Consider joining our Discord for all the latest updates!
1. Financial accounting (AS Level)
A section of Accounting, 9706
Listing 10 of 1775 questions
Khalid owns a wholesale business selling electrical goods. He does not keep proper books of account, but is able to provide the following information. Balances at 1 January 2014 $ Motor vehicle at cost 38 400 Motor vehicle provision for depreciation 12 600 Fixtures and fittings at cost 41 940 Fixtures and fittings provision for depreciation 22 680 Trade receivables 26 610 Trade payables 19 920 Inventory 33 500 Prepayment of two months’ property rental 3 750 General expenses accrued Cash in hand Summary of bank account for the year ended 31 December 2014 Dr Cr $ $ Balance at 1 January 2014 Payments to credit suppliers 134 750 Receipts from credit customers 200 270 Drawings 22 185 Cash sales banked 9 675 Property rental 20 625 Balance at 31 December 2014 11 295 General expenses 6 650 Purchase of motor vehicle 10 100 Wages and salaries 26 150 Motor expenses 4 890 225 350 225 350 REQUIRED Calculate Khalid’s opening capital at 1 January 2014. Additional information For the year ended 31 December 2014: Credit sales $193 400 Cash sales $15 180 Trade payables at 31 December 2014 were $21 590. All sales are made at 30% gross profit margin. REQUIRED Calculate the following for the year ended 31 December 2014. Sales revenue Purchases Calculate the value of closing inventory at 31 December 2014. Additional information Before banking his receipts from cash sales, Khalid took $400 per month for his personal drawings. The only other cash payments during the year were for motor expenses. Cash in hand at 31 December 2014 was $460. REQUIRED Prepare the cash account for the year ended 31 December 2014 to identify the cash payment made for motor expenses. Additional information Khalid allowed a total of $914 discount to credit customers. 2 Motor vehicles are depreciated at 25% per annum using the reducing balance method. A full year’s depreciation is charged in the year of purchase, but none in the year of sale. During the year, a motor vehicle that had cost $16 000 on 1 July 2012 was traded in for $8200. The balance of the purchase price for the new vehicle was paid by cheque. Fixtures and fittings are depreciated at 15% per annum using the reducing balance method. There were no additions or sales of fixtures and fittings during the year. There was no accrual for general expenses at 31 December 2014. Prepaid rent at 31 December 2014 was $1875. REQUIRED Prepare Khalid’s income statement for the year ended 31 December 2014.
9706_s15_qp_22
THEORY
2015
Paper 2, Variant 2
View
The table shows extracts from the statements of financial position of a business. $ $ non-current assets (at cost) 190 000 245 000 less accumulated depreciation 75 000 90 000 net book value 115 000 155 000 Other information for the financial year 2015 is as follows. $ depreciation charged 40 000 new non-current assets purchased (at cost) 105 000 loss on sale of non-current assets 10 000 Which amount was received from the sale of the non-current assets?
9706_s16_qp_11
MCQ
2016
Paper 1, Variant 1
View
A business purchased a motor vehicle on 1 January 2012 for $24 000. The estimated useful life of the motor vehicle was four years and the estimated residual value at the end of four years was $8000. The business depreciates motor vehicles at 25% per annum using the reducing balance method. No depreciation is charged in the year of disposal. The motor vehicle was sold on 31 July 2015 for $12 000. What was the profit on the sale of the motor vehicle?
9706_s16_qp_12
MCQ
2016
Paper 1, Variant 2
View
The table shows extracts from the statements of financial position of a business. $ $ non-current assets (at cost) 190 000 245 000 less accumulated depreciation 75 000 90 000 net book value 115 000 155 000 Other information for the financial year 2015 is as follows. $ depreciation charged 40 000 new non-current assets purchased (at cost) 105 000 loss on sale of non-current assets 10 000 Which amount was received from the sale of the non-current assets?
9706_s16_qp_13
MCQ
2016
Paper 1, Variant 3
View
Questions Discovered
1775