Question 1 of 8The accounting equation
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The accounting equation is stated as
Which subsidiary book is used to record the purchase of office machinery on credit?
Which of the following items increases the balance of a bank statement?
A cashbook had a credit balance of $2 000. The following items appeared on the bank statement only.
A business provides the following information.
The following balances are available from the books of N. Ndoro on 31 December 2011.
Which is the correct accounting cycle?
The subsidiary book which is part of the ledger is the
The following information was extracted from the books of a trader on 31 December 2011.
Sole proprietorships are
G. Moyo received an invoice of $1 600 from City Builders for repairs to the workshop.
Use the following information to answer this question.
An example of a personal account is
The total of the sales returns journal is posted to the
Which user of accounting information analyses financial statements before lending money to a business?
One of the disadvantages of partnerships is that
One of the advantages of sole proprietorship is that
Which part of a computer manipulates accounting data?
A business organisation that raises capital by issuing shares is a
Which is the first stage of the accounting cycle?
Which business activity provides a service?
Which of the following is the correct sequence of an accounting cycle?
Which of the following are assets only?
Which of the following business organisations has an advantage of raising more capital?
The document used to record goods sold on credit is
A sole proprietorship is a business which is
The following account appeared in Tapiwa's ledger.
A decrease in the provision for bad debts is recorded as a
Which of the following are assets only?
The following ledger account was taken from the books of a trader.
The following nominal account appeared in the ledger of a business.
The following account appeared in the General ledger of a trader.
S. Kamwendo's Trading and Profit and Loss Account for the year ended 31 December 2009 showed a gross profit of $42 600, other income of $90, and total expenses of $35 610. What was the net profit for the year?
In S. Kamwendo's Statement of Financial Position as at 31 December 2009, the non-current assets were Equipment (net book value $43 740) and Motor vehicles (net book value $4 800). What was the total net book value of non-current assets?
Wisdom Golf Club's Bar Creditors (Accounts Payable) Account for 2009 opened with a balance of 800 payment to bar creditors during the year, and closed with a balance of $1 100. What were the club's credit purchases of bar stock for the year?
Rugare Stores' updated Cash Book showed an overdraft of $2 200 on 31 January 2010. Uncredited cheques of $1 800 and unpresented cheques of $1 500 were outstanding. What overdraft balance should the Bank Reconciliation Statement show as per the Bank Statement?
S. Samanyika Toy Products had opening raw material stock of $11 400, purchases of raw materials of $54 000, and closing raw material stock of $1 400 for the year ended 31 December 2009. What was the cost of raw materials consumed?
S. Samanyika Toy Products' Manufacturing Account for the year ended 31 December 2009 arrived at a prime cost of $93 600, total factory overheads of $99 800 (after adding indirect expenses), and a figure of $103 800 after adding opening work in progress. What was the total cost of production, after also deducting the closing work in progress of $11 500?
In accounting, the rate of stockturn (stock turnover) is obtained by dividing cost of sales by what figure?
When the debit side of a Trial Balance does not agree with the credit side, the difference is temporarily posted to the credit (or debit) side of which account, so the trial balance can still be drawn up while the cause is investigated?
In J. Sithole's departmental accounts for the year ended 31 December 2011, the combined gross profit from the Furniture and Electrical departments was $72 000. After adding other income of $2 500 and deducting total expenses of $51 900, what was the net profit for the year?
In J. Sithole's Statement of Financial Position as at 31 December 2011, non-current assets totalled $157 200 and current assets totalled $85 800. What was the total assets figure?
Jongwe Limited sold a motor van on 31 December 2009 for $10 000 cash. The van's original cost was $20 000 and the accumulated depreciation on it at the date of sale was $4 000. What was the profit or loss on disposal?
In C. William's Stationery Account for 2011, an entry of 'Profit and Loss $3 100' appears on the credit side at 31 December. What does this entry represent?
Mwanza Manufacturing Company had opening raw material stock of $13 000, purchases of raw materials of $67 000, freight charged on raw materials of $3 000, and closing raw material stock of $25 000 for the year ended 31 December 2010. What was the cost of raw materials consumed?
Mwanza Manufacturing Company's Manufacturing Account for the year ended 31 December 2010 showed a prime cost of $78 000 and total factory overheads/production cost of goods manufactured of $97 000. In the Trading Account, sales were $150 000, and cost of sales (opening finished goods stock $14 000 plus production cost $97 000 less closing finished goods stock $24 000) was $87 000. What was the gross profit?
