Assets and liabilities
Which of the following are assets only?
- ACash, inventory and payables
- BCash, payables and machinery
- CMachinery, receivables and inventory
- DPremises, bank overdraft and plant
A club excluded subscriptions prepaid at the end of financial year from the income and expenditure account.
This is in accordance with
Which of the following shows correct source of information for control account items?
| Item | Source | |
|---|---|---|
| A | Bad debts | cash book |
| B | Returns inwards | Purchases returns journal |
| C | Returns outwards | sales returns journal |
| D | Set off | general journal |
Mark up is obtained by
| A | (Gross Profit / Cost of good sold) x 100/1 |
| B | (Gross Profit / Turnover) x 100/1 |
| C | (Net Profit / Cost of goods sold) x 100/1 |
| D | (Net Profit / Turnover) x 100/1 |
Current ratio is
| A | total current assets / current liabilities |
| B | (total current assets - closing inventory) / current liabilities |
| C | (total current assets - opening inventory) / current liabilities |
| D | total current assets / total liabilities |
The following account appeared in the general ledger.
Motor vehicle disposals account
| 2020 | $ | 2020 | $ | ||
|---|---|---|---|---|---|
| Dec 31 | Motor vehicle | 30 000 | Dec 31 | Cash | 12 800 |
| Provision for depreciation | 16 500 | ||||
| Income statement | 700 | ||||
| 30 000 | 30 000 |
The entry " Income statement $700 " on 31 December 2020 was
The following account was obtained from the books of Tariro sports club:
Subscriptions account
| 2020 | $ | 2020 | $ | ||
|---|---|---|---|---|---|
| Jan 1 | Balance b/d | 1 800 | Jan 1 | Balance b/d | 1 000 |
| Dec 31 | Income and expenditure | 10 000 | Dec 31 | Bank | 12 000 |
| Balance c/d | 3 300 | Balance c/d | 2 100 | ||
| 15 100 | 15 100 |
Subscriptions received for 2021 were
The following information appeared in the books of a trader:
| $ | |
|---|---|
| Opening capital | 5 000 |
| Net profit | 500 |
| Drawings | 200 |
| Additional capital | 1 000 |
What is the closing capital?
The following is a trial balance extract from the books of a trader as at 31 December 2020:
| Debit $ | Credit $ | |
|---|---|---|
| Trade receivables | 5 000 | |
| Provision for discount allowed: 1 January 2020 | 500 |
A provision for discount allowed was maintained at 2% of trade receivables.
The income statement figure for provision for discount allowed was
G. Shoko a retailer had inventory of motor fuel worth $1 000 on 1 January 2020.
During the year more fuel was bought for $ 7 000 cash.
On 31 December 2020 inventory of unused fuel was $1 500.
Motor fuel amount transferred to the income statement was
A trader's receivables ledger showed the following balance:
| $ | |
|---|---|
| 2019 January 1 Trade receivables | 12 700 |
During the month, the following transactions were recorded:
| 2019 January 31 | $ | |
|---|---|---|
| Credit sales | 50 000 | |
| Receipts from debtors | 10 000 | |
| Dishonoured cheques | 500 |
Trade receivables balance on 31 January 2019 was
A business bank statement showed a balance of $28 800 credit.
On checking with the cash book for the same period, the following was discovered:
| $ | |
|---|---|
| Cheques not yet presented | 10 400 |
| Deposits not yet credited | 7 000 |
The cash book balance was
The following balances were extracted from the books of a trader:
| $ | |
|---|---|
| Turnover | 150 000 |
| Cost of sales | 100 000 |
| Opening inventory | 30 000 |
| Closing inventory | 20 000 |
Rate of inventory turnover was
A trader provided the following information on 31 December 2019:
| $ | |
|---|---|
| Opening capital | 60 000 |
| Closing capital | 35 000 |
| Net loss | 15 000 |
Drawings at 31 December 2019 were
A netball club provided the following information on 31 December 2020:
| $ | |
|---|---|
| Sale of refreshments | 5 600 |
| Sale of sports equipment | 1 240 |
| Closing inventory | 1 320 |
| Purchase of refreshments | 3 000 |
| Carriage on purchases of refreshments | 700 |
What was the profit on sale of refreshments?
A trader operates a shop with two departments.
The following information was provided:
| Grocery $ | Hardware $ | |
|---|---|---|
| Sales | 75 000 | 125 000 |
| Purchases | 40 000 | 55 000 |
| Closing inventory | 10 000 | 15 000 |
Carriage on purchases of $3 000 was shared between the departments in the ratio 2/5 Grocery, 3/5 Hardware.
The gross profit for the hardware department was
The following information was extracted from the books of a manufacturer:
| $ | |
|---|---|
| Sale of finished goods | 245 600 |
| Cost of production | 137 200 |
| Purchase of finished goods | 44 200 |
| Closing inventories : raw materials | 30 500 |
| finished goods | 48 000 |
The manufacturer's gross profit was
Tapera and Tapedza are in partnership, sharing profits and losses in the ratio 2:3 respectively.
The following balances were extracted from their books:
| Tapera $ | Tapedza $ | |
|---|---|---|
| Interest on capital | 5 000 | 7 500 |
| Drawings | 10 000 | 11 000 |
| Salary | 12 000 | - |
Their net trading profit was $70 500.
Tapera's share of profits was
Tantum Ltd company provided the following information on 31 December 2020:
| $ | |
|---|---|
| Profit and loss account: 1 January 2020 | 13 500 |
| Transfer to general reserves | 9 200 |
| Ordinary dividends : proposed | 7 100 |
| paid | 5 300 |
| Net profit for the year | 25 700 |
Tantum Ltd company's retained profit on 31 December 2020 was
Sit the paper here to see which ones you got right. Danho explains every question, keeps your score, and works without a connection.