Business Accounting Volume 1 6th Edition Frank Wood - Solutions

Unlock the full potential of your accounting studies with the "Business Accounting Volume 1 6th Edition" by Frank Wood. Explore our extensive collection of online resources that includes an answers key and detailed solutions manual. Dive into an array of solved problems with our solutions PDF, offering step-by-step answers for each question. Our test bank and chapter solutions ensure comprehensive understanding, while the instructor manual provides additional insights. Access our textbook solutions and download them for free to enhance your learning experience. Perfect for students seeking questions and answers for their accounting coursework.

5 £2,000 cars can be profitably made in India. Explain why UK consumers are unlikely to benefit from similar low prices.
4 Assess two advantages and two disadvantages for European car manufacturers, such as Renault, of mass marketing £2,000 cars in India.
3a) What is meant by a mass market product?b) Explain why the Tata Motor’s ‘People’s car’ is a good example of a mass market product.
2 Explain two reasons why the Indian car market has grown.
1a) What is meant by a niche market product?b) Explain why the Toyota Prius is a good example of a niche market product.
9a) If a company operating in a stable market sees its market share fall from 5 per cent to 4 per cent, what would be the percentage impact on its sales revenue?b) How might the business respond to such slippage in its market share?
8 A new chairman sets the chief executive of Tesco the corporate objective of restoring Tesco’s UK market share to 32 per cent from its current figure of 28.5 per cent. Outline two possible marketing objectives that might help achieve this target.
7 In your own words, explain why niche market products may generate higher profit margins than mass market products.
6 Explain why it is important for a large firm to be flexible if it is to successfully operate in niche markets.
5 Outline two reasons why information technology has made niche marketing a more viable option for large firms.
4 Give two reasons why average prices in niche markets tend to be higher than those charged in most mass markets.
3 Why may small firms be better at spotting and then reacting to new niche-market opportunities?
2 Give three reasons why a large firm may wish to enter a niche market.
1 Identify two advantages of niche marketing over mass marketing.
2 Several lower-league football clubs have found attendance figures slipping in recent years. Evaluate the best way to build attendance figures at a local sports club of your choice.
1 In November 2014, ‘Share Radio’ was launched in the UK. A digital only radio station, its focus is personal finance. Its founder/owner is especially keen to help teenagers learn more about money. Evaluate how best to market this new station effectively.
3 Evaluate the factors likely to be the most important in determining how well KitKat Double Caramel sells.
2 Look at Table 1.2. Based on the figures, explain why Fruitopolis yoghurt gets such a better overall score than the Butterkist popcorn.
1 Nestlé is targeting the 25–35-year-old segment of the market with KitKat Double Caramel. Assess two advantages there may be in targeting KitKat Double Caramel at this segment.
