IGCSE Accounting Paper-2: Specimen Questions with Answers 159 - 160 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 creditors

42300

Receipts from Trade debtors

55200

Discount allowed to Trade debtors

700

Purchases Returns

1400

Bad debts written off

70

Carriage inwards

3000

On 1 July 2018:

Trade Creditors

1600

Trade Debtors

3500

Inventory

1100

On 30 June 2019:

Trade Creditors

2200

Trade Debtors

4130

Question number: 159 (2 of 3 Based on Passage) Show Passage

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Short Answer Question▾

Write in Short

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

$

$

Sales

56600

Less: Cost of Goods Sold (II)

Opening Stock

1100

Purchases $44300

Less: Purchases Returns $ 1400

42900

Carriage Inward

3000

47000

Less: Closing Stock (III)

1720

45280

Gross Profit (I)

11320

Workings-

(I)

Let Sales be 125%, then,

(II)

(III)

Question number: 160 (3 of 3 Based on Passage) Show Passage

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Short Answer Question▾

Write in Short

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 Debtors

4130

Add: Receipts from Trade Debtors

55200

Discount Allowed

700

Bad debts written off

70

60100

Less: Opening Trade Debtors

3500

Credit Sales

56600

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

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