IGCSE Accounting Paper-2: Specimen Questions with Answers 112 - 116 of 189

Passage

The assets and liabilities of Aparajita՚s business included the following:

The Assets and Liabilities of Aparajita՚S Business Included
$
(I) Cash1500
(II) Unearned Income2000
(III) Trade Receivables10000
(IV) Inventory15000
(V) Prepaid Expenses4000
(VI) Trade Payables6000
(VII) Bank Overdraft5500

Question 112 (2 of 5 Based on Passage)

Edit

Write in Brief

One Liner▾

Calculate Aparajita՚s Quick Ratio (Marks 3)

Explanation

Question 113 (3 of 5 Based on Passage)

Edit

Write in Brief

One Liner▾

If Aparajita wants to still improve her working capital ratio, which one of the above six transactions should she make? (Marks 1)

Explanation

Transaction (V)

Working Capital Ratio is improved when it is increased. Payment of a part or whole of trade payables will increase and hence improve the working capital ratio.

Question 114 (4 of 5 Based on Passage)

Edit

Write in Short

Short Answer▾

Calculate Aparajita՚s Working Capital (Marks 4)

Explanation

Question 115 (5 of 5 Based on Passage)

Edit

Write in Brief

One Liner▾

Calculate Aparajita՚s Working Capital Ratio (Marks 1)

Explanation

Passage

The following trial balance was extracted from the books of Asmita & Sons as at 31 December 2019-

Extracted from the Books of Asmita & Sons as at 31 December 2019-
Debit Balances

$

Credit Balance

$

Capital56000
Drawings6000
Premises35000
Opening Stock10000
Purchases55000
Plant & Machinery21000
Insurance700
Cash2800
Direct Wages14000
Salaries11000
Discount Received1000
Sales120000
Trade Debtors36000
Trade Creditors12000
Carriage Inward1500
Bank Overdraft7200
General Expenses3200
196200196200

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 116 (1 of 4 Based on Passage)

Write in Short

Short Answer▾

Prepare Income Statement of Asmita & Sons for the year ending 31 December 2019.

Asmita & Sons

Income Statement for the year ended 31 December 2019

Income Statement for the Year Ended 31 December 2019
$$

(Marks 14)

Explanation

Asmita & Sons

Income Statement for the year ended 31 December 2019

Income Statement for the Year Ended 31 December 2019
$$
Sales120000
Less: Cost of Goods Sold
Opening Stock10000
Purchases55000
Direct Wages $ 14000

Add: Outstanding Wages $ 4000

18000
Carriage Inward1500
84500
Less: Closing Stock15000(69500)
Gross Profit50500
Add: Indirect Incomes-
Discount Received1000
51500
Less: Indirect Expenses
Salaries $ 11000

Add: Outstanding Salaries $ 1600

12600
Insurance $ 700

Less: Prepaid Insurance $ 300

400
General Expenses3200
Depreciation on Plant & Machinery (I)2100(18300)
Net Profit33200

Workings

(I) Depreciation on Plant & Machinery

🎯 Select Paper

Developed by: