CST has the following information available for the year ended 31 October 20X7 : $

i. Authorised share capital of 2,000,000 ordinary shares : $0.25 each 5,00,000

ii. Issued share capital of 1,000,000 ordinary shares : $0.25 each 2,50,000

At 31 October 20X7 the company proposed a dividend of 2.8c per share.

What is the total dividend to be paid ?

Zeyo’s accounting records show the following information : $

Opening inventory at 1 January 20X6 - 45,600

Purchases during the three months ended 31 March 20X6 - 86,800

Revenues during the three months ended 31 March 20X6 - 1,28,400

On 31st March 20X6, a fire destroyed all of its inventory. All sales are made at a 25% gross profit margin.

What is the cost of inventory at 31 March 20X6 destroyed by the fire ?

Which two of the following could be considered a role of International Financial Reporting Standards?

1. To help provide comparability of accounting treatments internationally

2. To provide guidance for the preparation of the financial statements

3. To ensure all financial information is accurately recorded in the financial records of a business entity

4. To provide a legally binding framework to be adhered to internationally

A company’s bank statement showed a credit balance of $900, whilst the cash book showed a credit balance of $100. The difference is caused by unpresented cheques.

How should the bank balance be shown in the company’s statement of financial position ?

Which two of the following transactions could increase a company’s cash balance ?

1. Redemption of an outstanding loan

2. A bonus issue of shares

3. Issue of preference shares

4. A right issue of shares

Fred, a sole trader, has made a loss during the year to 31 December 20X0 but the amount of cash at the end of the year end has increased from the previous year.

Which two of the following could be a reason for this ?

1. He has taken more money out as drawings during the year

2. Some non current assets were sold during the year

3. His credit customers are taking a longer time to pay

4. He is holding less inventory this year end than a last year end

A building was purchased on 1 January 20X1 for $3,00,000 and had a useful life of 40 years. On on 1 January 20X5 the building was revalued by a professional surveyor to $4,50,0000 and had a remaining useful life of 50 years. Directors decided to incorporate the revalued amount into the financial statements.

What is the depreciation charge for the building for the year ended 31 December 20X5 ?

Which of the following errors would lead to the creation of a suspense account ?

i. A cash sale of $300 was completely omitted from the accounts

ii. A credit sale was recorded as a cash sale

iii. A transposition error was made to the debit entry recording a credit purchase

iv. An electricity expense of $500 was recorded as a telephone expense

Button is reviewing his receivables at the end of the financial year. A receivable of $300 will need to be written off due to their inability to pay. He has also concluded that an allowance for receivables of $3,800 will be required. The allowance for receivables last year was $4,000.

What should be the total charge to the statement of profit or loss for irrecoverable debts expense ?

Which two of the following Items should be treated as capital expenditure when accounting for the purchase of a non current assets ?

a) Delivery charges

b) Recoverable sales tax

c) Annual Insurance

d) Installation Charge

e) Maintenance charge

Manu Co. opened a suspense account with a debit balance of $650 when the trial balance did not balance. On investigation, the following errors were discovered :

i. A page of sales from the sales day book totalling $200 was omitted from the total posted to the general ledger ii. Telephone expenses of $460 were correctly recorded in the statement of profit or loss but were recorded as $640 in the payable control account

iii. A purchase on credit of $190 had only been posted to the payable control account

What will be the remaining debit balance on the suspense account after the errors identified above have been corrected ?

Which two of the following are reasons why companies must prepare disclosure notes ?

1. To comply with finance providers requirements

2. To explain items presented in the annual financial statements

3. To comply with accounting standards

4. To explain information required by taxation authority regulations

A company is preparing its financial statements for the year ended 30 April 20X8. Rent is paid quarterly in advance on 1 march, 1 June, 1 September and 1 December each year. The annual rent is $1,80,000 per year.

What amounts should appear in the company’s financial statements for the year ended 30 April 20X8 ?

Antonio is sales tax registered , and uses cash to buy office stationery.

The invoice shows the following details :

$

Net expenditure - 8

Sales tax - 2

Total cost - 10

Which of the following correctly records the payments of the invoice ?

When preparing financial statement it is important that they are complete, neutral and free from error.

Which of the following qualitative characteristics does the above statement support ?

company had a balance on its payables control account of $817000 at 30 November 20X8. This did not agree with the total of the list of balances in its payables ledger, which totalled $813600.following an investigation, the following errors were discovered :

1) A contra with a supplier of $1400 was omitted from the payables ledger control account

2) An invoice of $3,800 was posted correctly to the purchase day book, but to the suppliers account as $1800

What is the revised payable control account total after correcting the errors above ?

John reduces his inventory levels bt $12,000 during the year and makes sales of $5,40,000. His mark up on cost is 20%.

What are his purchase during the year ?

On 30 september 20X4 Ravi has a balance on her receivables control account of $26,000 but the total of the individuals accounts in the receivables ledger came to $25,448. Upon investigation the following errors were discovered :

The sales day book was overcast by $120.

A credit balance of $84 on a customer’s account in the receivables ledger had been incorrectly treated as a debit balance

A payables contra of $600 had been entered in the customer’s individual account but no other entry was made

After accounting for the above errors, what is the correct amount on both the receivables ledger and the receivables control account ?

How should each of the following items be treated in the financial statement of Jacob Co at 31 December 20X9?

Provision Contingent Liability

1. Jacob Co guarantees the borrowings of ladder Co on 1 September 20X9. At the year end of 31 December 20X9 leader Co in a strong financial Position

2. Jacob Co is in a legal dispute with a customer. The customer has claimed $5,00,000 And Jacob Co has offered $2,00,000 to avoid the case being taken to court Jacob Co’s Lawyer has advised that it is likely Jacob Co will lose the case if it goes to court.

Egret Co made a profit before tax of $2,35,000 for the year ended 30 June 20X8. The tax charge for the year was $84,500 and the company transferred $10,000 from profit to a general reserve. It paid a final ordinary dividend of $38,000from the prior year on 18 May 20X8 which had been proposed on 1 July 20X7, and on 1 July 20X8, a final dividend of $39,500 for the current year was proposed. No interim dividends were paid or proposed.

By what amount is Egret Co’s retained earnings increased for the year ended 30 June 20X8?

At the beginning of the day, David’s ledger account for cash at bank shows a debit balance of $500. During the day the following transactions occur :

i. Amanda paid him $400 by direct bank transfer for goods received

ii. He invoiced Jamie $350 for goods delivered that day

iii. He paid for an invoice which totalled $600 before taking advantage of an early settlement discount of 4%

What should be the balance on David’s cash at bank account at the end of the day ?

A company is preparing its financial statements for the year ended 31 March 20X6 and has identified the following issues which have an impact on the financial statements. These issues arise before the financial statements were authorised for issue :

Issue 1 – there was an electrical fire in one of the warehouse in early April 20X6, and inventory, which had a value of $80,000, was destroyed in the fire. The inventory had been included in Inventory balance at 31 March 20X6.

Issue 2– The board of directors proposed a final dividend of $200000at the may 20X6 board meeting.

Are these issues adjusting or non adjusting events? Adjusting events Non adjusting events

Issue 2 -

Issue 1 -

Glow Co, a manufacturer, started trading 1 January 20X5 and has following information in relation to the cost of inventories for the year ended 31 December 20X5 :

At 31 December 20X5 there was no work in progress 10%of the raw material are still in inventory at the year end there are 2000 completed units in inventory at the year end these unit will be sold at a profit.

At what value will finished goods inventory to be reported at 31 December 20X5 ?

Alphabet Co is developing a new product called ABC. At 1august 20X5 the balance on the capitalised development expenditure account for ABC was $510,000. Commercial production of ABC commenced on 1august 20X5 likely sales of the product were estimated to be made over the next four years.

What is the carrying amount for capitalised development expenditure relating to the ABC product in the statement of financial position as at 31 December 20X5?

What is the effect on a company's current and quick (acid test) ratios if goods originally costing $2,450 are sold on credit for $ 2,910?

Which of the following statement in correct?

Which of the following is a characteristics faithful representation in accordance with the conceptual framework financial reporting?

During the year to 31 December 20X9 a business sold a machine which cost $30000 and had accumulated depreciation of $22000 the machine was sold for $ 12000. The sale was recorded as follows:

Dr Cash $12000

Cr Sales $12000

Which would to be the effect of this error on this reported profit for the year to 31 December 20X9?

Ceridwyn sells magazines on a 12month subscription. On 1september 20X5 she sold 12month subscription for $720 cash.

In accordance with IFRS15 revenue From contracts with customers how much revenue should Ceridwyn recognise for this subscription in the financial year ended 31December 20X5?

While preparing the year end financial statements ,the Account of minerva is informed that's items of inventory which cost $10,000 have been discovered in the inventory room. They have been omitted from the company's records .one of these inventory items has been damaged .it cost $7,000 and could be sold for $6,000, but only after $500 has been spent repairing it.

How much should Minerva increase her inventory value by to record these items?