IGCSE Accounting Paper-2: Specimen Questions with Answers 172 - 173 of 189

Question number: 172

Edit

Short Answer Question▾

Write in Short

Kipla Ltd. is a Pharmaceutical Company. Following is the situation of its stock of medicines as on 31 March 2020.

The situation of its stock of medicines as on 31 March 2020The situation of its stock of medicines as on 31 March 2020

$

(I) Medicines in stock

15000

(II) Medicines whose expiry date is on 31 March 2020

is included in the above value of $15000 is of $1000

(III) Medicines in process of Manufacturing as on

31 March 2020

2000

(IV) Raw Material in Godown

4000

What shall be the value of stock on 31 March 2020? (Marks 2)

Explanation

Computation of closing stock of Kipla Ltd. -

Computation of closing stock of Kipla Ltd. -Computation of closing stock of Kipla Ltd. -

$

Medicines in stock

15000

Less: Expired Medicines

1000

14000

Add: Medicines in process of Manufacturing

as on 31 March 2020

2000

Raw Material in Godown

4000

6000

Closing Stock

20000

Question number: 173

Edit

Short Answer Question▾

Write in Short

Name the accounting concept stated in the below sentence.

“Everything a firm owns, it also owes out to someone”.

(Marks 1)

Explanation

Dual Aspect Concept

  • Dual Aspect recognizes that every transaction has two aspects defined in accounting terms as debits and credits. Debit records the increase in assets & expenses and decrease in liabilities & income. Credit records increase in liabilities & income and decrease in assets & expenses.

  • A single transaction results into equal debits and credits such that the accounting equation always holds true. i. e.

  • The things owned by a firm are ASSETS while things which are owed by the firm are LIABILITIES. So, for every asset, there is a corresponding liability of an equal amount and that keeps the accounting equation intact.

Choose Paper