BS2071 - How well do you remember module BS1071?

How would you increase the balance on asset account?

• Debit

• Credit

How would you decrease the balance on a liability account?

• Debit

• Credit

If an investor buys share capital for cash, how is this recorded?

• DR Equity, CR Cash

• DR Cash, CR Inventory

• DR Cash, CR Equity

• DR Share capital, CR Revenue

An organisation had opening reserves at the beginning of the financial year of £450,000 and closing reserves at the end of the financial year of £525,000.

if they had paid a dividend of £45,000 during the year, what was their profit?

• £75,000

• £165,000

• £30,000

• £120,000

An organisation has an opening NBV of non-current assets at the beginning of the financial year of £428,000.

Additions of assets during the year were £37,000.

The closing NBV on non-current assets at the end of the financial year was £348,750.

How much was the depreciation charge during the year?

• £79,250

• £116,250

• £158,500

• £42,250