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
Toggle navigation
FREE Trial
S
Books
FREE
Tutors
Study Help
Expert Questions
Accounting
General Management
Mathematics
Finance
Organizational Behaviour
Law
Physics
Operating System
Management Leadership
Sociology
Programming
Marketing
Database
Computer Network
Economics
Textbooks Solutions
Accounting
Managerial Accounting
Management Leadership
Cost Accounting
Statistics
Business Law
Corporate Finance
Finance
Economics
Auditing
Ask a Question
AI Study Help
New
Search
Search
Sign In
Register
study help
business
principles of financial accounting
Questions and Answers of
Principles Of Financial Accounting
What does the fixed assets section of a balance sheet represent? Is the information both relevant and reliable?
On 1 April 1991, a business which prepares annual accounts to 31 March acquires freehold property for £100,000. The cost of the property can be divided into land £30,000 and buildings £70,000. The
Leonard's trial balance at 30 June 1999 is as follows:Further information:1. The balance on the equipment at cost account consists of £34,600 brought forward from the previous year, plus new
A dealer in second-hand lorries has the following vehicles in stock on 31 December 1999:The dealer sells the lorries at auction and pays a 5% commission to the firm of auctioneers when a lorry is
A business buys and sells sand. On 1 April the stock of sand was 1,200 tons, which had cost £8 per ton. During the month of April the following purchases and sales were made:Required:Calculate the
Ronald's provision for doubtful debts on 1 July 1997 was £153. During the years to 30 June 1998 and 1999 he wrote off the following bad debts:After writing off these debts, Ronald's debtors at 30
On 31 May 2000, Susan's bank account shows an overdraft of £3,229. The bank statement dated 31 May 2000 shows an overdraft of £1,351.Comparison of Susan's ledger and the bank statement reveals the
A profit and loss account is usually drawn up in accordance with a number of accounting conventions. Identify the main conventions which have an effect on the profit and loss account and explain the
Stock is generally valued at the lower of cost and net realisable value. Is this policy in accord with all of the commonly accepted accounting conventions?
The bank account of P Watkinson & Co Ltd for the month of October 1999 appears in the firm’s ledger as follows:The bank statement for October 1999, which was received on 5SN ovember 1999, is
Timothy's trial balance at 30 September 1999 is as follows:Further information:. The balance on the vans account comprises £29,600 brought forward from the previous year, plus £16,000 relating to
Classify each of the following as either a direct manufacturing cost, an indirect manufacturing cost, a selling and distribution expense, an administrative expense or a finance cost:(a) Factory
Stewart owns a manufacturing business and prepares accounts to 31 March each year. The following figures relate to the year ended 31 March 2000:Rent and rates are to be apportioned equally between
Sean started a manufacturing business on 1 January 1997, preparing accounts to 31 December each year. He decided to transfer finished goods from manufacturing account to trading account at production
The trial balance of McFadden Manufacturing at 30 September 1999 is as follows:Further information:1 There were no disposals of fixed assets during the year.2 All fixed assets are depreciated on the
(a) Identify the account books in which each of the following accounts would normally be held:(i) Returns outwards (ii) Cash(iii) J Price (a customer) (iv) Motor vehicles.(b) Identify the subsidiary
Keith began trading on 1 October. All of his payments and receipts are made by cheque and he has a manual book-keeping system. His transactions during the first month of trading were as
A business has extracted a trial balance at the end of an accounting period but the trial balance totals do not agree. For the purposes of preparing draft accounts, the discrepancy between the trial
Laura's trial balance on 31 December 1999 shows total debit balances of£52,346 and total credit balances of £52,519. The difference is temporarily placed in a suspense account. A search of Laura's
On 30 September 2000, the balance on Michael's sales ledger control account is £24,768 (debit). The total of a list of balances extracted from the sales ledger on that date is £22,761. A search
Pamela's trial balance on 31 January 2000 showed that total debit balances exceeded total credit balances by £1,350. This discrepancy was temporarily credited to a suspense account whilst draft
The purchase ledger control account of a business for the year to 31 March 2000 has been drawn up as follows:A list of balances extracted from the purchase ledger on 31 March 2000 shows total
Arthur prepares accounts to 31 March each year. Despite advice to the contrary he has always refused to open a bank account and insists that all of his receipts and payments should be in cash. His
On 1 July 1999, Luna started running a small shop and decided to produce accounts to 30 June each year. She does not maintain a full set of doubleentry books but she does record her receipts and
Brendan's assets and liabilities on 1 February 1998 were as follows:The following information relates to the year ended 31 January 1999:(a) Brendan's sales were all for cash. He took sufficient money
Charlotte's assets and liabilities at 31 August 2000 were as follows:Charlotte's business premises were burgled on the night of 17 November 2000. The intruders took her van, her entire stock and her
Explain the differences between a receipts and payments account and an income and expenditure account. Identify the types of organisation which might find each of these financial statements useful.
