IGCSE Accounting Paper-2: Specimen Questions with Answers 142 - 145 of 189

Passage

The Balance Sheet of Abdul is given below with some figures missing.

Balance Sheet as at 31st December 2019

Balance Sheet as at 31st December 2019Balance Sheet as at 31st December 2019
Liabilities$$Assets$$
Capital as at 1 Jan 201930000Fixed Assets at cost (I)________
Add: Profit (II)________40000Less: Dep.300015000
Current Liabilities-Current Assets- (III)
Sundry Creditors (IV)________Stock15000
Bills Payables4000Debtors10000
Outstanding Exp300010000Prepaid Insurance (V)________
Cash7000________
5000050000

Question 142 (1 of 6 Based on Passage)

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Write in Short

Short Answer▾

Enter the missing figures in the blanks (I) to (V) on the Balance Sheet. (Marks 5)

Explanation

Balance Sheet as at 31st December 2019

Balance Sheet as at 31st December 2019Balance Sheet as at 31st December 2019
Liabilities$$Assets$$
Capital as at 1 Jan 201930000Fixed Assets at cost (I)18000
Add: Profit (II)1000040000Less: Dep.300015000
Current Liabilities-Current Assets- (III)
Sundry Creditors (IV)3000Stock15000
Bills Payables4000Debtors10000
Outstanding Exp300010000Prepaid Insurance (V)3000
Cash700035000
5000050000

(I)

(II)

(III)

(IV)

(V)

Question 143 (2 of 6 Based on Passage)

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One Liner▾

State any two uses of working capital. (Marks 2)

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 144 (3 of 6 Based on Passage)

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Write in Brief

One Liner▾

Calculate, showing your workings, (Marks 2)

Abdul’s Cash ratio

Explanation

Question 145 (4 of 6 Based on Passage)

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Write in Brief

One Liner▾

Calculate, showing your workings, (Marks 3)

Abdul’s quick ratio

Explanation

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