IGCSE Accounting Paper-2: Specimen Questions with Answers 126 - 128 of 189

Passage

Hemlata is a sole trader who buys all her goods for resale on credit. She sells to cash and credit customers.

Hemlata does not keep full accounting records, but provides the following information for the year ended 31st March 2020.

Hemlata is a Sole Trader Who Buys All Her Goods for Resale on Credit
1st April 2019

Dollar $

31st March 2020

Dollar $

Stock40007000
Debtors800010000
Creditors60008000
Hemlata is a Sole Trader Who Buys All Her Goods for Resale on Credit
Dollar $
Receipt from debtors40000
Payment to Creditors35000
Cash Sales8000
Carriage Inward4000

Question 126 (3 of 3 Based on Passage)

Edit

Write in Short

Short Answer▾

Calculate Hemlata՚s stock turnover ratio for the year ended 31st March 2020. Show your calculations (Marks 3)

Explanation

times

Question 127

Edit

Write in Short

Short Answer▾

On 30 June 2019 the bank balance shown in a Avinash cash book was $ 8000 (Dr) . (Marks 3)

(I) Amounts paid into his bank account, but not yet entered on the bank statement, totaled $ 700.

(II) Cheque issued to customers but not paid into their accounts summed up $ 600

Calculate the balance shown on the Avinash՚s bank statement on 30 June 2019. Show your workings.

Explanation

On 30 June 2019 the Bank Balance Shown in a Avinash Cash Book Was $ 8000
$
Balance as per Cash Book8000
Less: Amount paid into bank but not yet collected700
7300
Add: Cheque issued to customers but not yet paid600
Balance as per Bank Statement7900

Question 128

Edit

Write in Short

Short Answer▾

Name the final account to which the total of the Carriage Outward Account is transferred at the end of the financial year. (Marks 1)

Explanation

P&L A/c

  • Carriage Outward is an indirect expense and indirect expenses are debited to P&L A/c.
  • Expenses which are not directly related to production or which do not form part of cost of goods sold are Indirect Expenses. Carriage Outward is the cost of transporting the goods to the buyer՚s place. It is related to sale not production. So it is an indirect expense.

🎯 Select Paper

Developed by: