There are 5qns in this post.. I attempted these qns and derived at some answers. As I do not have the answers, would be glad if someone could help me check if I was right.. Thx.. :)..
Qn 1 )
John sold goods to Ruth in May 2009 with a list price of $98,000. John allowed a
trade discount of 10%. Ruth returned goods with a list price of $3,000 on 31 May
and returned a further $5,000 of goods at list price on 6 June as they were found
to be unsuitable.
How much should John record in the sales returns account at 31 May?
A $2,700
B $3,000
C $8,000 (My answer is D)
D $7,200
Qn 2)
Esther made a profit for the year of $345,687 and has closing net assets of
$435,195. During the financial year, capital of $60,000 was introduced which
consisted of $40,000 in cash and $20,000 in non-current assets. Drawings of
$6,000 were taken out of the business each month.
What was the opening balance of net assets?
A $35,508
B $121,508
C $768,882 (My answer is D)
D $101,508
Qn 3)
A company has occupied rented premises for some years, paying an annual rent
of $120,000. From 1 April 2006 the rent was increased to $144,000 per year.
Rent is paid quarterly in advance on 1 January, 1 April, 1 July and 1 October
each year.
What figures should appear for rent in the company’s financial statements
for the year ended 30 November 2006?
Income statement Balance sheet
$ $
A 136,000 Prepayment 12,000
B 136,000 Prepayment 24,000
C 138,000 Nil (My answer is A)
D 136,000 Accrual 12,000
Qn 5)
Clinton had receivables of $598,600 at 30 November 2008. His allowance for
receivables at 1 December 2007 was $12,460 and he wishes to change that to
2% of receivables at 30 November 2008. On 29 November 2008 he received
$635 in full settlement of a debt that he had written off in the year ended 30
November 2007.
What total amount should be recognised for receivables in the income
statement for the year ended 30 November 2008?
A $488 credit
B $11,972 debit
C $1,123 credit (My answer is A)
D $147 debit
Qn 1 )
John sold goods to Ruth in May 2009 with a list price of $98,000. John allowed a
trade discount of 10%. Ruth returned goods with a list price of $3,000 on 31 May
and returned a further $5,000 of goods at list price on 6 June as they were found
to be unsuitable.
How much should John record in the sales returns account at 31 May?
A $2,700
B $3,000
C $8,000 (My answer is D)
D $7,200
Qn 2)
Esther made a profit for the year of $345,687 and has closing net assets of
$435,195. During the financial year, capital of $60,000 was introduced which
consisted of $40,000 in cash and $20,000 in non-current assets. Drawings of
$6,000 were taken out of the business each month.
What was the opening balance of net assets?
A $35,508
B $121,508
C $768,882 (My answer is D)
D $101,508
Qn 3)
A company has occupied rented premises for some years, paying an annual rent
of $120,000. From 1 April 2006 the rent was increased to $144,000 per year.
Rent is paid quarterly in advance on 1 January, 1 April, 1 July and 1 October
each year.
What figures should appear for rent in the company’s financial statements
for the year ended 30 November 2006?
Income statement Balance sheet
$ $
A 136,000 Prepayment 12,000
B 136,000 Prepayment 24,000
C 138,000 Nil (My answer is A)
D 136,000 Accrual 12,000
Qn 5)
Clinton had receivables of $598,600 at 30 November 2008. His allowance for
receivables at 1 December 2007 was $12,460 and he wishes to change that to
2% of receivables at 30 November 2008. On 29 November 2008 he received
$635 in full settlement of a debt that he had written off in the year ended 30
November 2007.
What total amount should be recognised for receivables in the income
statement for the year ended 30 November 2008?
A $488 credit
B $11,972 debit
C $1,123 credit (My answer is A)
D $147 debit