IGCSE Accounting Paper-2: Specimen Questions with Answers 144 - 149 of 189
Passage
The Balance Sheet of Abdul is given below with some figures missing.
Balance Sheet as at 31st December 2019
Liabilities | Dollar $ | Dollar $ | Assets | Dollar $ | Dollar $ |
Capital as at 1 Jan 2019 | 30000 | Fixed Assets at cost (I) | ________ | ||
Add: Profit (II) | ________ | 40000 | Less: Dep. | 3000 | 15000 |
Current Liabilities- | Current Assets- (III) | ||||
Sundry Creditors (IV) | ________ | Stock | 15000 | ||
Bills Payables | 4000 | Debtors | 10000 | ||
Outstanding Exp | 3000 | 10000 | Prepaid Insurance (V) | ________ | |
Cash | 7000 | ________ | |||
50000 | 50000 |
Question 144 (2 of 6 Based on Passage)
Explanation
Question 145 (3 of 6 Based on Passage)
Explanation
Question 146 (4 of 6 Based on Passage)
Explanation
Question 147 (5 of 6 Based on Passage)
Explanation
Question 148 (6 of 6 Based on Passage)
Explanation
Two uses of working capital are-
- Meeting day to day expenses: Working Capital is used for paying off routine expenses like purchase of raw materials, payment of wages, salaries and other day to day operating expenses.
- Short term Investment: Excess working capital can also be used for purchasing short term profitable securities.
Question 149
Write in Brief One Liner▾
The balance of the Carriage Inwards account is transferred to which account at the end of the financial year. (Marks 1)
EditExplanation
Trading Account
- All the direct expenses are transferred to trading account whereas the indirect expenses are transferred to Profit & Loss A/c.
- Direct Expenses form part of Cost of Goods Sold and varies directly with the level of output. Carriage Inward is a direct expense.