D. Dlodlo, a retailer, sold goods with a cost price of $8 500 on credit to A. Mashamba for $9 500. What is the effect of this transaction on working capital: increase, decrease, or no effect?
Chiedza Fashion Boutique's Income Statement for the year ended 31 December 2014 showed an adjusted gross profit plus other income of $499 848, and total expenses of $226 294. What was the net profit for the year?
In Chiedza Fashion Boutique's Statement of Financial Position as at 31 December 2014, non-current assets totalled $331 480 and current assets totalled $112 130. What was the total assets figure?
In S. Saka's sales ledger, T. Tasara's account was credited with $1 050 for 'Bad debts' on 28 December 2012, writing off the remaining balance owed. In which subsidiary book (book of original entry) would this write-off first have been recorded?
In S. Saka's sales ledger, T. Tasara's account shows a 'Balance b/d' entry of $1 800 on 1 December 2012. What does this entry represent?
Thokozani Sibanda's Furniture department had a turnover (sales less returns inwards) of $900 000 and cost of sales of $600 000 for the year ended 31 December 2014. What was the Furniture department's gross profit?
N. Chuma's net profit for the year was $369 000 before five errors were corrected. After correcting all five errors -- including removing a $35 000 van sale wrongly credited to Sales, and adding purchases of $45 000 from V. Vennon that had been completely omitted -- the corrected net profit was calculated. What was N. Chuma's corrected net profit?
K. Kudakwashe had sales of $1 950 000 and returns inwards of $150 000 for the year ended 31 December 2014. What was the turnover for the year?
K. Kudakwashe's turnover for the year ended 31 December 2014 was $1 800 000, and the gross profit margin was 33 1/3% of turnover. What was the gross profit for the year?
Kwaedza Limited's net profit for the year ended 31 December 2013 was $436 000. After transferring $200 000 to the General Reserve and providing dividends totalling $225 000 (preference $120 000, ordinary interim $65 000, ordinary final $40 000), what was the retained profit for the year (before adding the opening Profit and Loss balance of $270 000)?
A manufacturing company's raw materials inventory on 1 January was $4 800, purchases of raw materials during the year were $17 250, and carriage inwards was $935. Raw materials inventory on 31 December was $2 550. Calculate the cost of raw materials consumed for the year.
A manufacturing company's cost of raw materials consumed for the year was $20 435 and its direct factory wages were $14 500. Calculate the prime cost.
M. Mekia's assets on 1 April 2016 were: Bank $3 500, Inventory $6 600, Motor vehicles $16 000, Trade receivables $14 200, General expenses prepaid $100. Liabilities were: Trade payables $4 200, Loan $10 000, Rent accrued $400. Calculate the capital on 1 April 2016.
On 1 April 2016 M. Mekia's Bank balance was $3 500, Inventory $6 600, Motor vehicles $16 000, Trade receivables $14 200 and General expenses prepaid $100. Calculate the total assets on that date.
P. Maradza's trial balance at 31 May 2020 showed Sales $127 900 and Sales returns $2 400. Calculate the turnover (net sales) for the year.
P. Maradza's turnover for the year ended 31 May 2020 was $125 500. Opening inventory was $26 900, purchases were $81 200 and closing inventory was valued at $27 500. Calculate the gross profit for the year.
T. Zvinowanda's trial balance showed opening inventory of raw materials $30 600 at 1 January 2021, purchases of raw materials of $104 000 during the year, and closing inventory of raw materials of $33 000 at 31 December 2021. Calculate the cost of raw materials consumed for the year.
T. Zvinowanda's cost of raw materials consumed for the year was $101 600. Direct wages paid were $18 000, with a further $3 000 owing at the year end. Royalties of $10 000 were also paid, a direct cost. Calculate the prime cost for the year.
Hove and Midzi's capital accounts were $80 000 each on 1 January 2020, with interest on capital allowed at 10% per annum. Calculate the total interest on capital for both partners for the year ended 31 December 2020.
Hove's current account opened with a credit balance of $5 000 on 1 January 2020. During the year, interest on capital of $8 000 and interest on current account of $250 were credited to him, his share of profit was $10 300 and the appropriation account credited him with a salary of $10 000. He was charged interest on drawings of $180, took drawings of $3 600, and had already received $4 000 of his salary in cash during the year. Calculate his current account closing balance at 31 December 2020.