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WorksheetsBS1071 Recap
Total questions: 10
Worksheet time: 25mins
To increase an asset account you
Debit it
Credit it
I don't know
Assets = ?
Liabilities
Equity
Equity - Liabilities
Equity + Liabilities
I don't know
To decrease a liability account you
Debit it
Credit it
I don't know
Accumulated depreciation...
appears in the income statement
is added to asset cost
is unaffected by the disposal of a depreciable asset
totals all depreciation charged to date
I don't know
To increase an equity account you
Debit it
Credit it
I don't know
An organisation sells an asset for £40,000. The asset originally cost £120,000 and had a net book value of £50,000 at the time of disposal.
How would this be recorded in the financial records?
DR bank £40,000, CR NCA cost £120,000, DR Acc Depn £70,000, CR Gain on sale £10,000
DR bank £40,000, CR NCA cost £120,000, DR Acc Depn £70,000, DR loss on sale of asset £10,000
CR bank £40,000, DR NCA cost £120,000, CR Acc Depn £50,000, CR Gain on sale £30,000
I don't know
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
I don't know
An organisation has a year end of 31 August 2022. On 1 August they paid £9,000 rent to their landlord for the period 1 August 2022 - 31 October 2022. The payment was recorded: DR Rent expense, CR bank.
Is any further entry required?
Yes: DR Prepayments £6,000, CR Rent expense £6,000
No
Yes: DR Accruals £6,000, CR Rent expense £6,000
I don't know
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
I don't know
A sole trader's business had opening capital at the beginning of the financial year of £450,000 and closing capital at the end of the financial year of £525,000.
If they had made drawings of £45,000 during the year, and had not introduced any new capital, what was the profit of the business for the year?
£75,000
£165,000
£30,000
£120,000
I don't know
