IGCSE Accounting Paper-1: Specimen Questions with Answers 235 - 237 of 338

Question 235

Write in Brief

One Liner▾

Show the entries which would be made in the Stationery A/c in October 2019. (Marks-2)

Shri Ram

Stationery A/c

The Stationery a/C in October 2019
DateDetails$DateDetails$

Explanation

Shri Ram

Stationery A/c

The Stationery a/C in October 2019
DateDetails$DateDetails$
2019

Oct 1

Petty Cash A/c1
Oct 17Petty Cash A/c1

Shri Ram balanced his cash book on 31st October 2019. The bank column showed that he had $ 6180 in the bank while on the same date the bank statement showed a balance of $ 6020.

Question 236

Question

MCQ▾

A business provides the following information for the year ended 31st December 2020.

The Year Ended st December 2020
Details$
Cost of Goods Sold12000
Sales20000
Direct Expenses3000
Indirect Expense2000

What is the gross profit for the year ended 31st December 2020?

Choices

Choice (4)

a.

$ 5000

b.

$ 8000

c.

$ 3000

d.

$ 6000

Answer

b.

Explanation

Note-

  • Direct Expenses are already included in the Cost of Goods Sold so need not deduct them separately.
  • Indirect Expenses are not deducted from Gross Profit to get Net Profit

Question 237

Edit

Question

Fill-Blanks▾

The capital needed to meet the day to day expenses of a business is known as________. (Marks 2)

Answer

Explanation

Working Capital is the capital that is required to meet the expenses on day to day trading operations of business such as purchase of raw materials, payment of wages, maintaining inventory etc. It is calculated as the surplus of total current assets over total current liabilities.

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