# IGCSE Accounting Paper-2: Specimen Questions with Answers 181 - 182 of 189

## Passage

MS Dhoni owns a sports shop. His Trading and Profit and Loss Account for the year ended 31 March 2019 is shown as follows-

MS Dhoni

Trading and Profit & Loss Account for the year ended 31 March 2019

 \$ \$ \$ Sales 25000 Less: Cost of Goods Sold Opening Stock (I) ________ Purchases 15000 Less: (II) ________ 250 14750 16000 Less: (III) ________ 2000 14000 Gross Profit 11000 Add: Discount (IV) ________ (V) ________ 12000 Less: General Expenses 500 Rent paid 1000 Depreciation (VI) ________ 3000 Net Profit 9000

## Question number: 181 (3 of 3 Based on Passage) Show Passage

Edit

### Write in Short

Fill in each of the blanks numbered from (I) to (VI) the missing words or figures.

### Explanation

MS Dhoni

Trading and Profit & Loss Account for the year ended 31 March 2019

 \$ \$ \$ Sales 25000 Less: Cost of Goods Sold Opening Stock 1250 Purchases 15000 Less: Purchases Returns 250 14750 16000 Less: Closing Stock 2000 14000 Gross Profit 11000 Add: Discount Received 1000 12000 Less: General Expenses 500 Rent paid 1000 Depreciation 1500 3000 Net Profit 9000

(I)

(II) Purchases Returns is subtracted from Purchases to get Net purchases. Purchases Returns included goods already purchased returned to the supplier.

(III) Closing Stock do not form part of cost of goods sold so they are deducted while calculating cost of goods sold.

(IV) Indirect Incomes are added to Gross Profit to get the Net Profit. Discount Received is an indirect income.

(V)

(VI)

## Passage

The Lion Club was formed in 2015. The club has 50 members. The annual subscription is \$100. The club rents a clubhouse. The monthly rent is \$200.

The following information was available on 1 Jan 2018.

 \$ Accumulated fund 8720 Furniture at book value 4500 5 % Bank loan 4000 Cash at bank 6540 Insurance prepaid to 31 January 2018 100 Clubhouse rent accrued 200 Subscriptions prepaid 1500

The amounts received and paid during the year ended 31 December 2018 were as follows.

 \$ Subscriptions for the year ended 31 December 2018 2520 Purchase of new Furniture 2500 Proceeds of sale of old furniture (book value \$2000) 1800 General expenses 8610 Loan interest paid 600 Rent of clubhouse 3000 Net receipts from open day 850 Bank charges 50

All receipts were paid into the bank and all payments were made by cheque.

## Question number: 182 (1 of 2 Based on Passage) Show Passage

Edit

### Write in Short

Prepare the receipts and payments account of the Lions Club for the year ended 31 December 2018. (marks 10)

Lions Club

Receipts and Payments Account for the year ended 31 October 2014

 Date Details \$ Date Details \$

### Explanation

Lions Club

Receipts and Payments Account for the year ended 31 October 2014

 Date Details \$ Date Details \$ 2018Jan 1 Balance b/d 6540 2018Dec 31 Furniture 2500 2018Dec 31 Subscriptions 2520 General Expenses 8610 Sale of Furniture 1800 Loan Interest 600 Open day receipts 850 Rent 3000 Balance c/d 3050 Bank Charges 50 14760 14760 2019Jan 1 Balance b/d 3050