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WorksheetsFA - Interim Mock Ch-16 to Ch-18
Total questions: 55
Worksheet time: 2hrs 46mins
A business has compiled the following information for the year ended 31 October 20X2:
$
Opening inventory 386,200
Purchases 989,000
Closing inventory 422,700
The gross profit as a percentage of sales is always 40%
Based on these figures, what is the sales revenue for the year?
$1,333,500
$1,587,500
$2,381,250
The sales revenue figure cannot be calculated from this information
Which of the following calculations could produce an acceptable figure for a trader’s net profit for a period if no accounting records had been kept?
Closing net assets plus drawings minus capital introduced minus opening net assets
Closing net assets minus drawings plus capital introduced minus opening net assets
Closing net assets minus drawings minus capital introduced minus opening net assets
Closing net assets plus drawings plus capital introduced minus opening net assets
A sole trader fixes his prices to achieve a gross profit percentage on sales revenue of 40%. All his sales are for cash. He suspects that one of his sales assistants is stealing cash from sales revenue.
His trading account for the month of June 20X3 is as follows:
$
Recorded sales revenue 181,600
Cost of sales 114,000
Gross profit 67,600
Assuming that the cost of sales figure is correct, how much cash could the sales assistant have taken?
$5,040
$8,400
$22,000
It is not possible to calculate a figure from this information
A is a sole trader who does not keep full accounting records. The following details relate to her transactions with credit customers and suppliers for the year ended 30 November 20X3.
$
Trade receivables, 1 December 20X2 - 130,000
Trade payables, 1 December 20X2 - 60,000
Cash received from customers - 686,400
Cash paid to suppliers - 302,800
Discounts allowed - 1,400
Discounts received - 2,960
Irrecoverable debts - 4,160
Amount due from a customer who is also a supplier offset against an amount due for goods supplied by him 2,000
Trade receivables, 30 November 20X3 - 181,000
Trade payables, 30 November 20X3 - 84,000
Based on the above information, what figure should appear in A’s statement of profit or loss for the year ended 30 November 20X3 for sales revenue?
$748,960
$748,800
$744,960
$743,560
A is a sole trader who does not keep full accounting records. The following details relate to her transactions with credit customers and suppliers for the year ended 30 November 20X3.
$
Trade receivables, 1 December 20X2 - 130,000
Trade payables, 1 December 20X2 - 60,000
Cash received from customers - 686,400
Cash paid to suppliers - 302,800
Discounts allowed - 1,400
Discounts received - 2,960
Irrecoverable debts - 4,160
Amount due from a customer who is also a supplier offset against an amount due for goods supplied by him 2,000
Trade receivables, 30 November 20X3 - 181,000
Trade payables, 30 November 20X3 - 84,000
what figure should appear in A’s statement of profit or loss for the year ended 30 November 20X3 for purchases?
$283,760
$325,840
$329,760
$331,760
A sole trader fixes her prices by adding 50 per cent to the cost of all goods purchased. On 31 October 20X3 a fire destroyed a considerable part of the inventory and all inventory records.
Her trading account for the year ended 31 October 20X3 included the following figures:
Using this information, what inventory loss has occurred?
$61,050
$87,575
$40,700
$110,850
A fire on 30 September 20X2 destroyed some of a company’s inventory and its inventory records.
The following information is available:
$
Inventory 1 September 20X2 318,000
Sales for September 20X2 612,000
Purchases for September 20X2 412,000
Inventory in good condition at 30 September 20X2 214,000
Standard gross profit percentage on sales is 25%
Based on this information, what is the value of the inventory lost?
$96,000
$271,000
$26,400
$57,000
A business’s bank balance increased by $750,000 during its last financial year. During the same period it issued shares of $1 million and repaid a loan note of $750,000. It purchased non-current assets for $200,000 and charged depreciation of $100,000. Working capital (other than the bank balance) increased by $575,000.
What was its profit for the year?
