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-Trading and Profit and Loss Account for the year ended 30 September 2019-

$

Capital Accounts:

Fiza

10000

Sara

6000

Current Accounts:

Fiza

3000

Sara

1000 (Dr)

Fixed assets at cost

17000

Provision for depreciation of fixed assets

2000

Inventory

1400

Receivables

2800

Bank balance

1000 (Dr)

Payables

2400

Cash

?

Question number: 136 (2 of 3 Based on Passage) Show Passage

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Short Answer Question▾

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Calculate the current ratio of Fiza and Sara on the given date and state whether it is below or above the ideal ratio. (Marks 4)

Explanation

The ideal current ratio is 2: 1, but the current ratio of Fiza and Sara is 1.88: 1. Thus, it is below the ideal standard.

Question number: 137 (3 of 3 Based on Passage) Show Passage

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Short Answer Question▾

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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. 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. Balance Sheet as at 30 September 2019.

Liabilities

$

Assets

$

Capital Accounts- $

Sara’s Current A/c

1000

Fiza 10000

Fixed Assets $17000

Sara 6000

16000

Less: Pro. for dep. 2000

15000

Fiza’s Current A/c

3000

Inventory

1400

Payables

2400

Receivables

2800

Bank balance (overdraft)

1000

Cash

2200

22400

22400

Question number: 138

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Short Answer Question▾

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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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