2 Evaluate the marketing problems Morgan cars could face if it attempts to expand.
1 From your reading of the text, assess whether Morgan’s success is all down to luck.
7 Explain how online advertising might help a business to focus its advertising spending on its target market.
6 Explain how market segmentation has helped companies such as BSkyB to improve their profitability.
5 Outline one possible marketing objective for each of these companies:a) Manchester United FCb) easyJetc) Topshop.
4 Outline two reasons why it is important for firms to be able to identify their target market.
3 What is meant by the phrase ‘target market’?
2 Why do you think most firms decide to review their marketing strategy at fairly regular intervals?
1 In your own words, explain the meaning of the term ‘marketing’.
Write up the accounts to record the following transactions:19X3 March 1 99 99 99 99 99 99 99 35 815 17 24 31 Started with £1,000 cash.Received a loan of £5,000 from M Chow by cheque, a bank account being opened and the cheque paid into it.Bought machinery for cash £60.Bought display equipment on
Write up the asset, capital and liability accounts in the books of C Walsh to record the following transactions:19X5 June 59 99 99 99 99 99 99 99 99 12 58 12 15 19 21 25 30 Started business with £5,000 in the bank.Bought motor van paying by cheque £1,200.Bought office fixtures £400 on credit
You are required to open the asset and liability and capital accounts and record the following transactions for June 19X4 in the records of C Williams.19X4 June 55 55 55 55 55 55 55 12 58 12 18 25 26 28 30 Started business with £2,000 in cash.Paid £1,800 of the opening cash into a bank account
Write up the asset and liability and capital accounts to record the following transactions in the records of G Powell.19X3 July 1 15 23 31 Started business with £2,500 in the bank.Bought office furniture by cheque £150.Bought machinery £750 on credit from Planers Ltd.Bought a motor van paying by
Complete the following table showing which accounts are to be debited and which to be credited:Account to be debited Account to be credited(a) Bought motor lorry for cash.{b) Paid creditor, T Lake, by cheque.(c) Repaid P Logan’s loan by cash.{d) Sold motor lorry for cash.(e) Bought office
Complete the following table:Account to Account to be debited be credited{a) Bought office machinery on credit from D Isaacs Ltd.(b) The proprietor paid a creditor, C Jones, from his private monies outside the firm.(c) A debtor, N Fox, paid us in cash.(d) Repaid part of loan from P Exeter by
Record the following for the month of January, balance off all the accounts, and then extract a trial balance as at 31 January 19X4:19X4 Jan 1 Started business with £3,500 cash.„ 2 Put £2,800 of the cash into a bank account.,, 3 Bought goods for cash £150.„ 4 Bought goods on credit from L
Record the following details for the month of November 19X3 and extract a trial balance as at 30 November:19X3 Nov 1 9?99 99 99 99 99 99 99 99 99 99 56 711 17 18, 19 20 21 23 25 26 28 30 Started with £5,000 in the bank.Bought goods on credit from: T Henriques £160; J Smith £230; W Rogers £400;P
Enter up the books from the following details for the month of March, and extract a trial balance as at 31 March 19X6.19X6 March 1 99 99 99 99 99 99 99 99 99 99 99 99 99 99 56 79 10 12 13 15 17 18 21 24 27 30 31 Started business with £800 in the bank.Bought goods on credit from the following
You are to enter up the necessary amounts for the month of May from the following details, and then balance off the accounts and extract a trial balance as at 31 May 19X6.19X6 May 1????59 99 99 99 99 99 46 910 12 15 18 21 31 Started firm with capital in cash of £250.Bought goods on credit from the
On 2 November 19X7 Fred Bilding set up in business on his own account as an Estate Agent. The following transactions^occurred during the month of November:Fred Bilding paid £10,000 into a bank account for the business and immediately withdrew £200 in cash.An office was rented for the business and
Redraft each of the accounts given in your answer to 5.2 in three-column ledger style accounts.5.5Enter the following in the personal accounts only, do not write up the other accounts.Balance down each personal account at the end of the month. After completing this state which of the balances
Enter the following in the personal accounts only. Do not write up the other accounts.Then balance down each personal account at the end of the month. (Keep your answer, it will be used as the basis for question 5.4.)19X8 June 5)>5 1 3 10 15 19 28 30 Purchases on credit from J Young £458, L
Enter the following items in the necessary debtors accounts only, do not write up other accounts. Then balance down each personal account at the end of the month. (Keep your answer, it will be used as a basis for question 5.3.)19X6 May 99 99 99 14 10 18 20 24 31 Sales on credit to H Harvey £690, N
Discuss what changes would need to be made if Susan and Bob decided to form a company to take over the business to protect both partners' interests as they stand under the current partnership agreement.
Produce the final accounts of the partnership for year 2 in a form suitable for a partnership.
Explain how you propose to deal with the following:the balance of £7100, i.e. the profit after drawings;the drawings from the business by Susan and Bob in year 2;the money introduced by Bob in year 2.
What form of security is required for each of the forms of short-term finance discussed in the chapter?
Which types of short-term finance require a business to provide some form of security?
What are the advantages and disadvantages of being highly geared?
What does the term 'highly geared' refer to?
What are the differences between drawings and dividends?
What are the main differences between equity finance and debt finance?
What are the forms of short-term finance discussed in the chapter?
Why is it important to match the type of finance with the purpose of raising that finance?
In each of the following situations describe the way that the transaction would be dealt with in the accounts of the business and identify, where appropriate, the effect on the balance sheet and profit and loss account.(a) Purchase of stock of raw materials on credit terms.(b) Purchase of
How do debtors affect the profit and loss account?Problems for discussion and analysis
Simon has recently gone into business making meat pies. Details of his transactions for the first month are given below.Day 1 Day 2 Day 3 Day 3 Day 31 Opened a bank account and paid in £20 000 of his own money.Purchased an oven to make pies at a cost of £10000.Paid rent for production space for
would be affected by the use of a marginal cost basis of stock valuation.
Discuss the ways in which your answer to problem
Of the costs above which would be appropriate to include in arriving at cost under an absorption costing system?
Based on your decisions, draw up a profit and loss account for 1993 using the information above.
April1993 £60**The rent had remained the same as in 1992 but the TV licence had gone up from £50 to £60.
