IGCSE Accounting Paper-2: Specimen Questions with Answers 104 - 105 of 189

Question 104

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Write in Short

Short Answer▾

In which section of the balance sheet would ‘Outstanding Salaries’ appear? (Marks 1)

Explanation

‘Outstanding Salaries’ would appear under Current Liabilities of the ‘Liabilities’ section of the balance sheet.

  • Salaries incurred and due for payment in an accounting year but not yet paid are ‘Outstanding Salaries’ .
  • Since this is an expense which has become payable but the payment is postponed, so this becomes the liability of the business.
  • Further, the payment outstanding salary is to be made within a year, so it is a current liability.

Passage

Arpita is a sole trader who made the following cash transactions during the month of August 2019.

2019

Aug 3. Further Capital introduced $ 2000 out of which $ 1600 deposited in the bank

Aug 5. Goods purchased for cash $ 400, trade discount received $ 25.

Aug 7. Received a Cheque of $ 200 from Siddharth, a credit customer for settlement of his account of $ 220.

Aug 10. Cash Sales $ 700 out of which $ 420 paid directly into the bank

Aug 14. Settled the account of Superstar Printers $ 750 by paying Cheque of $ 680.

Aug 17. An amount of $ 500 due from Pathan Brothers written off as Bad debts previous year, now recovered in cash.

Aug 23. Sale of an old furniture, payment received in cheque of $ 720.

Aug 31. Deposited with the bank the entire balance of cash after retaining $ 1500 at office.

Question 105 (1 of 3 Based on Passage)

Describe in Detail

Essay▾

Enter the above transactions in Arpita՚s cash book as given below. Balance the cash and bank columns at 31 August 2019 and bring down the balances on 1 September 2019. (Marks 12)

Enter the Above Transactions in Arpita՚S Cash Book as Given Below
Arpita

Cash Book

Bank $2000
Cash $
Discount Received $
Details $Balance b/d
Date $2019

Aug 1

Bank $
Cash $3500
Discount Allowed $
DetailsBalance b/d
Date2019

Aug 1

Explanation

Enter the Above Transactions in Arpita՚S Cash Book as Given Below
Arpita

Cash Book

Bank $200068030405720
Cash $400 (II)278015004680
Discount

Received $

70 (V)70
Details $Balance b/dPurchasesSuperstar PrintersBankBalance c/d
Date $2019

Aug 1

Aug 5Aug 14Aug 31Aug 31
Bank $16002004207202780VI57203040
Cash $3500400 (I)280 (IV)50046801500
Discount Allowed $20 (III)20
DetailsBalance b/dCapitalSiddharthSalesBad debts RecoveredFurnitureCash CBalance b/d
Date2019

Aug 1

Aug 3Aug 7Aug 10Aug 17Aug 23Aug 31Sept 1

Working Notes:

(I) Cash introduced as capital

(II) Trade discount is not recorded in accounts.

(III) Discount Allowed to Siddharth

(IV) Cash Sales

(V) Discount Received

(VI) Cash deposited in bank

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