Accounting A Level And AS Level 1st Edition Harold Randall - Solutions

Prepare the Balance Sheet at 31 December 2003 for Hadlee from the trial balance given in $7.8 (additional exercise 1)Data from additional ExercisesThe following trial balance has been extracted from Hadlee's books at 31 December 2003.Stock at 31 December 2003 cost $9000. Plant and Machinery
Prepare a Balance Sheet at 31 March 2004 for Perkins from the trial balance given in exercise 3.Data from Exercises 3The following trial balance has been extracted from the books of Perkins, a sole trader, at 31 March 2004.Stock at 31 March 2004 was $10 000. Account Premises Plant and
The owner of a business has taken goods for his own use but no entry has been made in the books to record this. What is the effect of this on the Balance Sheet? Stock A no effect B no effect C overstated D overstated Capital no effect overstated no effect overstated
Prepare the Balance Sheet at 31 March 2004 for Tikolo from the trial balance given in $7.8 (additional exercise 2).Data from Additional Exercises 2The trial balance extracted from Tikolo's books at 31 March 2004 is as follows.During the year, Tikolo had taken goods costing $2000 for his own use.
The following information has been extracted from a Balance Sheet at 31 December 2003.What was the balance on Capital account at 31 December 2003? A. $300 000 B. $320 000 C. $340 000 D. $350 000 Fixed assets Working capital Long-term loan Profit for the year Drawings $ 300 000
A trader who sells food does not include food that is past its 'sell by' date in his stock in the Balance Sheet.Which concept has he applied in valuing his stock? A. Matching B. Prudence C. Realisation D. Going concern
A business is about to be closed down as it has insufficient funds to pay its creditors. The owner places a very low value on his stock in the Balance Sheet. Which concept is being applied? A. Going concern B. Materiality C. Money measurement D. Subjectivity
The owner of a business paid his private telephone bill from the business bank account. The amount was debited to his Drawings account. Which concept was applied? A. Business entity B. Matching C. Prudence D. Realisation
A trader has included rent which is due but not paid in his Profit and Loss Account. Which accounting concept has been applied? A. Historic cost B. Matching C. Money measurement D. Prudence
The balances in a sales ledger total $16 000. A debtor who owes $800 is known to be in financial difficulty. The figure of debtors shown in the Balance Sheet is $15 200. Which concept has been applied? A. Matching B. Prudence C. Realisation D. Substance over form
A trader sends goods on sale or return to a customer. When the trader prepares his Balance Sheet at 31 March 2004, the customer has still not indicated that he has accepted the goods. Which concept should the trader apply when he prepares his accounts at 31 March 2004? A. Consistency B.
Antonia's trial balance at 31 December 2003 was as follows.Further information 1. Stock at 31 December 2003 was valued at $8000. 2. The loan was received on 1 April 2003 and is repayable in 2006. Interest is charged at 10% per annum. 3. Expenses owing at 31 December 2003 were as
In the year ended 31 December 2003, Alex made the following payments: rent $1000; electricity $630; stationery $420. In addition he had received $300 rent from a tenant. At 31 December 2003, Alex had prepaid rent of $200. Accrued expenses were electricity $180 and stationery $130. The stock of
A trader prepares his accounts annually to 30 April. He pays annual rent of $12 000 and makes the payments quarterly in advance on 1 January, 1 April, 1 July and 1 October. Which amount should be included in his accounts for the year ended 30 April 2004? A. $1000 accrual B. $1000
Desmond's trial balance at 31 March 2004 was as follows.Further information 1. Stock at 31 March 2004 was valued at $11 000. 2. Expenses owing at 31 March 2004 were: rent payable $2000; carriage inwards $330; carriage outwards $280. 3. Sundry expenses of $200 had been paid in
Boulder's trial balance at 31 March 2004 did not balance and the difference was entered in a Suspense account. Boulder does not maintain Control accounts. The following information was later discovered. 1. A receipt of $313 from Head, a customer, has been entered correctly in the cash book but
Bastien does not maintain Control accounts. His trial balance does not balance and he has opened a Suspense account. The following errors have now been discovered. 1. Discount received from Veeraj, amounting to $70, has been included in the discount column of the cash book but has not been
When Jayesh extracted a trial balance from his books at 31 December 2003 he found that it did not balance. He entered the difference in a Suspense account and then prepared a draft Profit and Loss Account which showed a net profit of $2500. Jayesh later found the following errors. 1. The
(a) Outline three reasons for keeping control accounts. (b) The following information was extracted from the books of William Noel for the year ended 30 April 2001.Draw up the Purchase Ledger Control account for the year ended 30 April 2001. The total of the balances in William Noel's
Lee's trial balance at 30 June 2004 fails to agree and he places the difference in a Suspense account. Lee then discovers the following errors. 1. The total of the sales journal for one month was $5430. This had been posted to the Sales account as $5340. 2. An invoice for $150 for the
A credit balance in the sum of $93 has been omitted from the list of balances extracted from the sales ledger. What is the effect on the trial balance? A. The credit side is understated by $93. B. The credit side is overstated by $93. C. The debit side is understated by $93. D.
