IGCSE Accounting Paper-1: Specimen Questions with Answers 188 - 192 of 214

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 number: 188 (2 of 2 Based on Passage) Show Passage

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One Liner Question▾

Write in Brief

Calculate the goodwill for the above transaction:

Explanation

$50000

Solution:

Question number: 189

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One Liner Question▾

Write in Brief

Write any two characteristics of a company.

Explanation

The following are characteristics of a company:

  1. Common Seal
  2. Freely transferable shares
  3. Limited liability of members
  4. Perpetual Succession
  5. Separate legal entity

Passage

The following transaction took place in the book of Raneesh.

shows following transaction took place in the book of Raneesh.

finding transaction took place in the book of Raneesh.

2015 July 5

Sold on credit to S. S. Traders [with 10 % Discount]

10 Chairs@$100

10 Tables@$150

2015 July 8

Sold to Rakesh for cash

15 Chairs@$100

Question number: 190 (1 of 2 Based on Passage) Show Passage

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Essay Question▾

Describe in Detail

Mention the two transactions which are not entered in the Sales Book.

Explanation

The following two transactions are not recorded in the Sales Book:

  1. Cash Sales
  2. Cash sale of assets
  3. Credit sale of assets

Question number: 191 (2 of 2 Based on Passage) Show Passage

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Essay Question▾

Describe in Detail

Prepare Sales Book of Raneesh for July 2015

Explanation

$2500

Sales book of Raneesh as on July 2015

calculate a Sales book of Raneesh as on July 2015

Date

Particulars

Invoice No.

Amount in $

Details

Amount in $

Total

2015 July 5

S. S. Traders & Co

10 Chairs@$100

10 Tables@$150

Total

1000

1500

2500

2500

Passage

Rahul and Husain are agreed to form the partnership from 1 April 2014 to sell Furnitures.

Question number: 192 (1 of 3 Based on Passage) Show Passage

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Short Answer Question▾

Write in Short

Partners in a partnership firm are charged with interest on drawings at 12 % p. a during the year ended 31st December 2015, a partner drew as follows:

$

Feb 1 2500

May 1 3500

June 30 2000

October 31 5000

December 31 4500

Calculate the interest chargeable to the partner?

Calculation of interest on drawings

calculate the given table and find out the interest on drawings

Date of Drawings

Amount

Months upto 31st December 2015

Products

$

Explanation

$775

finding a value of Date of Drawings, Amount, Months upto 31st December 2015 and Products $

showing a given table in Date of Drawings, Amount, Months upto 31st December 2015 and Products $

Date of Drawings

Amount

Months upto 31st December 2015

Products

$

01 - 02 - 2015

2500

11

27500

01 - 05 - 2015

3500

8

28000

30 - 06 - 2015

2000

6

12000

31 - 10 - 2015

5000

2

10000

31 - 12 - 2015

4500

0

0

Total

77500

= $775