All Matches

Solution Library

Expert Answer

Textbooks

Search Textbook questions, tutors and Books

Oops, something went wrong!

Change your search query and then try again

Result Not Found

Books FREE
Tutors
Study Help
Ask a Question

Search
Sign In
Register

study help
business
financial accounting an introduction

Questions and Answers of Financial Accounting An Introduction

At an AGM of shareholders a shareholder wishes to know why the tax expense for the year is reported at £394,000; whereas the tax liability reported among the current liabilities is
Lydall plc seeks your advice on how it should treat the following items, when preparing its financial statements for the year ended 31 December 2011:(a) £50,000 was paid as an out-of-court
As at the end of the year the Equity and reserves of a public limited company is made up of amounts stated. The directors have resolved to make a scrip issue of one for every five shares, taking
X plc offered for issue ten million ordinary shares of £1 each at 120p per share. Applications were received, however, for only eight million shares and the directors proceeded to allot the shares
Y plc issued 800,000 ordinary shares of 20p each at 25p each. At the point of issue all shares were fully called up. However, by the year-end £15,000 due on the share issue was yet to be received.
£360,000, being the proceeds of issuing 600,000 Ordinary shares of 50p each, has been posted from the Cash Book to the credit of the Share capital account. How should this error be corrected?(a) Dr
As at 1 January 2011, commencement of an accounting period, Olive plc had a balance of £300,000 in its Share capital account and £45,000 in its share premium account. The shares in issue were
£15,000 still to be received, by the year-end, out of the total amount receivable from a share issue should be reported on that company’s financial statements as:(a) An income in the Statement of
The balance appearing on the Ordinary share capital account, at any point of time, is:(a) The called-up capital of the company(b) The issued capital of the company(c) The paid-up capital of the
The cost of dividend payable on redeemable preference shares should be included:(a) As a deduction in the Statement of changes in equity(b) In the Statement of income as a deduction prior to
Which of the following would you not include within the heading Equity and reserves in a company’s Statement of financial position?(a) Revaluation reserve(b) Share premium account(c) Redeemable
The directors of a company are considering the use of a large balance in the Share premium account for the purposes listed below. Which among these planned actions is/are not legally permitted?(a)
During the year a company used the balance it had in its Share premium account for all of the following purposes. Which one is correct?(a) Write off expenses of company formation(b) Write off the
For which one or more of the following reasons does company law attempt to protect the balance in the Share premium account by specifying the reasons for which alone it may be applied?(a) It is part
A company was able to acquire land with a market value of £6 million, by issuing four million ordinary shares of £1 each. When accounting for the acquisition of land and the issue of shares, how
Q plc allotted ten million of its ordinary shares of £1 each, quoted in the market at 180p each, to acquire P Ltd as an ongoing business. The tangible assets of P Ltd had a market value on this date
At commencement of a year X plc had in issue 500,000 ordinary shares of £1 each fully called up, and a balance of £90,000 in the Share premium account. During the year they made a bonus issue of
Which of the following actions, when taken by a company, will not change the balance it has on its Share capital account?(a) Make a fresh issue of shares for cash(b) Make a rights issue of shares(c)
Which one or more of the following will be the effect when a company makes a rights issue of one for every three ordinary shares?(a) The company will have more investments(b) The company’s
The Capital and reserves of a company appear as shown. On this day the directors of the company resolve to make a bonus issue of one for every five ordinary shares, using to maximum profits not
The Capital and reserves of a company appear as shown. On this day the directors of the company resolve to make a bonus issue of one for every five ordinary shares, for the purpose of enlarging the
To raise additional finance a company offered its existing shareholders two ordinary shares of 50p each, for every five held by them, at a discounted price of 80p each. This is known as:(a) Bonus
Which of the following will be the effect when a company makes a bonus issue of two for every five ordinary shares?(a) The liquidity of the company will improve(b) The company will have more capital
The year-end Trial Balance of Quin plc reports £400,000 8% Loan notes (issued 2004) and £16,000 as interest paid. In this regard identify the amounts to be reported as expense in the Statement of
