Accruals and Prepayments

Calculate the total to be sent to the P&L for accounts to 31 March 2019.

Telephone Expenses

Bank: £750

Bill for Jan-March 19 (Paid in April 2019): £100

• £650

• £850

• £750

Accrued expenses appear on the Financial Statements as; (Select Two Answers)

• A Dr on the Statement of Financial Position

• A Cr on the Statement of Financial Position

• A Cr on the Statement of Profit or Loss

• A Dr on the Statement of Profit or Loss

Calculate the total to be sent to the P&L for accounts to 31 March 2019.

Commission Received

Bank: £2500

Commission Statement for Jan-March 19 (Received in April 2019): £800

• £1700

• £2500

• £3300

What effect does a prepaid expense have on this years accounts (select two answers)

• It increases the expense account balance sent to the P&L

• It reduces the expense account balance sent to the P&L

• It increases current liabilities on the SoFP

• It increases current assets on the SoFP

Calculate the total to be sent to the P&L for Accounts to 31 March 2019.

Equipment Hire Expenses

Bank: £1200 which includes payment of £300 for the quarter ending 31 May 2019

• £1200

• £1400

• £1000

Calculate the total to be sent to the P&L for accounts to 31 March 2019.

Electricity Expenses

Accrued Expense Reversal on 1 April 2018: £150

Bank: £950

Bill for Jan-March 19 (Paid in April 2019): £250

• £1350

• £950

• £1050

Calculate the total to be sent to the P&L for accounts to 31 March 2019.

Printing Expenses

Prepaid Expense Reversal on 1 April 2018: £200

Bank: £850

Bill for Jan-March 19 (Paid in April 2019): £250

• £1300

• £850

• £400

• 800

A prepaid expenses is paid

• After the year end

• Before the year end

• None of the above

Accrued Income is received

• Before the year end

• After the year end

• None of the above

If an expense account is increased on the P&L, and a current liability is created on the SoFP which one of the following has ocurred?

• Prepaid Income

• Accrued Expense

• Prepaid Expense

• Accrued Income