A credit note for $46 sent to A. Moses has been debited to A. Mason's account in the sales ledger. What effect will this have on the trial balance? Debit total A none B $46 overstated C none D $92 overstated Credit total none $46 understated $92 understated none
The total of the sales journal for one month is $9160. It has been entered in the Sales account as $9610. Which entries are required to correct the error? Debit A Sales account B Sales journal C Sales account D $450 $450 $450 Suspense account $450 Credit Sales journal Sales
Logan has prepared the following trial balance at 31 March 2004.Logan is unable to find the difference on the trial balance and has entered the difference in the Suspense Account. The following errors have been made in the accounts. 1. Discount allowed of $55 has been posted to the credit of
An invoice for repairs to machinery, $500, has been entered in the Machinery at Cost account. Which entries are required to correct the error? Debit A Machinery at Cost account $500 B Repairs to Machinery account C $500 Repairs to Machinery account $500 D Suspense account $500 Credit Repairs to
Amber's trial balance at 31 December 2003 failed to agree and the difference was entered in a Suspense account. The total of the purchase ledger balances had been entered as creditors in the trial balance but it did not agree with the credit balance of $5419 on the Purchase Ledger Control account.
A trial balance failed to agree and a Suspense account was opened. It was then found that rent received of $500 had been debited to the Rent Payable account. Which entries are required to correct this error? Rent Received account A credit B credit Codebit debit D Rent Payable
Which of the following will cause a difference on a trial balance? A. An invoice omitted from the sales journal B. An invoice for $415 entered in the Sales journal as $451 C. An invoice for $600 entered in the sales journal not included in the monthly total D. A credit note
After which error will a trial balance still balance? A. Wages paid, $1500, was entered correctly in the bank account but debited to the wages account as $2500. B. Rent receivable of $200 was debited to the Rent Payable account. C. Goods returned to supplier, $150, were entered in
Lian has run a business repairing motor vehicles for some years but has not kept proper accounting records. However, the following information is available.The premises were bought some years ago and were valued at $9000 at 31 December 2003. At the same date, the motor van was valued at $4000. The
Seng commenced business on 1 January 2003 when he paid $40 000 into the bank together with $20 000 which he had received as a loan from his brother. At 31 December 2003 Seng's assets and liabilities were as follows.Seng's drawings were $100 per week. Required (a) Prepare Seng's statements
Jackson commenced business with $10000 that he had received as a gift from his aunt and $8000 that he had received as a loan from his father. He used some of this money to purchase a machine for $15000. He obtained a mortgage for $20 000 to purchase a workshop. How much was Jackson's
Ammar provides the following information for the year ended 30 June 2004.Ammar's margin on all sales is 20%. Required Prepare Ammar's Trading Account for the year ended 30 June 2004 in as much detail as possible. Opening stock Closing stock Cost of goods sold $ 4.000 7.000 28 000
Saeed does not keep proper books of account for his business but he has provided the following details of his assets and liabilities.Further information 1. Land and buildings have been revalued at $90 000 at 30 June 2004. 2. Office machinery at 30 June 2004 included a computer costing
At 1 January 2003 Robert's business assets were valued at $36 000 and his liabilities amounted to $2000. At 31 December 2003 Robert's assets amounted to $57 000 and included his private car which he had brought into the business on 1 November 2003 when it was valued at $9000. His creditors at 31
