Questions and Answers of Business Accounting

On 1 January 2011 the following balances, among others, stood in the books of M. Prior, a sole proprietor:(a) Business rates, £400 (Dr);(b) Packing materials, £800 (Dr). During the year ended 31
A The two accounts below were taken from the books of a retailer at the end of his financial year, 31 December 2010.Required: Answers to the following questions. 1 What type of account is the
A On 1 January 2012 the following balances, among others, stood in the books of B. Baxter:(a) Lighting and heating, (Dr) £192.(b) Insurance, (Dr) £1,410.During the year ended 31 December 2012 the
Three of the accounts in the ledger of Charlotte Williams indicated the following balances at 1 January 2013: Insurance paid in advance £562; Wages outstanding £306; Rent receivable, received in
A The owner of a small business selling and repairing cars which you patronise has just received a copy of his accounts for the current year. He is rather baffled by some of the items and as he
The following trial balance was extracted from the books of R. Giggs at the close of business on 28 February 2010.Notes:(a) Inventory 28 February 2010 £2,400.(b) Wages and salaries accrued at 28
The trial balance for a small business at 31 August 2011 is as follows:Required: 1 The adjustments to the ledger accounts for rent and business rates for the year to 31 August 2011. 2 An income
A J. Wright, a sole trader, extracted the following trial balance from his books at the close of business on 31 March 2012:Notes:(a) Inventory 31 March 2012 £6,805.(b) Wages and salaries accrued at
This question also relates to extended trial balances. From the following trial balance of John Brown, store owner, prepare an income statement for the year ending 31 December 2013, and a statement
A The following trial balance has been extracted from the ledger of Mr Yousef, a sole trader.The following additional information as at 31 May 2012 is available:(a) Rent is accrued by £210.(b) Rates
Mr Chai has been trading for some years as a wine merchant. The following list of balances has been extracted from his ledger as at 30 April 2010, the end of his most recent financial year.The
From the following figures calculate the closing inventory-in-trade that would be shown using (i) FIFO, (ii) LIFO, (iii) AVCO methods. March September Bought 200 at 20 each 100 at 22 each December
For Question 29.1 draw up the trading account part of the income statement for the year showing the gross profits that would have been reported using (i) FIFO, (ii) LIFO, (iii) AVCO methods.Question
A Draw up trading account parts of the income statement using each of the three methods from the details in Question 29.3.Question 29.3From the following figures calculate the closing
Thomas Brown and Partners, a business of practising accountants, have several clients who are retail distributors of the Allgush Paint Spray guns. The current price list of Gushing Sprayers Limited,
The sixth formers at the Broadway School run a tuck shop business. They began trading on 1 December 2012 and sell two types of chocolate bar, ‘Break’ and ‘Brunch’. Their starting capital was
A Mary Smith commenced trading on 1 September 2012 as a distributor of the Straight Cut garden lawn mower, a relatively new product which is now becoming increasingly popular. Upon commencing
A Yuan Ltd has an accounting year ended 28 February 2011. Due to staff shortages, the stocktaking had not been undertaken until 9 March 2011 and the inventory valued at this date is £100,600. This
From the following, draw up a bank reconciliation statement from details as on 31 December 2012: Cash at bank as per bank column of the cash book Unpresented cheques Cheques received and paid into
The following are extracts from the cash book and the bank statement of F. Perry. You are required to:(a) Write the cash book up to date, and state the new balance as on 31 December 2012, and(b) Draw
A Draw up a bank reconciliation statement, after writing the cash book up to date, ascertaining the balance on the bank statement, from the following as on 31 March 2012: Cash at bank as per bank
A The bank columns in the cash book for June 2012 and the bank statement for that month for D. Hogan are as follows:You are required to:(a) Write the cash book up to date to take the above into
Read the following and answer the questions below. On 31 December 2011 the bank column of C. Tench’s cash book showed a debit balance of £1,500. The monthly bank statement written up to 31
The bank statement for R. Hood for the month of March 2012 is:You are required to:(a) Write the cash book up to date, and(b) Draw up a bank reconciliation statement as on 31 March 2012. 2012 Mar 1
A In the draft accounts for the year ended 31 October 2012 of Thomas P. Lee, garage proprietor, the balance at bank according to the cash book was £894.68 in hand. Subsequently the following
A The following is the cash book (bank columns) of F. King for December 2013:You are required to:(a) Write the cash book up to date to take the necessary items into account, and(b) Draw up a bank
You are required to prepare a sales ledger control account from the following information for the month of November: 2010 Nov 1 Sales ledger balances Totals for November: Sales day book Returns
A You are required to prepare a purchases ledger control account from the following information for the month of April. The balance of the account is to be taken as the amount of accounts payable as
Prepare a sales ledger control account from the following information: 2012 March 1 Debit balances Totals for March: Sales day book Cash and cheques received from debtors Discounts allowed Debit
A Prepare a sales ledger control account from the following information for October 2012, carrying down the balance at 31 October: 2012 Oct 1 Sales ledger balances Sales day book 31 Bad debts written
The trial balance of Outsize Books Ltd revealed a difference in the books. In order that the error(s) could be located it was decided to prepare purchases and sales ledger control accounts. From the
From the following figures, compile accounts receivable ledger and accounts payable ledger control accounts for the month, and ascertain what the net balances of the respective ledgers should be on
Prepare the sales ledger control account and the purchases ledger control account for the half-year to 31 December 2012. Sales ledger balances, 1 July 2012 - Debit - Credit Purchases ledger balances,
A The following extracts have been taken from the subsidiary books of the business owned by D. Jenkinson for the month of April 2013.It should be noted that the balances in the accounts of D.
