IGCSE Accounting Paper-2: Specimen Questions with Answers 147 - 150 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 2019
LiabilitiesDollar $Dollar $AssetsDollar $Dollar $
Capital as at

1 Jan 2019

30000Fixed 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 147 (5 of 6 Based on Passage)

Edit

Write in Brief

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 148 (6 of 6 Based on Passage)

Edit

Write in Brief

One Liner▾

Calculate Abdul՚s working capital. Show your workings. (Marks 2)

Explanation

Question 149

Edit

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)

Explanation

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.

Question 150

Write in Short

Short Answer▾

Complete the extract below by filling the respective amounts in the blanks to show how Machinery appears in Suman՚s Balance Sheet as at 30 June 2020. (Marks 3)

Extract from Balance Sheet as at 30 June 2020

Extract from Balance Sheet as at 30 June 2020
Assets$
Fixed Assets:
Machinery at Cost ________
Less: Accumulated Depreciation ________________

Explanation

Extract from Balance Sheet as at 30 June 2020

Extract from Balance Sheet as at 30 June 2020
Assets$
Fixed Assets:
Machinery at Cost 120000
Less: Accumulated Depreciation 3015089850

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