Which TWO of the following are shown in credit side of the trial balance?

1) Drawings

2) Payables

3) Sales                                                                          

4) Irrecoverable debts

Demon Co. has the following balances extracted from its trial balance at 30 November 20X2:                                                 

Cash at bank: $10,000

Machine: $16,500

Inventory: $3,500

Depreciation: $1,250

Trade receivables: $1,600

Other expense: $650

What is the value of current asset shown in the financial position of Demon Co. at 30 November 20X2?

You are preparing the financial statements for a business. The cost of the items in closing inventory is $50,000. This includes some items which cost $5,000 but were damaged in transit. You have estimated that it will cost $500 to repair the items, and they can be sold for $3,500.

What is the correct inventory valuation for inclusion in the financial statements?

An asset register showed a carrying amount of $200,000 at 1 January 20X8. During the year ended 31 December 20X8, a non-current asset costing $15,000 with useful life of 5 years on straight line depreciation had been sold for $5,000, making a profit on disposal of $2,000 on 1 January 20X8. A new car was purchased for $25,000 on 31 December 20X7 with an estimated useful life of 10 years on straight line basic. The deprication charge for the year ended at 31 December 20X7 was $20,000. What was the depreciation charge for the year ended at 31 December 20X8?

What should an accountant do if a reliable estimate of probable outflow of resources to settle a present obligation can not be made in accordance with IAS 37 – “Provisions, contingent liabilities and contingent assets”?

Taylor. Co paid local property tax of $6,495 on 31 May 20X7, in respect of the three months ending 31 August 20X7. What is the balance of prepayment account for the year ended 30 June 20X7?

The bookkeeper of AB company made the following mistakes:

Discount allowed $5,230 was credited to discounts received account.

Discount received $5,450 was debited to discounts allowed account.

Discounts were otherwise correctly recorded.

Which one of the following journal entries will correct the errors?

Which of the following events after the reporting period would normally qualify as non adjusting events according to the IAS 10- Events after the reporting period?

Which of the following statements apply when producing a consolidated statement of financial position?

(i)            All intra-group balances should be eliminated.

(ii)          Intra-group profit in year-end inventory should be eliminated.

(iii)         Closing inventory held by subsidiaries needs to be included at fair value.

Rachel Co purchased 70% of the voting shares of Monica Co when the value of the non-controlling interest in Monica Co is $150,000.

The following information relates to Monica at the acquisition date.

              - Share capital, $1 ordinary share: $1,000,000

              - Retained earnings:                         $200,000

              - Revaluation surplus:                                 $20,000

              The goodwill arising on acquisition date is $100,000. What was the consideration paid by Rachel Co for the investment in Monica Co?

At 1 January 20X6 a company had an allowance for receivables of $49,000.

At 31 December 20X6 the company's trade receivables were $200,000 and it was decided to write off balances totalling $20,000. The allowance for receivables was to be adjusted to the equivalent of 5% of the remaining receivables.

What total figure should appear in the company's statement of profit or loss for receivables expense?

According to the IAS 2, the following statements about the valuation of inventory are Incorrect:

1. Inventory items are normally to be valued at the higher of cost and net realisable value

2. The cost of goods manufactured by an entity will include materials and labour only

According to the IAS 16, the depreciation method should be reviewed periodically. If there has been a significant change in the expected pattern of economic benefits from those assets, the method should be changed to suit this new pattern.

Is the following statement about prepayments and accruals true or false?

“Prepayments and Accruals are examples of applying the concept of cash basis in accounting”.

The following statement is true or false?

A purchase return of $50 has been wrongly posted to the debit of the sales returns account, but has been correctly entered in the supplier's account. Therefore, the trial balance is $50 higher on the debit side.

Is the following statement about the presentation of trade receivables in SoFP true or false?

“ Trade receivables in the statement of financial position are shown net of any receivables allowance.”

Is the following statement about inventories is correct?

“Inventories are assets that are held for sale in a business”

The following statement is true or false?

Individual customer accounts are kept in the receivables ledger.

The following statement is true or false?

A trial balance may still balance if some of the balances are wrong.