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Which one of the following can be recorded on credit balance of the payables ledger account?

• The company made the purchase returns to supplier

• The company purchases goods and pays in cash

• The company takes the settlement discount

• The company purchases goods on credit

Which TWO of the following are shown in credit side of the trial balance?

1) Drawings

2) Payables

3) Sales                                                                          

4) Irrecoverable debts

• 1 and 3

• All of them

• 2 and 3

• None of them

Demon Co. has the following balances extracted from its trial balance at 30 November 20X2:                                                 

Cash at bank: $10,000

Machine: $16,500

Inventory: $3,500

Depreciation: $1,250

Trade receivables: $1,600

Other expense: $650

What is the value of current asset shown in the financial position of Demon Co. at 30 November 20X2?

• $13,500

• $15,100

• $15,250

• $13,250

You are preparing the financial statements for a business. The cost of the items in closing inventory is $50,000. This includes some items which cost $5,000 but were damaged in transit. You have estimated that it will cost $500 to repair the items, and they can be sold for $3,500.

What is the correct inventory valuation for inclusion in the financial statements?

• $53,000

• $52,000

• $ 48,000

• $ 41,000

An asset register showed a carrying amount of $200,000 at 1 January 20X8. During the year ended 31 December 20X8, a non-current asset costing $15,000 with useful life of 5 years on straight line depreciation had been sold for $5,000, making a profit on disposal of $2,000 on 1 January 20X8. A new car was purchased for $25,000 on 31 December 20X7 with an estimated useful life of 10 years on straight line basic. The deprication charge for the year ended at 31 December 20X7 was $20,000. What was the depreciation charge for the year ended at 31 December 20X8?

• $19,500

• $22,500

• $22,500

• . $20,000

What should an accountant do if a reliable estimate of probable outflow of resources to settle a present obligation can not be made in accordance with IAS 37 – “Provisions, contingent liabilities and contingent assets”?

• It shall be recognised as a liability

• It shall be recognised as a provision

• It shall be disclosed as a contingent liability

• None of the above

Taylor. Co paid local property tax of $6,495 on 31 May 20X7, in respect of the three months ending 31 August 20X7. What is the balance of prepayment account for the year ended 30 June 20X7?

• $2,165

• $4,330

• . $6,495

• None

The bookkeeper of AB company made the following mistakes:

Discount allowed $5,230 was credited to discounts received account.

Discount received $5,450 was debited to discounts allowed account.

Discounts were otherwise correctly recorded.

Which one of the following journal entries will correct the errors?

• Dr Discount allowed: $220          Dr Discount received : $220              Cr Suspense : $440

• Dr Discount allowed: $5,230        Dr Suspense: $220            Cr Discount received $ 5,450

• Dr Suspense: $440                     Cr Discount allowed: $220         Cr Discount received: $ 220

• Dr Discount received  $5,450        Cr Suspense: $220                     Cr Discount allowed: $5,450        

Which of the following events after the reporting period would normally qualify as non adjusting events according to the IAS 10- Events after the reporting period?

• An irrecoverable debt suddenly being paid.

• The bankruptcy of a credit customer with a balance outstanding at the end of the reporting period.

• A change in the rate of tax, applicable to the previous year.

• A sudden decline in the value of property held as a long-term asset.

Which of the following statements apply when producing a consolidated statement of financial position?

(i)            All intra-group balances should be eliminated.

(ii)          Intra-group profit in year-end inventory should be eliminated.

(iii)         Closing inventory held by subsidiaries needs to be included at fair value.

• (i) only

• (iii) only

• (i) and (ii) only

• (i), (ii) and (iii)