IGCSE Accounting Paper-2: Specimen Questions with Answers 157 - 158 of 189

Passage

Mohan Bhagwat’s is a businessman who closes his accounts on 30 June every year. He does not maintain a full set of accounting records.

All goods are bought and sold on credit terms.

He provided the following information.

Businessman who closes his accounts on 30 June every yearBusinessman who closes his accounts on 30 June every year
$
For the year ended 30 June 2019:
Payments to Trade creditors42300
Receipts from Trade debtors55200
Discount allowed to Trade debtors700
Purchases Returns1400
Bad debts written off70
Carriage inwards3000
On 1 July 2018:
Trade Creditors1600
Trade Debtors3500
Inventory1100
On 30 June 2019:
Trade Creditors2200
Trade Debtors4130

Question 157 (1 of 3 Based on Passage)

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Write in Short

Short Answer▾

Calculate the value of the inventory on 30 June 2019 by preparing an income statement (trading account section).

Mohan Bhagvat

Income Statement (Trading Account Section) for the year ended 30 June 2019

The Income Statement Income Statement
$$

Explanation

Mohan Bhagvat

Income Statement (Trading Account Section) for the year ended 30 June 2019

The Income Statement Income Statement the year ended 30 June 2019
$$
Sales56600
Less: Cost of Goods Sold (II)
Opening Stock1100
Purchases $44300 Less: Purchases Returns $ 140042900
Carriage Inward3000
47000
Less: Closing Stock (III)172045280
Gross Profit (I)11320

Workings-

(I)

Let Sales be 125%, then,

(II)

(III)

Question 158 (2 of 3 Based on Passage)

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Write in Short

Short Answer▾

Calculate the credit sales for the year ended 30 June 2019. (Marks 7)

Explanation

Calculation of Credit Sales for the year

Calculation of Credit Sales for the year Calculation of Credit Sales for the year
$
Closing Trade Debtors4130
Add: Receipts from Trade Debtors55200
Discount Allowed700
Bad debts written off70
60100
Less: Opening Trade Debtors3500
Credit Sales56600

Mohan Bhagwat did not value his inventory on 30 June 2019. His gross profit margin was 25%.

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