Get premium membership and access questions with answers, video lessons as well as revision papers.
1)Prepare a statement of affairs at the beginning of the period (a list of all assets and liabilities) to determine the beginning capital.
2)Open and post the balances and transactions to these 3 relevant accounts (i.e. the cashbook (for both cash in hand and bank), sales ledger control account and purchases ledger control account.
Any other account can be opened where necessary.
3)Make adjustments for any accruals or prepayments.
4)Extract a list of the balances. (Trial balance).
5)Prepare the final accounts.
Titany answered the question on December 14, 2021 at 11:54
- W White’s business has a rate of turnover of 7 times. Average stock is sh12,600. Trade discount (i.e. margin allowed) is 33¼% off all selling...(Solved)
W White’s business has a rate of turnover of 7 times. Average stock is sh12,600. Trade discount (i.e. margin allowed) is 33¼% off all selling prices. Expenses are 66 ¾% of gross profit.
You are to calculate:
(a)Cost of goods sold.
(b)Gross profit margin.
(c)Turnover.
(d)Total expenses.
(e)Net profit.
Date posted: December 14, 2021. Answers (1)
- M Jones gives you the following information as at 30 June 2009(Solved)
M Jones gives you the following information as at 30 June 2009
Jones’s mark-up is 50% on cost of goods sold. His average stock during the year was £12,000. Draw up a trading and profit and loss account for the year ended 30 June 2002
a)Calculate the closing stock as at 30 June 2009
b)State the total amount of profit and loss expenditure Jones must not exceed if he is to maintain a net profit on sales of 10%.
Date posted: December 14, 2021. Answers (1)
- A firm has the following data for the period(Solved)
A firm has the following data for the period:
Date posted: December 14, 2021. Answers (1)
- Show how the three common rations is calculated in accounting(Solved)
Show how the three common rations is calculated in accounting
Date posted: December 14, 2021. Answers (1)
- A sole trader’s capital position is as follows. He has estimated his drawings for 2010 at £12,500. Estimate his net profit for the year. (Solved)
A sole trader’s capital position is as follows
Date posted: December 14, 2021. Answers (1)
- Approaches in preparing final accounts where there are insufficient records(Solved)
Approaches in preparing final accounts where there are insufficient records
Date posted: December 14, 2021. Answers (1)
- Give two reasons for incomplete records in accounting records(Solved)
Give two reasons for incomplete records in accounting records
Date posted: December 14, 2021. Answers (1)
- Uses of cash flow statements(Solved)
Uses of cash flow statements
Date posted: December 14, 2021. Answers (1)
- From the following balance sheet, prepare cash flow statement of Abc Ltd for the ended 31/12/2009(Solved)
From the following balance sheet, prepare cash flow statement of Abc Ltd for the ended 31/12/2009
Date posted: December 14, 2021. Answers (1)
- Format of cash flow statement(Solved)
Format of cash flow statement
Date posted: December 14, 2021. Answers (1)
- Components of a cash flow statement(Solved)
Components of a cash flow statement
Date posted: December 14, 2021. Answers (1)
- The accountant of Mamba Sports Club has extracted the following information from the books of account for the year ended 31 March 2009(Solved)
The accountant of Mamba Sports Club has extracted the following information from the books of account for the year ended 31 March 2009
Date posted: December 14, 2021. Answers (1)
- The following is the receipts and payments account of the Friendship Club for the year ended 31 December 2010.
a)Prepare an income and expenditure account for...(Solved)
The following is the receipts and payments account of the Friendship Club for the year ended 31 December 2010
a)Prepare an income and expenditure account for the year ended 31 December 2009
(b)Prepare a balance sheet at that date
Date posted: December 14, 2021. Answers (1)
- Format for the financial account of a non profit making organisation(Solved)
Format for the financial account of a non profit making organisation
Date posted: December 14, 2021. Answers (1)
- Explain the main difference between the financial of non-profit - oriented organizations and of profit - oriented organizations(Solved)
Explain the main difference between the financial of non-profit - oriented organizations and of profit - oriented organizations
Date posted: December 14, 2021. Answers (1)
- Beta Ltd is reviewing the financial statements of two companies, Zeta Ltd and Omega Ltd. The companies trade as wholesalers, selling electrical goods to retailers...(Solved)
Beta Ltd is reviewing the financial statements of two companies, Zeta Ltd and Omega Ltd. The companies trade as wholesalers, selling electrical goods to retailers on credit. Their most recent financial statements appear below.
Required:
a)Calculate for each company a total of eight ratios which will assist in measuring the three aspects of profitability, liquidity and management of the elements of working capital. Show all workings.
b)Based on the ratios you have calculated in (a), compare the two companies as regards their profitability, liquidity and working capital management.
c)Omega Ltd is much more highly geared than Zera Ltd. What are the implications of this for the two companies?
Date posted: December 14, 2021. Answers (1)
- Compute the relevant ratios for ABC ltd(Solved)
Compute the relevant ratios for ABC ltd
Date posted: December 14, 2021. Answers (1)
- Define what trend/industrial analysis is and state the critical issues to be taken note of when carrying it out(Solved)
Define what trend/industrial analysis is and state the critical issues to be taken note of when carrying it out
Date posted: December 14, 2021. Answers (1)
- Briefly describe what a stock market/valuation ratio is(Solved)
Briefly describe what a stock market/valuation ratio is
Date posted: December 14, 2021. Answers (1)
- Briefly describe what a profitability ratio is(Solved)
Briefly describe what a profitability ratio is
Date posted: December 14, 2021. Answers (1)