Basics Of Accounting Introduction To International Bookkeeping And Financial Accounting 6th Edition Carsten Berkau - Solutions

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How do you record a cash withdrawal in the cash book?1. A withdrawal is not recorded in the cash book at all.2. Positive cash entry; negative bank entry.3. Negative cash entry; positive bank entry.4. DR C/B; negative bank entry.
Which statement is wrong?1. In the cash book the balancing figure of cash must equal the bank balance.2. In the cash book the total is always zero.3. In the cash book the balance carried down of cash is always negative or zero.4. In the cash book the balance carried down of the bank column can be
Which statement is correct?1. Every company must at least run a purchase and a sales journal.2. A purchase ledger is required by IAS 2.45.3. There is no obligation to apply books of original entries.4. Books of original entries are not required except of a cash book.
What is the Bookkeeping entry to close off a purchase journal with a balancing figure of 360,000.00 EUR?1. DR PUR 300,000.00 EUR; DR VAT 60,000.00 EUR; CR C/B 360,000.00 EUR.2. DR PUR 300,000.00 EUR; DR VAT 60,000.00 EUR; CR A/R 360,000.00 EUR.3. DR A/R 360,000.00 EUR; CR PUR 300,000.00 EUR; CR VAT
A company runs a sales ledger and a cash book. It sells 100 products on credit and 20 ones on cash at 45.00 EUR/u net amount. Which Bookkeeping entries apply?1. DR A/R 5,400.00 EUR; CR VAT 900.00 EUR; CR Sales Journal 4,500.00 EUR and DR C/B 1,080.00 EUR; CR VAT 180.00 EUR; CR REV 900.00 EUR.2. DR
Which statement is correct?1. The petty cash book only records net amounts as for the small values VAT can be neglected.2. The petty cash book is a subordinate account to the cash book.3. It is required to appoint at least 2 petty cashiers (4 eyes principle).4. The petty cash book is no account but
The sum of the totals (bottom line) of the petty cash book gives the below value:1. Net sum of purchases.2. Petty Cash float.3. Reimbursement amount.4. Zero.
A company runs a petty cash with a petty cash float of 500.00 EUR. The petty cashier purchases office materials for 240.00 EUR. At the end of the Accounting period, the Accountant reimburses the petty cashier. What are the Bookkeeping entries?1. DR Office materials 200.00 EUR, DR VAT 40.00 EUR; CR
Which statement is correct?1. The petty cash book is required for limited companies.2. The petty cash book must be closed-off every month.3. The petty cashier must be an Accountant.4. The petty cash is a budget for minor expenses.
A company uses petty cash for office errands. The petty cash float is 200.00 EUR. During the Accounting period, the petty cashier spends 42.00 EUR on coffee and cookies, 120.00 EUR on stationary and 12.00 EUR on flowers. How much is the payment for reimbursement at the end of the Accounting
A company calculates in its Bank account a balancing figure of 230.00 EUR on the debit side. The bank statement shows that fees to the extent of 4.50 EUR, interest income of 2.40 EUR have not been considered. The Accountant did not consider a transfer from the Bank account to another one to the
How is a transfer to another account to the extent of 1,000.00 EUR with 0.50 EUR transaction costs appear on a bank statement that is shown in the feeǀdebitsǀcreditsǀbalance format if the opening balance is -300.00 EUR? Amounts in EUR.1. (0.50) ǀ 1,000.00 ǀ 0.00 ǀ699.50.2. 0.50 ǀ 0.00 ǀ
What is a stop order?1. A request to stop payments.2. A permanent payment which keeps running until the account holder stops it.3. A regular receipt of payments for regular income that does not stop.4. A regular payment that stops after one year.
The ABSA bank charges 15 %/a for a bank overdraft. A company leaves its ABSA Bank account from 4.03.20X3 until 12.05.20X3 credit balanced with a balancing figure of 1,500.00 EUR. How much is interest(daily rates).1. 42.53 EUR.2. 37.50 EUR.3. 45.88 EUR.4. 0.00 EUR.