A social club was established on 1 January 1997. The members agreed that accounts should be prepared to 31 December each year. Subscriptions were received as follows in the first four accounting
The cash and bank accounts of the Walford Chess Club for the year to 31 December 2000 are as follows:Required:Prepare a receipts and payments account for the year to 31 December 2000. Balance b/d
The treasurer of the Trentside cricket club has prepared the following receipts and payments account for the year to 31 March 1999:The following information is also relevant: (a) The club owns its
Kevin, Kate and Kim are in partnership. Their partnership agreement states that:(a) partners are entitled to 6% p.a. interest on their capital accounts(b) interest is charged on partners’ drawings
Liam and Lorna have been in partnership for many years, sharing profits in the ratio 3:2. On 31 October 2000 they agree to admit Len as a partner. Len will introduce capital of £15,000 and the new
Edna, Enid and Eric are in partnership. Their profit-sharing agreement is:(a) Partners’ salaries are Edna £12,000, Enid £14,000, Eric £5,000.(b) Each partner is entitled to interest on capital
Fiona and Frank have been in partnership for many years, sharing profits in the ratio 2:1. Fiona decides to retire from the partnership with effect from 31 August 2000 and Fred is admitted as a
Mary, Mark and Mike have been in partnership for many years, sharing profits in the ratio 3:2:1. Their balance sheet as at 31 December 1999 is as follows:The partners decide to dissolve the
The trial balance of Carruthers & Co Ltd at 31 January 2000 is as follows:Additional information: 1. Stock at 31 January 2000 is valued at 83,710. 2. Depreciation of equipment for the year to 31
The balance sheet of Boscastle ple as at 30 September 1999 may be summarised as follows:On 1 October 1999, the company makes a 1 for 10 rights issue at a price of £2.50 per share. All of the
Amongst other things, a company balance sheet may include liabilities, provisions and reserves, all of which are represented by credit balances in the company's ledger. Explain the differences
The trial balance of Devenish plc at 30 November 2000 (in alphabetical order and shown to the nearest £1,000) is as follows:The following information is also available: 1. Freehold property is to be
On 31 May 20x8, the balance sheet of Daponte Trading Ltd appears as follows:During the month of June 20x8, Daponte Trading Ltd had the following summary of transactions: a Received $5,000 from
The following balance sheet is for Ditbit Co. Ltd as at June 2006:During the following month, just completed, the company had the following transactions: a Sold stock for cash $30,000 (cost $18,000).
Below is the trial balance of Mobile Phone Services Ltd, prior to adjustment, and the adjustments which must be made at balance sheet day:The following adjustments are to be made. a The prepaid rent
Boat Repairs Services Ltd has the following trial balance as at June 20x1:Boat Repairs Services Ltd’s accountant has identified the following adjustments that must be made:a A special rain
The trial balance of a business called ‘Saturdays’, a sole trader, at 1 January 2007 is as follows:During the financial year, the following transactions took place:At 31 December 2007 the closing
The owner of Bodystore, a retailer, does not keep proper books of accounts, but was able to supply his accountant with the following information on 1 April 2008:The following is a summary of his bank
The Fotiades brothers own the SouviakiHat, a casual Greek restaurant, but they do not keep a full set of accounting records. However, the following information has been produced from the restaurant's
Mr Xo owns a retail shop. You prepare annually the profit and loss account and balance sheet from records consisting of a bank statement and a file of unpaid suppliers and outstanding debtors.The
Dang, Ding and Dong are partners sharing residual profits in the ratio 3:2:1. The partnership agreement provides for a salary for Ding of £35,000 per annum and for interest on capital at the rate of
Alf and Bert are partners in a newsagent business. They share residual profits in the ratio 3:2 after interest on partners’ capital of 8 percent per annum and interest on partners’ drawings of 11
Iliana and Ilias commenced a partnership on 1 January 2009, each contributing capital of €25,000, and agreed to share profits equally. The partnership’s net profit is €9,000 for the period to
Stan and Stuart, partners in a manufacturing business, share profits and losses equally. They have the following partnership agreement:Their capital and current balances as at 1 June 2008 and their
