Details of a company$’$s insurance policy are shown below:

$•$ Premium for year ended $31$ March $20$X$6$ paid April $20$X$5$: $\pounds 10,800$

$•$ Premium for year ending $31$ March $20$X$7$ paid April $20$X$6$: $\pounds 12,000$

What figures relating to insurance should be included in the company$’$s financial statements for the year ended $30$ June $20$X$6?$

A$)$ Statement of profit or loss: $\pounds 11,100$; Statement of financial position: $\pounds 9,000$ prepayment $($Debit$)$

B$)$ Statement of profit or loss: $\pounds 11,700$; Statement of financial position: $\pounds 9,000$ prepayment $($Debit$)$

C$)$ Statement of profit or loss: $\pounds 11,100$; Statement of financial position: $\pounds 9,000$ accrual $($Credit$)$

D$)$ Statement of profit or loss: $\pounds 11,700$; Statement of financial position: $\pounds 9,000$ accrual $($Credit$)$

Question $3$: The year end of Murphy plc is $30$ November $20$X$1.$ The company pays for its gas by a standing order of $\pounds 600$ per month. It had an opening accrual of $\pounds 400$ and a closing accrual of $\pounds 500.$

What is the correct charge for gas to be included in Murphy plc$’$s statement of profit or loss for the year ended $30$ November $20$X$1?$

A$)\pounds 7,700$

B$)\pounds 7,100$

C$)\pounds 7,200$

D$)\pounds 7,300$

Question $4$: Bez plc draws up financial statements to $31$ December in each year. It pays internet server charges for each year ending $30$ April in two equal instalments, on $1$ May and $1$ November, in advance. It also pays telephone rental charges quarterly in arrears at the end of February, April, July and November.

The total internet server charge for the year to $30$ April $20$X$6$ was $\pounds 9,000.$ Telephone rental charges for the year commencing $1$ July $20$X$5$ were $\pounds 7,440.$

What was the prepayment for internet server charges included in Bez plc$’$s statement of financial position at $31$ December $20$X$5?$

A$)\pounds 1,500$

B$)\pounds 3,000$

C$)\pounds 2,250$

What was the accrual for telephone rental charges included in Bez plc$’$s statement of financial

position at $31$ December $20$X$5?$

D$)\pounds 1,860$

E$)\pounds 1,240$

F$)\pounds 620$

Question $5$: At $1$ July $20$X$4$ a company had prepaid insurance of $\pounds 8,200.$ On $1$ January $20$X$5$ the company paid $\pounds 38,000$ for insurance for the year to $31$ December $20$X$5.$

What is the journal entry to transfer the balance on the insurance expense account to the profit and loss ledger account for the year ended $30$ June $20$X$5?$

A$)$ Debit Profit and loss ledger account $\pounds 27,200,$ Credit Insurance expense $\pounds 27,200$

B$)$ Debit Insurance expense $\pounds 27,200,$ Credit Profit and loss ledger account $\pounds 27,200$

C$)$ Debit Profit and loss ledger account $\pounds 36,700,$ Credit Insurance expense $\pounds 36,700$

D$)$ Debit Insurance expense $\pounds 36,700,$ Credit Profit and loss ledger account $\pounds 37,600$