Question 5 A business had recorded sales of 85,600 and purchases of 48,000 for an accounting period Closing receivables (debtors) for the period were established at 7,520 and closing payables (creditors), 4,500 What is the average debtors repayment periods 34 days 31 days 32 days 33 days Question 6 The opening balance on accounts receivable was 25,000 During the following accounting period, debtor receipts to bank were 320,000, discounts allowed were 1,600 and bad debts written off were 900 The closing balance on account was established at 25,650 Credit (invoiced) sales for the year, therefore, were 323,150 324,750 322,250 325,650 Question 7 The double entry bookkeeping principle requires that There will be at least one debit and one credit entry in the business nominal ledger for each transaction recorded A copy of all business transactions must be forwarded (on a monthly basis) to the government tax office (HMRC) to facilitate the calculation of tax liability All transactions must be recorded twice to ensure accuracy and to provide full evidence for business verification All transactions must be recorded in the business nominal ledger except those transactions between the business and its owner Question 8 4,100 1,400 3,900 3,100 The opening balance on the fixed assets (NBV) account was 45,600 During the following period of account, a fixed asset costing 7,000 was acquired and an old fixed asset with an NBV of 2,500 was disposed The closing balance on the fixed assets NBV account is 47,000 Depreciation for the year, therefore, was

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Question 5 A business had recorded sales of 85,600 and purchases of 48,000 for an accounting period. Closing receivables (debtors) for the period were established

Question 5

A business had recorded sales of 85,600 and purchases of 48,000 for an accounting period. Closing receivables (debtors) for the period were established at 7,520 and closing payables (creditors), 4,500.

What is the average debtors repayment periods?
1. 34 days
2. 31 days
3. 32 days
4. 33 days
Question 6

The opening balance on accounts receivable was 25,000. During the following accounting period, debtor receipts to bank were 320,000, discounts allowed were 1,600 and bad debts written off were 900. The closing balance on account was established at 25,650. Credit (invoiced) sales for the year, therefore, were:
1. 323,150
2. 324,750
3. 322,250
4. 325,650
Question 7

The double entry bookkeeping principle requires that:
1. There will be at least one debit and one credit entry in the business nominal ledger for each transaction recorded.
2. A copy of all business transactions must be forwarded (on a monthly basis) to the government tax office (HMRC) to facilitate the calculation of tax liability.
3. All transactions must be recorded twice to ensure accuracy and to provide full evidence for business verification.
4. All transactions must be recorded in the business nominal ledger except those transactions between the business and its owner.
Question 8
1. 4,100
2. 1,400
3. 3,900
4. 3,100
The opening balance on the fixed assets (NBV) account was 45,600. During the following period of account, a fixed asset costing 7,000 was acquired and an old fixed asset with an NBV of 2,500 was disposed. The closing balance on the fixed assets NBV account is 47,000. Depreciation for the year, therefore, was: