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Refer to the exhibit.
ABC issued 200,000 $0.50 equity shares at a price of $1.80. This amount was received in cash
What is the correct journal to record this issue?
Refer to the Exhibit.
A company operates an AVCO system of inventory. Opening inventory at the beginning of the period was 400 units @ $6.50 per unit.
During the period, the following purchases and issues were recorded:
The amount charged to the company's income statement in the period is
In internal auditing, detection of fraud is an important objective. The auditors will best be able to detect frauds if they are knowledgeable in the most common methods of fraud.
Which THREE of the following are common methods of fraud?
Your organization owed VAT of $22,700 at the beginning of the month.
During the month, it sold standard-rated goods with a net value of $600,000. Its purchases and expenses during the same month amounted to $188,000 including VAT. It paid VAT to the Revenue and Customs, of $33,400. The VAT rate is 17.5%
At the end of the month, the balance on the VAT account was:
A non-current asset was purchased for £240000 at the beginning of Year 1, with an expected life of 7 years and a residual value of £50000. It was depreciated by 20% per annum using the reducing balance method.
At the beginning of Year 4 it was sold for £100000. The result of this was:
A payment to a supplier has been credited to the supplier's account and debited to the bank account.
This would result in
Which THREE of the following items would be classified as "capital transactions"?
A company has a receivables balance at the end of the year of £120,000. The company maintains an allowance for receivables at 3% of closing receivables. The opening balance on the allowance was £ 2,880. During the year bad debts of £ 3,000 were written off
The total charge for bad debts for the year is £
Which THREE of the following internal controls are procedures to help detect errors?
W and Partners has an opening capital balance at 1 January of £14,640 credit.
During the period there was an increase in assets of £6,820 and an increase in liabilities of £5,400.
The balance on the capital account at the end of the period is:
Andrew is valuing the closing inventory at the lower of cost and net realizable value.
Which of the following concepts dictates his choice?
Refer to the Exhibit.
The following information is available relating to the non-current assets of Company X:
Non-current assets that had originally cost $225,000 and had a carrying value of $105,000 were sold during the year.
The figure for purchases of non-current assets to be shown in the statement of cash flows will be, to the nearest $1,000:
Office equipment store Officework Ltd has made the following purchase from supplier GX:
50 printers costing £3,500 £6,400
worth ofA4 paper £101,500
worth of general stationary
This purchase has been made on credit. Which TWO of the following show how the transaction should be recorded in Officework Ltd's documents?
Which of the following financial documents contains the manufacturing account?
A business buys a new production line at a cost of £100,000. After using the line for one year a more advanced version of the line is marketed by the manufacturer. As a result the production line in operation has a market value of £ 50,000. The line is being depreciated straight line over five years.
The charge to the income statement for impairment of the production line will be
Refer to the Exhibit.
A company operates a FIFO system of inventory valuation. The following information is available for the month of April:
The closing value of inventory at the end of the month of April is
If closing inventory at the end of an accounting period is overvalued by £2000 and no adjustment is made, the net profit in the following accounting period will be:
Which one of the following best describes the purpose of an external audit of financial statements?
Which of the following are examples of indirect costs for a chocolate manufacturing business?
Which TWO of the following are responsibilities of the IFRS interpretations committee?
The purpose of charging the income statement with depreciation on non-current assets is:
Below are a list of entries from FG's accounts, from the most recent accounting period:
Petty Cash £150 DR
Returns Outwards £310 CR
Purchases £820 DR
Sales £250 CR
FG started the period with a bank balance of £405 DR. The total bank account at the end of period was £1,065 DR
Which of the above items has been omitted from the bank account total?
Refer to the exhibit.
The following extracts from the statement of financial position and income statement for Company S are available:
Included in operating profit was depreciation of $120,000 and a loss on disposal of non-current assets of $48,000.
The cash generated from operations for year 2 would be:
Refer to the Exhibit.
Your organization bought a machine for £50,000 at the beginning of year 1, which had an expected useful life of four years and an expected residual value of £10,000; the machine was depreciated on the straight-line basis.
