Urgent please, I really Need correct answers

1Sharon started a business on 1 January 1991 with 30,000 capital. During the year 1991 he drew 15,000 out of the business and paid in a legacy of 9,000 from his uncle. At 31 December 1991 the business's net assets were valued at 54,000.

What was the business's profit for the year?

A15,000

B24,000

C30,000

D39,000

(2marks)

2During the year ended 31 December 1992 the net assets of Sharon's business increased from 54,000 to 63,000. He drew 18,000 out of the business and paid in a football pools win of 36,000.

What was the profit or loss for the year?

A9,000 profit

B9,000 loss

C27,000 profit

D27,000 loss

(2marks)

3Job makes purchases on credit from Sad Limited for 24,000. What is the correct double entry?

Debit

Credit

A

Purchase

Debtors

B

Purchases

Creditors

C

Creditors

Purchases

D

Creditors

Cash

(2 marks)

147

4Jane receives cash from Jose in part payment of an amount owed to Jade in respect of a sale to Jose. What is the correct double entry?

Debit

Credit

A

Cash

Sales

B

Cash

Debtors

C

Sales

Cash

D

Creditors

Cash

(2 marks)

5Sam returned goods to Dane which he had bought on credit from her. What is the double entry necessary to record this transaction?

Debit

Credit

A

Sales

Cash

B

Sales

Debtors

C

Cash

Sales

D

Cash

Debtors

(2 marks) 6Which of the following errors would not cause there to be a difference in the trial balance?

Aincomplete double entry

Baddition error

Ctransaction not recorded at all

Dtransposition error

(2marks) 7Which of the following errors would cause there to be a difference in the trial balance?

Aamount posted to the wrong account

Btransaction correctly posted but with the incorrect amount in both accounts

Ctransaction entered on the debit side of both accounts

Dtransaction not recorded at all

(2 marks)

8 Norman commenced business on 1 May 1990 and is charged rent at the rate of 18,000 per annum.

During the period to 31 December 1990 he actually paid 13,800.

What should his charge in profit and loss account be in respect of rent?

A600

B900

C105

D1,200

(2 marks) 9Grey paid 3,600 insurance during the year to 31 March 1990.

As at 1 April 1989 he had overpaid 1,200, and the correct charge in the profit and loss account for year to 31 March 1990 is 3,900. What is the amount of the prepayment at 31 March 1990?

(2 marks)

10The following information related to a company's rent and rates account:

Closing balanceOpening balance

Rates prepayment 9060 Rent accrual360300

Cash payments of 2,520 were made in respect of rent and rates during the period. The charge to the profit and loss account for the year is

A2,550

B2,490

C2,110

D3,030

(2marks)

11Businesses charge depreciation on fixed assets in order to

Aensure that sufficient funds are available to replace the assets

Bspread the cost of the assets over their estimated useful life

Ccomply with the prudence concept

Dreduce profits and dividends

(2marks)

12A business buys a machine for 60,000 and depreciates it at 10% per annum by the reducing instalment method. What is the depreciation charge for the second year of the machine's use?

A4,800

B4,860

C5,400

D6,000

(2marks)

13A business buys a machine for 120,000 on 1 January 1993 and another one on 1 July 1993 for 144,000. Depreciation is charged at 10% per annum on cost, and calculated on a monthly basis. What is the total depreciation charge for the two machines for the year ended 31 December 1993?

A13,200

B19,200

C21,600

D26,400

(2marks)

14A company buys a car for 60,000 and expects it to have a useful life of 5 years. It depreciates the car at 50% reducing balance and sells it after 3 years for 30,000. What is the profit on disposal?

A6,000

B15,000

C18,000

D22,500

(2marks)

15A business sells a van on 31 December 1993 which it bought on 1 January 1991 for 18,000 and has depreciated each year at 25% per annum by the straight line method. It trades this van in for a new one costing 30,000, and pays the supplier 27,600 by cheque.

A2,100 loss

B2,400 profit

C4,500 profit

D4,500 loss

(2marks) 16 Graham has the following balances in his trial balance at 31 December 1993.

Total debtors420,000

Bad debts written off (not previously provided for)3,000 Provision at 1 January 199330,000

The company wishes to carry forward a provision equal to 10% of total debtors.

What is the total effect of the above on the profit and loss account for the year ended 31 December 1993?

Acharge of 14,700

Bcredit of 14,700

Ccharge of 15,000

Dcredit of 15,000

(2 marks)

17The cost of stock shown in the balance sheet at 31 March 1992 of Kelly valued on LIFO basis was 25,500. Had the stock been valued on a FIFO basis it would have been 27,600. The effect of adopting the FIFO valuation on the accounts for the year ended 31 March 1992 would be to

Areduce profit and increase working capital 2,100

Bincrease net assets and reduce losses by 2,100

Creduce shareholders' funds and increase current assets by 2,100

Dincrease current assets and increases losses by 2,100

(2marks)

18Kiren sells three products A, B and C. At the company's year end the stocks held are as follows:

Cost

Selling price

A

3,600

4,500

B

18,600

18,300

C

2,760

2,790

At sale a 5% commission is payable by the company to its agent. What is the total value of these stocks in the company's account?

A23,637

B24,282

C24,960

D25,635

(2marks)

19Ali's business had debtors of 1,950 at 1 January 1993 and 1,200 at 31 December 1993. 96,750 was received from customers on credit during the year.

Assuming that there were no bad debts and no discounts allowed, what were credit sales for the year?

A96,000

B96,750

C97,200

D97,950