Questions and Answers of Accounting for Business

Victor and Vincent’s partnership had a final profit for the year of $$40$ 500. When the partnership was formed at the beginning of the year Victor invested $$150$ 000 and Vincent invested
Adamson and Baker formed a partnership by investing $$220$ 000 and $$180$ 000 respectively. The partnership had a final profit of $$92$ 000 in the first year.Requireda. Prepare the journal
Mcfadzean and Honarzad run a farmers' market stall as a partnership. Honarzad withdrew $$26$ 300 cash on 25 October 2025. Mcfadzean withdrew $$17$ 500 on 28 November 2025. On 1 April 2026
Meagan and Jenny are in partnership, sharing profits equally. Provision exists in the partnership agreement for charging interest on capital at the rate of 8% p.a. and interest on drawings at 10%
Terry and Craig share profits in the proportion of one-third and two-thirds respectively. On 1 July 2025, the equity accounts stood as follows.Partners were entitled to 8% interest on capital, and
Akur and Aifiti share profits on a 45:55 basis respectively. On 1 July 2025 the equity accounts were as follows.The partners were entitled to 8% interest on capital. Aifiti ran the business and
Minoli, Melinda and Matthew are partners. The partnership agreement provides that partners will receive interest of 8% of their average capital balance and a salary allowance as follows:Required (a)
Brenda, Baxter and Ben are independent website developers who had been trading in active opposition to one another for some years. They decide to form a partnership, Triple B Web Developers, as
On 1 July 2025 Woojin and William began their partnership by contributing $$550$ 000 and $$480$ 000 respectively. William contributed another $$70$ 000 and Woojin withdrew $$30$ 000
Bonnie and Clyde have a partnership to run their human resource management services firm. Account balances related to their equity for the year ended 30 June 2026 are as follows:Profit of $124 000
Jackson and Richard formed a partnership on 1 July 2025, agreeing to share profits and losses in the ratio of 2:1. Jackson contributed $$30$ 000 in cash and land with a fair value of $$180$ 000.
On 1 January 2026 Rachelle Zalmstra and Jay Muscat formed a partnership, agreeing to share profits and losses equally. Rachelle contributed $$185$ 300 in cash, and plant and equipment with a fair
A partnership is formed by Terrence investing $150 000 and Marco investing $100 000. The partners are considering the following plans for dividing profits and losses.According to the ratio of their
Kimberley, Kerry and Kevin, partners trading as Triple K Traders have a partnership deed which includes the following provisions.1. Salaries are to be allowed: Kimberley, $$54000;$ Kerry,
On 1 October 2025, Kevin Lindsay and Sharon Foster formed a partnership. Some business assets and the liabilities of Lindsay were assumed by the partnership, and these are listed below at both
Francine Steele and Shaun Dunn formed a partnership on 1 July 2025. Some of Steele’s business assets and liabilities were assumed by the partnership, and these are listed below at both carrying
On 1 July 2025 Costopoulos, Hashmi and Torcello decided to enter into a partnership agreement, some of the relevant information is as follows.1. Costopoulos contributed $$27200$ cash, inventory
Selected accounts from the trial balance as at 30 June 2026 of the partnership of Delta, Alpha and Omega are as follows.End-of-period adjustments for the financial year ended 30 June 2026 have yet to
On 1 July 2025, McGregor and Roberts decided to amalgamate their businesses and to share profits equally. Financial information at that date was as follows.At 1 July 2025, McGregor’s accounts
Senathirajah and Purtill share profits in a proportion of 60:40. Senathirajah is entitled to a salary allowance of $$120$ 000 p.a., and Purtill is entitled to $$110000$ p.a. Capitals are fixed
At the end of the financial year ended 30 June 2025, the trial balance of Carol, Caitlin and Christie is as shown below.Christie made her advance before 1 July 2024. Carol and Caitlin each withdrew
Taylor, Thomas and Trevor are partners in the consulting firm of Taylor and Associates. The balance sheet of the partnership as at 31 March 2025 is shown below.It was agreed that all profits would
Jacobs, Jaohara and Jurd are partners in an importing business of JJJ Partners. The statement of financial position of the partnership as at 30 June 2025 is set out below.Required (a) Prepare the
Jones, Jackman and Johnson are partners in the consulting firm of Triple J Partners. The balance sheet of the partnership as at 30 June 2025 is set out below.Inventory at 30 June 2026 was $$38700$
The case study can be completed without GST or with GST using either the rates for Australia or New Zealand. Inventory can be accounted for using either the periodic or the perpetual method. We have
Turnover for the short time the company has been trading was $$2,520$ in July and around $$11,000$ in August. At the time of registering the business with the tax authority it was a service
It is the end of the month and David is happy with the good start to his merchandising venture. He has completed a physical stocktake, to make sure stock levels are as expected, and so that a value
David Johnson started this business with the aim of making a good living. However, to date he has not paid himself wages or dividends because the business is new and growing. Ultimately the business
What is a cash discount? What are the benefits to the seller of allowing cash discounts? Distinguish between a cash discount and a trade discount.
Journal entries for both buyer and seller — periodic inventory system Non- GST version (a) Prepare general journal entries to record the following transactions (i) for Esther Ltd and (ii) for
Journal entries — perpetual inventory system Non-GST version Record the following transactions in the general journal of Camberwell Ltd using the perpetual inventory system (assume GST does not
Journal entries for buyer and seller — perpetual inventory system The following are selected transactions of Watsonia Stores:Required (a) Assuming that neither business is registered for GST,
Discounts and returns Non-GST version Ashlea’s Importers sells home decor with credit terms of 2/15, n/30. A trade discount of 25% is given to purchases made by wholesalers. On 3 March 2025,
The Confiture Factory in central Adelaide buys sculptures, flat ware and jewellery from a number of private artists around the country. The Confiture Factory always purchases the products from the
Use the following information from the records of Packen Partners to prepare an income statement under the periodic inventory system for the year ended 30 June 2026. Purchases Inventory, 1 July 2025
Parkside Retail’s account balances are shown below. Prepare an income statement under the perpetual inventory system for the year ended 30 June 2025. Cost of sales $237 700 Inventory, 30 June 2025
Selected accounts and a section of a worksheet for Sunhill Stores are shown below.Required(a) The beginning and ending inventory were $$45$ 760 and $$52$ 420 respectively. Enter the beginning and
The following information is taken from the trial balance of Petra’s Pedicure Parlour.Required(a) Given that the cost of the inventory on 30 June 2026 is $$25$ 300, prepare the closing entries
Benger Engineering’s trial balance contains the following account balances at 30 June.Required(a) Prepare the closing entries under the perpetual inventory system. Debit Credit Inventory Belinda
Missing data and profitability analysis Summary financial information for two independent companies is presented below.Required (a) Calculate the missing amounts.(b) Calculate the gross profit ratio,
Spenser’s Stores carried out the following transactions relating to a single product in October.Required(a) Prepare general journal entries to record the transactions, assuming that a perpetual
Journal entries for both buyer and seller — periodic inventory system Non-GST version The following transactions relate to the businesses of C. Wynn and C. Vale. Both businesses use a periodic
On 28 February 2025, Darwin-based entity, HandsFree Partners, had inventory of 480 phones at a total cost of $134 400. The business maintains a perpetual inventory system. The following transactions
Assume that Merryland’s Markets had an inventory balance of $$32$ 570 at the close of the last accounting period. The following sales and purchase transactions are for the current
Sophie's Sofas buys sofas for $$1400$ each and sells them for $$2400$ each. On 1 July 2025, 45 sofas were in inventory. Sophie's Sofas completed the transactions below during July.A physical
Vaucluse Ltd sells handheld video consoles for $$150$ each. It buys the consoles for $$90$ each. On 1 June 2026, 60consoles are in inventory. Vaucluse Ltd completed the following transactions
Mary Muscato opened a wine store on 1 June 2025. The business trades under the name of Wine to Dine and uses a perpetual inventory system to account for its inventory. Assume no GST requirements. All
Druella's Dog Grooming Salon Pty Ltd's trial balance is shown below.Required(a) Prepare a worksheet for Druella's Dog Grooming Salon Pty Ltd. Use the following information to make adjusting
Seaforth Sunglasses had the following transactions in December. The beginning inventory on 1 December consisted of 320 pairs of sunglasses at $80 each.Required(a) Prepare journal entries to record
The following selected information is available for Middleton Wholesalers for September 2025.Required(a) Prepare the detailed income statement for Middleton Wholesalers for the month ended 30
The following data have been extracted from the income statement of Chang Furniture Store.Required(a) Calculate the gross profit ratio, profit margin, and expenses to sales ratio for the years 2025
