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?

AStationery used during the year, transferred to the Profit and Loss Account

BBalance of stationery unused at the end of the year

CBalance of stationery brought forward from the previous year

DStationery bought on credit during the year

Explanation

Crediting the Stationery Account and debiting Profit and Loss with $3 100 charges the value of stationery consumed during the year as an expense for the year.

Derived from ZIMSEC Principles of Accounts 7112/2 Paper 2, November 2014 Specimen Paper, Q2

View this paper's sittings and topics→

More questions from this paper

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?

Get the full paper, not just one question

Danho has every sitting for this paper, with your progress tracked question by question, offline.

Get it on Google Play Download on the App Store