IGCSE Accounting Paper-2: Specimen Questions with Answers 77 - 79 of 103

Passage

Susan Ltd was registered on April 1st 2011 with a capital of £10000000 divided into £1000000 shares of £10 each. The company offered 44000 shares of which 40000 shares were taken up by the public. £1 was received with application. On May 2nd these shares were allotted and by 31st may £2 per share was received as allotment money. First call of £3 per share was made on 30th June, and call money was received with an exception of 100 shares. Final call was made £4 per share and call money was received by 30th September with an exception of 400 shares.

Question number: 77 (4 of 5 Based on Passage) Show Passage

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Essay Question▾

Describe in Detail

What does Susan Ltd mean by the term Share capital?

Explanation

In the given situation the term share capital refers to the amount which Susan Ltd wishes to raise for its business activities, through public financing. Share capital constitutes the main source of finance in large companies. Share capital is raised through the issue of shares to the public either at par, premium or discount.

Question number: 78 (5 of 5 Based on Passage) Show Passage

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Essay Question▾

Describe in Detail

Prepare the balance sheet of Susan Ltd as on 30th September 2011.

Explanation

Balance sheet of Susan Ltd as on 30.09. 2011

Table of Balance sheet of Susan Ltd as on 30.09. 2011

LIABILITIES

AMOUNT

AMOUNT

ASSETS

AMOUNT

AMOUNT

Share Capital:

Current Assets:

Authorized Capital

Cash@bank

398100

1000000 shares of £10 each

10000000

Issued Capital

40000 shares of £10 each

400000

Subscribed Capital:

40000 shares of £10 each

400000

Less: unpaid 1st call@£3 for 100 shares

300

399700

Less: unpaid fianl call@£4 for 400 shares

1600

398100

398100

398100

Passage

Royal cosmetics have the following cash transactions during the month of January 2016.

Find out amount of Royal cosmetics have the following cash transactions

Royal cosmetics have the following cash transactions during the month of January 2016.

Date

Particulars

Amount

Date

Particulars

Amount

1

Opening balance (imprest System)

1000

9

Cartage

100

2

Stamps

120

10

travelling expenses

250

3

Wages for cleaner

150

11

Courier sent

150

4

Taxi fare

160

12

Entertainment of salesman

200

5

Office tea

150

13

Repair of cycle

100

6

Repairs of cycle

100

14

Printing

50

7

Advertisement

300

15

Stationery

30

8

Drew imprest from head cashier

16

Drew imprest from head cashier

Question number: 79 (1 of 5 Based on Passage) Show Passage

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Short Answer Question▾

Write in Short

What do Royal cosmetics mean by the term imprest in their cash book?

Explanation

Imprest is a system of maintaining petty cash. Under this system the “imprest” amount also known as “float” amount, is the amount which the petty cashier gets as reimbursement from the head cashier at regular intervals of time. Hence the petty cashier under this system always has the same amount at regular intervals to carry out the company’s expenses.