# IGCSE Accounting Paper-2: Specimen Questions with Answers 174 - 175 of 189

## Question 174

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### Write in Brief

One Liner▾

Abhay sold goods on credit to Vikram for \$1000, offering a discount of 3 % for payment within 15 days. Vikram paid within 15 days. Calculate the amount paid by Vikram.

(Marks 2)

### Passage

The following balances were extracted from Alexa’s books on 31 December 2019.

 \$ Opening Stock 3500 Sales 75000 Purchases 50000 Debtors 7000 Creditors 10000 Administration Expenses 8000 Cash at bank 4000 Drawings 6000 Machinery 50000 Provision for depreciation on Machinery 15000 Capital ?

## Question 175 (1 of 3 Based on Passage)

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### Write in Short

Prepare Alexa’s Trial Balance as at 31 December 2019 showing her Capital A/c balance. (Marks 12)

 Ledger Account Debit\$ Credit\$

### Explanation

 Ledger Account Debit\$ Credit\$ Opening Stock 3500 Sales 75000 Purchases 50000 Debtors 7000 Creditors 9500 Administration Expenses 8000 Cash at bank 4000 Drawings 6000 Machinery 50000 Provision for depreciation on Machinery 10000 Capital 34000 Total 128500 128500

All expenses and assets have a debit balance whereas all the incomes and liabilities have a credit balance.

• Machinery, Opening Stock, Debtors, Cash at bank are assets.
• Purchases, Administration Expenses are expenses.
• Provision for Depreciation is a Contra Asset A/c as it reduces assets. So, it has a credit balance.
• Capital and Creditors are liabilities.
• Sales is an Income.
• Drawings are Contra Capital A/c as it reduces capital. So, it has a debit balance.

The balance of capital is calculated as follows-

(I) The closing stock was valued at \$2500

(II) The depreciation for the current year is charged@20 % on reduced balance.