IGCSE Accounting Paper-2: Specimen Questions with Answers 100 - 101 of 189

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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