Dixon, Cowell and Cooper are in partnership sharing profits and losses in the ratio 2:2:1 respectively.During the year ended 31 December 2007 the net profit of the firm was €30,538.You are also
Harisson Ford and Al Pacino, two actors, decided to form a partnership. They agreed that they would have their own regional selling areas and be responsible for their own sales. The partnership
Elisabeth and Philip are in partnership, sharing profits and losses in the ratio 2:1. The following trial balance was prepared as at 29 February 2008:The following matters relate to the partnership
Chip, Dale and Duck are partners of a trading firm and share profits and losses in the ratio 3:2:1. The firm's balance sheet on 31 December 2006 was:Dale retired from the Partnership on 1 January
Bill, George and Obama were partners with capitals of £80,000, £100,000 and £20,000 respectively. They shared profits and losses in proportion to their capitals. George retired from the
Farkha, Sakhira and Sab are in partnership sharing profits and losses, Farkha 5/12, Sakhira 1/3 and Sab 1/4. On 1 September 2009 Sakhira retired from the partnership and at the same date Nazick was
Marshall, Brendan and Nick are partners and sharing profits or losses in the ratio of 2:1:1 respectively. On 31 July 2009, they agree to dissolve the partnership. Their balance sheet as at 31 July
Bonnie and Clyde have been in partnership for several years sharing profits equally.The partnership accounting year-end is 31 December. On 20 February 2009, they have decided to dissolve the
Obama and Hilary are in partnership, sharing profits and losses in the ratio 3:2. At 1 May 2008 they agree to sell their business to Save the Planet Ltd. The partnership balance sheet was as
Angelina Jolie opened a business in London on 1 January. She was able to arrange two main agencies under the same business — one for word processing and the other for shoe repairs.For the first six
Prepare a profit and loss account to determine gross and net profit from the following information:Use the blank account sheet provided. $ $ Sales 214,000 Sale returns 21,000 Purchases 138,000
The transactions below are for a business owned by Mickey Rooney. The business started on 1 July 2009 and has an accounting year-end at 30 June.Required 1 Do the double-entries and balance the
Cosi, a painter and decorator, has the following transactions during September:Required 1 Record all transactions in T-accounts.2 Prepare a profit and loss account for the month.3 Prepare a balance
The adjusted trial balance of Happy Car Garage Ltd, as at 30 June 2005, appears as follows:George Lexy organised Happy Car Garage Ltd on 2 July 2004 with an initial cash investment of
Cutting Tree Services Ltd, which began operations on 1 July 2009, had the following transactions:At 31 July, accrued interest on the loan amounted to €70, while accrued salaries totalled €350.
Quick Cleaning Service Ltd rents a shop in Edinburgh. It also does pick-up and delivery for a small fee. It owns two delivery vans and employs three assistants. The balance sheet at 30 June 20x9 was
Data for Jennifer Aniston’s business as at 31 December 20x9 are as follows:Required 1 Prepare a profit and loss account for the year ending 31 December 20x9.2 Prepare a balance sheet as at 31
Tom Cruise’s business has the following balance sheet items on 31 December 20x8:During the first two weeks of January 20x9, the following transactions occurred:Required 1 Prepare a profit and loss
Theo Paphetes, a retailer of office equipment and stationery, works from home and started his business on 1 March with £450,000 capital in cash. During the month of March, the following transactions
Stars Ltd’s account balances at 31 December 20x5 are as follows:Required 1 Prepare a profit and loss statement for the year ending 31 December 20x5.2 Prepare a classified balance sheet as at 31
Phototronic Services Ltd has employed you as its accountant to record its business transactions. On 1 September 20x8, the following balance sheet is presented:Required 1 Produce the general journal
Below is the trial balance on 31 December 2008 of a sole trader’s business, prior to adjustment, and the adjustments which must be made at balance sheet day:Additional information:a Stock on 31
The following trial balance was extracted from the books of a sole trader, as at 31 December 2006:At the end of December the trader was able to produce the following additional information:a Stock on
The following trial balance was extracted from the books of a sole trader, as at 31 December 2008:At the end of December the trader was able to produce the following additional information:a Stock on
Alex Boots, a retailer, has produced the following information:a Summary of the bank account for the year ended 30 April 2009.b Assets and liabilities, other than balance at bank:c It is Alex
On 1 January 2006, a business's list of assets and liabilities are as follows:The business’s sales are strictly for cash only. The owner of the business does not keep any books at all.During the
Indicate whether the following payments are ‘capital expenditure’ or ‘revenue expenditure’.1 Purchase of delivery van.2 Payment of rent.3 Payment of telephone bill.4 Tax and insurance for
Classify the following items as ‘capital expenditure’ or ‘revenue expenditure’.a Wages paid to machine operators.b Installation costs of new production machine.c Rent paid for the factory.d
An asset costs ¥15,000, has a residual value of ¥1,000 and an estimated useful life of five years. Using the straight-line method of depreciation, what is the asset’s net book value after one
An asset costs ¥15,000, has a residual value of ¥1,000 and an estimated useful life of five years. Using the straight-line method of depreciation, what is the asset’s net book value after three
An asset costs ¥15,000, has a residual value of ¥1,000 and an estimated useful life of five years. Using the reducing balance method and a 40 percent rate per annum, what is the asset’s net book
An asset costs ¥15,000, has a residual value of ¥1,000 and an estimated useful life of five years. Using the reducing balance method and a 40 percent rate per annum, what is the asset’s net book
An asset costs ¥15,000, has a residual value of ¥1,000 and an estimated useful ‘life of five years. Using the reducing balance method and a 40 percent rate per annum, what is the profit or loss
A small business has the following balances in its books as at 1 April 2007:On 30 September 2007 one of the old vehicles, which was purchased for \($12,000\) (at cost) on 1 August 2005, was accepted
The balance in the buildings account is €400,000 while the balance sheet shows the book value of the buildings at €217,600. The notes to the financial statements indicate that straight-line
The following balances appeared in the balance sheet of Addax Limited at 31 March 2001:In the year ended 31 March 2002 the following transactions took place:1 Plant which cost £100,000 with a
Kayne West's accounting year-end is on 31 December. On 1 January 2007 he purchased a vehicle for £1,000 with an expected useful life of three years and an estimated residual value of £343.Required
Frairy Ltd commenced business on 1 January 2006 with two vehicles - X and Y - costing £9,000 and £12,500 respectively. On 21 April 2007, vehicle X was written off in an accident and Frairy Ltd
Northeast Drycleaning Service Ltd has the following accounts on 31 May 2007:On 31 December 2007, half the machinery and plant was sold for £190,000 cash.The disposed machinery and plant was
Mr Flo Rida owns a small factory and uses the reducing balance method of depreciation for plant, with a 60 percent write off each year, and maintains a plant account to record all entries concerning
Britney Spears’s accounting year-end is on 31 December. On 31 December 2008 her business had the following balances:Motor vehicles are depreciated using the straight-line method at a rate of 20
The accounting year-end of Phillipps Ltd is on 31 May. On 31 May 2008 the business had the following balances on its motor vehicles account:Motor vehicles are depreciated using the straight-line
Springsteen has paid rent of £1,200 for the period 1 January 2009 to 31 December 2009. His first accounts are prepared for the ten months ended 31 October 2009. What should his first accounts show?
At 1 January 2009 the accounts of a trader show accrued rent payable of £800.During the year she pays rent bills totalling £9,000, including one bill for £450 in respect of the quarter ending 31
A company has made the following payments in respect of electricity and internet expenses:The company has a calendar year end. 1 What balance should have been brought down in the electricity expense
A rent accrual of £450 was treated as a prepayment in preparing the profit and loss account of a business. What is the effect on the profit of the year?
An electricity accrual of £400 was ignored completely when preparing a trader’s profit and loss account. What is the result of the above?
Costa’s business had debtors of £100 at 1 February 2007 and £90 at 31 January 2008. Credit sales amounted to £790 and cash received from debtors was £770;a bad debt of £10 was written off. How
On 1 January 2008 Scottish Castle Ltd had a balance on its debtors account and a provision for doubtful debts as follows:On 31 December 2008 the balance on the debtors account was £1,600,000.The
Showing 5000 - 5100
of 5754
First
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58