Question 1 of 8Financial statements - sole trader
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Maria had trade payables of 19,840 at 1 January 2015. During the year ended 31 December 2015 she paid 354,240 to trade payables in cash,…
In accounting, a master budget is best described as:
Maria's opening inventory on 1 January 2015 was 54,400 and her closing inventory on 31 December 2015 was 35,200. Her credit purchases for…
A firm forecasts September sales revenue of $180 000, of which 30% is for cash. Cash customers pay in the month of sale and are allowed a…
Maria's cost of sales for the year ended 31 December 2015 was $384,000. She marks up her goods sold by 33⅓% on cost. What was her gross…
A company plans to issue 20 000 ordinary shares of 1 each in October at an issue price of 1.20 per share. Calculate the total cash proceeds…
Green Limited has 60,000 4% redeemable preference shares of $1 each. On 30 May 2015 a full year's preference share dividend was declared…
On dissolution of a partnership, trade receivables of $27 000 paid their accounts in full after receiving a 5% cash discount. Calculate the…
Green Limited had 140,000 ordinary shares of 1 each in issue. On 30 June 2015 it made a rights issue of one new ordinary share for every…
Freehold property with a book value of $130 000 was sold on dissolution of a partnership at 10% above its book value. Calculate the sale…
Green Limited had 60,000 4% redeemable preference shares of $1 each. On 30 June 2015 it redeemed 25% of these preference shares at a…
On dissolution of a partnership, trade payables of $26 000 were settled and a 10% discount was received from them. Calculate the amount of…
In Process I of Shaba Limited, 5,000 litres of direct material were input for the quarter. Normal loss is 20% of input. Calculate the…
In Process I of Shaba Limited, 5,000 litres of direct material were input and normal loss is 20% of input. The actual output from Process I…
In Process I of Shaba Limited, direct materials were 5,000 litres at 0.50 per litre, direct labour was 800, and production overhead was…
In Process II of Shaba Limited, the transfer from Process I was 3,800 litres valued at 1.15 per litre. Additional direct materials were…
During October 2015, James Limited received 335,426 through the bank from amounts recorded against trade receivables. This total included a…
A credit customer of James Limited was granted a monthly rebate of 5% on purchases of $800. Calculate the amount of the rebate.
Karimba Limited had ordinary share capital of 1 200 000 in shares of 0,50 each. The directors made a bonus issue of one new share for every…
After a bonus issue, Karimba Limited had 2 800 000 ordinary shares of 0,50 each in issue. The directors then made a rights issue of one new…
A company's directors propose a final dividend at the year end, but shareholders have not yet approved it at the annual general meeting.…
An item of machinery had a carrying value of 100 000. Following an impairment review, it could be sold for 65 000 (fair value less costs to…
An item of machinery had a carrying value of 100 000. It could be sold for 65 000 (fair value less costs to sell), and its value in use was…
Medals Limited's machinery had accumulated depreciation of 340 000 at the start of the year and 450 000 at the end of the year, with no…
Medals Limited sold vehicles that had originally cost 75 000 for 12 000. The accumulated depreciation on these vehicles at the date of sale…
Medals Limited sold buildings that had originally cost 240 000 for 320 000, realising a profit on disposal of $101 000. What was the net…
Medals Limited's inventory was 400 000 at 31 December 2017 and 470 000 at 31 December 2018. What was the increase in inventory during the…
Which of the following is a genuine benefit of preparing a statement of cash flows, in addition to the income statement and statement of…
Mr Reedy sells goods at a mark-up of 25% on cost. Goods with a selling price of $6 250 were returned by a customer shortly after the year…
Goods held in inventory had a cost of 7 500. They were damaged and could only be sold for 1 500 after incurring repair costs of $150. At…
Goods with a selling price of 12 500 (cost 10 000, based on Mr Reedy's 25% mark-up on cost) were sent to a customer on a sale or return…
Unused stationery costing $3 500 had mistakenly been included in the physical count of trading inventory at 10 April 2016. How should this…
Which of the following is an advantage of the FIFO (First In, First Out) method of inventory valuation, compared with AVCO (weighted…
Project A has an initial outlay of 180 000 and an increase in working capital of 15 000. Its profits over its four-year life are 14 000, 10…
Project B has an initial outlay of 160 000 and an increase in working capital of 6 000. Its profits over its four-year life are 13 000, 9…
For Project A, the total present value of the future cash inflows discounted at Mbire Limited's 10% cost of capital is 198 418. The initial…