Final account of Sole trader

Assets = $10,000

Liabilities = $3,500

Owner's equity = ?

(a)  

Carriage outward is recorded as?

• Income in Income Statement

• Cost of purchase in Income Statement

• Expenses in Income Statement

• Current Assets in Financial Position

Which of the following is not cost of purchases?

• Opening inventory

• Wages on purchases

• Carriage inwards

• Freight and forwarding on purchases

Which of the following is an accounting equation?

• Owners' equity = Assets - Liabilities

• Opening inventory + Purchases - Closing stock = Cost of goods Sold

• Revenue - Return Inwards = Net sales

• Net Sales - Cost of goods sold = Gross Profit

Which of the following is not an expenses?

• Carriage outwards

• Interest on loan

• Interest received

• Rent

Which of the following is NOT non-current assets?

• Motor vehicle

• Equipment

• Fixtures and Fittings

• Inventory

What is not included as Current Liabilities

• Trade Payable

• Bank Loan (repayable within 5 years)

• Bank Overdraft

• Loan from Daniel (repayable within 6 months)

From the list below, Calculate the non-current assets?

- Motor van $7,500

-Cash on hand $450

- Trade Payable $5,400

- Bank Overdraft $780

- Premises $15,000

• $23,280

• $15,000

• $5,850

• $22,500

Where do "drawings of goods" recorded?

• Financial position in Owners' equity

• Income Statement in Cost of goods sold

• Financial position in Current Assets

• Income Statement in Expenses

What is not included in the Financial Position (Owner's Equity section)

• Gross Profit

• Capital

• Drawings

• Net Loss