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.
| 1st April 2019 Dollar $ | 31st March 2020 Dollar $ | |
| Stock | 4000 | 7000 |
| Debtors | 8000 | 10000 |
| Creditors | 6000 | 8000 |
| Dollar $ | |
| Receipt from debtors | 40000 |
| Payment to Creditors | 35000 |
| Cash Sales | 8000 |
| Carriage Inward | 4000 |
Question 126 (3 of 3 Based on Passage)
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
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
| $ | |
| Balance as per Cash Book | 8000 |
| Less: Amount paid into bank but not yet collected | 700 |
| 7300 | |
| Add: Cheque issued to customers but not yet paid | 600 |
| Balance as per Bank Statement | 7900 |
Question 128
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.