A company got a difference between the Cash/Bank account and the bank statement received from COMMERZBANK which is related to EFT fees. The bank statements balancing figure is lower than the Cash/Bank account.Which procedure is correct?1. The bank fees must be deleted on the bank statement.2. The
A discounter sells milk it bought at cost of purchase of 0.50 EUR/l at 1.20 EUR/l. The selling price is the gross amount. It offers its customers a discount of 6 % and sells 450 l.How much is the gross profit?1. 282.60 EUR.2. 225.00 EUR.3. 198.00 EUR.4. 237.60 EUR.
A butchery offers a rebate “buy 3 pay 2” for its steaks. A restaurant buys 6 steaks. The normal selling price is 9.00 EUR (VAT included).At the end, there is one steak left.What is its value?1. 0.00 EUR.2. 5.00 EUR.3. 7.50 EUR.4. 6.00 EUR.
On 3.04.20X4, a company buys a machine at 230,000.00 EUR (net amount). The dealer offers a discount of 5 % on 1.07.20X4. How much is depreciation for 20X4 following straight-line method over 5 years?1. 32,775.00 EUR.2. 43,700.00 EUR.3. 33,350.00 EUR.4. 39,330.00 EUR.
A seller offers a rebate of 4 % on all purchases for customers who buy for more than 40,000.00 EUR(net amount). A customer orders goods for cost of purchase of 10,000.00 EUR after ordering for 35,000.00 EUR (net amount) already.What is the Bookkeeping entry for the rebate?1. DR D/A 2,160.00 EUR; CR
A company buys goods for cost of purchase of 100,000.00 EUR. The seller offers later a discount of 90.00 EUR. What is the correct Bookkeeping entry?1. DR C/B: 90.00 EUR; CR D/R:90.00 EUR and DR D/R 90.00 EUR; CR PPE 90.00 EUR.2. DR D/R: 90.00 EUR; CR C/B:90.00 EUR and DR D/R 90.00 EUR; CR PPE 75.00
On 30.06.20X6, a company sells a business car bought on 4.10.20X4 at 50,000.00 EUR which means a profit on disposal of 2,500.00 EUR.Depreciation follows straight-line method without residual value. The useful life is 5 years. How much is the paid gross selling price?1. 41,500.00 EUR.2. 35,000.00
A company sells a machine bought at 10,000.00 EUR cost of acquisition after 3 years and 3 months. Depreciation follows straight-line method over 5 years –no residual value. How much is the gross selling price in order to earn a profit on disposal of 250.00 EUR.Consider VAT at a VAT rate of 20%.1.
A company depreciates a machine bought at 10,000.00 EUR over 4 years following straight-line method without residual value.What is to do after writing-off the machine over 4 years?1. Nothing.2. Recording a disposal: DR ACC 10,000.00 EUR; CR PPE:10,000.00 EUR.3. Continue carrying the machine at 0.00
A company sells a car with a carrying value of 5,000.00 EUR at a net selling price of 7,500.00 EUR.Which Bookkeeping entry is correct?Ignore VAT.1. DR C/B: 7,500.00 EUR; CR ACC:2,500.00 EUR; CR PPE: 7,500.00 EUR; CR P&L: 2,500.00 EUR.2. DR C/B: 7,500.00 EUR; DR ACC:2,500.00 EUR; CR PPE: 7,500.00
A company sells a 3 years old machine which is recorded at cost of acquisition of 15,000.00 EUR and got depreciated following straight line method over 5 years under consideration of a residual value of 5,000.00 EUR at 12,000.00 EUR gross selling price. How much is the profit/loss on disposal?1.
A courier service is liquidated.Its PPE account shows cars at 240,000.00 EUR which are depreciated to an extent of 60%. The cars are sold at 90 % of their carrying value. The company shows 42,000.00 EUR receivables from customers and 25,000.00 EUR on cash. On the credit side the company has a bank
A company records receivables to an extent of 45,000.00 EUR resulting from sales. 40 % of the receivables can be collected. The remainder is written off as bad debts.What it the correct Bookkeeping entry?1. DR B/D: 27,000.00 EUR; CR A/R: 27,000.00 EUR.2. DR B/D: 22,500.00 EUR; DR VAT: 4,500.00 EUR;
A company carries machines at 50,000.00 EUR and receivables at 10,000.00 EUR. The value of cash is 20,000.00 EUR. The company has a bank loan which is recorded at 20,000.00 EUR. The company is able to sell its non-current assets at 90% of the carrying value and to collect 80% of the receivables.
