Forms of business organisation
A business organisation that raises capital by issuing shares is a
- Alimited company.
- Bnot for profit making organisation.
- Cpartnership.
- Dsole proprietor.
Nomsa and Norman are in an equal partnership. Norman was entitled to a monthly salary of $2 000. Their annual net trading profit was $20 000.
Nomsa's annual share of profit or loss was
A private motor vehicle brought into the business by the proprietor is recorded as
| debit | credit | |
|---|---|---|
| A | Capital account | Drawings account. |
| B | Capital account | Motor vehicles account. |
| C | Drawings account | Capital account. |
| D | Motor vehicles account | Capital account. |
The following Bank Account appeared in the books of a trader.
Bank Account
| 2017 | $ | 2017 | $ | ||
|---|---|---|---|---|---|
| January 7 | Balance b/d | 2 500 | January 5 | Equipment | 5 000 |
| Sales | 8 000 | 10 | Wages | 1 500 |
What is the closing balance in the account?
A sale of goods for $500 to a debtor was credited to his account in error.
The debtor's account should be corrected by a
Current ratio is expressed as
| A | current assets / current liabilities |
| B | current liabilities / current assets |
| C | total assets / total liabilities |
| D | total liabilities / total assets |
The following was taken from the books of a trader.
| 2017 | $ | |
|---|---|---|
| May 1 | Wages owing | 6 000 |
| 31 | Wages paid by cheque | 11 500 |
| 31 | Wages paid in advance | 1 600 |
The amount transferred to the Income Statement was
An accounts clerk failed to account for petty cash of $75.
Which business ethic was violated?
On 1 January 2001 a trader bought a motor vehicle for $20 000. It was expected to be sold for $5 000 after 10 years.
What was the accumulated depreciation for the motor vehicle on 31 December 2004 if the straight line method was used?
Cash withdrawn from the bank for private use is recorded as
| debit | credit | |
|---|---|---|
| A | Bank account | Cash account. |
| B | Bank account | Drawings account. |
| C | Cash account | Bank account. |
| D | Drawings account | Bank account. |
Guwa manufacturing details for the year 2016 were:
| $ | |
|---|---|
| Cost of raw materials consumed | 34 000 |
| Direct costs | 12 600 |
| Factory overheads | 7 200 |
| Opening inventory of work in progress | 1 400 |
| Closing inventory of work in progress | 2 200 |
The cost of production was
Cash withdrawn from the bank for office use is recorded as
| debit | credit | |
|---|---|---|
| A | Bank account | Cash account. |
| B | Bank account | Drawings account. |
| C | Cash account | Bank account. |
| D | Drawings account | Cash account. |
ABC Limited had the following share capital on 31 December 2017.
Authorised Share capital
200 000 8% Preference shares of $2 each
600 000 Ordinary shares of $0,50 each
Issued share capital
100 000 8% Preference shares of $2 each fully paid
500 000 Ordinary shares of $0,50 each
The amount of share capital to be included in the shareholders' fund was
A business provided the following information:
| $ | |
|---|---|
| Gross profit | 2 000 |
| Cost of sales | 4 000 |
| Purchases | 5 000 |
| Sales | 6 500 |
| Returns inwards | 500 |
Find the gross profit mark up.
The following information was obtained from a trader's books.
| 2017 | $ | |
|---|---|---|
| September 1 | Creditors' balance | 16 400 credit |
| 30 | Cheque paid to creditors | 39 700 |
| Returns outwards | 600 | |
| Creditors' balance | 10 400 credit |
The credit purchases for the month were
Rates paid in advance of $100 were debited to the income statement.
What was the effect on net profit?
A club provided the following information:
| $ | |
|---|---|
| Subscriptions in arrears on 1 January 2016 | 750 |
| Subscriptions received during the year | 30 500 |
| Subscriptions received in advance on 31 December 2016 | 2 000 |
The amount of subscriptions transferred to the Income and expenditure account on 31 December 2016 was
A departmental store provided the following information:
| Clothing department $ | Groceries department $ | Cosmetics department $ | Hardware department $ | |
|---|---|---|---|---|
| Sales | 300 | 250 | 230 | 220 |
| Sales returns | 50 | 60 | 70 | 40 |
| Cost of sales | 150 | 120 | 130 | 140 |
Which department has the lowest gross profit?
The following doubled entry was completed in the books of L. White
Asset disposal account debited by $400
Income statement credited by $400
The above double entry means that
The following account appeared in the books of a club.
Subscriptions Account
| 2017 | $ | 2017 | $ | ||
|---|---|---|---|---|---|
| January 1 | Balance b/d | 500 | January 1 | Balance b/d | 250 |
| December 31 | Income and Expenditure | 24 000 | June 30 | Bank | 25 000 |
| December 31 | Balance c/d | 750 | |||
| 25 250 | 25 250 |
The balance of $750 on 31 December 2017 was shown in the Statement of financial position under
The following is an extract of a Trial balance as at 31 December 2016.
| DR $ | CR $ | |
|---|---|---|
| Equipment at cost | 40 000 | |
| Provision for depreciation (1 January 2016) | 14 000 |
Equipment is depreciated at 25% per annum using the straight line method.
The accumulated depreciation transferred to the Statement of financial position on 31 December 2016 was
Sit the paper here to see which ones you got right. Danho explains every question, keeps your score, and works without a connection.