IGCSE Accounting Paper-1: Specimen Questions with Answers 316 - 317 of 338
Passage
Sara and Zara are in partnership. The partnership agreement states the following-
That
The interest on capital is paid at the rate of 12 % per annum.
The profits and losses are to be shared in the ratio of 7: 3 respectively
Zara is to receive salary of $400pm
The following information is available
On 1 April 2018 | $ |
Capital Accounts- Sara Zara | 40000 15000 |
Current Accounts- Sara Zara | 4500 Credit 3000 Debit |
For the year ended 31 March 2019 Profit for the year Drawings- Sara Zara | 25000 5000 3500 |
On 1 April 2018 $
Capital Accounts-
Sara 40000
Zara 15000
Current Accounts-
Sara 4500 Credit
Zara 3000 Debit
For the year ended 31 March 2019
Profit for the year 25000
Drawings-
Sara 5000
Zara 3500
On 1 January 2019 Sara introduced additional capital of $8000 into the partnership in the form of cash.
Question number: 316 (4 of 4 Based on Passage) Show Passage
Essay Question▾
Describe in Detail
Prepare the following capital accounts and current accounts of Sara and Zara for the year ended 31 March 2019. Balance the accounts and bring down the balances on 1 April 2019. (Marks 8)
Sara and Zara
Capital Accounts
Date | Details | Sara $ | Zara $ | Date | Details | Sara $ | Zara $ |
Sara and Zara
Current Accounts
Date | Details | Sara $ | Zara $ | Date | Details | Sara $ | Zara $ |
Explanation
Sara and Zara
Capital Accounts
Date | Details | Sara $ | Zara $ | Date | Details | Sara $ | Zara $ |
2019 March 31 | Balance c/d | 48000 | 15000 | 2018 April 1 | Balance b/d | 40000 | 15000 |
2019 Jan 1 | Cash | 8000 | |||||
48000 | 15000 | 48000 | 15000 | ||||
2019 April 1 | Balance b/d | 48000 | 15000 |
Sara and Zara
Current Accounts
Date | Details | Sara $ | Zara $ | Date | Details | Sara $ | Zara $ |
2018 April 1 | Balance b/d | ——- | 3000 | 2018 April 1 | Balance b/d | 4500 | ——– |
2019 March 31 | Drawings | 5000 | 3500 | 2019 March 31 | Interest on Capital | 5040 | 1800 |
Balance c/d | 13892 | 4108 | Salary | 4800 | |||
Share of Profit | 9352 | 4008 | |||||
18892 | 10608 | 18892 | 10608 | ||||
2019 April 1 | Balance b/d | 13892 | 4108 |
Question number: 317
MCQ▾
Question
ABC Company has shareholder’s equity of $20000 & total assets of $50000. There is no goodwill on its balance sheet nor any intangible assets. Its proprietary ratio is: (Marks 1)
Choices
| Choice (4) | |
|---|---|
a. | 50% |
b. | 40% |
c. | 60% |
d. | Question does not provide sufficient data or is vague |
Answer
b.Explanation