Show Passage

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Short Answer Question▾

Write in Short

Prepare the Trading A/c of Iqbal for the year and find out the value of inventory stolen. (Marks 8)

Explanation

Ans

Iqbal

Trading A/c for the year ended 30 June 2019

Trading A/c for the year ended 30 June 2019Trading A/c for the year ended 30 June 2019

$

$

$

Sales

56550

Cost of Goods Sold:

Opening Inventory

4600

Purchases

42650

Carriage Inward

1300

48550

Closing Inventory Left in warehouse

(1300)

Stolen

(125)

(1425)

47125

Gross Profit

9425

Working Notes:

(I) Cost of Goods Sold - Since gross profit is 20 % of Cost of Goods Sold, Cost of Goods Sold will be equal to -

(II) Closing Inventory

(III) Closing Inventory Stolen (Loss by theft)

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