IGCSE Accounting Paper-2: Specimen Questions with Answers 34 - 36 of 103

Passage

  1. Mr. Stanley had 2 accounts with HSBC Bank named A/c 1 and A/c 2. As on 31.12. 2015, his cash book showed balances of £540 and £27040 in the two A/c’s respectively.

On examining the bank statements, the following were noticed:

(i) £2700 has been transferred from A/c 2 to A/c 1 by the bank without intimating Mr. Stanley.

(ii) £10 have been bank charges in both the accounts, which is not intimated to Mr. Stanley

(iii) Cheque for £542 issued on A/c 1 in November not yet presented in bank

(iv) A cheque of £427 deposited by Mr. Stanley in A/c 2 has been credited by bank in A/c 1

Question number: 34 (4 of 5 Based on Passage) Show Passage

Edit
Short Answer Question▾

Write in Short

What is the balance in Mr. Stanley’s A/c 1 as per HSBC bank?

Explanation

The balance of Mr. Stanley’s A/c 1 as per bank pass book is £4199

Bank reconciliation statement of Mr. Stanley (A/c 1) as on 31.12. 2015

given this table in Table title: Bank reconciliation statement of Mr. Stanley (A/c 1) as on 31.12. 2015

Particulars

Amount

Amount

Bank balance as per cash book (Dr)

540

Add: Transfer from A/c 2 without notice

2700

Cheque issued but not presented

542

Cheque deposited in A/c 2 but wrong credit in A/c 1

427

3669

4209

Less: Bank charges in pass book but not in cash book

10

Bank Balance as per pass book (Cr)

4199

Question number: 35 (5 of 5 Based on Passage) Show Passage

Edit
Short Answer Question▾

Write in Short

What is the balance of Mr. Stanley’s A/c 2 as per HSBC bank?

Explanation

The balance of Mr. Stanley’s A/c 2 as per bank pass book is £23903

Bank reconciliation statement of Mr. Stanley (A/c 2) as on 31.12. 2015

Table of Bank reconciliation statement of Mr. Stanley (A/c 2) as on 31.12. 2015

Particulars

Amount

Amount

Bank balance as per cash book (Dr)

27040

Less: Transfer toA/c 1 without notice

2700

Bank charges in pass book but not in cash book

10

Cheque deposited in A/c 2 but wrong credit in A/c 1

427

3137

Bank Balance as per pass book (Cr)

23903

Passage

King and Queen commenced business as partners on April 1st 2006. King contributed £80000 and Queen contributed £50000 as capital. Their profit sharing ratio was decided as 2: 1. During the year King withdrew £8000 and Queen withdrew £16000. King was also entitled for salary amounting to £12000. Interest on capital was paid@6%. The profit of the firm after providing for salary and interest on capital was £24000.

Question number: 36 (1 of 5 Based on Passage) Show Passage

Edit
Short Answer Question▾

Write in Short

What will be the capital of King and Queen on 31st March 2007, if fluctuating capital accounts were maintained by the firm?

Explanation

On 31st March 2007, capital of King is £104800 and capital of Queen is £45000 when the firm maintains fluctuating capital accounts.

Fluctuating Capital Accounts of King and Queen as on March 31st 2007

Table of Fluctuating Capital Accounts of King and Queen as on March 31st 2007

DATE

PARTICULARS

JF

KING

QUEEN

DATE

PARTICULARS

JF

KING

QUEEN

Drawings

8000

16000

Cash

80000

50000

Balance C/F

104800

45000

Salary

12000

Interest on capital@6%

4800

3000

Profit & Loss appropriation in the ratio 2: 1

16000

8000

112800

61000

112800

61000

Profit = King = 24000 * 2/3 = 16000

Profit = Queen = 24000 * 1/3 = 8000