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

Question 104


Write in Short

Short Answer▾

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


‘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.


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


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

Cash Book

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

Aug 1

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

Aug 1


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

Cash Book

Bank $200068030405720
Cash $400 (II)278015004680

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

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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