At the beginning of year 4, the machine was sold for £13,000
The total amount of depreciation charged to the income statement over the life of the machine, and the amount of profit or loss on disposal was:
The answer is:
Refer to the Exhibit.
A sole trader, who only has cash sales, banks all cash receipts above the agreed petty cash float of $400.
During week 2 he has the following transactions:
What is the amount banked at the end of week 2?
A trader commenced business with capital of $20,000. At the end of the financial year he had receivables of $10,000, payables of $6,000, inventory of $12,000, cash of $4,000 and non-current assets costing $16,000.
The profit/loss for the period was:
A trial balance is extracted from the ledger accounts at the end of each accounting period.
Which of the following will a trial balance do?
AB wrote off a $500 debt owed by CD last year During the current year CD has paid the $500 in full AB has debited the bank account with S500.
Where would the credit entry for this receipt be recorded?
In relation to accounting coding systems in the computerized records of an entity, which of the following is true?
EFG pays employees $10 per hour The following rates of tax and social security are applicable.
An employee works 38 hours in a week.
What is the amount employee receives for one week’s work? Given you answer to the nearest $.
Refer to the exhibit.
A company has the following transactions for the month of April:
Closing inventory at the end of the period was $26,000 and gross profit was $90,000. The opening inventory was therefore:
A club received subscriptions during the year totaling £37500. Of these, £2400 related to the previous year and £1200 related to the following year.
There were subscriptions in arrears at the end of the current year of £750.
The subscriptions to be included in the income and expenditure account for the current year amount to
ABC produces accounts to the year ended 31 December annually Extracts from the most recent financial statements are.
Which of the following ratios is a liquidity ratio?
The sales ledger control account shows a balance of $267,984 whilst the individual customer account balances total $262,856.
Which of the following is a possible explanation for the difference between the two?
(i) A payment has been recorded in the cashbook but not in the sales ledger
(ii) A payment has been recorded in the sales ledger but not in the cashbook
(iii) An invoice has been recorded in the sales ledger but not in the sales day book
(iv) An invoice has been recorded in the sales day book but not in the sales ledger
Mr UY has just had property P re-valued. Mr UY originally purchased property P for £560,000. It is now worth £780,000.
Which ONE of the following shows how this transaction should be recorded in Mr UY's property account?
Refer to the Exhibit.
Which of the following balances normally result from the double-entry system of book-keeping?
The answer is:
Which TWO of the following are transactions that would be recorded in the sales ledger control account?
A sole trader made a net profit of $8000 for the year.
During the year, inventory increased by $500, receivables decreased by $800 and payables increased by $2400.
This would result in:
FY owns bakery T. Which of the following are examples of FY's liabilities?
Refer to the exhibit.
The following information is available for a company:
The company has declared an ordinary dividend of $0.05 per share.
What is the total dividend payment to be made by the company?
In accordance with IAS 7 Statements of Cash Flow, which TWO of the following are cash flows presented as investing activities?
GH operates an imprest system for petty cash, maintaining a float of $250 The following petty cash book extract is available for a week in March 20X6:
How much does GH need to transfer from the bank account at the end of this week In order to maintain the imprest system?
A basic principle of accounting is that resources are normally stated in accounts at historical cost.
Which THREE of the following are alternative ways of measuring resources?
The record of how the profit or loss of a company has been allocated to distributions and reserves is found in the:
Refer to the exhibit.
A company has the following equity balances at the beginning of the year:
During the year the company issued 100,000 new shares at $1.20 each
What are the equity balances after this issue?
The petty cash imprest is restored to £500 at the end of each week. The following amounts are paid out of petty cash during week 23:
(a) Stationery - £70.50 (including VAT at 17.5%)
(b) Travelling costs - £127.50
(c) Office refreshments - £64.50
(d) Sundry payables - £120.00 plus VAT at 17.5%
The amount required to restore the imprest to £500.00 is:
Give your answer to 2 decimal places.
Refer to the Exhibit.
What is the wages expense for the income statement for month 1?
TESTED 25 Apr 2024