IGCSE Accounting Paper-2: Specimen Questions with Answers 113 - 117 of 189
Passage
The assets and liabilities of Aparajita’s business included the following:
$ | |
(I) Cash | 1500 |
(II) Unearned Income | 2000 |
(III) Trade Receivables | 10000 |
(IV) Inventory | 15000 |
(V) Prepaid Expenses | 4000 |
(VI) Trade Payables | 6000 |
(VII) Bank Overdraft | 5500 |
Question number: 113 (3 of 5 Based on Passage) Show Passage
One Liner Question▾
Write in Brief
Calculate Aparajita’s Working Capital Ratio (Marks 1)
Explanation
Question number: 114 (4 of 5 Based on Passage) Show Passage
One Liner Question▾
Write in Brief
Calculate Aparajita’s Quick Ratio (Marks 3)
Explanation
Question number: 115 (5 of 5 Based on Passage) Show Passage
Short Answer Question▾
Write in Short
Calculate Aparajita’s Working Capital (Marks 4)
Explanation
Passage
The following trial balance was extracted from the books of Asmita & Sons as at 31 December 2019-
Debit Balances $ | Credit Balance $ | |
Capital | 56000 | |
Drawings | 6000 | |
Premises | 35000 | |
Opening Stock | 10000 | |
Purchases | 55000 | |
Plant & Machinery | 21000 | |
Insurance | 700 | |
Cash | 2800 | |
Direct Wages | 14000 | |
Salaries | 11000 | |
Discount Received | 1000 | |
Sales | 120000 | |
Trade Debtors | 36000 | |
Trade Creditors | 12000 | |
Carriage Inward | 1500 | |
Bank Overdraft | 7200 | |
General Expenses | 3200 | |
196200 | 196200 |
Additional Information:
(I) Closing Stock is valued at $15000 (cost), (market value $20,000)
(II) Wages amounting to $4000 and salaries amounting to $1600 are outstanding
(III) Prepaid Insurance amounted to $300
(IV) Plant & machinery is to be depreciated@10 % pa
Question number: 116 (1 of 4 Based on Passage) Show Passage
Short Answer Question▾
Write in Short
Calculate correct to two decimal places inventory turnover ratio of Asmita & Sons for the year ended 31 December 2019. (Marks 2)
Explanation
Question number: 117 (2 of 4 Based on Passage) Show Passage
Short Answer Question▾
Write in Short
Prepare the Balance Sheet of Asmita & Sons as at 31 December 2019.
Asmita & Sons
Balance Sheet as at 31 December 2019
Assets | $ | $ |
Capital & Liabilities | $ | $ |
(Marks 12)
Explanation
Asmita & Sons
Balance Sheet as at 31 December 2019
Assets | $ | $ |
Non-Current Assets: | ||
Premises | 35000 | |
Plant & Machinery $21000 Less: Provision for Dep $ 2100 | 18900 | 53900 |
Current Assets: | ||
Closing Stock | 15000 | |
Trade Debtors | 36000 | |
Prepaid Insurance | 300 | |
Cash | 2800 | 54100 |
Total Assets | 108000 | |
Capital & Liabilities | $ | $ |
Capital $56000 Less: Drawings $ 6000 $50000 Add: Net Profit $ 33200 | 83200 | |
Current Liabilities: | ||
Trade Creditors | 12000 | |
Outstanding Expenses (Wages + Salaries) | 5600 | |
Bank Overdraft | 7200 | 24800 |
Total Liabilities | 108000 |