A company on shares is liquidated.There are 100,000 ordinary shareholders and 50,000 preference shareholders. The nominal value per share is 1.00 EUR/s. The proceeds from liquidation are 170,000.00 EUR. The company discloses 50,000.00 EUR debts from a bank loan. How much is the liquidation payments
A company based on shares discloses a share capital of 100,000.00 EUR. In the reserves section, there are capital reserves of 30,000.00 EUR and earnings reserves of 20,000.00 EUR. The retained earnings are amounting to 50,000.00 EUR. On the general annual meeting the shareholders declare a dividend
Which statement is correct?1. A partnership pays 30 % income tax on its profits.2. A partner must make a drawing for the payments of income taxes.3. A partnership does not pay income tax on its profits.4. The partners of a partnership must pay-in the income taxes for their company into the
A limited company has 3 shareholders(A, B, C) who hold 50 %and 25 % and 25 % percent of the shares. The company earns a cash profit of 40,000.00 EUR before taxation and declares to pay 50 %thereof to the shareholders. Which statement is correct?1. A receives a dividend of 14,000.00 EUR.2. A
Which statement is wrong?1. A company based on shares must prepare financial statements.2. For the establishment of a limited company the owners must pay their contribution.3. A partnership comes with joint liability of the partners.4. A sole proprietorship must prepare a balance sheet and an
A partnership has 3 partners (A/ B / C) who contributed 30,000.00 EUR / 20,000.00 EUR and 25,000.00 EUR. The partnership is in debts and cannot pay-off its liabilities of 40,000.00 EUR from a bank loan.1. The bank can sue A for a payment of max 25,000.00 EUR.2. The bank can sue A for a payment of
Which statement is wrong?1. A sole proprietorship is in ownership of one private person. Its activities are limited to trading. The person is reliable with all her/his personal assets for the company.2. A sole proprietorship is in ownership of one private person. The person is reliable with all
Which statement is correct?1. The statement of cash flows is based on net amounts.2. The statement of cash flows is based on revenue and expenses adjusted for prepayments.3. The statement of cash flows is based on payments (gross amounts).4. The statement of cash flows considers profits plus
A company earns a profit after taxes of 490.00 EUR. Depreciation is 100.00 EUR. Material expenses are 160.00 EUR (net amount). How much is the cash flow from operations?1. 800.00 EUR.2. 590.00 EUR.3. 750.00 EUR.4. 443.00 EUR.
Which item is no cash flow from financing activities?1. Interest for a bank loan.2. Payment of a coupon for bonds.3. Settlement of debts to suppliers.4. Pay-off of a bank loan.
A cash flow from operative activities can be calculated by the following method…1. By reduction of the balancing figure of the Cash/Bank account for depreciation.2. By multiplying the expenses with 120 %.3. Reconciliation with the income tax liabilities.4. Reconciliation with the profit after
A company records the payments below: Materials: 420.00 EUR, Labour: 360.00 EUR, Depreciation 200.00 EUR, Purchase of machinery 3,300.00 EUR, interest 6.80 EUR. How much is the cash flow from operations?1. -786.80 EUR.2. -650.00 EUR.3. -780.00 EUR.4. 780.00 EUR.
What is the Bookkeeping entry for prepaid rent at the beginning of the fresh Accounting period?1. DR RNT; CR PRE.2. DR RNT; CR C/B.3. DR PRE; CR RNT.4. DR C/B; CR PRE.
