IGCSE Accounting Paper-1: Specimen Questions with Answers 158 - 159 of 338

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Question 158

Question

MCQ▾

The following information is available in respect of a sole trader.

Statement of Affairs of the Business 31 - 12 - 2015
$
Net Profit for the year

Drawings during the year

Capital at the end of year

Capital introduced during the year

230000

180000

900000

50000

Find out the capital at the beginning of the year

Choices

Choice (4)

a.

$ 600000

b.

$ 800000

c.

$ 100000

d.

$ 400000

Answer

b.

Explanation

Opening capital can be found by preparing the statement of affairs of the business. The statement of affairs is prepared as follow:

Format of Statement of the Affairs of the Business
$
Closing Capital

Add: Drawings xxxxx

Less: Additional Capital introduced xxxxx

Opening Capital xxxxx

________

Net Profit

Xxxx

xxxx

Question 159

Write in Short

Short Answer▾

From the following table put a tick mark under the suitable headings:

List of Current Assets and Liabilities
ParticularsCurrent AssetsCurrent Liabilities
Bank Over draft
Cash at Bank
Short term bank loan

Explanation

Calculate Current Assets and Current Liabilities
ParticularsCurrent AssetsCurrent Liabilities
Bank Over draft
Cash at Bank
Short term bank loan

Current assets and current liabilities are ascertained according to the nature of occurrence within a year. Bank overdrafts and short term bank loan are the current liabilities whereas Cash at Bank is the current asset.

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