IGCSE Accounting Paper-2: Specimen Questions with Answers 103 - 104 of 189

Question 103

Edit

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 104 (1 of 3 Based on Passage)

Edit

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 belowEnter the above transactions in Arpita’s cash book as given below
Arpita Cash BookBank$2000
Cash$
Discount Received $
Details$Balance b/d
Date$2019 Aug 1
Bank$
Cash$3500
DiscountAllowed $
DetailsBalance b/d
Date2019 Aug 1

Explanation

Enter the above transactions in Arpita’s cash book as given belowEnter the above transactions in Arpita’s cash book as given below
Arpita Cash BookBank$200068030405720
Cash$400 (II)278015004680
Discount Received $70 (V)70
Details$Balance b/dPurchasesSuperstar PrintersBankBalance c/d
Date$2019 Aug 1Aug 5Aug 14Aug 31Aug 31
Bank$16002004207202780VI57203040
Cash$3500400 (I)280 (IV)50046801500
DiscountAllowed $20 (III)20
DetailsBalance b/dCapitalSiddharthSalesBad debts RecoveredFurnitureCash CBalance b/d
Date2019 Aug 1Aug 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

Choose Paper