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-

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

$

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: 118 (3 of 4 Based on Passage) Show Passage

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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: 119 (4 of 4 Based on Passage) Show Passage

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Short Answer Question▾

Write in Short

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)

Explanation

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

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