A company balances-off its Bank account credit balanced.What is required to do at the end of the Accounting period?1. The balancing figure must be recorded as short-term liabilities.2. The balancing figure must be disclosed as short-term liabilities on the balance sheet. No Bookkeeping entry is
A company discloses on its balance sheet a value for property, plant, equipment of 6,000.00 EUR.What could be the correct balancing figures (b/d) in its accounts?1. PPE: debit balanced 10,000.00 EUR; ACC credit balanced 6,000.00 EUR.2. PPE: credit balanced 10,000.00 EUR; ACC debit balanced 4,000.00
What are typical Bookkeeping entries for the beginning of an Accounting period?1. Payment of income taxes, payment of VAT receivables, transfer of prepaid expenses to expenses.2. Payment of income taxes, payment of VAT liabilities, transfer of prepaid expenses to expenses.3. Payment of prepaid
Which statement is correct?1. At the time of transition to the next Accounting period, all nominal accounts are continued; all real accounts are closed-off to profit or loss.2. At the time of transition to the next Accounting period, all real accounts are continued; all nominal accounts are
A company carries forward a profit of 30,000.00 EUR. In the actual Accounting period, the company records a loss of 15,000.00 EUR. How much is the maximum of dividend that can be declared for its 100,000 shareholders?1. 0.45 EUR/s.2. 0.15 EUR/s.3. 0.35 EUR/s.4. 0.00 EUR/s.
Which statement is wrong about the tax on capital gains (dividend tax).1. The tax on capital gains is owed by the company.2. The tax on capital gains is a company tax.3. The tax on capital gains is withdrawn from the dividend.4. The tax on capital gains is paid to foreign investors as part of the
What is the requirement for a declaration of dividends?1. The financial statements are correct, and the retained earnings are credit balanced.2. A decision made on the general annual meeting AGM by the majority of the shareholders.3. The financial statements are audited and approved.4. A decision
A limited company declares a dividend of 0.20 EUR/s to its 100,000 shareholders and adds 50,000.00 EUR to the earnings reserves.The remainder of the distributable amount of 100,000.00 EUR is carried forward to the next Accounting period. What are the Bookkeeping entries?1. DR R/E 70,000.00 EUR; CR
A company carries forward a loss from the previous Accounting period of 5,000.00 EUR and earns a profit before taxation of 12,000.00 EUR. It decides to declare a dividend of half of its distributable amount to its 10,000 shareholders.How much is the dividend per share?1. 0.67 EUR/s.2. 0.35 EUR/s.3.
An adjusted trial balance is given as follows: Debit entries:PPE: 6,000.00 EUR; A/R: 3,000.00 EUR; PRE: 1,000.00 EUR; C/B:(5,000.00 EUR); Credit entries: ISS:10,000.00 EUR; ACC: 2,000.00 EUR; R/E: (7,000.00 EUR). How much is the total of the balance sheet?1. 8,000.00 EUR.2. 17,000.00 EUR.3.
Which statement about the initial(not adjusted) trial balance is correct?1. The entry about cash/bank must be on the debit side.2. The entry about depreciation is always on the debit side.3. The entry about issued capital is always on the credit side.4. There is never an entry for retained earnings.
A trial balance discloses the values below: Debit: PPE: 100,000.00 EUR; RNT: 10,000.00 EUR; C/B:50,000.00 EUR; Credit: ISS:50,000.00 EUR; REV: 30,000.00 EUR; ACC: 50,000.00 EUR; A/P:30,000.00 EUR. The adjusted trial balance could be:1. Debit: PPE: 90,000.00 EUR; DPR:10,000.00 EUR; C/B: 50,000.00
Which statement is correct?1. A trial balance is required by international Accounting Standards IFRSs.2. A trial balance can be used to exchange balancing figures between group members before financial statements are prepared.3. A trial balance discloses the profit as difference between debit and
What are possible entries on a trial balance (before adjustments)?1. Debit: PPE; Debit: INV; Debit RNT; Credit: REV; Debit: ACC.2. Debit: PPE; Debit RNT; Credit:REV; Credit: ACC; Credit INV.3. Debit: PPE; Debit: INV; Debit R/E; Debit RNT; Credit: REV;Credit: ACC.4. Debit: PPE; Debit: INV; Debit
Which statement is correct?1. When preparing a statement of profit or loss following the nature of expense method, a company must disclose material, labour, depreciation, manufacturing overheads and expenses for administration.2. A company that prepares the statement of profit or loss and other
A company records in the production department direct costs of 300,000.00 EUR and manufacturing overheads of 150,000.00 EUR for the production of 30,000 goods.The sales amount is 80 % of the amount of production. What is the correct Bookkeeping entry?1. DR FGI 90,000.00 EUR; CR T/A 90,000.00 EUR.2.