Clinton plc depreciates machinery at 30% per annum, on the reducing balance method, time apportioning for the nearest months of usage. As at 31.12.2010 machinery costing £720,000 was reported on the
N plc, with an issued capital of £500,000, in ordinary shares of 20p each, made a rights issue of one for every ten. All rights were taken up. £75,000 received on the issue has been posted from the
Epsilon plc had in issue £400,000 6% Debentures as at 31 March 2010 and on 31 December 2010 redeemed £300,000 of these debentures at 10% premium. Interest on debentures was paid annually in arrears
The commercial exploitation of a product commenced on 1 January 2009. The development cost relating to that product, amortised over five years from that date using the sum of the years’ digits
The year-end Trial Balance of Aroma plc reports a debit balance of £4,800 described as taxation. This amount represents an underprovision for previous year’s taxation. Taxation on current year’s
Tax in respect of 2010, accounted for at £148,500, was settled on 1 October 2011 paying £154,400. Tax on the profits in 2011 is estimated at £179,000. As at 31 December 2011 the tax base is
The Trial Balance as at 31 December 2011 reports a debit balance of £3,000 identified as taxation and a credit balance of £27,500 as deferred taxation. The debit balance in the taxation account is
The year-end Trial Balance of Flavour plc reports a credit balance of £1,500 described as taxation. This represents an over-provision for previous year’s taxation. Tax on the current year’s
Rocky plc, engaged in retailing consumer durables, received £30,000 as dividend from the investments it holds in other companies. This should be reported in current year’s financial statements
A debit balance appearing on the Trial Balance as taxation has been identified as the under-provision for tax relating to the previous year’s profit. This amount should be included in the current
Current year’s depreciation charge relating to Equipment used for designing products should be included as an expense in the current year’s Statement of income, within which of the headings
The following are particulars of dividends proposed, declared and paid to ordinary shareholders:January 2011: paid £30,000 as second interim for 2010, declared in December 2010April 2011: paid
A company had to pay £15 million in respect of customers’ claims for injuries suffered from goods manufactured and sold in the previous year. When preparing the financial statements for the
To enable stakeholders to make informed decisions, which of the following needs to be reported separately, preferably on the face of the published Statement of income, assuming the amounts are
Which one or more of the following would you report as a liability on a Statement of financial position?(a) Redeemable preference shares(b) Retained earnings(c) Dividend declared(d) Loan notes w a, b
Which one or more of the following items will be included in the Statement of changes in equity for the year ended 30 September 2011?(a) Preference dividend paid(b) Ordinary dividend declared(c)
The Share capital account of the company reports a balance of £500,000 reporting ordinary shares of 20p each. Directors have declared an interim dividend of 5p per share. What is the amount of the
Assets and liabilities of a retail shop owned by Joe Ross are identified as stated.Scenario (a): Assuming that no more information is available with regard to the business, estimate the profit
Simon lists his assets and liabilities as shown and provides the following information:(i) Drawings by Simon £40,000(ii) Payments to suppliers £1,731,600(iii) Receipts from customers
The tax authorities seek your assistance to estimate the profit made in the year ended 31 December 2011 by a retail shop belonging to Chris Jones. They inform you as follows:(i) Chris has no income
When preparing the financial statements for the year a company has included the following in the Statement of changes in equity. Identify the incorrect one.(a) Ordinary dividend paid(b) Preference
Which one or more of the following is a company obliged to disclose when preparing financial statements for publication?(a) Depreciation written off(b) Particulars as well as the impact of any change
The Development cost account appearing on the year-end Trial Balance includes research expenses of £312,500. £280,000 of this amount had been incurred in prior years. Which of the following is the
Aim is a sole trader who does not keep a full set of accounting records. An analysis of his bank transactions is shown below on the left. Aim’s other assets and liabilities were as stated
The owner’s capital in a business was £340,000 on 30 June 2011 and £215,000 a year earlier. In each of the following independent scenarios, given the stated amount of proprietor’s drawings and
Rupert owns a retail shop but does not maintain any accounting records. The Tax Inspector prepared a Statement of affairs for him on 30 June 2011 establishing his capital on that date as £426,500.