April £300*Annual insurance on vans paid 1 April £480*Repairs and petrol for vans £600 Annual road tax on owner's car paid 1 June £100*Annual road tax on owner's wife's car paid 1 June £100 Annual insurance on owner's car paid 1 June £120*Annual insurance on owner's wife's car paid 1 June
In each of the following situations, discuss whether the item would be included in the profit and loss account for the year to 31 December 1993 and at what amount. The business is that of a builder and builder's merchant.(a) Sales of general building materials by the builder's merchant to third
In what circumstances would it be inappropriate to recognize a cost as either an expense or an asset?Problems for discussion and analysis
How does an expense differ from a cost?Review questions
January 1992.(e) Shop fittings which were worth £3000 and had been bought at an auction by Transom Trading for only £1500 prior to opening the shop in August 1991.(f) A Ford Fiesta costing £3500 which the owner of Transom Trading had bought in November 1991 for his wife to use. He had found that
In each of the following situations identify whether the item should be included in the balance sheet of Transom Trading at 31 December 1991, and if so at what amount and under which heading. Transom Trading is a retailer of motor spares and accessories. In all cases reasons for your decision must
Prepare a balance sheet from the following information and comment on the position of the business as shown by that balance sheet.Stock of goods held for resale Freehold land and building Mortgage on land and building£6500 34000 29000 Cash in tills Fixtures and fittings Office furniture Bank
What is the purpose of a balance sheet and what information does it contain?Problems for discussion and analysis
Two brothers decided to go into business buying and selling beds.Details of their transactions are set out in the case study below.They initially bought 400 beds at £100 each and a delivery van for£6000. At the end of six months they had sold 300 of the 400 beds for £150 each. Unfortunately
In the example of Alex in the text, no allowance was made for the fact that an item had been in use for some time. Whilst it is intuitively obvious that the utility of most things declines over time, it is more difficult to identify the extent of that decline over a given period. In addition, even
Under certain circumstances only one of the alternative methods of valuation is the most appropriate. Giving brief reasons for your choice, suggest the most appropriate value to be placed on each item in the following.Jean owns a shop which used to sell clothes but she has now decided that given
What effects, if any, do rapid changes in technology have on the appropriateness of each of the alternative ways of assigning a cost or a value to an item.Problems for discussion and analysis
Tack was left some money in his mother's will and decided that he should give up his job and go into business for himself. Whilst the lawyers were still sorting out his mother's estate he started looking round for a suitable business. After a short time he identified a small bacon-curing business
What are the major determinants of a useful accounting system?
For what purposes is accounting information used?(a) by the individual,(b) by the enterprise.
The following table shows the cumulative effects of a succession of separate transactions on the assets and liabilities of a business.Transaction: A B C D E F G H I Assets £000 £000 £000 £000 £000 £000 £000 £000 £000 £000 Land and buildings 500 500 535 535 535 535 535 535 535 535
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 need to copy out the table.Transaction: A B C D E F G H I Assets £000 £000 £000 £000 £000 £000
Write up the following transactions in the records of D DaSilva:Feb 1 Started business with £3,000 in the bank and £500 cash.,, 2 Bought goods on credit: T Small £250; C Todd £190; V Ryan £180.„ 3 Bought goods for cash £230.„ 4 Paid rent in cash £10.„ 5 Bought stationery paying by
Enter the following transactions in double entry:July 55 55 55 55 55 55 55 55 55 55 55 55 55 55 55 55 1 Started business with £8,000 in the bank.2 Bought stationery by cheque £30.3 Bought goods on credit from I Walsh £900.4 Sold goods for cash £180.5 Paid insurance by cash £40.7 Bought
Write up the following transactions in the books of L Thompson:19X8 March 1„ 2„ 3„ 4,, 5,, 7 11 14 17 20 22 27 28 29 30 31 55 55 55 55 Started business with cash £1,500.Bought goods on credit from A Hanson £296.Paid rent by cash £28.Paid £1,000 of the cash of the firm into a bank
You are to enter the following transactions, completing double entry in the books for the month of May 19X7.19X7 May 5?9?99 99 12 35 610 12 18 Started business with £2,000 in the bank.Purchased goods £175 on credit from M Mills.Bought fixtures and fittings £150 paying by cheque.Sold goods for
You are to enter the following in the accounts needed:July 99 99 99 99 99 99 99 99 99 99 99 99 99 99 99 99 99 99 1 Started business with £1,000 cash.2 Paid £800 of the opening cash into a bank account for the firm.3 Bought goods on credit from H Grant £330.4 Bought goods on credit from D Clark
