- November 26, 2015 at 5:31 pm #285528
Q. A company’s motor vehicles at cost account 30 June 20×6 is as follows:
balance b/d 150,500 disposal 85,000
additions 120,950 balance c/d 186,450
total 271,950 total 271,450
what 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.November 26, 2015 at 6:14 pm #285542
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).November 26, 2015 at 7:39 pm #285583
yes i have been watching all the lectures but i couldnt find detail on this type of ques.
anyways, thankyou 🙂November 26, 2015 at 7:56 pm #285588
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 33,500
What 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 CR
The correct answer is B. but i got it A. please help me.November 27, 2015 at 12:15 am #285600
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.November 27, 2015 at 7:46 am #285639
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.November 27, 2015 at 7:05 pm #285782
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.November 27, 2015 at 7:17 pm #285786
It is not a ‘topic’ but it is explained in full in the lectures on double entry bookkeeping if you watch them carefully 🙂November 27, 2015 at 7:46 pm #285792
oh i see. but i cannot find any explanations. can you kindly guide me or explain me here. I would be very thankful.November 27, 2015 at 8:09 pm #285799
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.November 27, 2015 at 9:05 pm #285807
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.November 28, 2015 at 4:46 pm #285975
Okay, thank you so much 🙂
I really appreciate the quick replies from your side.
Regards.November 28, 2015 at 5:52 pm #285997
You are welcome 🙂
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