Exam 4: Applying Accounting Conventions

Morwenna sells computer spares.She sells a consignment of 100 modems to Max.Some of the modems are faulty and Max returns them to Morwenna. Which two of the following statements about Morwenna's and Max's accounting for the returns are correct? A. Morwenna's sales returns are increased B. Max's sales returns are increased C. Morwenna's purchases returns are increased D. Max's purchases returns are increased

Danny's trading account figures for February 20X1 are as follows: What is Danny's gross profit for the month?

Navinder's business supplies computer parts on credit to many customers.On average, Navinder has found that 0.7% by value of his trade receivables amounts will not be settled.Therefore, he makes a general allowance in his accounts each year of 0.7% of trade receivables at the year end. Navinder's trade receivables at his 31 December 20X5 and 20X6 year ends were: Assuming that there are no other transactions relating to Navinder's bad and doubtful trade receivables in 20X6 what is the doubtful trade receivables expense in his statement of profit or loss for the year ended 31 December 20X8?

Ailsa runs a stationery supply business.Her accounting records for the year ended 31 December 20X4 included the following totals: What was Ailsa's net profit for 20X4?

Ambrose pays a subscription to a trade association annually in advance on 1 January each year.Payments on 1 January 20X1, 20X2 and 20X3 were: What figure will appear in Ambrose's statement of profit or loss for the year ended 30 April 20X2 in respect of the subscription (to the nearest £)?

Silva supplies electrical goods to retailers.She buys and sells on credit and both receives and allows discounts for early settlement.The following figures relate to her statement of profit or loss for the quarter ended 30 June 20X9: What was Silva's gross profit for the quarter?

Bella supplies scented candles to department stores.She sends a consignment with a sales value of £4000 to a customer.25% of the consignment is rejected and sent back because of poor quality.The cost to Bella of these goods was £3000.Which one of the following statements is correct? Bella must record:

Sue prepares a monthly trading account.Relevant figures for June 20X6 are as follows: What is Sue's gross profit for the month of June 20X6?

Daniel's accounting records for the financial year ended 30 April 20X6 included the following information: What was Daniel's net profit for the financial year ended 30 April 20X6?

Anya's accounting records for the year ended 31 January 20X2 included the following totals: What was Anya's net profit for the year ended 31 January 20X2?