Which statement is wrong?1. The profit calculated by the nature of expense format is always the same as following the cost of sales format.2. The gross profit calculated by the nature of expense format is higher than following the cost of sales format.3. The profit calculation following the cost of
Which statement is correct?1. The income statement following the cost of sales format requires an addition for stock releases of finished goods.2. The income statement following the cost of sales format allocates costs following the categories.3. The income statement following the nature of
A company records revenues 300,000.00 EUR, labour 100,000.00 EUR, depreciation 20,000.00 EUR and materials 80,000.00 EUR. Furthermore, the company sells finished goods that were on stock for 50,000.00 EUR. No other changes in inventories apply. How much is the profit before taxation?1. 150,000.00
A company has 35 goods at 107.00 EUR/u on stock. It buys on 1.04.20X3 100 goods at 110.00 EUR/u and on 1.08.20X3 further 100 goods at 115.00 EUR/u.Weighted average cost formula applies.On 1.06.20X3, 81 goods are sold. How much are the cost of sales?1. 9,046.15 EUR.2. 8,847.00 EUR.3. 8,805.00 EUR.4.
Which statement is correct?1. A company must apply the FIFO cost formula for gases and liquids.2. A company can apply any cost formula that maximises profits.3. A company must apply the FIFO cost formula for goods that are stackable like steel mats.4. A company must apply the cost formula that is
A driver calculates the costs of a distance of 300 km. The car’s consumption is 6.0 l/100 km. In the tank was 20 litre petrol bought at 1.45 EUR/l. The driver gassed up for 40 litres and paid 1.50 EUR/l.How much are the travel costs regarding petrol?1. 26.70 EUR.2. 26.55 EUR.3. 26.10 EUR.4. 27.00
Which statement is correct?1. When prices decrease, the FIFO method results in the highest stock valuation.2. When prices increase, the FIFO method results in the highest stock valuation.3. When prices increase, the weighted average method results in the highest stock valuation.4. When prices
A company buys goods at 30.00 EUR/u, then at 32.00 EUR/u and thereafter at 34.00 EUR/u. The purchase amounts are always 100 units. The closing stock is 76 units.How much is the valuation of stock if the company applies FIFO?1. 2,432.00 EUR.2. 2,584.00 EUR.3. 2,280.00 EUR.4. 2,736.00 EUR.
A company has 35 goods at 107.00 EUR/u on stock. It buys on 1.04.20X3 100 goods at 110.00 EUR/u and on 1.08.20X3 further 100 goods at 115.00 EUR/u.Weighted average cost formula applies.On 1.06.20X3, 81 goods are sold. How much are the cost of sales?1. 9,046.15 EUR.2. 8,847.00 EUR.3. 8,805.00 EUR.4.
Which statement is correct?1. A company must apply the FIFO cost formula for gases and liquids.2. A company can apply any cost formula that maximises profits.3. A company must apply the FIFO cost formula for goods that are stackable like steel mats.4. A company must apply the cost formula that is
A driver calculates the costs of a distance of 300 km. The car’s consumption is 6.0 l/100 km. In the tank was 20 litre petrol bought at 1.45 EUR/l. The driver gassed up for 40 litres and paid 1.50 EUR/l.How much are the travel costs regarding petrol?1. 26.70 EUR.2. 26.55 EUR.3. 26.10 EUR.4. 27.00
Which statement is correct?1. When prices decrease, the FIFO method results in the highest stock valuation.2. When prices increase, the FIFO method results in the highest stock valuation.3. When prices increase, the weighted average method results in the highest stock valuation.4. When prices
A company buys goods at 30.00 EUR/u, then at 32.00 EUR/u and thereafter at 34.00 EUR/u. The purchase amounts are always 100 units. The closing stock is 76 units.How much is the valuation of stock if the company applies FIFO?1. 2,432.00 EUR.2. 2,584.00 EUR.3. 2,280.00 EUR.4. 2,736.00 EUR.
A trading company sells 20 goods with cost of purchase of 340.00 EUR at a gross selling price of 600.00 EUR. What is the Bookkeeping entry?1. DR C/B 500.00 EUR; DR VAT 100.00 EUR; CR REV 600.00 EUR and DR COS 340.00 EUR; CR INV 340.00 EUR.2. DR C/B 408.00 EUR; CR VAT 680.00 EUR; CR REV 340.00 EUR
Which statement is correct?1. A production company must apply a perpetual inventory system.2. A production firm should apply a perpetual inventory system.3. A production firm must apply a periodic inventory system.4. A production firm should apply a periodic inventory system.