$1,175,000
$1,275,000
$1,325,000
$1,375,000
A sole trader’s business made a profit of $32,500 during the year ended 31 March 20X8. This figure was after deducting $100 per week wages for himself. In addition, he put his home telephone bill through the business books, amounting to $400 plus sales tax at 17.5%. He is registered for sales tax and therefore has charged only the net amount to his statement of profit or loss and other comprehensive income.
His capital at 1 April 20X7 was $6,500.
What was his capital at 31 March 20X8?
$33,730
$33,800
$38,930
$39,000
Senji does not keep proper accounting records, and it is necessary to calculate her total purchases for the year ended 31 January 20X3 from the following information:
$
Trade payables: 31 January 20X2 - 130,400
31 January 20X3 - 171,250
Payment to suppliers - 888,400
Cost of goods taken from inventory by Senji for her personal use 1,000
Refunds received from suppliers - 2,400
Discounts received - 11,200
What is the figure for purchases that should be included in Senji’s financial statements?
$914,650
$937,050
$939,050
$941,850
Aluki fixes prices to make a standard gross profit percentage on sales of 20%.
The following information for the year ended 31 January 20X3 is available to compute her sales total for the year.
$
Inventory: 1 February 20X2 - 243,000
31 January 20X3 - 261,700
Purchases - 595,400
Purchases returns - 41,200
What is the sales figure for the year ended 31 January 20X3?
$669,375
$702,600
$772,375
$741,480
Alpha is a sole trader who does not keep proper accounting records.
Alpha’s first year of trading was 20X4. From reviewing Alpha’s bank statements and the incomplete records relating to cash maintained, the following summary has been compiled.
Bank and cash summary, Alpha, 20X4
$
Cash received from credit customers and paid into the bank - 381,600
Expenses paid out of cash received from credit customers before banking - 6,800
Cash sales - 112,900
Other information, Alpha, 20X4
Irrecoverable debts written off - 7,200
Discounts allowed to credit customers - 9,400
Closing balance of Trade receivables 0
Which of the following correctly represents Alpha’s sales figure for 20X4?
$517,900
$112,900
$381,600
$510,900
A sole trader who does not keep full accounting records wishes to calculate her sales revenue for the year.
The information available is:
1. Opening inventory - $17,000
2. Closing inventory - $24,000
3. Purchases - $91,000
4. Standard gross profit percentage on sales revenue 40%
Which of the following is the sales figure for the year calculated from these figures?
$117,600
$108,000
$210,000
$140,000
On 31 December 20X0 the inventory of V was completely destroyed by fire. The following information is available:
1. Inventory at 1 December 20X0 at cost $28,400
2. Purchases for December 20X0 $49,600
3. Sales for December 20X0 $64,800
4. Standard gross profit percentage on sales revenue 30%
Based on this information, which of the following is the amount of inventory destroyed?
$45,360
$32,640
$40,971
$19,440
The following information is available for the year ended 31 December 20X4 for a trader who does not keep proper accounting records:
$
Inventories at 1 January 20X4 - 38,000
Inventories at 31 December 20X4 - 45,000
Purchases - 637,000
Gross profit percentage on sales = 30%
Based on this information, what was the trader’s sales figure for the year?
$900,000
$819,000
$920,000
$837,200
Wanda keeps no accounting records. The following information is available about her position and transactions for the year ended 31 December 20X4:
$
Net assets at 1 January 20X4 210,000
Drawings during 20X4 48,000
Capital introduced during 20X4 100,000
Net assets at 31 December 20X4 400,000
Based on this information, what was Wanda’s profit for 20X4?
$42,000
$242,000
$138,000
$338,000
The debit side of a trial balance totals $800 more than the credit side.
Which one of the following errors would fully account for the difference?
$400 paid for plant maintenance has been correctly entered in the cash book and credited to the plant asset account
Discount received $400 has been debited to discount allowed account.
A receipt of $800 for commission receivable has been omitted from the records.
The petty cash balance of $800 has been omitted from the trial balance.
The bookkeeper of Peri made the following mistakes:
Discount allowed $3,840 was credited to discounts received account.
