A business buys a computer for $2200 on 1 January 2007. The computer will be used for four years, after which time it will be sold for $280. The business uses the straight-line method of depreciation. What is the depreciation charge for the year ended 31 December 2008?

The following information is taken from the stationery account of a business. stock of stationery at beginning of the year: $600, cash paid for stationery during the year: $7000, amount owing for stationery at end of year: $480, stock of stationery at end of year: $800. How much should be debited to the profit and loss account for stationery?

Development costs are capitalised. Which accounting principle is being applied?

The table shows information from a business on 30 November 2008.

Which amount will appear in the trading account as sales for the year ended 30 November 2008?

In preparing the profit and loss account, only realised profits and not anticipated profits must be brought into account. In addition, all possible losses must also be taken into account. Which accounting principle does this describe?

Entries of $700 in the discount received account had not been entered in the creditors' ledger. During the year a machine was sold for $1000. There was only one entry made and it was a credit in the bank account. What is the balance on the suspense account?

The correct balance on the purchases ledger control account is $ 63,000 but has been entered in the trial balance as $36,000.

The difference in the trial balance has been entered into a suspense account.

Which journal entry corrects this error?

Who is most likely to use the creditors' ledger?

A business sells some of its stock for $500 on credit to a customer. The stock originally cost $600. What is the effect of this transaction on the balance sheet?

A company's policy is to depreciate its equipment by 30 % annually using the reducing balance method. A piece of equipment which was two years old was sold for $6000 and the profit on sale was $1590. What was the cost price of the equipment?

In financial statements, inventories are valued at the lower of cost and net realisable value in the statement of financial position. Which accounting concept is being applied?

What would be treated as part of the capital expenditure of the purchase of a building?

A business has a financial year end of 31 December. It purchased a motor vehicle on 1 January 2017 for $24 000. The estimated useful life of the motor vehicle was four years. The estimated residual value at the end of four years was $8000. The business depreciates motor vehicles at 25% per year using the reducing balance method. No depreciation is charged in the year of disposal. The motor vehicle was sold on 31 July 2020 for $12 000. What was the profit on the sale of the motor vehicle?

1        A business’s suspense account appears as follows. Which statements are correct?

In statement of profit or loss carriage outwards of $5000 has been treated as carriage inwards. Carriage inwards of $3000 has been treated as carriage outwards. What effect do these errors have on the profit?

A bank statement shows a credit balance of $1500. A payment of $500 and a receipt of $1250 were included in the cash book but have not yet appeared on the bank statement. Bank interest payable of $1100 had been correctly recorded in the cash book but due to a bank error had been recorded in the bank statement as $1000. What is the cash book balance?

In which book of prime entry is the contra between the sales ledger control account and the purchases ledger control account recorded?

A book-keeper reconciles the control accounts with the sales and purchases ledgers. Which errors are identified in this way?

The draft profit for the year for a sole trader was $108 000 before the following were taken into account. What was the correct profit for the year?