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

Balance Sheet as at 31st December 2019Balance Sheet as at 31st December 2019

Liabilities

$

$

Assets

$

$

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 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

Explanation

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

Explanation

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

Explanation

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)

Explanation

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)

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.

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