Discount received $2,960 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 7,680 Cr. Discount received 5,920 Cr. Suspense account 1,760
Dr. Discount allowed 880 Dr. Discount received 880 Cr. Suspense account 1,760
Dr. Discount allowed 6,800 Cr. Discount received 6,800
Cr. Discount allowed 800 Cr. Discount received 800 Dr. Suspense account 1,760
A company’s trial balance failed to agree, the totals being:
Debit $815,602
Credit $808,420
Which one of the following errors could fully account for the difference?
The omission from the trial balance of the balance on the insurance expense account $7,182 debit
Discount allowed $3,591 debited in error to the discount received account
No entries made in the records for cash sales totalling $7,182
The returns outwards total of $3,591 was included in the trial balance as a debit balance
The debit side of a trial balance totals $50 more than the credit side. Which one of the following could this be due to?
A purchase of goods for $50 being omitted from the payables control account
A sale of goods for $50 being omitted from the receivables control account
An invoice of $25 for electricity being credited to the electricity account
A receipt for $50 from a customer being omitted from the cash book
Which one of the following would be an error of principle?
Plant and machinery purchased was credited to a non-current assets account.
Plant and machinery purchased was debited to the purchases account.
Plant and machinery purchased was debited to the equipment account.
Plant and machinery purchased was credited to the equipment account.
What is an error of commission?
An error where a transaction has not been recorded
An error where one side of a transaction has been recorded in the wrong account, and that account is of a different class to the correct account
An error where one side of a transaction has been recorded in the wrong account, and that account is of the same class as the correct account
An error where the numbers in the posting have been transposed
Where a transaction is entered into the correct ledger accounts, but the wrong amount is used, what is the error known as?
An error of omission
An error of original entry
An error of commission
An error of principle
A business statement of profit or loss and other comprehensive income for the year ended 31 December 20X4 showed a net profit of $83,600. It was later found that $18,000 paid for the purchase of a motor van had been debited to motor expenses account. It is the company’s policy to depreciate motor vans at 25 per cent per year, with a full year’s charge in the year of acquisition.
What would the net profit be after adjusting for this error?
$106,100
$70,100
$97,100
$101,600
An organisation restores its petty cash balance to $250 at the end of each month. During October, the total expenditure column in the petty cash book was calculated as being $210, and the imprest was restored by this amount. The analysis columns posted to the nominal ledger totaled only $200.
Which one of the following would this error cause?
The trial balance being $10 higher on the debit side
The trial balance being $10 higher on the credit side
No imbalance in the trial balance
The petty cash balance being $10 lower than it should be
Net profit was calculated as being $10,200. It was later discovered that capital expenditure of $3,000 had been treated as revenue expenditure, and revenue receipts of $1,400 had been treated as capital receipts.
What is the net profit after correcting this error?
$5,800
$8,600
$11,800
$14,600
The accountant at Investotech discovered the following errors after calculating the company’s profit for 20X3:
(a) A non-current asset costing $50,000 has been included in the purchases account
(b) Stationery costing $10,000 has been included as closing inventory of raw materials, instead of stationery expenses
What is the effect of these errors on gross profit and net profit?
Understatement of gross profit by $40,000 and understatement of net profit by $30,000
Understatement of both gross profit and net profit by $40,000
Understatement of gross profit by $60,000 and understatement of net profit by $50,000
Overstatement of both gross profit and net profit by $60,000
A purchase return of $48 has been wrongly posted to the debit of the sales returns account, but has been correctly entered in the supplier’s account.
Which of the following statements about the trial balance would be correct?
The credit side to be $48 more than the debit side
The debit side to be $48 more than the credit side
The credit side to be $96 more than the debit side
The debit side to be $96 more than the credit side
Two types of common errors in bookkeeping are errors of principle and errors of transposition.
Which of the following correctly states whether or not these errors will be revealed by extracting a trial balance?
Errors of principle - Will be revealed
Errors of transposition - Will not be revealed
Errors of principle - Will be revealed
Errors of transposition - Will be revealed
Errors of principle - Will not be revealed
Errors of transposition - Will not be revealed
Errors of principle - Will not be revealed
Errors of transposition - Will be revealed
The following are balances on the accounts of Luigi, a sole trader, as at the end of the current financial year and after all entries have been processed and the profit for the year has been calculated.
