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    Coursebook Chapter 9 Answers

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    Ahmed Zeeshan
    The document provides sample answers and explanations for test questions about accounting concepts like the statement of financial position, assets and liabilities. It also includes worked examples of the statement of financial position and income statement for different businesses.

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    Coursebook Chapter 9 Answers

    Uploaded by

    Ahmed Zeeshan
    8K views5 pages
    The document provides sample answers and explanations for test questions about accounting concepts like the statement of financial position, assets and liabilities. It also includes worked examples of the statement of financial position and income statement for different businesses.

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    Cambridge IGCSE Accounting Coursebook Chapter 9 answers

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    The document provides sample answers and explanations for test questions about accounting concepts like the statement of financial position, assets and liabilities. It also includes worked examples of the statement of financial position and income statement for different businesses.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    8K views5 pages

    Coursebook Chapter 9 Answers

    Uploaded by

    Ahmed Zeeshan
    The document provides sample answers and explanations for test questions about accounting concepts like the statement of financial position, assets and liabilities. It also includes worked examples of the statement of financial position and income statement for different businesses.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    Cambridge IGCSE and O Level Accounting

    Coursebook answers
    Chapter 9
    Answers to test yourself questions

    Test yourself 9.1


    1 A statement of financial position is a statement of the assets and liabilities of a business on a
    certain date.
    2 a An asset is something which is owned by or owed to a business.
    b A liability is an amount owed by a business.

    Test yourself 9.2


    1 Non-current assets are assets which are obtained for use and not for resale, which help the
    business to earn revenue.
    Any two suitable examples could be provided, such as premises, machinery fixtures and motor
    vehicles.
    2 Current assets are arranged in increasing order or liquidity (the ones furthest away from cash
    being shown first).
    3 A non-current liability is an amount owed by a business which is not due for repayment within
    the next 12 months. A current liability is a short term liability which is due for repayment within
    the next 12 months.
    1

    © Cambridge University Press 2018


    Cambridge IGCSE and O Level Accounting

    Answers to exam-style questions


    1 Lydia
    Corrected statement of financial position at 31 July 20–5
    $ $ $
    Assets
    Non-current assets
    Premises 82 500
    Fixtures and fittings 11 980
    Motor vehicle 116 500
    110 980
    Current assets
    Inventory 2 480
    Trade receivables 2 140
    Cash at bank 4 360
    Cash 1 250
    9 230

    Total assets 120 210

    Capital and liabilities


    Capital
    Opening balance 100 000
    Plus Profit for the year 114 350
    114 350
    Less Drawings 16 120 2
    198 230
    Non-current liabilities
    Loan 20 000

    Current liabilities
    Trade payables 1 980

    Total capital and liabilities 120 210

    2 C
    3 B
    4 B

    © Cambridge University Press 2018


    Cambridge IGCSE and O Level Accounting

    5 Ayesha
    Income statement for the year ended 30 September 20–3
    $ $ $
    Fees received 65 950
    Add Rent receivable 16 000
    71 950
    Less Insurance 3 110
    Printing and stationery 2 480
    Wages 59 650
    Office expenses 13 120 68 360
    Profit for the year 13 590

    Ayesha
    Statement of financial position at 30 September 20–3
    $ $ $
    Assets
    Non-current assets
    Premises 95 000
    Office equipment 21 600
    116 600
    Current assets 3
    Trade receivables 6 150
    Cash 1 150
    6 300

    Total assets 122 900

    Capital and liabilities


    Capital
    Opening balance 125 000
    Plus Profit for the year 13 590
    128 590
    Less Drawings 15 200
    113 390
    Current liabilities
    Bank overdraft 9 510

    Total capital and liabilities 122 900

    © Cambridge University Press 2018


    Cambridge IGCSE and O Level Accounting

    6 a
    Abhinav
    Trial Balance at 30 June 20–8
    Debit Credit
    $ $
    Capital 54 400
    Drawings 1 300
    Premises 30 000
    Fixtures 4 000
    Revenue 82 000
    Purchases 70 100
    Inventory 1 July 20–7 18 600
    Carriage inwards 400
    Carriage outwards 1 500
    Trade receivables 14 000
    Trade payables 8 000
    Discount received 210
    Insurance 390
    Sundry expenses 340
    Wages 10 300
    Rates 1 200
    Long-term loan from ABC Loans 10 000
    Loan interest 500
    Cash at bank 551 980 154 610
    154 610 154 610
    4
    b Abhinav
    Income statement for the year ended 30 June 20–8
    $ $ $
    Revenue 82 000

    Less Cost of sales


    Opening inventory 18 600
    Purchases 70 100
    Carriage inwards 11 400 70 500
    89 100
    Less Closing inventory 20 100 69 000
    Gross profit 13 000
    Add Discount received 11 210
    13 210
    Less Carriage outwards 1 500
    Insurance 390
    Sundry expenses 340
    Wages 10 300
    Rates 11 200 13 730
    Loss from operations 520
    Less Loan interest 1 500
    Loss for the year 1 020

    © Cambridge University Press 2018


    Cambridge IGCSE and O Level Accounting

    c
    Abhinav
    Statement of financial position at 30 June 20–8
    $ $ $
    Assets
    Non-current assets
    Premises 30 000
    Fixtures 34 000
    34 000
    Current assets
    Inventory 20 100
    Trade receivables 14 000
    Bank 51 980
    36 080

    Total assets 70 080

    Capital and liabilities


    Capital
    Opening balance 54 400
    Less Loss for the year 51 020
    53 380
    Less Drawings 51 300
    52 080
    Non-current liabilities
    5
    Loan 10 000
    Current liabilities
    Trade payables 58 000

    Total capital and liabilities 70 080

    © Cambridge University Press 2018

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