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

Passage

Mrs. Anthony sold goods worth £10000 to Mrs. Barker on Jan 1^st 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 5^th Feb 2016.@15 %. The bill was duly honored on maturity.

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

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 1^st	Purchases A/c Dr		10000
	To Mrs. Anthony A/c			10000
	(Being goods purchased on credit)
Jan 1^st	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

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

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