IGCSE Accounting Paper-1: Specimen Questions with Answers 185 - 189 of 338
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Passage
Aiona՚s trial balance at 31st March 2015 included the following items:
Particulars | $ |
Sales | 150000 |
Sales returns | 20000 |
Opening stock | 30000 |
Purchases | 70000 |
Purchases returns | 10000 |
Closing stock | 5000 |
Question 185 (2 of 2 Based on Passage)
Write in Brief
One Liner▾Calculate Aiona՚s gross profit ratio. Show your calculation and give your answer to decimal places.
Explanation
Question 186
Write in Brief
One Liner▾Ramesh is a retailer. Complete the following table by using a (√) to specify how each item would be classified as capital expenditure or revenue expenditure:
Particular | Capital expenditure | Revenue expenditure |
Delivery costs | ||
Repair costs | ||
Installation costs | ||
Renewal expenses | ||
Replacement costs |
Explanation
Particular | Capital expenditure | Revenue expenditure |
Delivery costs | √ | |
Repair costs | √ | |
Installation costs | √ | |
Renewal expenses | √ | |
Replacement costs | √ |
Passage
Terry and Candy are partners of a firm sharing profit and loss in the ratio of 7: 5.
The Goodwill is to be valued at 2 years purchases of four years average profit which were $ 40000, $ 32000, $ 15000 and $ 13000 respectively.
Question 187 (1 of 2 Based on Passage)
Explanation
$ 25000
Solution: The four years average profit is as follows:
Profit for four years:
I year | 40000 |
II Year | 32000 |
III Year | 15000 |
IV Year | 13000 |
Total | 100000 |
Question 188 (2 of 2 Based on Passage)
Explanation
$ 50000
Solution:
Question 189
Explanation
The following are characteristics of a company:
- Common Seal
- Freely transferable shares
- Limited liability of members
- Perpetual Succession
- Separate legal entity