A trading company sells goods it purchased at 230.00 EUR at 500.00 EUR net selling price. How much are the cost of goods sold?1. 230.00 EUR.2. 276.00 EUR.3. 500.00 EUR.4. 600.00 EUR.
What is the Bookkeeping entry for a stock release if a perpetual inventory movement system applies?1. DR INV; CR COS.2. DR COS; CR INV.3. DR COS; DR VAT; CR INV.4. DR INV; DR VAT; CR COS.
A company runs a periodic system for inventory movements.The opening value for goods is 450.00 EUR. During the Accounting period, 3 purchases at 500.00 EUR took place. The closing stock is 100.00 EUR. How much are material expenses?1. 1,500.00 EUR.2. 1,950.00 EUR.3. 1,850.00 EUR.4. 2,050.00 EUR.
Which statement is wrong?1. Manufacturing Accounting helps to calculate goods.2. Manufacturing Accounting adds direct costs to job orders.3. Manufacturing Accounting supports the valuation of inventories or finished goods.4. Manufacturing Accounting allocates direct costs and general costs of
A company records 100,000.00 EUR labour and 50,000.00 EUR materials for a job order. The administration expenses are 5,000.00 EUR. The company produces 1,000 products and sells half thereof at a net selling price of 200 EUR/u.How much is the pre-tax profit?1. 22,500.00 EUR.2. 20,000.00 EUR.3.
Which Bookkeeping entry assigns costs to a job order correctly?1. DR LAB; CR WIP.2. DR WIP; CR LAB, CR ADM.3. DR WIP; CR LAB, CR DPR.4. DR WIP; CR LAB, CR MAT.
What are items to be added to a WIP account?1. Direct labour, indirect labour, direct materials.2. Direct labour, direct materials.3. Depreciation, direct labour, direct materials.4. Administration, direct materials, depreciation.
A company records WIP to an extent of 130,000.00 EUR labour and 60,000.00 EUR materials and adds 45,000.00 EUR depreciation.The lot size is 10,000 units. 500 units are faulty and casted away.How much are the unit cost of manufacturing?1. 20.00 EUR.2. 19.00 EUR.3. 23.50 EUR.4. 22.38 EUR.
Who is liable for a partnership’s debts?1. The partnership only.2. All partners to the extent of their ownership.3. All partners jointly.4. The founding partners.
What is the difference of a balance sheet for a privately-owned company to the one of a limited company?1. Legal form in the header, equity must show drawings.2. Legal form in the header, no income tax liabilities.3. Nothing.4. Taxes are deducted from equity by the weighted average income tax rate
On 1.10.20X4, a partnership with a book value of 1,200,000.00 EUR makes one of its employees who earns a salary of 90,000.00 EUR/a partner. She becomes the 6th partner of the firm and pays a contribution of 240,000.00 EUR. During the Accounting period 20X4, the distributable profit is 540,000.00
A company buys a business car at costs of acquisition of 96,000.00 EUR. The amount is the gross amount. Depreciation follows straight-line method over 4 years –no residual value is to be considered.The owner uses the car privately to an extent of 40 %. Which Bookkeeping entry is correct?1. DR DRW
Which statement is correct?1. A drawing is an expense for the company.2. A drawing is a reduction of a privately-owned company’s equity.3. A drawing is a withdrawal from the company’s bank account.4. Using company assets is not a drawing.
A company sells goods it purchased at 400,000.00 EUR in the same period (net amount) at a gross selling price of 1,020,000.00 EUR. 10 % of the goods are returned by the customers in the same Accounting period. How much are VAT payables?1. 103,600.00 EUR.2. 73,000.00 EUR.3. 90,000.00 EUR.4.
