IGCSE Accounting Paper-2: Specimen Questions with Answers 97 - 99 of 103

Passage

Mrs. Anthony sold goods worth £10000 to Mrs. Barker on Jan 1st 2016. Mrs. Anthony drew a bill on Mrs. Barker at three months for the full amount. Mrs. Barker accepted the bill and returned to Mrs. Anthony, who discounted the bill with a bank on 5th Feb 2016.@15 %. The bill was duly honored on maturity.

Question number: 97 (4 of 5 Based on Passage) Show Passage

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Short Answer Question▾

Write in Short

How will Mrs. Barker journalize the above transactions in her books of accounts?

Explanation

Journal entries in the books of Mrs. Barker

Table of Journal entries in the books of Mrs. Barker

DATE

PARTICULARS

LF

DEBIT AMT

CREDIT AMT

Jan 1st

Purchases A/c Dr

10000

To Mrs. Anthony A/c

10000

(Being goods purchased on credit)

Jan 1st

Mrs. Anthony A/c Dr

10000

To Bills Payable A/c

10000

(Being acceptance of bill received)

April 4th

Bills Payable A/c Dr

10000

To bank A/c

10000

(Being bill discharged)

Question number: 98 (5 of 5 Based on Passage) Show Passage

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Short Answer Question▾

Write in Short

How will Mrs. Anthony journalize the above transactions in her books of accounts?

Explanation

Journal entries in the books of Mrs.

Table of Journal entries in the books of Mrs.

DATE

PARTICULARS

LF

DEBIT AMT

CREDIT AMT

Jan 1st

Mrs. Barker A/c Dr

10000

To Sales

10000

(Being goods sold on credit)

Jan 1st

Bills receivable A/c Dr

10000

To Mrs. Barker A/c

10000

(Being acceptance of bill received)

Feb 5th

Bank A/c Dr

9750

Discount A/c Dr

250

To Bill receivable A/c

10000

(Being bill discounted with bank@15%)

Passage

The following entries are found in the books of Mr. Iyer for the year ending 31.12. 2010.

Purchases £1500000, Sales £2500000, Opening stock £500000, Returns Outward £45000, Returns Inward £20000, Carriage Inwards £ 45000, Cash in hand £778000, Cash at bank £608000, Wages £24000, Printing & Stationery £45000, Discount allowed £4000, Bad debts £15000, Insurance £25000, Investments £320000, Debtors £530000, Bills receivable £200000, Postage £4000, Commission £2000, Interest £10000, Repairs £4400, Lighting Charges £5000, Telephone £ 1000, Carriage outwards £4000, Car £250000, Interest received £35000, Discount received £4000, Creditors £1250000, Bills Payable £60400, Capital £1000000

He also stated the below mentioned adjustments, which are to be taken into consideration.

(i) Further bad debts £10000, Provision for doubtful debts@5 % and discount on debtors £5000

(ii) Interest is received on investments@5%

(iii) Depreciation on car was@5%

(iv) Interest and wages was outstanding at £2000 and £1000 respectively

(v) Closing stock was valued at £325000

Question number: 99 (1 of 5 Based on Passage) Show Passage

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Essay Question▾

Describe in Detail

What is the Gross profit of Mr. Iyer for the year ending 31.12. 2010?

Explanation

Trading Account of Mr. Iyer for the year ended 31.12. 2010

calculate Trading Account of Mr. Iyer for the year ended 31.12. 2010

PARTICULARS

AMOUNT

AMOUT

PARTICULARS

AMOUNT

AMOUNT

To Opening Stock

500000

By Sales

2500000

To Purchases

1500000

Less: Returns Inwards

20000

2480000

Less: Returns Outwards

45000

1455000

By Closing Stock

325000

To Carriage inwards

45000

To Wages

24000

Add: O/S Wages

1000

25000

To Lighting Charges

5000

To Gross Profit

775000

2805000

2805000

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