The financial year of The Better Trading Company ended on 30 November 2010. You have been asked to prepare a Total Accounts Receivable Account and a Total Accounts Payable Account in order to produce
Control Accounts are used mainly for accounts receivable and accounts payable. Explain:(a) why it may be appropriate to use control accounts;(b) the advantages of using them.
Return to Review Question 7.1 and prepare a statement of financial position as at 31 December 2013.Review Question 7.1From the following trial balance of B. Cork, extracted after one year’s
Enter the following items in the appropriate debtors’ accounts (i.e. your customers’ accounts) only; do not write up other accounts. Then balance-off each of these personal accounts at the end of
Enter the following in the appropriate creditors’ accounts (i.e. your suppliers’ accounts) only. Do not write up the other accounts. Then balance-off each of these personal accounts at the end of
Enter the following in the personal accounts (i.e. the creditor and debtor accounts) only. Do not write up the other accounts. Balance-off each personal account at the end of the month. After
Enter the following transactions in personal accounts only. Bring down the balances at the end of the month. After completing this, state which of the balances represent debtors and which represent
You are to enter up the necessary accounts for the month of May from the following information relating to a small printing firm. Then balance-off the accounts and extract a trial balance as at 31
Enter the following transactions of an antiques shop in the accounts and extract a trial balance as at 31 March 2013. 2013 March 1 Started in business with 8,000 in the bank. 2 5 Bought goods on
Record the following details relating to a carpet retailer for the month of November 2013 and extract a trial balance as at 30 November 2013. 2013 Nov 1 Started in business with 15,000 in the bank. 3
Record the following transactions for the month of January of a small finishing retailer, balance-off all the accounts, and then extract a trial balance as at 31 January 2012. 2012 Jan 1 Started in
On 1 October 2012, the owner of the USS Enterprise, Mr Kirk, decides that he will boldly go and keep his records on a double entry system. His assets and liabilities at that date were: Fixtures and
From the following trial balance of B. Cork, extracted after one year’s trading, prepare an income statement for the year ending 31 December 2012. A statement of financial position is not required.
From the following trial balance of G. Foot after his first year’s trading, you are required to draw up an income statement for the year ending 30 June 2012. A statement of financial position is
From the following trial balance of B. Morse drawn-up on conclusion of his first year in business, draw up an income statement for the year ending 31 December 2013. A statement of financial position
Extract an income statement for the year ending 30 June 2012 for G. Graham. The trial balance as at 30 June 2012 after his first year of trading was as follows: Equipment rental Insurance Lighting
Bill Sankey is a sole proprietor who keeps records of his cash and bank transactions. His transactions for the month of March were as follows: March 1 4 6 8 10 Cash in hand 400, Cash at bank 6,000.
