We hold fewer questions than the paper printed. The rest are not in the bank yet.
The following information is available at 30 April 2024.
| $ | |
|---|---|
| Balance as per bank statement | 20 240 |
| Bank interest credited on the bank statement only | 2 000 |
| Unpresented cheques | 3 000 |
What was the balance as per cashbook?
The following information is available for a business:
| $ | |
|---|---|
| Sales | 200 000 |
| Opening inventory | 15 000 |
| Closing inventory | 20 000 |
| Margin | 20% |
What is the cost of sales?
A company paid $1 500 000 to acquire the business of a sole trader.
The sole trader's assets and liabilities were valued as follows:
| $ | |
|---|---|
| Non-current assets | 700 000 |
| Current assets | 300 000 |
| Current liabilities | 50 000 |
| Non-current liabilities | 100 000 |
How much was paid for goodwill?
A trader pays rent quarterly in advance.
During the year ended 31 December 2024 the trader made the following payments:
| $ | |
|---|---|
| January 1 | 2 200 |
| March 31 | 2 800 |
| June 30 | 2 800 |
| September 30 | 3 000 |
| December 31 | 3 000 |
Which amount for rent should be shown in the Income Statement for year ended 31 December 2024?
The total of the purchases journal for one month is $7 160.
It has been entered in the purchases account as $7 610.
Which journal entries are required to correct the error?
| Debit $ | Credit $ | |
|---|---|---|
| A | Purchases account 450 | Suspense account 450 |
| B | Purchases account 450 | Trade payables 450 |
| C | Suspense account 450 | Purchases account 450 |
| D | Trade payables 450 | Purchases account 450 |
A company purchased a business with assets shown below.
| Non- current assets | $ |
|---|---|
| Goodwill | 50 000 |
| Machinery | 200 000 |
| Net current assets | 100 000 |
The purchase price was settled by issuing 300 000 ordinary shares of $1 each at $1,50 per share.
How much did the company pay for goodwill?
Oneday Pvt Ltd's statement of financial position on 31 December 2025 is summarized as follows:
| $ | |
|---|---|
| Net assets | 1 600 000 |
| Equity | |
| Ordinary shares of $1 each | 1 000 000 |
| Share premium | 600 000 |
| Total equity | 1 600 000 |
On 1 January 2026, the directors made a rights issue of 100 000, $1 ordinary shares at $1,50 each.
Which of the following shows the balances after the above transactions ?
| Net assets $ | Ordinary shares $ | Share premium $ | |
|---|---|---|---|
| A | 1 600 000 | 1 100 000 | 650 000 |
| B | 1 600 000 | 1 150 000 | 450 000 |
| C | 1 750 000 | 1 100 000 | 650 000 |
| D | 1 750 000 | 1 150 000 | 600 000 |
Charles, David and Joseph were partners sharing profits and loses equally.
Charles retired while David and Joseph continued as equal partners.
Goodwill $90 000, is not to be shown in the books.
Which entries will record the adjustments for goodwill in the capital accounts for Charles, David and Joseph?
| Charles $ | David $ | Joseph $ | |
|---|---|---|---|
| A | 30 000 credit | 15 000 credit | 15 000 credit |
| B | 30 000 credit | 15 000 debit | 15 000 debit |
| C | 30 000 debit | 15 000 credit | 15 000 credit |
| D | 30 000 debit | 45 000 credit | 45 000 credit |
The following information relates to a football club for a year.
| $ | |
|---|---|
| Annual subscription per member | 20 |
| Subscriptions owing at beginning of year | 1000 |
| Subscriptions owing at end of year | 600 |
| Number of members | 100 |
How much was received from subscriptions during the year?
The following information is available for the business of Grey, a sole trader.
| 1 January 2024 $ | 31 December 2024 $ | |
|---|---|---|
| Capital | 392 400 | 360 000 |
| Drawings | - | 343 000 |
A private car valued at $91 000 was brought into the business during the year.
What is Grey's profit for the year ended 31 December 2024?
