Question $2$: Details of a company$$s insurance policy are shown below:

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

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

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: $11,100$; Statement of financial position: $9,000$ prepayment $($Debit$)$

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

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

D$)$ Statement of profit or loss: $11,700$; Statement of financial position: $9,000$ 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 $600$ per month. It had an opening accrual of $400$ and a closing accrual of $500.$

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$)7,700$

B$)7,100$

C$)7,200$

D$)7,300$

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 $9,000.$ Telephone rental charges for the year commencing $1$ July $20$X$5$ were $7,440.$

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

A$)1,500$

B$)3,000$

C$)2,250$

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

position at $31$ December $20$X$5?$

D$)1,860$

E$)1,240$

F$)620$

Question $5$: At $1$ July $20$X$4$ a company had prepaid insurance of $8,200.$ On $1$ January $20$X$5$ the company paid $38,000$ 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 $27,200,$ Credit Insurance expense $27,200$

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

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

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