The income statement below for Simon’s Tools was prepared by the accountant from the accounting records at 30 June 2026. This statement showed a significant improvement over the preceding year when
The following balances come from the ledger of Hansi's Home Furniture Factory at 30 June 2025.Hansi's Home Furniture Factory financial year ends on 30 June. During the year the accountant prepared
During the month of October, credit sales for a business actually amounted to $$754$ 534. However, an error of $$20$ 000 had been made in totalling the sales column of the sales journal. When and
Craig’s Car Detailing Service had the following accounts and account balances in the adjusted trial balance columns of its worksheet for the year ended 30 June 2025.Required(a) Record the required
The accounts below are taken from the ledger of Bartel Music Consulting on 30 June 2025, the end of the current financial year.Required (a) Using the General Journal, show the closing entries which
The following unadjusted trial balance was taken from the ledger of Heather’s H.R. Services on 30 June 2025.Required(a) Prepare a 10-column worksheet using the following additional information on
The adjusted trial balance columns in the worksheet of Elliot Painting Services are as follows.Required (a) Complete the worksheet.(b) Prepare the closing entries necessary at 30 June 2025, assuming
Fred Thomas founded Fred’s Fishing Supplies on 1 July 2025. The adjusted trial balance at 30 June 2026 (the end of the financial year) is shown below.Required (a) Prepare closing entries to be made
Paradise Gardens Hire Ltd’s income statement is presented below. During the year, directors declared and paid a dividend of $16 000.Required(a) Prepare the necessary general journal entries to
On 1 January 2025, the equity of Deadwood Pty Ltd consisted of share capital of $$400$ 000 and retained earnings of $$130$ 000. During the period, the company declared and paid a cash dividend of
On 30 June 2025, the accountant for Leanne's Lawnmowing Service calculated that 1 month’s interest of $$1350$ had accrued on a bank loan. An interest payment of $$5200$ was made on 31 August
On 30 June 2025, the adjusted trial balance of Outback Car Rentals showed the following selected balances:Both the Rentals Receivable and Interest Payable accounts had been recorded as a result of
The account balances taken from the trial balance and adjusted trial balance columns of the worksheet of Tran’s Transcription Service for the year ended 30 June 2026, the first year of operations,
The accountant of the marketing firm, S. Preston, has posted adjusting entries (1) to (5) to the ledger accounts at 30 June 2025. All the income, expense and equity accounts of the entity are listed
The management consulting firm of the Abraham Sisters supplied the following information as at 30 June 2025, the end of the financial year.1. Interest earned but not received totals $7800.2. The June
Growing Green Gardens (GGG) runs a service that maintains gardens and landscaping for industrial companies. GGG charges its customers $$3200$ a month for the service and tax invoices are prepared
During 2025, Mount Remarkable Golf Club received $$180$ 000 for membership fees. The accountant credits Unearned Membership Fees, a liability account, for the full amount when cash is received. At
The unadjusted trial balance of Secretarial Services is as follows:The following additional information should be taken into account.1. Office supplies unused at 31 December 2025 amount to
Miraculous Marketing is owned by Margaret Miraculous and provides marketing services. The unadjusted trial balance on 30 June 2025 below was prepared by her accountant.The following additional
Jack Thomas owns a men’s hairdressing salon which conducts business in a large shopping complex in Melbourne. Presented below are selected (incomplete) data from the three trial balances at the end
The ledger of Chester Franks, Financial Consultant, contains the following account balances on 30 June 2026.The following additional account titles are included in the chart of accounts.• Prepaid
The accounts and account balances for Dr D. Eath Family Medical Practice are shown below on 30 June 2025.The following information has not yet been recorded.1. Rates owing at 30 June, $$17$ 800.2.
