Exam 10: Trial Balance to Final Accounts

Which of the following statements is correct?

In drawing up a Trial Balance,the following figures are shown: Accaunt Dr Cr Bank 1,800 Cash 200 What can be deduced from the extract above?

If the provision for bad debt is increased,the accounting adjustment will be:

Where there is an increase in an accrual,the amount of the increase is included as a revenue on the income statement

The trail balance of Gibson company as at 31st December was as follows: What will the total equity figure be on the statement of financial position as at 31st December??

The following information is available from the trial balance of Valentines company as at 31 Dec Year 3: Debit Credit £ £ Sales revenue 110,000 Inventory at 31st Dec Year 1 7,000 Purchases 18,750 Closing inventory as at 31st Dec year 3 is £5,250.Calculate the gross profit.

Which of the following statements is correct?

The trail balance of Gibson company as at 31st December was as follows: What will the figure for total assets be on the statement of financial position as at 31st December?

The following information is available from the trial balance of Valentines company as at 31 Dec Year 3: Debit Credit £ £ Sales revenue 110,000 Inventory at 31st Dec Year 1 7,000 Purchases 18,750 Closing inventory as at 31st Dec year 3 is £5,250.Calculate the cost of goods sold.

Closing inventory appears twice in the final accounts,as a debit on the balance sheet and a credit on the income statement

A Sole Trader owns a company vehicle which cost £10,000 at the beginning of year 1,and is depreciated at 25% reducing balance method.In year 2,the end of year accounts are being drawn up.Which of the following is the correct adjustment for the depreciation of the vehicle?

The following information is available from the trial balance of Powerage Ltd as at 31 Dec Year 2: Debit Credit £ £ Sales revenue 260,000 Inventory at 31st Dec Year 1 9,000 Purchases 29,000 Closing inventory as at 31st Dec year 2 is £6,000.Calculate the cost of goods sold

If a bad debt is written off,the accounting adjustment will be:

A Sole Trader has a number of debtors.The total amount in the Sales Ledger at the end of the financial year is £5,600.However,it is discovered that one debtor who owes £400 has just been declared bankrupt.Past experience shows that approximately 2% of debts are never repaid,and therefore a provision equal to 2% of closing debtors is required.There is currently a provision of £80.Which of the following is the correct adjustment for the provision for bad debts?

Revenue will appear as a debit item on a trail balance

Which of the following would be the correct adjustment if there was an increase in an accrual?

When there is an increase in a provision for bad debt,the amount of the increase is included as an expense on the income statement

On a trail balance,almost all debit items are either assets to be shown on the balance sheet or expenses to be shown on the income statement

When drawing up accounts for Partnerships,additional personal accounts must be shown: (i)Individual Current Accounts (ii)Individual Capital Accounts (iii)Individual Drawings Accounts (iv)Individual Revenue Accounts

If an electricity prepayment is increased,the accounting adjustment will be: