- This topic has 12 replies, 2 voices, and was last updated 9 years ago by
.
- Posts
Q. A company’s motor vehicles at cost account 30 June 20×6 is as follows:
motor vehicles-cost
balance b/d 150,500 disposal 85,000
additions 120,950 balance c/d 186,450
total 271,950 total 271,450what opening balance should be included in the following periods trial balance for motor vehicles – cost at July 20×6?
A. $271,450 DR
B. $271,450 CR
C. $186,450 CR
D. $186,450 DR
the correct answer is D. but i cant get it how.The closing balance this year is 186450, and so that is the opening balance at the start of next year.
(I assume that you have been watching all of our free lectures, in which case you will appreciate that balances are always carried forward on the opposite side of the t-account, so the 186,450 carried forward from the credit side will end up being a debit balance at the end of this year/start of next year).
yes i have been watching all the lectures but i couldnt find detail on this type of ques.
anyways, thankyou 🙂i have one more ques like this.
A companys trade payables account at 30 september 20×1 is as follows:
Trade Payables Account
Cash at bank 21,600 Balance b/d 14,000
Balance c/d 11,900 Purchases 19,500
total 33,500 total 33,500What was the balance for trade payables in the trial balance at 1 October 20×0?
A. $14,000 DR
B. $14,000 CR
C. $11,900 DR
D. $11,900 CRThe correct answer is B. but i got it A. please help me.
Please guide me where can i find b/d and c/d type of questions. I mean which chapter does it get into. and please do guide me about the return outwards and return inwards chapter too( which chapter it is. Reply all of my questions.
Regards.You have typed up the t-account and at the start of the year (1 October 20X0) you have shown a credit of 14,000.
Therefore the balance at the start of the year (end of last year) is a credit balance of 14,000.
Carrying down balances and producing a trial balance are dealt with in the chapter on double entry bookkeeping. Returns inwards and outwards are dealt with in the chapter on control accounts.
However there is no point at all in picking chapters at random – they are a complete course and therefore all the chapters should be worked through in order.
Also, you should not use the notes on their own – they are notes to go with the lectures and you must watch the lectures because it is in the lectures that we explain and expand on the notes.
Okay thank you. Actually i was doing the revision kit and got stuck in these questions.
Anyways i didn’t find any carrying down topic in double entry bookkeeping, not in the notes nor in the lectures of double entry.It is not a ‘topic’ but it is explained in full in the lectures on double entry bookkeeping if you watch them carefully 🙂
oh i see. but i cannot find any explanations. can you kindly guide me or explain me here. I would be very thankful.
and in the above question, its ending on credit side, so it must be a debit balance and the answer should be A. i did not get how did you get B.
I cannot explain more than is in the lectures.
The account starts the year with a balance on the credit side.
It does not matter what it is ending with at the end of the year – the questions asks for the balance at the beginning of the year.
Okay, thank you so much 🙂
I really appreciate the quick replies from your side.
Regards.
- You must be logged in to reply to this topic.