Z plc allotted one million shares of 50p each, as 35p called up per share, requiring an immediate payment of 45p per share. Accounting entries to record the allotment are:(a) Dr Share allotment
For which one or more of the following reasons could a balance in the share premium be applied?(a) To issue bonus shares(b) For distribution to shareholders as dividend(c) To write down the value of
Bruce Drake requests your assistance to prepare the financial statements of his business for the year ended 30 June 2011 and has provided you with the following information:(i) The shop’s assets
Since submitting her last Statement of financial position to the Tax Department, Stella Norris has lost the services of her accountant. From particulars in her own diary and by summarising her bank
Cash and bank balance of a shop on 31 December 2011 and a year prior to that were £11,200 and £14,500 respectively. During the year ended 31 December 2011 £4,800 was paid out in cash and £39,500
Bob is a sole trader who does not maintain complete accounting records. He has listed his assets and liabilities as shown on the right, and has prepared, as shown below, a summary of bank and cash
Morning Bakers have prepared a summary of their bank statement for the year ending 30 June 2012 as shown. Deposits not cleared were £15,500 on 1.7.2011 and £9,500 a year later; while cheques not
Jerry, owner of a retail shop, does not maintain proper accounting records. He seeks your assistance to calculate his sales revenue in the year. He habitually banks his daily takings intact, leaving
In an attempt to identify the sales revenue in 2012 of Pauline’s Confectionery, you have prepared a summary of her bank statements as shown. Bank lodgements not cleared were £3,900 on 1.1 and
Particulars relating to a Newsagent are stated. The cash takings during the year ended 30 June 2012 were £594,800. The sales are made at cost plus 10%. A trade debt of £300 was written off.
Payments to suppliers during the year to 30 September 2012 were £486,780, taking advantage of 5% cash discount offered by suppliers. Taking note of the information in the box on the left, identify
Trade payables of Brixton Corner were £248,450 on 30 September 2012 and £195,900 a year prior to that date. Payment to suppliers in the year to 30 September 2012 was £794,700. The cost of
Browns have rented a photocopying machine from Whites. The contract is that, besides the annual rental, further payments will be calculated at 3p per copy taken. As at 1 April 2011 rental of £3,000
Cash takings from customers during the year were £524,800; while the trade receivables at commencement of the year and at year-end were £84,700 and £94,500 respectively. The cost of inventory in
A summary of a retailer’s bank statements identified that, during the year, cheques for £948,500 were drawn in the name of suppliers. However, cheques drawn in the name of suppliers not presented
Payments for insurance during the year, of £21,900, include an amount of £5,400 paid for a year ending four months after the date of the Statement of financial position. At commencement of the year
According to the bank statement summary for the year, cheques for £14,800 have been drawn in the name of the landlord. However, a landlord’s cheque for £1,200 had not been presented for payment
In addition to its trading activities a business earns substantial amounts as rent, particulars of which are stated on the left. Rent received during 2012 was £54,800. Identify the rental income it
Statements of financial position of Pilchard Ltd are given below:You are informed as follows:(i) Shown is an extract of the Statement of income for the year ended 31.3.2012.(ii) There was no
Shown a summary of rent received by a business from subletting three blocks out of its office premises.Identify the amount that should be included as rental income in the year ended 31 March 2008 and
On 1 August 2011 a business invested £400,000 in a fixed deposit account earning interest at 6% per annum. Identify the amount of interest income to be reported in the Statement of income of the
Non-current assets have been reported in the Statements of financial position of a business as shown. An asset that cost £40,000, written down to £28,000, was sold in the year for £20,000. What is
The non-current assets of a business were reported at a written-down value of £548,000 at the year-end and at £472,400 a year prior to it. Depreciation in the year was £51,600. Assets costing
During the year land was revalued and the surplus reported as Revaluation surplus; and an asset costing £80,000, written down to £38,000, was sold for £40,000. Identify the cost of any non-current
Statements of financial position reported non-current assets as shown below. A new asset had been acquired for £120,000 and depreciation of £38,000 written off. An asset was disposed of for
Richard, a newsagent, reported as at 30 June 2011 Trade receivable as £79,400 and the balance at bank as £59,400. Daily takings are banked intact and all payments made by cheque. The total of all