Which of the items in the following list are liabilities and which of them are assets?(a) Loan from A. Sangster (d) Bank overdraft (b) We owe a supplier (e) Inventory of goods held for sale (c)
Classify the following items into liabilities and assets: (a) Motor vehicles (f) Owing to bank (b) Premises (g) Cash in hand (c) Accounts payable for inventory (h) Loan from D. Jones (d) Inventory
Luca Pacioli is setting up a new business. Before actually selling anything, he bought a van for £13,000, a transportable market stall for £1,050; a computer for £450; and an inventory of goods
Draw up N. Marriott’s statement of financial position from the following information as at 31 December 2011: Capital Accounts receivable Car Accounts payable Equipment Inventory Cash at bank
Draw up M. Kelly’s statement of financial position as at 30 June 2012 from the following items: Capital Equipment Accounts payable Inventory Accounts receivable Cash at bank 10,200 3,400 4,100
A. Park has the following items in her statement of financial position on 30 April 2012: Capital £31,700; Accounts payable £7,400; Fixtures £9,600; Car £12,300; Inventory £8,600; Accounts
J. Hill has the following assets and liabilities on 30 November 2012: Accounts payable £2,800; Equipment £6,200; Car £7,300; Inventory £8,100; Accounts receivable £4,050; Cash at bank £9,100;
Write up the asset and liability and capital accounts to record the following transactions in the records of J. Beach. 2013 July 1 Started business with 62,000 in the bank. 2 Bought office
You are required to open the asset and liability and capital accounts and record the following transactions for June 2013 in the records of P. Bernard. 2013 June 1 Started business with 17,500 in
Write up the asset, capital and liability accounts in the books of D. Gough to record the following transactions: 2012 June 1 Started business with 16,000 in the bank. 2 Bought van paying by
Write up the accounts to record the following transactions: 2010 March 1 Started business with 750 cash and 9,000 in the bank. 2 Received a loan of 2,000 from B. Blane by cheque. 3 Bought a
Write up a two-column cash book for a pine furniture shop from the following details, and balance it off as at the end of the month: 2012 May 1 Started in business with capital in cash 5,000. 2 Paid
Write up a two-column cash book for a second-hand bookshop from the following: 2013 Nov 1 Balance brought forward from last month: Cash 295; Bank 4,240. 2 Cash sales 310. 3 Took 200 out of the cash
A three-column cash book for a wine wholesaler is to be written up from the following details, balanced-off, and the relevant discount accounts in the general ledger shown. 2012 Mar 1 Balances
Enter the following in the three-column cash book of an office supply shop. Balance-off the cash book at the end of the month and show the discount accounts in the general ledger. 2011 June 1
Enter the following transactions, completing the double entry in the books for the month of May 2013: 2013 May 1 Started in business with 18,000 in the bank and 2,000 in cash. 2 Purchased goods 580
Write up the following transactions in the books of P. Hewitt: 2013 March 1 Started in business with cash 16,000. 2 Bought goods on credit from W. Young 420. 3 Paid rent by cash 870. 4 5 Paid 12,500
From the following statements which give the cumulative effects of individual transactions, you are required to state as fully as possible what transaction has taken place in each case. There is no
What is the annualised amount of the net benefits from the project in Question 50.11A?Data from in Question 50.11A? 50.7 What is the payback period on the following project cash flows? (Brackets
Using the data from the solution to Review Question 41.3: (a) Explain why there is a difference between the total gross profits of Lima over the three years and that of Delfina; and (b) How is the
Assume that two companies have exactly the same pattern of costs and revenue and both use FIFO when valuing inventory, but that Lima Ltd uses a marginal costing approach to the valuation of inventory
Why do you think there may be problems for anyone trying to gather data of this type.
What is e-commerce?
Explain the difference between the consolidated retained profits figure of £132 and the total of £144 found if you add together the profits for the year of P2 Ltd and S2 Ltd.
(a) For each of the following, state three reasons why a firm may wish to keep:(i) A minimum inventory level of finished goods, and(ii) An even level of production in the face of fluctuating
(a) What is meant by the terms:(i) Budget(ii) Operating budget(iii) Master budget?(b) The information below relates to the business of Madingley Ltd:The following is a schedule of the budgeted income
Using internal rate of return, which of the two projects in Question 50.17 would be preferred?Data From Question 50.17Which of the following two mutually exclusive alternatives should be selected if
What would the consolidated statement of financial position look like if the amounts shown in S’s statement of financial position were used rather than those in the restated statement of P’s
A company purchased equipment on 1 January 2017 for £120,000, at which date the relevant price index for equipment was 100. Depreciation is charged on a straight line basis at 20% per annum. The
Explain why social and environmental reporting is now generally considered to be important.
Why is this information used on an ongoing basis?
What problems do accountants face in preparing integrated reports?
What problems do auditors face in auditing integrated reports?
Why is it considered necessary to have an official set of corporate governance guidelines?
Imagine we bought a building in 2000 for £400,000 that is now worth £1,200,000. If we rented a similar building now it might cost us £100,000 a year. What use would you make of the knowledge that
What problems do stakeholders face in interpreting integrated reports?
What problem do companies face in preparing integrated reports?
What are the benefits of companies adopting integrated reporting?
Describe integrated reporting.
Providing social and environmental information is costly for shareholders. Other than legislation, stock market requirements, or accounting regulations, what motivates companies to provide this
What problems do auditors face in auditing triple bottom line reports?
What problems do accountants face in preparing triple bottom line reports?
What problems do stakeholders face in interpreting triple bottom line reports?
What problems do companies face in preparing triple bottom line reports?
What are the benefits of companies adopting triple bottom line reporting?
Why do you think a forensic accountant needs to be knowledgeable about professional standards?
Enter the relevant amounts for each of the three years from Exhibit 41.3 in the columns labelled 1 to 3 in the following table:Assume that in Year 4, Burke Ltd‘s costs per unit and fixed costs were
What are these problems of absorption costing and marginal costing?
(a) What is meant by the terms contribution and marginal cost?(b) Barton & Co Ltd make and sell 2,000 units per month of a product ‘Barco’. The selling price is £65 per unit, and unit costs are:

Showing 200 - 300 of 1433