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page.498/Q.80/ The following trial balance for ABc Ltd is extracted at 31 December 20×1.
Cr:
Sales 341,726
Payables 32,792
Bank 3,295
Share capital 20,000
Reserves 8,990
total========406,803
Dr :
Purchases 202,419
Carriage inwards 376 Carriage outwards 729
Wages and salaries 54,210
Rent and rates 12,466
Heat and light 4,757 Inventory at 1 January 20X1 14,310
Dividends paid 28,500
Receivables 49,633
Sundry expenses 18,526
Cash 20,877
total========406,803*Closing inventory is 15,327.
•(c) net assets are $__________.
The answer is $ 49,750.
#How did we find that answer?
The answer is not 49750 – I think you have mistyped!
You add up the asset balances and subtract all the liability balances.
The asset balances are: 49633 + 20877 + 15327 = 85837
The liabilities are: 32972 + 3295 = 36267
Therefore the net assets = 85837 – 36267 = 49570
You should be practicing questions using a Revision Kit from one of the ACCA approved publishers. They are full of exam-standard questions and have workings for their answer.
I already have book & Revision Kit from one of the ACCA approved ,& that answer from the book that I have.
There is no mention of cash paid – cash paid does not appear in the trial balance anyway.
Again, you must watch my free lectures. I am not going to effectively keep typing out parts of my lectures!!
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