IGCSE Accounting Paper-1: Specimen Questions with Answers 310 - 311 of 338

Question number: 310

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MCQ▾

Question

Annual Sales figure of a firm are-

Annual Sales figure of a firm are-Annual Sales figure of a firm are-

Goods

Trade Discount

Net

125000

5000

120000

With which amount the sales A/c should be credited?

Choices

Choice (4)

a.

125000

b.

130000

c.

120000

d.

5000

Answer

c.

Explanation

Trade discount is not recorded in the books of accounts. So, the net amount actually paid for the goods will be entered in the sales a/c.

Passage

A, B and C are partners in a firm sharing profits in the ratio of 7: 4: 9. Their fixed capitals are A: $20000, B: 7500 and C: 35000. The partnership agreement provided for the following-

(I) Interest on Capital@10 % pa

(II) Salary of $600 pm to B

(III) Interest on drawings@6 % pa.

During the year ended 31 December 2019, the firm earned a profit of $17000. Interest on A’s drawings was $75, on B’s drawings $45 and on C’s drawings 130.

Question number: 311 (1 of 2 Based on Passage) Show Passage

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Short Answer Question▾

Write in Short

Prepare Profit & Loss Appropriation A/c for the year ended 31 December 2019 (Marks 14)

P&L Appropriation A/c

for the year ended 31 December 2019

Prepare Profit & Loss Appropriation A/c for the year ended 31 December 2019Prepare Profit & Loss Appropriation A/c for the year ended 31 December 2019

Details

$

Details

$

Explanation

P&L Appropriation A/c

for the year ended 31 December 2019

Prepare Profit & Loss Appropriation A/c for the year ended 31 December 2019Prepare Profit & Loss Appropriation A/c for the year ended 31 December 2019

Details

$

Details

$

Interest on Capitals:

Net Profit

17000

A: $2000

Interest on Drawings:

B: $750

A: $75

C: $ 3500

6250

B: $45

B’s Salary

7200

C: $ 130

250

Share in Profit -

A: $1330

B: $760

C: $ 1710

3800

17250

17250

Working Notes-

(I) When interest on drawings are given, there is no need to calculate it

(II) Interest on Capital

(III) B’s Salary is given in pm. So Annual salary

(IV) Share in Profits-

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