# 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 \$ \$ Assets \$ \$ Capital as at1 Jan 2019 30000 Fixed Assetsat 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 number: 144 (2 of 6 Based on Passage) Show Passage

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One Liner Question▾

### Write in Brief

Calculate, showing your workings, (Marks 2)

Abdul’s Cash ratio

## Question number: 145 (3 of 6 Based on Passage) Show Passage

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One Liner Question▾

### Write in Brief

Calculate, showing your workings, (Marks 3)

Abdul’s quick ratio

## Question number: 146 (4 of 6 Based on Passage) Show Passage

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One Liner Question▾

### Write in Brief

Calculate, showing your workings, (Marks 2)

(I) Abdul’s current ratio

## Question number: 147 (5 of 6 Based on Passage) Show Passage

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One Liner Question▾

### Write in Brief

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

## Question number: 148 (6 of 6 Based on Passage) Show Passage

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One Liner Question▾

### Write in Brief

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 number: 149

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One Liner Question▾

### Write in Brief

The balance of the Carriage Inwards account is transferred to which account at the end of the financial year. (Marks 1)