Shown below is an extract of the year-end Trial Balance as at 30 June 2012. Sales are always made at cost plus 25%. The cost of inventory as at 30.6.2012 is found to be £54,000. What is the cost of
Which of the following statement(s) are correct with regard to preparation of Statements of cash flows?(a) A Statement of cash flows is less objective than a Statement of income(b) A Statement of
A company’s Statement of financial position reports its receivables as shown. In each of the following independent scenarios, identify the cash inflow from sales in the year ended 30 June 2012:(a)
Calculate the cash inflow/outflow during the year ended 31.12.2011. Income/expense for the year ended 31.12.2011 Sales Purchases Rent Salaries £'000 1,680 1,246 60 246 As at 1.1.2011 Trade
During the year the company acquired non-current assets for £1,900,000 and sold for £80,000 ones written down to £310,000.Required: Prepare a Statement of cash flows for year ended 30.9.2011.
Statements of financial position of Fixem plc are shown. You are informed:(i) Non-current assets acquired for £120,000 and written down to £60,000 were sold in the year for £90,000.(ii)
Bestow Ltd’s Statements of financial position are shown. You are informed as follows:(a) A plant with a written-down value of £354,000 was sold in the year for £280,000. Depreciation written off
The assets and liabilities of a shop owned by Simon are stated. Transactions in 2011 were as follows:(i) Drawings by the proprietor £40,000(ii) Payments to suppliers £1,731,600(iii) Receipts from
A shop owned by Jeanne Salt informs you that:(a) Assets and liabilities of the shop are as shown.(b) Furniture acquired for £16,200 and written down to £5,400 was scrapped during the year.(c) A
Trade receivables as at 30 September 2011 were £24,800 and a year later £42,400. Identify the sales revenue during the year ended 30 September 2012, taking into account the following additional
Rent on business premises has been agreed at £3,000 per month. £9,000 rent had been prepaid at commencement of the year; whilst two months’ rent was in arrears by the year-end. Identify the cash
Particulars of a company’s inventory are stated. Identify the company’s cash outflow relating to purchases, in each of the following independent scenarios:(a) Its purchases were £540,200, and
(a) Land and buildings were revalued on 1 July 2011 and £26,000 of the revaluation gain was treated as realised in the year. No new land and buildings were acquired in the year.(b) Equipment
As at 1 April 2011 a business owned non-current assets costing £420,000 written down by that date to £284,400. Depreciation in the year was £54,000. Year-end Statement of financial position
A business owns seven flats rented out to staff at £500 per month. All flats were tenanted during the year. As at 1 January 21 months’ rent was in arrears and as at 31 December 14 months’ rent
Interest income of a company was £39,400 during the year ended 31 March 2012. Interest receivable was £9,400 as at 31 March 2011 and £10,500 as at 31 March 2012. Identify the cash inflow from
Operating expenses for the year amounting to £752,400 includes depreciation of £98,400, amortisation of development cost of £35,000 and directors’ emoluments of £80,000. Prepaid operating
A company had £400,000 8% Loan notes in issue on 1 January 2011 and repaid £150,000 of it by 30 September. Interest in arrears was £8,000 on 1 January 2011 and £5,000 on 31 December 2011.
On 1 April 2011, a company had in issue £300,000 6% Loan notes and redeemed a third of it on 30 June 2011 paying a premium of 10%. It pays interest on Loan notes half yearly in arrears on 30 June
In each of the following independent cases identify the total cash inflow or outflow during the year. As at 30 June Cash in hand Bank current account Bank overdraft Bank loan Bank deposit (three
Operating expenses for the year amounted to £826,400. Accrued operating expenses were £42,400 at commencement of the year and £58,900 at the year-end. Depreciation of non-current assets in the
You have been provided with the Statements of financial position of Solvent plc as follows:You are informed as follows:(a) Property, plant and equipment is made up as follows:(b) Land and buildings
Dynamic plc reports a bank overdraft of £13,000 as at 31 December 2011 whereas a year prior to that date it reported a favourable balance at the bank of £10,000.Directors of the company are unable
During the year ended 30 June 2012 Middle plc sold for £78,000 a machine acquired for £200,000 and written down to £52,000. You are provided with an extract of the company’s Statement of income

Showing 1400 - 1500 of 1917

First
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20

Get In Touch

About Us
Contact Us
Career
Jobs
FAQ
Campus Ambassador

Company Info

Security
Copyrights
Privacy Policy
Terms & Condition
SolutionInn Fee
Scholarship

Services

Sitemap
Fun
Definitions
Become Tutor
Study Help Categories
Recent Questions
Expert Questions

Copyright © 2024 SolutionInn All Rights Reserved.

Get the SolutionInn - Study Help App