A VAT registered company accepts a sale of 500.00 EUR with the customer paying half of the price instantly and the other half one year later. Which is the correct Bookkeeping entry?1. DR C/B 300.00 EUR; DR A/R 300.00 EUR; CR VAT 100.00 EUR; CR REV 500.00 EUR.2. DR C/B 250.00 EUR; DR A/R 250.00 EUR;
Which statement is wrong?1. VAT equates Revenue multiplied by 20 %.2. VAT equates Revenue divided by 5.3. VAT equates Proceeds divided by 6.4. VAT equates Revenue divided by 6.
A VAT registered company returns goods to its supplier (net value = 200.00 EUR) and receives a cash refund. What is the correct Bookkeeping entry?1. DR C/B 240.00 EUR; CR R.I 200.00 EUR; CR VAT 40.00 EUR 2. DR C/B 200.00 EUR; CR R.O.3. DR C/B 240.00 EUR; CR R.O 200.00 EUR; CR VAT 40.00 EUR.4. DR
A VAT registered company buys goods for 3,000,000.00 EUR (net amount). There are goods for 1,500,000.00 EUR on stock. The company sells 80 % of the goods and earns a revenue of 8,400,000.00 EUR. How much are VAT payables?1. 800,000.00 EUR.2. 780,000.00 EUR.3. 1,080,000.00 EUR.4. 500,000.00 EUR.
A trading company receives goods returned by its customer.The selling price was 5,000.00 EUR. The goods are added to stock. The initial purchase costs were 3,000.00 EUR. What are the Bookkeeping entries?1. DR R.I. 5,000.00 EUR; CR C/B 5,000.00 EUR and DR INV 3,000.00 EUR; CR COS 3,000.00 EUR.2. DR
A trader buys good for 3,000.00 EUR and returns 25 % thereof to its supplier. The remainder is sold at 4,500.00 EUR. How much is the gross profit?1. 750.00 EUR.2. 1,250.00 EUR.3. 1,500.00 EUR.4. 2,250.00 EUR.
Which statement is wrong?1. A return inward happens when a customer sends back goods.2. A return inward is recorded based on the purchase price.3. A return outward is a negative purchase.4. A return inward must be deducted from purchases when calculating the gross profit.
A trading business records an opening value of 300.00 EUR and two purchases at 500.00 EUR. At the end of the Accounting period, there are goods valued at 150.00 EUR on stock. The revenue is amounting to 1,300.00 EUR. How much are material expenses?1. 1,300.00 EUR.2. 1,150.00 EUR.3. 1,000.00 EUR.4.
Which statement is correct?1. Material expenses are opening value of stock plus purchases less returns inwards.2. Material expenses are opening value of stock plus purchases plus returns inwards.3. Material expenses are opening value of stock plus purchases less returns outwards.4. Material
Which statement is correct?1. When recording a return outward, a debit entry is made in the Value added tax account.2. A return outward is recorded on the credit side.3. When recording a return outward, a credit entry is made in the Value Added Tax account.4. The contra entry for a return outward
A company discloses an opening value of stock of 35,000.00 EUR. It purchases goods for 100,000.00 EUR (net amount). It returns goods worth 10,000.00 EUR to the supplier. If all business activities are recorded through the Cash/Bank account, how much cash is received (+) or paid (-)?1. +12,000.00
A trading company buys inventories for cost of purchase of 10,000.00 EUR and returns 10 %thereof for a voucher. What is the correct Bookkeeping entry?1. DR A/R 1,200.00 EUR; CR VAT 200.00 EUR; CR R.O. 1,000.00 EUR.2. DR A/P 1,200.00 EUR; CR VAT 200.00 EUR; CR R.O. 1,000.00 EUR.3. DR A/R 1,200.00
A trading company buys stock for 120,000.00 EUR gross amount.The opening value was 40,000.00 EUR. The company records material expenses for 75,000.00 EUR.How much is closing stock?1. 85,000.00 EUR.2. 75,000.00 EUR.3. 65,000.00 EUR.4. 45,000.00 EUR.
A trading company has an opening value of stock of 30,000.00 EUR. During the Accounting period 20X4, it buys 12 times goods for 45,000.00 EUR. On 1.10.20X4, the company returns goods bought at 5,000.00 EUR to its supplier.What is the Bookkeeping entry to close-off the Purchase account?1. DR P&L

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Basics Of Accounting Introduction To International Bookkeeping And Financial Accounting 6th Edition Carsten Berkau - Solutions

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