Neha's warehouse was damaged by fire on 5 November 2003 and most of the stock was destroyed. The stock that was salvaged was valued at $12 000. Neha has provided the following information to enable the cost of the stock lost to be calculated.Neha's mark-up on goods sold is 33
Ahmed carries on business as a general trader. He has not kept proper accounting records and he asks you to help him prepare his Trading and Profit and Loss Account for the year ended 30 September 2004 and his Balance Sheet at that date. Ahmed's assets and liabilities at 30 September 2003 were as
At 1 April 2002 Tonkin's business assets were: motor van valued at $5000 (cost $8000), tools $1600, stock $700, debtors $168, cash $400. His creditors totalled $1120. At 31 March 2003 his assets were: workshop which had cost $20 000 and on which a mortgage of $16 000 was still outstanding, motor
At 1 March 2003 Allen's debtors amounted to $12 100. In the year ended 28 February 2004 he received $63 500 from debtors and allowed them cash discounts of $3426. At 28 February 2004 his debtors totalled $14 625. How much were Allen's sales for the year ended 28 February 2004? A.
Nurvish, who does not keep proper records for his business, supplies the following information.In the year ended 30 June 2004, Nurvish paid suppliers $54 000. Nurvish sells his goods at a gross profit margin of 40%. On 17 January 2004, Nurvish's premises were flooded and stock that cost
At 1 October 2003 Maria's debtors amounted to $7440. Of this amount $384 is known to be bad. In the year to 30 September 2004 she received $61 080 from debtors. Her debtors at 30 September 2004 were $8163. How much were Maria's sales for year ended 30 September 2004? A. $60 741 B. $61
Nadia was ill when her stock should have been counted on 31 December 2003. The stock count did not take place until 8 January 2004 when it was carried out by an inexperienced member of staff. The stock was valued at $62 040 at 8 January 2004. Nadia was sure that the stock had been overvalued
All of Grayson's stock was stolen when his business was burgled on 4 March 2004. His stock at 31 December 2003 was $23 000. From 1 January to 4 March 2004 sales totalled $42 000 and purchases were $38 000. Grayson's mark-up on goods is 33 1/3% to arrive at selling price. What was the cost of
The following information has been extracted from the books of Rorre Ltd at 31 December 2003.Draft accounts show a net profit of $31 000 for the year ended 31 December 2003. The following errors have been discovered. 1. An invoice for $100 has been entered twice in the purchases
A Purchase Ledger Control account has been reconciled with the purchase ledger balances as shown.Which figure for creditors should be shown in the Balance Sheet? A. $75 000 B. $77 000 C. $80 000 D. $85 000 Balance per Control account Total of purchases journal for one month not
At 31 December 2003 the balance on Sellit's Sales Ledger Control account was $17 584 (debit). It did not agree with the total of balances extracted from the sales ledger. The following errors have been found. 1. The total of the discount allowed column in the cash book has been overstated by
At 31 May 2004 the debit balance on a Sales Ledger Control account was $18640. This balance did not agree with the total of balances extracted from the sales ledger. The following errors have now been found.1. Cash received from debtors entered in the Control account included $400 in respect of a
Korn, a retailer, does not keep proper books of account but he has provided the following information about his business.Korn's bank account transactions for the year ended 30 April 2004 were as follows.Further information 1. Korn banks his receipts from cash sales after taking $300 each week
Cornelius commenced business on 1 April 2002. He has not kept complete records of his transactions but he supplies the following information.Further information 1. Cornelius made payments of $371 340 to suppliers in the year ended 31 March 2004. 2. Complete records of takings are not

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