7707_w24_qp_12
A paper of Accounting, 7707
Questions:
35
Year:
2024
Paper:
1
Variant:
2
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9
A trader’s draft income statement showed a profit for the year of $24500. The following errors were later discovered. No adjustment had been made for accrued income of $8000. Carriage inwards of $250 had been recorded as carriage outwards. An increase in provision for doubtful debts of $120 had been treated as an addition to the gross profit for the year. What was the corrected profit for the year?
5. Preparation of financial statements  →  5.6. Incomplete records
5. Preparation of financial statements  →  5.1. Sole traders
4. Accounting procedures  →  4.1. Capital and revenue expenditure and receipts
Open
11
The bank column of a trader’s cash book showed an overdrawn balance of $1200. When the trader compared the cash book with the bank statement he found the following items were not included in the cash book. $ bank charges credit transfer direct debit What was the balance brought down in the bank column of the cash book after it was updated?
3. Verification of accounting records  →  3.3. Bank reconciliation
2. Sources and recording of data  →  2.3. Books of prime entry
2. Sources and recording of data  →  2.1. The double entry system of book-keeping
Open
16
A machine with an original cost of $10000 had been depreciated for two years at the rate of 10% per annum using the straight-line method. It was then sold for cash with the loss on disposal amounting to $700. A replacement machine was bought on the same day for $12400 cash. What was the net decrease in the cash balance?
4. Accounting procedures  →  4.2. Accounting for depreciation and disposal of non-current assets
5. Preparation of financial statements  →  5.1. Sole traders
5. Preparation of financial statements  →  5.6. Incomplete records
Open
17
Abdul is a trader. He rents out part of his warehouse to other businesses. Abdul is preparing his financial statements for the year ended 31 December. His rental income account shows that: rent received during the year totalled $2750 rental income transferred to the income statement was $3000 What does the closing balance on the rental income account represent?
4. Accounting procedures  →  4.3. Other payables and other receivables
5. Preparation of financial statements  →  5.1. Sole traders
Open
19
After preparing draft financial statements at the end of her first year of trading, Lucy discovered two errors. Damaged inventory had been valued at its cost price of $340. It was expected to sell for $180. 100 items which had been expected to sell for $12 each had been valued at their cost price of $7 each. Carriage inwards of $1 for each item had not been included in the cost. What was the effect of these errors on the gross profit?
4. Accounting procedures  →  4.1. Capital and revenue expenditure and receipts
4. Accounting procedures  →  4.5. Valuation of inventory
3. Verification of accounting records  →  3.2. Correction of errors
Open
29
W Limited manufactures motorbikes. The following information relates to the first year in business. $ purchases of motorbike parts wages of factory workers production overheads inventory of motorbike parts at the year end inventory of partly finished motorbikes at the year end What was the cost of production of the motorbikes completed during the year?
5. Preparation of financial statements  →  5.5. Manufacturing accounts
4. Accounting procedures  →  4.5. Valuation of inventory
5. Preparation of financial statements  →  5.6. Incomplete records
Open