Worksheetsmay june 2018
Total questions: 30
Worksheet time: 3hrs 30mins
Which statement about a computerised accounting system is correct?
The general ledger does not include non-current assets accounts
The income statement always shows a profit
The statement of financial position does not include non-current assets
The trial balance always balances
Which group contains only liabilities?
bank loan, trade payables, prepaid rent
bank overdraft, trade payables, unpaid wages
trade payables, cash at bank , unpaid rates
trade payables, cash at bank, unpaid wages
What is the accounting equation?
assets - liabilities = capital
assets + liabilities = capital
liabilities - assets = capital
liabilities - capital = assets
Omar returned faulty goods to Yasmin, the supplier.
Which document did Omar send to Yasmin.
credit note
debit note
invoice
statement of account
Jacob setteled the account of Ahmed, a credit supplier.. He made the following entries on the credit side of his cash book.
Which entries did Jacob make on the debit side of Ahmed's account?
Bank $195
Bank $200
Bank $195, Discount Allowed $5
Bank $195, Discount Received $5
What may a credit balance on a ledger account represent?
accrued income
asset
expenses
prepaid income
The following partly-completed account appeared in Edward's sales ledger.
On 29 April, Ann paid $10,000 by cheque and was given a cash discount of $200.
Which statement is correct on 30 April?
Ann owed Edward $10,800
Ann owed Edward $11,200
Edward owed Ann $10,800
Edward owed Ann $11,200
The totals of a trial balance did not agree. The total debit column was $13,400.
It was found that the purchases journal had been overcast by $195 and goods bought from supplier X for $85 had been incorrectly credited Y.
What was the total of the credit column of the trial balance?
$13,120
$13,205
$13,595
$13,680
Leo is unable to pay the debt he owes to Sam.
Which entry did Sam make to write off this bad debt?
bad debts account Debit, income statement Credit
bad debts account Debit, Leo account Credit
income statement Debit, Leo account Credit
Leo account Debit, income statement Credit
Rashid maintains a provision for doubtful debts of 5% of the trade receivables at the end of each year.
Trade receivable owed $40,000 on 31 March 2017.
Trade receivable owed $46,000 on 31 March 2018.
Which journal entry should Rashid make on 31 March 2018?
A
B
C
D
What are examples of revenue receipts?
1. a cheque received from the sale of a non-current asset at book value.
2. a profit made on the sale of a non-current asset.
3. a loan from a bank that is repayable in 2020.
4. discounts received from credit suppliers for prompt payment.
1 and 3
1 and 4
2 and 3
2 and 4
Jon paid $18,000 for machinery on 1 January 2016.
He depreciated this asset using the diminishing (reducing) balance method at 5% per annum.
What was the balance on the provision for the depreciation account on 1 January 2018?
$1,755 credit
$1,755 debit
$1,800 credit
$1,800 debit
A motor vehicle costs $20,000. it was sold for $12,000. At the date of disposal the motor vehicle had been depreciated by $7,200.
Which journal entry records the closing of the disposal account?
A
B
C
D
A business provided the following information.
What was the sales ledger control account balance on 31 March?
$1,750
$6,650
$16,550
$21,450
James was late paying an invoice issued by Henry.
Henry charged James interest on the overdue amount.
Which entry would be made in Henry's control accounts?
credit purchases ledger control account
credit sales ledger control account
debit purchases ledger control account
debit sales ledger control account
Denis runs a business with two departments, one selling carpets and one selling furniture.
Total sales were $210,000 of which 60% related to the carpet department.
The total gross profit was $54,600 of which 60% related to the furniture department.
What was the cost of sales of the carpet department?
$51,240
$62,160
$93,240
$104,160
Which is intangible assets?
buildings
goodwill
inventory
trade receivable
A business has no non-current liabilities.
What is added to the non-current assets in order to calculate the capital employed?
current assets
current liabilities
owner's capital
working capital
Alan's inventory consisted of the following.
What was the value of the inventory?
$560
$600
$760
$800
Which item is credited in a partnership appropriation account?
interest on capital
interest on drawings
partners' drawings
partners' salaries
Y and Z formed a partnership and agreed to share profits equally. Y deposited $30,000 into the business bank accounts. Z introduced a motor vehicle worth $15,000 and goodwill of $15,000.
How should these transactions be recorded in the books of partnership?
A
B
C
D
A business provided the following information.
Revenue $100,000
Gross profit. $20,000
What was the percentage mark-up?
20%
25%
75%
80%
A trader does not keep a full set of accounting records.
How can he calculate credit sales?
cheque received from customers + owed by customers at the start of the year + owed by customers at the end of the year
cheque received from customers + owed by customers at the start of the year - owed by customers at the end of the year
cheque received from customers - owed by customers at the start of the year + owed by customers at the end of the year
cheque received from customers - owed by customers at the start of the year - owed by customer at the end of the year
Which item would be entered in a statement of changes in equity?
debenture interest accrued
debenture interest paid
ordinary dividend paid in the current year
ordinary dividend proposed for current year
On 1 January NH Limited was formed with the issue of 200000 ordinary shares of $0.50 each. During the first year it made a profit of $21000. A dividend of $0.02 per share was paid and $10 000 was transferred to general reserve.
What was the total of reserves on 31 December?
$7,000
$9,000
$17,000
$19,000
Which type of labour would be classified as direct?
1. factory managers
2. factory office staff
3. factory production workers
1,2 and 3
1 and 3 only
2 only
3 only
A manufacturing business provided the following information.
What was the value of the closing work-in-progress?
$1,700
$3,400
$6,800
$16,300
Which document is used to inform employees of their social security/national insurance contributions?
clock card
payroll register
payslip
time sheet
A business provided the following information
What may caused the change in the net profit/sales ratio?
expenses have decreased
expenses have increased
the percentage of expenses to sales has decreased
the percentage of the expenses to sales has increased
A trader spreads the cost of a machine over the years which benefit the use of that machine.
Which accounting principle is being applied?
accounting year
dual aspect
matching/accruals
materiality