Enter up the following transactions in the records:19X5 May 33 33 33 35 33 33 33 53 55 12 35 68 10 12 18 21 Started business with £2,000 in the bank.Bought goods on credit from C Shaw £900.Bought goods on credit from F Hughes £250.Sold goods for cash £180.We returned goods to C Shaw £40.Bought
Enter up the following transactions in the records of E Sangster:19X7 July 35 35 33 33 33 53 33 33 33 53 33 33 33 33 53 53 55 33 53 33 33 12 34 68 10 11 12 14 15 17 18 19 20 24 25 26 27 28 29 31 Started business with £10,000 in the bank.T Cooper lent us £400 in cash.Bought goods on credit from E
You are to enter the following in the accounts needed:19X6 Aug 1 Started business with £1,000 cash.„ 2 Paid £900 of the opening cash into the bank.„ 4 Bought goods on credit £78 from S Holmes.„ 5 Bought a motor van by cheque £500.„ 7 Bought goods for cash £55.„ 10 Sold goods on
You are to write up the following in the books:19X4 July 1 37 10 14 18 21 24 25 31 Start business with £500 cash.Bought goods for cash £85.Bought goods on credit £116 from E Morgan.Sold goods for cash £42.Returned goods to E Morgan £28.Bought goods on credit £98 from A Moses.Returned goods to
Complete the following table:Account to Account to be debited be credited(a) Goods bought on credit from T Morgan.(b) Goods returned to us by J Thomas.(c) Machinery returned to L Jones Ltd.(d) Goods bought for cash.(e) Motor van bought on credit from D Davies Ltd.if) Goods returned by us to I
Complete the following table showing which accounts are to be credited and which are to be debited:Account to Account to be debited be credited(a) Goods bought on credit from J Reid.(b) Goods sold on credit to B Perkins.(c) Motor vans bought on credit from H Thomas.(d) Goods sold, a cheque being
You are to study the following financial statements for two similar types of retail store and then answer the questions which follow.Summary of Financial Statements A B£ £ £ £Sales 80,000 120,000 Less Cost of goods sold Opening stock 25,000 22,500 Add Purchases 50,000 91,000 75,000 113,500 Less
Study the following accounts of two companies and then answer the questions which follow. Both companies are stores selling textile goods.Trading and Profit and Loss Accounts R Ltd T Ltd£ £ £ £Sales 250,000 160,000 Less Cost of goods sold Opening stock 90,000 30,000 Add Purchases 210,000
Durham Limited had an authorised capital of £200,000 divided into 100,000 ordinary shares of £1 each and 200,000 8% preference shares of 50p each. The following balances remained in the accounts of the company after the trading and profit and loss accounts had been prepared for the year ended 30
The summarised accounts of Hope (Eternal Springs) Ltd. for the years 19X9 and 19X0 are given below.Trading and Profit and Loss Accounts for the year ended 31 December 19X9 19X0£’000 £’000 £’000 Sales 200 280 Less Cost of sales 150 210 Gross profit Less 50 70 Administration expenses 38 46
The following figures are for AB Engineering Supplies Ltd at 31 December 19X9.Turnover Gross profit Average stock at cost price Expenses eooo 160 40 10 8Fixed assets Current assets Stock Debtors Bank Current liabilities Capital 108 10 8_2 _20 128 10 118 128(a) Calculate:(i) gross profit as a
Galloway Ltd has an authorised capital of 250,000 ordinary shares of £1 each.(a) At the end of its financial year, 30 April 19X8, the following balances remained in the Company’s books after preparation of trading and profit and loss accounts.£Motor vehicles:at cost 38,400 provision for
The trading stock of Joan Street, retailer, has been reduced during the year ended 31 March 19X8 by £6,000 from its commencing figure of £21,000.A number of financial ratios and related statistics have been compiled relating to the business of Joan Street for the year ended 31 March 19X8; these
Serna pic, a company in the heavy engineering industry, carried out an expansion programme in the 19X6 financial year, in order to meet a permanent increase in contracts.The company selected a suitable site and commissioned a survey and valuation report, for which the fee was £1,500. On the basis
At the beginning of the financial year on 1 April 19X5, a company had a balance on plant account of £372,000 and on provision for depreciation of plant account of £205,400.The company’s policy is to provide depreciation using the reducing balance method applied to the fixed assets held at the
{a) Distinguish between capital and revenue expenditure.{b) Napa Ltd took delivery of a microcomputer and printer on 1 July 19X6, the beginning of its financial year. The list price of the equipment was £4,999 but Napa Ltd was able to negotiate a price of £4,000 with the supplier. However, the
Indicate which of the following would be revenue items and which would be capital items in a wholesale bakery.[a] Purchase of a new motor van.{b) Purchase of replacement engine for existing motor van.(c) Cost of altering interior of new van to increase carrying capacity.{d) Cost of motor taxation

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Business Accounting Volume 1 6th Edition Frank Wood - Solutions

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