What is the balance on Luigi’s capital account?
$59,000
$66,000
$62,000
$64,000
The following balances have been extracted from the nominal ledger accounts of Tanya, but the figure for bank loan is unknown. There are no other accounts in the main ledger.
What is the credit balance on the bank loan account?
$46,000
$102,000
$78,000
$34,000
Beta Co has total assets of $650,000 and profit for the year of $150,000 recorded in the financial statements for the year ended 31 December 20X3. Inventory costing $50,000, with a resale value of $75,000, was received into the warehouse on 2 January 20X4 and included in the inventory value that was recorded in the financial statements at 31 December 20X3.
What would the total assets figure in the Statement of Financial Position, and the adjusted profit for the year figure, be after adjusting for this error?
Total assets (SOFP) - $700,000
Profit for year - $200,000
Total assets (SOFP) - $600,000
Profit for year - $100,000
Total assets (SOFP) - $725,000
Profit for year - $225,000
Total assets (SOFP) - $600,000
Profit for year - $75,000
Jingles Co expects the next bill due in September to be for the same amount as the bill received in June.
What are the appropriate amounts for electricity to be included in the financial statements of Jingles Co for the year ended 30 June 20X1?
Statement of Statement of financial position $560
Statement of profit or loss - $3,320
Statement of Statement of financial position $560
Statement of profit or loss - $3,060
Statement of Statement of financial position $860
Statement of profit or loss - $3,320
Statement of Statement of financial position $860
Statement of profit or loss -$3,060
Which of the following errors would cause the total of the debit column and the total of the credit column of a trial balance not to agree?
A transposition error was made when entering a sales invoice into the sales day book
A cheque received from a customer was credited to cash and correctly recognised in receivables
Rent received was included in the trial balance as a debit balance
None of the above
A company’s statement of profit or loss for the year ended 31 December 20X5 showed a net profit of $83,600. It was later found that $18,000 paid for the purchase of a motor van had been debited to the motor expenses account. It is the company’s policy to depreciate motor vans at 25% per year on the straight line basis, with a full year’s charge in the year of acquisition.
What would the net profit be after adjusting for this error?
$106,100
$70,100
$97,100
$101,600
Bumbly Co extracted the trial balance for the year ended 31 December 20X7. The total of the debits exceeded the credits by $300.
Which of the following could explain the imbalance?
Sales of $300 were omitted from the sales day book.
Returns inward of $150 were extracted to the debit column of the trial balance.
Discounts received of $150 were extracted to the debit column of the trial balance.
The bank ledger account did not agree with the bank statement by a debit of $300.
A company’s trial balance totals were:
Debit $387,642
Credit $379,511
A suspense account was opened for the difference.
Which one of the following errors would have the effect of reducing the difference when corrected?
The petty cash balance of $500 has been omitted from the trial balance.
$4,000 received for rent of part of the office has been correctly recorded in the cash book and debited to rent account.
$3,000 paid for repairs to plant has been debited to the plant asset account.
An invoice for Mr. A Smith for $400 has been posted to the account of Mrs. B Smith in error.
A trial balance extracted from a sole trader’s records failed to agree, and a suspense account was opened for the difference.
Which of the following errors would require an entry in the suspense account in correcting them?
1. Discount allowed was mistakenly debited to discount received account.
2. Cash received from the sale of a non-current asset was correctly entered in the cash book but was debited to the disposal account.
3. The balance on the rent account was omitted from the trial balance.
4. Goods taken from inventory by the proprietor had been recorded by crediting drawings account and debiting purchases account.
All four items
2 and 3 only
2 and 4 only
1 and 3 only
A suspense account was opened when a trial balance failed to agree. The following errors were later discovered.
•A gas bill of $420 had been recorded in the gas account as $240.
•A discount of $50 given to a customer had been credited to discounts received.
•Interest received of $70 had been entered in the bank account only.