The adjusted trial balance of Brompton Bowling Alley at 30 June 2026, the end of the entity’s accounting year, follows.Additional data taken into account in the preparation of the above adjusted
There is a travel agency operating in a suburban shopping centre in Longreach called Outback Tours. Two trial balances prepared at different stages of the accounting cycle are presented below
The general ledger of Goodwoods' for selected accounts showed the following balances at the end of its financial year, 31 MarchRequired(a) Prepare adjusting entries for the accounts based on the
The trial balance shown below summarises the year’s activities for C. Hare's Hairdressing Salon.The following additional information should be considered.1. Inventory of hairdressing
Andy Harris owns Piano Tuning Service. The post-closing trial balance at 30 June 2025 is shown below. Ignore GST.Transactions completed during the year ended 30 June 2026 are summarised below.1.
The post-closing trial balance at 30 June 2025 of Payneham Professional Services is shown below.Transactions completed during the year ended 30 June 2026 are summarised below.1. Collections on
Browne Cleaning and Gardening Services commenced on 1 June 2026 when Lorne Browne contributed $$120$ 000 into a business bank account. Perhaps more thought could have been given to the business
Lara Knoffs, a qualified commercial artist, had worked as an employee of a large advertising agency for a number of years. She decided to resign her position and set up her own business which would
Match the end-of-financial-year adjustments (for each independent situation) to the appropriate journal entry.Adjustments 1. Portion of prepaid insurance which has now expired (been used up)2.
Dave Drive, owner of Street Design Landscaping, engaged you to prepare financial statements for the year ended 30 June 2024, on both the cash basis and the accrual basis. This was the end of the
1. During March, Marc Graham’s business performed services for a specific customer for which the fee was $10 000. Payment was received in the following April.(a) Was the revenue earned in March or
Vittoria Tripodi registered as a financial adviser several years ago. An income statement for the current period, prepared using cash accounting, is presented below. GST is ignored.Additional data 1.
Dawn Drain has employed you to investigate whether any accrual entries are needed in her gutter cleaning business. On completion of your investigation on 30 June, you have discovered that the
The income statement of Petra’s Pest Control for the month of August 2024 shows a profit of $6800 based on:In reviewing the statement, you discover the following:1. Depreciation on equipment of
The following information was extracted from the accounting records of the business of Matt’s Home Maintenance Services:Assume that whenever cash was paid, the debit entry was made to the
On 1 April 2026 Saira's Sari Shop purchased a 1-year insurance policy. The entire premium of $9000 was recorded by debiting Prepaid Insurance. Ignore GST.Required(a) Give the adjusting entry at 30
Easy Rentals Ltd received 4 months’ rent in advance from tenants on 1 April 2025. The entire amount of $12 800 was credited to the Unearned Revenue account at this date. Ignore GST.Required(a) Give
Listed below are ledger accounts that appear in the adjusted trial balance columns of a worksheet. 1. Cash at Bank 2. Wages Expense 3. Building 4. Marg Taylor, Capital 5. Fee Revenue 6. Depreciation
Shekh's Earthing Moving Services purchased a bulldozer on 1 July 2025 for $680 000. It was estimated to have a useful life of 15 years and a residual value at the end of that time of $50
Selected accounts of Arabella’s Art Supplies are shown below at 30 June of the current year before any adjusting entries have been made.Additional information1. Prepaid insurance represents
Selected T accounts for Thompson Traders are shown below. Adjusting entries for the period have been posted.Required (a) Supplies of $390 were purchased during the year. Calculate the 1 July balance
On 30 June 2025, Khaled Amirkhani Financial Planning completed its first year of operations. Some of the ledger account balances of the business, before any year-end adjustments, are given below.No
In the first column of the schedule presented below are the condensed financial statements for Melvin Motorvehicle Rentals before adjusting entries were made. The following items were not reflected
Heidi Jones, an accountant, had the following transactions related to the business during June. Ignore GST.Required (a) Prepare the journal entries to record each transaction and prepare any
Hard Pressed Ironing’s financial year ends on 30 June. Make the necessary adjusting entries at year-end using the following information. Ignore GST.1. On 1 October, Hard Pressed Ironing borrowed
Monthly Craft Magazine’s ledger includes the following accounts: Subscription Revenue, Unearned Subscriptions Revenue, Prepaid Insurance, Insurance Expense, Prepaid Rent and Rent Expense.The
The draft accounts for the year ended 30 June 2025 and a balance sheet as at that date for P Lawrence are submitted to you. Towards the end of the financial year her accountant resigned and she had

Showing 500 - 600 of 750