IGCSE Accounting Paper-2: Specimen Questions with Answers 118 - 119 of 189

Passage

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

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

Short Answer Question▾

Calculate correct to two decimal places inventory turnover ratio of Asmita & Sons for the year ended 31 December 2019. (Marks 2)

Short Answer Question▾

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 2019Income Statement for the year ended 31 December 2019
	$	$

(Marks 14)

Asmita & Sons

Income Statement for the year ended 31 December 2019

Income Statement for the year ended 31 December 2019Income Statement for the year ended 31 December 2019
	$	$
Sales		120000
Less: Cost of Goods Sold
Opening Stock	10000
Purchases	55000
Direct Wages $14000 Add: Outstanding Wages $ 4000	18000
Carriage Inward	1500
	84500
Less: Closing Stock	15000	(69500)
Gross Profit		50500
Add: Indirect Incomes-
Discount Received		1000
		51500
Less: Indirect Expenses
Salaries $11000 Add: Outstanding Salaries $1600	12600
Insurance $700 Less: Prepaid Insurance $ 300	400
General Expenses	3200
Depreciation on Plant & Machinery ^(I)	2100	(18300)
Net Profit		33200

Workings

(I) Depreciation on Plant & Machinery