Chat with AIExam 4: Double-Entry Bookkeeping 2: Books of Prime Entry, Accounting Systems, and the Statement of Cash Flows
Exam 1: Introduction, and the Statement of Financial Position12 Questions
Exam 2: The Statement of Profit or Loss9 Questions
Exam 3: Double-Entry Bookkeeping 1: Debits, Credits, T-Accounts, the Trial Balance, and the Financial Statements6 Questions
Exam 4: Double-Entry Bookkeeping 2: Books of Prime Entry, Accounting Systems, and the Statement of Cash Flows10 Questions
Exam 5: Ratio Analysis 1: Profitability, Eef ficiency, and Performance, and the Financing of Business8 Questions
Exam 6: Ratio Analysis 2: Liquidity, Working Capital, and Long-Term Financial Stability23 Questions
Exam 7: Cost and Management Accounting in Context20 Questions
Exam 8: Product Costing: Absorption Costing12 Questions
Exam 9: Relevant Costs Marginal Costing, and Short-Term Decision Making6 Questions
Exam 10: Standard Costing and Variance Analysis7 Questions
Exam 11: Process Costing44 Questions
Exam 12: Capital Investment Appraisal, and Corporate Governance and Sustainability9 Questions
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When posting cash receipts in the cash book to the nominal ledger, the double entry increases the balance on the cash account and:
Please select all that apply.
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(Multiple Choice)
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Verified
VerifiedB, C, D
The sales ledger records transactions with individual credit customers. Are the transactions listed below debits or credits in each individual customer's sales ledger account?
a. Cash refunds = Debit
b. Cash received = Credit
c. Irrecoverable debts = Credit
d. Sales invoices = Debit
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(Essay)
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(38) Correct Answer:
Answered by Examlex AI Copilot
Answered by Examlex AI CopilotThe transactions listed below are recorded as follows in each individual customer's sales ledger account:
a. Cash refunds are recorded as Debits. This is because when a cash refund is given to a customer, it reduces the amount the customer owes to the business, hence decreasing the business's accounts receivable.
b. Cash received is recorded as Credits. When a business receives cash from a customer, it reduces the amount the customer owes, hence decreasing the accounts receivable.
c. Irrecoverable debts are recorded as Credits. When a debt is deemed irrecoverable, it means the business has given up on trying to collect the debt from the customer. This reduces the accounts receivable.
d. Sales invoices are recorded as Debits. When a sales invoice is issued, it increases the amount a customer owes to the business, hence increasing the accounts receivable.
Ola Limited sells a piece of property, plant and equipment for £21,000. The original cost of this asset was £102,000 and cash received from the sale was £21,000. The sale of this non-current asset generated a profit on disposal of £8,000. What was the accumulated depreciation that had been charged on this piece of property plant and equipment by the date of disposal?
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(Multiple Choice)
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(38) Correct Answer:Verified
VerifiedB
Olly Limited undertook the following transactions during the year ended 30 November 2021:
?Issued 20,000 new shares at a price of £1.50 per share.
?Made £6,000 of repayments on the business loan.
?Received dividends of £1,000 from Molly Limited.
?Paid loan interest of £750.
?Paid dividends of £10,000.
?Received £500 bank interest.
?Paid overdraft interest of £125.
What is Olly Limited's net cash inflow from financing activities for the year ended 30 November 2021?
(Multiple Choice)
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(35) Anna Limited sells a piece of property, plant and equipment for £15,000. £22,500 accumulated depreciation had been charged on this asset by the date of disposal. The sale of this non-current asset resulted in a loss on disposal of £1,500. What was the original cost of the piece of property plant and equipment disposed of?
(Multiple Choice)
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(34) Andreas Limited has the following figures in the financial statements for the year ended 30 November 2021:
Dperating profit ,000 ,000 Depreciationcharged in year Irvertaries ,000 40,000 Trade receivables Trade payables ,000 19,000 What is Andreas Limited's cash inflow from operating activities for the year ended 30 November 2021 using the indirect method?
(Multiple Choice)
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(31) The purchase ledger records transactions with individual suppliers of goods and services. Are the transactions listed below debits or credits in each individual supplier's purchase ledger account?
A) Credit notes = Debit
B) Purchase invoices = Credit
C) Discounts received = Debit
D) Cash refunds = Credit
(Essay)
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(40) CDC Limited buys goods from and sells goods to DAD Limited. CDC Limited owes DAD Limited £8,400, while DAD owes CDC Limited £12,600. The two companies agree to net off the amounts owed by each company to leave an amount owing by DAD Limited to CDC Limited of £4,200 (£12,600 - £8,400). What is the correct double entry in the books of CDC Limited to record this netting off of £8,400 between the two companies?
(Multiple Choice)
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(36) Collie Limited had the following cash inflows during the year ended 30 June 2021:
?Proceeds from the sale of investments of £200,000.
?Proceeds from the issue of shares of £250,000.
?Proceeds from the bond issue of £500,000.
?Proceeds from the sale of property, plant and equipment of £50,000.
What is Collie Limited's total cash inflow from financing activities for the year ended 30 June 2021?
(Multiple Choice)
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(31) Greg Limited sells a piece of property, plant and equipment. This non-current asset had originally cost £64,000. £42,000 accumulated depreciation had been charged on this asset by the date of disposal. The sale of this non-current asset generated a profit on disposal of £3,000. How much cash was received from the disposal of this piece of property plant and equipment?
(Multiple Choice)
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