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A business bank balance increase by $750,000 during its last financial year .During the same period it issued shares of $1 million and repaid a loan note of $750,000 . It purchased non current Asset for $200,000 and charged depreciation of $100,000 .Working capital (other than the Bank balance ) increased by $575,000.
What was the profit for the year ?
750000
(1000,000)
750000
200,000
100,000
575000
————
1375000Correct answer in the book is 1175000.
Q. The electricity account for jingles Co for the year ended 30 June 20X1 was as follows
Opening balance for electricity accrued at 1july 20X0. $300
Payment made during the year
1Aug 20×0 for 3 months to 31 July 20×0 $600
1 nov 20X0 for three month to 31 October 20X0 720
1 February 20×1 for three months to 31january 20×1. $900
30 June 20X1 for three months to 30 April 20X1 $840
Jingles Co expect the next bill due in September to be for the same amount as the bill received in June.
What are the appropriate amounts for electricity to be included in the financial statement of jingle Co for the year ended 30 June 20X1?I want to know about the last payment of 20th June 20X2 for three months to 30 April then payment for July August and September??
First question: You should have subtracted the depreciation, not added it.
Second question: The payment on 30 June was for the three months to April, so you need to accrue for May and June. The question says that they expect the next bill to be $840 for 3 months and so the accrual is 2/3 x 840.
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