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WorksheetsLecture 3 Sept 2023 Set A
Total questions: 10
Worksheet time: 5mins
Sydney & Associates had the following assets and liabilities. Total equity is _:
$
Cash in hand 4 000
Bank overdraft 11 000
Sundry creditors 3 000
Inventory 2 700
Sundry debtors 8 100
Office furniture 4 500
Loan from Perth Ltd 12 000
Motor vehicles 12 000
$8300
$27300
$5300
$13300
The assets of Frank’s business increased by $40 000 and the liabilities increased by $10 000 during the current year. If the profit for this period was $25 000, what additional contribution or withdrawal was made by the owner? (Assume only a withdrawal or a contribution was made.)
Drawings $10 000
Contribution $10 000
Contribution $5000
Drawings $5000
Julio’s opening capital at 1 July 2011 was $50 000, his profit for the year was
$18 000 and his drawings were $15 000. What is the final balance of his capital at the end of the year?
$68000
$50000
$51000
$53000
Liz, after qualifying at university and having several years’ experience decides to set up her own dental practice. On 1 March she deposits $25 000 into a bank account she has opened for the practice. Which of the following represents the effect of this transaction on the accounting equation?
Increase in assets of $25 000; increase in equity of $25 000.
Increase in assets of $25 000; decrease in equity of $25 000.
Increase in assets of $25 000; increase in liabilities of $25 000.
Decrease in assets of $25 000; increase in equity of $25 000.
A party who has provided goods or services to the entity to whom the entity owes money is called a:
payables
debtor
creditor
receivables
A firm repays $4000 of an existing bank loan. The transaction is recorded as which of the following entries?
DR Bank loan $4000; CR Owner’s capital $4000
DR Cash at bank $4000; CR Accounts receivable $4000
DR Cash at bank $4000; CR Bank loan $4000
DR Bank loan $4000; CR Cash at bank $4000
J. Wood performed carpentry services for $7500. He received cash of $5000 with the balance to be received within 28 days. The transaction is recorded as _.
DR Cash $5000; DR Accounts receivable $2500; CR Income earned $7500
DR Income earned $7500; CR Cash $5000; CR Accounts payable $2500
DR Cash $7500; CR Equity $7500
DR Cash $5000; DR Equity $2500; CR Income earned $7500
Which of these errors would be detected by a trial balance?
A cash sale was recorded in the sales account as $237 instead of $273 but was correctly recorded in the bank account.
Office salaries were recorded as office expenses.
The sales assistant pocketed the cash from a cash sale and did not ring it up on the register.
Purchase of inventory on credit was recorded as a debit to the plant and equipment account and a credit to creditors.
The office supplies inventory account of Tan Traders shows a balance of $1600 on 31 December 2014. Office supplies of $550 were issued to staff in the 12 months up to 31 December 2014. After adjustment on 31 December 2014, the close of the annual accounting period:
office supplies expense in the income statement is $1600 and office supplies inventory in the balance sheet is $0.
office supplies expense in the income statement is $0 and office supplies inventory in the balance sheet is $1600.
office supplies expense in the income statement is $1050 and office supplies inventory in the balance sheet is $550.
office supplies expense in the income statement is $550 and office supplies inventory in the balance sheet is $1050.
The prepaid insurance account of Tan Traders shows a balance of $600, representing a payment on 1 July 2014 of a two-year insurance premium. After adjustment at 31 December 2014, the close of the annual accounting period:
insurance expense in the income statement is $600 and prepaid insurance in the balance sheet is $0.
insurance expense in the income statement is $150 and prepaid insurance in the balance sheet is $450.
insurance expense in the income statement is $0 and prepaid insurance in the balance sheet is $600.
insurance expense in the income statement is $300 and prepaid insurance in the balance sheet is $300.
