IGCSE Accounting Paper-2: Specimen Questions with Answers 136 - 138 of 189

Passage

Fiza and Sara are in partnership. Their financial year ends on 30 September. The following balances remained on the books After the preparation of their Trading and Profit and Loss Account for the year ended 30 September 2019-

Trading and Profit and Loss Account for the Year Ended 30 September 2019-
$
Capital Accounts:
Fiza10000
Sara6000
Current Accounts:
Fiza3000
Sara1000 (Dr)
Fixed assets at cost17000
Provision for depreciation of fixed assets2000
Inventory1400
Receivables2800
Bank balance1000 (Dr)
Payables2400
Cash?

Question 136 (2 of 3 Based on Passage)

Write in Short

Short Answer▾

Prepare the Balance Sheet of the partnership as at 30 September 2019 and find out the balance of cash. (Marks 12)

Fiza and Sara

Balance Sheet as at 30 September 2019.

Balance Sheet as at 30 September 2019
Liabilities$Assets$

Explanation

Fiza and Sara

Balance Sheet as at 30 September 2019.

Balance Sheet as at 30 September 2019
Liabilities$Assets$
Capital Accounts- $Sara՚s Current A/c1000
Fiza 10000Fixed Assets $ 17000
Sara 600016000Less: Pro. for dep. 200015000
Fiza՚s Current A/c3000Inventory1400
Payables2400Receivables2800
Bank balance (overdraft)1000Cash2200
2240022400

Question 137 (3 of 3 Based on Passage)

Edit

Write in Brief

One Liner▾

State the possible reason as to why Sara՚s Current A/c has a debit balance (Marks 1)

Explanation

Sara՚s drawings and interest on drawings for the year might be more than her interest on capital, salaries, share of profits for the year.

Question 138

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Write in Short

Short Answer▾

A fixed asset was purchased for $ 25000 on 1st April 2019. Depreciation was charged on the machine at the rate of 20 % using the diminishing balance method.

Calculate the machine՚s net book value on 31 March 2021. (Marks 3)

Explanation

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