What was the original balance on the suspense account?
Debit $210
Credit $210
Debit $160
Credit $160
A company’s trial balance failed to agree, the out of balance difference of $25,000 being posted to a suspense account.
Subsequent investigation revealed the difference was due to one side of an entry to record the purchase of machinery for $25,000, by cheque, failing to post to the plant and machinery account.
Which of the following journal entries would correct the error?
Plant and machinery Debit $ 25,000 Bank current account Credit $ 25,000
Suspense account Debit $ 25,000 Plant and machinery Credit $ 25,000
Plant and machinery Debit $ 25,000 Suspense account Credit $ 25,000
Bank current account Debit $ 25,000 Suspense account Credit $ 25,000
The trial balance of Z failed to agree, the totals being: debit $836,200 credit $819,700
A suspense account was opened for the amount of the difference and the following errors were found and corrected:
1. The totals of the cash discount columns in the cash book had not been posted to the discount accounts. The figures were discount allowed $3,900 and discount received $5,100.
2. A cheque for $19,000 received from a customer was correctly entered in the cash book but was posted to the control account as $9,100.
What will be the remaining balance on the suspense be after the correction of these errors?
$25,300 credit
$7,700 credit
$27,700 debit
$5,400 credit
The trial balance of C, a limited liability company, did not agree, and a suspense account was opened for the difference. Checking in the bookkeeping system revealed a number of errors.
1. $4,600 paid for motor van repairs was correctly treated in the cash book but was credited to motor vehicles asset account.
2. $360 received from B, a customer, was credited in error to the account of BB.
3. $9,500 paid for rent was debited to the rent account as $5,900.
4. The total of the discount allowed column in the cash book had been debited in error to the discounts received account.
5. No entries have been made to record a cash sale of $100.
Which of the errors above would require an entry to the suspense account as part of the process of correcting them?
3 and 4
1 and 3
2 and 5
2 and 3
The suspense account shows a debit balance of $100. What could this balance be due to?
Entering $50 received from A Turner on the debit side of A Turner's account
Entering $50 received from A Turner on the credit side of A Turner's account
Under casting the sales day book by $100
Under casting the purchases account by $100
A suspense account shows a credit balance of $130. Which of the following could be due to?
Omitting a sale of $130 from the sales ledger
Recording a purchase of $130 twice in the purchases account
Failing to write off a bad debt of $130
Recording an electricity bill paid of $65 by debiting the bank account and crediting the electricity account
Following balances are given to you on 1st April,2019: Stock A/c Rs.50,000; Building A/c Rs.80,000;Machinery A/c Rs.60,000;Creditors Rs.90,000. Balance of capital A/c will be Rs.1,10,000.
True
False
The error which is revealed by the trial balance is ______________.
1) Wrong amount posted in the ledger account
2) Wrong amount entered into the books of original entry
3) Complete omission
4) None of them
Wages paid for the construction of building were recorded in wages account. This is ______________
1) Error of omission
2) Error of commission
3) Compensating error
4) Error of principle
Rs.2,000 received as commission correctly entered in the cash book is not posted to commission account. The ______side of trial balance will _______.
1) Debit, exceed
2) Credit, exceed
3) Debit, decrease
4) Credit, decrease
A dealer dealing in furniture business purchased furniture, recorded in furniture account.
1) There is an error in the above transaction, but trial balance will agree.
2) There is not any error in the above transaction, trial balance will not agree.
3) There is an error and trial balance will not agree
sale of typewriter that has been used in the office credited to sales account, which account is to be credited?
sales a/c
cash a/c
capital a/c
typewriter a/c
After providing the trial balance the accountant find that the total of debit side is short by Rs.2,500. The difference will be:
credited to suspense account
debited to suspense account
adjusted to any of the debit balance accounts
adjusted to any of the credit balance accounts
8. After providing the trial balance the accountant finds that the total of debit side is short by Rs 2,500. This difference will be
Credited to suspense account
Debited to suspense account
Adjusted to any of the debit balance accounts
Adjusted to any of the credit balance accounts
