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

Sara and Zara are in partnership. Sara and Zara are in partnership.

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

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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

Capital AccountsCapital Accounts

Date

Details

Sara

$

Zara

$

Date

Details

Sara

$

Zara

$

Sara and Zara

Current Accounts

Current AccountsCurrent Accounts

Date

Details

Sara

$

Zara

$

Date

Details

Sara

$

Zara

$

Explanation

Sara and Zara

Capital Accounts

Sara and Zara Capital AccountsSara 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

Sara and Zara Current AccountsSara 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

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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

Choose Paper