• Which of the following explains the imprest system of operating petty cash?

A Weekly expenditure cannot exceed a set amount

B The exact amount of expenditure is reimbursed at intervals to maintain a fixed float

C All expenditure out of the petty cash must be properly authorised

D Regular equal amounts of cash are transferred into petty cash at intervals

• Acompanysincomestatementfortheyearended31December20X5showedanetprofitof$83,600.Itwaslaterfoundthat$18,000paidforthepurchaseofamotorvanhadbeendebitedtothemotorexpensesaccount.Itisthecompanyspolicytodepreciatemotorvansat25%peryearonthestraightlinebasis,withafullyearschargeintheyearofacquisition.Whatwouldthenetprofitbeafteradjustingforthiserror?A$106,100B$70,100C$97,100D$101,600

Annie is a sole trader who does not keep full accounting records. The following details relate to her transactions with

credit customers and suppliers for the year ended 30 June 20X6:

$

Trade receivables, 1 July 20X5 130,000

Trade payables, 1 July 20X5 60,000

Cash received from customers 686,400

Cash paid to suppliers 302,800

Discounts allowed 1,400

Discounts received 2,960

Contra between payables and receivables ledgers 2,000

Trade receivables, 30 June 20X6 181,000

Trade payables, 30 June 20X6 84,000

What figure should appear for purchases in Annies statement of profit or loss for the year ended 30 June 20X6?

A $325,840

B $330,200

C $331,760

D $327,760