14 questions · 61 marks · ≈ 61 min · spans 14 of 15 topics
Assembled from the topic question banks — not an official Edexcel paperA business maintains a petty cash book with a float of $300. During the month it spent $185 on petty cash items.
Identify the amount required to restore the float at the end of the month.
Choose your answer
$485
$300
$185
$115
Which document issued by the seller summarises the transactions for the month?
Choose your answer
Credit note
Purchase invoice
Sales invoice
Statement of account
Explain one difference between capital expenditure and revenue expenditure.
Carson depreciates his computer equipment using the straight line method at 20% per annum. A full year’s depreciation is charged in the year of purchase but none in the year of disposal.
On 1 September 2021 the balances were:
Computer equipment – cost $16 800
Computer equipment – provision for depreciation $ 9 200
On 1 May 2022, computer equipment originally purchased on 1 March 2020 for $3 600, was sold for $1 950
Prepare the following accounts for the year ended 31 August 2022.
Computer Equipment – Provision for Depreciation Account
| Date | Details | $** | Date | Details | $ |
|---|---|---|---|---|---|
Disposal Account
| Date | Details | $** | Date | Details | $ |
|---|---|---|---|---|---|
Neha provided the following information for the year ended 31 March 2019.
| 1 April 2018 ($) | 31 March 2019 ($) | |
|---|---|---|
| Trade receivables | 12 500 | 15 550 |
Neha maintains a provision for irrecoverable debts at 10% of trade receivables.
At 31 March 2019 irrecoverable debts of $550 were to be written off.
Calculate the provision for irrecoverable debts at 31 March 2019.
Prepare the provision for irrecoverable debts account for the year ended 31 March 2019. Balance the account on that date and bring the balance down on 1 April 2019.
Provision for Irrecoverable Debts Account
| Date | Details | $ | Date | Details | $ |
|---|---|---|---|---|---|
Where would the account of a credit supplier be found?
Choose your answer
Payables ledger
Purchases returns book
Receivables ledger
Sales day book
During the year ended 30 September 2020 the following cheque payments were made for rent at $300 per month.
| Date paid | Period covered |
|---|---|
| 1 November 2019 | 1 September 2019 to 31 December 2019 |
| 1 January 2020 | 1 January 2020 to 30 June 2020 |
| 1 July 2020 | 1 July 2020 to 31 December 2020 |
Prepare the rent payable account for the year ended 30 September 2020. Balance the account on that date and bring the balance down on 1 October 2020.
Rent Payable Account
| Date | Details | $ | Date | Details | $ |
|---|---|---|---|---|---|
State, giving a reason, where the balance of the rent payable account in part (a) would appear in the statements of financial position at: 30 September 2019
State, giving a reason, where the balance of the rent payable account in part (a) would appear in the statements of financial position at: 30 September 2020
Daya provided the following information at 30 April 2021.
| $ | |
|---|---|
| Cash book (bank) balance | 863 Dr |
| Unpresented cheques | 640 |
| Outstanding lodgements | 1 485 |
A standing order, $320, processed by the bank had not been entered in the cash book.
Prepare a bank reconciliation statement at 30 April 2021.
Daya
Bank Reconciliation Statement at 30 April 2021
| $ | |
|---|---|
| Updated balance in bank per cash book | |
Identify, indicating with a tick (✓), on which side of a trade payables ledger control account each would be entered.
| Debit side | Credit side | |
|---|---|---|
| Credit purchases | ||
| Discount received | ||
| Interest charged | ||
| Returns outwards | ||
| Transfer to trade receivables ledger control account |
Identify which error would be disclosed by the preparation of a trial balance.
Choose your answer
Credit sales, $500, entered on both sides of the ledger as $50
Discount allowed, $60, posted to the credit side of the discount allowed account
Purchases account and sales account both overcast by $650
Purchases on credit, $290, omitted from the books
Vaughn provided the balances at 30 April 2024.
Prepare the trial balance at 30 April 2024.
| Trial balance at 30 April 2024 | |||
|---|---|---|---|
| Account | Balance $ | Debit $ | Credit $ |
| Advertising | 3260 | ||
| Bank loan | 18400 | ||
| Bank overdraft | 12880 | ||
| Carriage inwards | 530 | ||
| Drawings | 23400 | ||
| Equity | 44300 | ||
| General expenses | 12290 | ||
| Inventory at 1 May 2023 | 39800 | ||
| Machinery – cost | 55270 | ||
| Machinery – provision for depreciation | 26130 | ||
| Mortgage | 63000 | ||
| Premises | 84000 | ||
| Purchases | 133910 | ||
| Returns inwards | 820 | ||
| Revenue | 223730 | ||
| Trade payables ledger control | 34640 | ||
| Trade receivables ledger control | 32830 | ||
| Wages | 36970 | ||
| Total |
Explain to Vaughn two advantages of preparing a trial balance.
Inventory should be valued at the lower of cost and net realisable value.
Identify which accounting concept this is an application of.
Choose your answer
Accruals
Consistency
Money measurement
Prudence
Which is not an accounting concept?
Choose your answer
Business entity
Confidentiality
Consistency
Materiality
Evaluate whether a sole trader should form a partnership.