The purchases and sales of inventory for a business were as follows:
| Date 2025 | Purchases | Sales |
|---|---|---|
| 4 January | 3 units at $800 each | - |
| 13 January | - | 2 units at $900 each |
| 16 January | 5 units at $850 each | - |
| 26 January | 3 units at $1000 each | - |
| 28 January | - | 4 units at $1 200 each |
What is the value of closing inventory using FIFO?
Taona Manufacturing Pvt Ltd has the following information at 31 December 2024.
| $ | |
|---|---|
| Inventory of raw materials: 1 January 2024 | 31 000 |
| Inventory of raw materials: 31 December 2024 | 15 000 |
| Production overheads | 19 000 |
| Supervisor's salary | 2 000 |
| Production wages | 221 000 |
| Purchases of raw materials | 240 000 |
What is the prime cost?
The quick ratio of a business has decreased.
What is the reason for the decrease?
A business had the following information on 31 December 2024.
| $ | |
|---|---|
| Opening inventory | 2 250 |
| Closing inventory | 3 375 |
| Cost of sales for the year | 13 500 |
| revenue for the year | 22 660 |
What is the rate of inventory turnover?
The information below relates to business partners Peter and James.
| Peter $ | James $ | |
|---|---|---|
| Capital | 10 000 | 8 000 |
| Loan to the firm | 3 000 | |
| Interest on capital | 10% | |
| Interest on loan | 10% |
Peter and James share profit and loses in the ratio 2:1 respectively.
The partnership has made a net profit for the year of $39 000.
How much is Peter's total share of net profit?
A business has three departments X; Y and Z. Fixed administration expenses amounting to $90 000 are apportioned in the ratio 3:2:1 respectively.
It has been decided to close department Z.
How will the administration expenses be apportioned to the departments X and Y after the department Z has been closed?
| Department X $ | Department Y $ | |
|---|---|---|
| A | 36 000 | 54 000 |
| B | 45 000 | 30 000 |
| C | 45 000 | 45 000 |
| D | 54 000 | 36 000 |
A sales ledger control account had a debit balance of $20 000.
The following errors were discovered:
| $ | |
|---|---|
| Sales journal overstated | 1 500 |
| Discount allowed not recorded in control account | 670 |
| Bad debts not recorded in control account | 340 |
| Increase in provision for bad debts | 500 |
The corrected sales ledger control account balance is
A company's policy is to close any branch that does not benefit the company financially.
When should a branch be closed?
A company provides the following information:
| Budgeted labour hours | 9 000 |
| Actual labour hours | 8 000 |
| Budgeted overheads | $150 000 |
| Actual overheads | $140 000 |
What is the overheads absorption rate based on direct labour hours?
Charuma Ltd provides the following information:
| Budgeted | Actual | |
|---|---|---|
| Sales in units | 8700 | 8 200 |
| Selling price per unit | $26 | $31 |
What is the sales price variance?
A manufacturing business uses absorption costing.
Which cost is used to value finished goods?
A company has prepared a production budget for two levels of activity as shown below.
| 5 000 units $ | 6 000 units $ | |
|---|---|---|
| Direct materials | 10 000 | 12 000 |
| Direct labour | 15 000 | 18 000 |
| Production overheads | 16 000 | 18 000 |
| 41 000 | 48 000 |
8 000 units were produced.
What is the cost of producing the 8 000 units?
A company has provided the following information:
| Budgeted | Actual | |
|---|---|---|
| Units | 200 | 300 |
| Direct material $ | 6 000 | 9 000 |
| Labour $ | 7 000 | 10 000 |
| Overheads $ | 5 000 | 5 000 |
What is the total fixed costs for the production of 300 units?
Zee Ltd provides the following information for product P.
| $ | |
|---|---|
| Sales revenue at break- even point | 78 000 |
| Unit selling price | 20 |
| Fixed costs | 23 400 |
What is the contribution of each unit of product P?
A business plans to improve its computer system which was bought five years ago.
What type of cost is the existing computer system?
Sit the paper here to see which ones you got right. Danho explains every question, keeps your score, and works without a connection.