Deck 19: Incomplete Records

Question 1

At the end of the year,Terraplane company has inventory in hand at a selling price of £20,600.What was the cost of inventory assuming inventory is sold at a margin of 60%?

A) £12,875
B) £8,000
C) £8,240
D) £12,360

Answer 1

C

Question 2

Debits are increases to liabilities and revenues

Answer 2

False

Question 3

At the beginning of the financial year,trade receivables are £4,560 and trade payables are £3,780.Cash received from receivables in the year are £38,240 and cash paid to payables are £18,040.Closing receivables are £2,268 and closing payables are £4,040.
What are the sales of the business in the year?

A) £40,508
B) £22,080
C) £35,948
D) £18,300

Answer 3

C

Question 4

Debits are increases to assets and expenses

Question 5

Incomplete records can,with some additional information,be converted into an income statement and statement of financial position

Question 6

At the beginning of the financial year,trade receivables are £4,560 and trade payables are £3,780.Cash received from receivables in the year are £38,240 and cash paid to payables are £18,040.Closing receivables are £2,268 and closing payables are £4,040.
What are the purchases of the business in the year?

A) £40,508
B) £22,080
C) £35,948
D) £18,300

Question 7

The assets and liabilities of Angus & Co.at 31st Dec were as follows:
$$\begin{array} { l c } \text { Inventory } & 110,950 \\\text { Trade receivables } & 12,600 \\\text { Trade payables } & 18,000 \\\text { Accruals } & 750 \\\text { Prepayments } & 850 \\\text { Bank balance } & £ 8,000\end{array}$$
What is the capital at 31st December

A) £151,150
B) £151,250
C) £113,650
D) £113,450

Question 8

Robert's bank statements show he had an opening bank balance of £13,000 and a closing bank balance of £16,000.Robert knows he paid £12,000 to suppliers and that he took drawings of £3,000.Calculate what Robert received from debtors.

A) £18,000
B) £8,000
C) £31,000
D) £13,000

Question 9

The opening capital of Overdrive Ltd at 1st January was £31,000.At 31st December the capital figure was £45,000.How much profit had been earned?

A) It is not possible to tell from the information provided
B) £14,000
C) (£14,000)
D) £45,000

Question 10

At the beginning of the financial year,trade receivables are £6,000 and trade payables are £4,000.Cash received from receivables in the year are £40,000 and cash paid to payables are £20,000.Closing receivables are £3,000 and closing payables are £5,000.
What are the sales of the business in the year?

A) £43,000
B) £37,000
C) £25,000
D) £19,000

Question 11

Bloom has sales of £12,000.The gross profit percentage is 25% of sales.If opening stock was £300 and closing stock £250,what were Bloom's purchases?

A) £3,000
B) £2,050
C) £4,050
D) £3,050

Question 12

Not every debit has a credit

Question 13

At the end of the year,NewBiscuit company has inventory in hand at a selling price of £10,500.What was the cost of inventory assuming inventory is sold at a margin of 50%?

A) £5,250
B) £8,000
C) £3,000
D) £7,000

Question 14

The assets and liabilities of Bon & Co.at 31st Dec were as follows:
$$\begin{array} { l c } \text { Inventory } & 14,450 \\\text { Trade receivables } & 2,300 \\\text { Trade payables } & 3,000 \\\text { Accruals } & 200 \\\text { Prepayments } & 250 \\\text { Bank balance } & £ 1,250\end{array}$$
What is the capital at 31st December?

A) £15,050
B) £18,250
C) £3,200
D) £14,450

Question 15

At the end of the year,Terraplane company has inventory in hand at a selling price of £20,600.What was the cost of inventory assuming inventory is marked up at 60%?

A) £12,875
B) £8,000
C) £8,240
D) £12,360

Question 16

At the end of the year,NewBiscuit company has inventory in hand at a selling price of £10,500.What was the cost of inventory assuming inventory is marked up at 50%?

A) £5,250
B) £8,000
C) £3,000
D) £7,000

Question 17

Tom's bank statements show he had an opening bank balance of £3,000 and a closing bank balance of £7,000.Tom knows he paid £5,000 to suppliers and that he took drawings of £1,200.Calculate what Tom received from debtors.

A) £13,200
B) £5,000
C) £9,800
D) £10,200

Question 18

Assets = Liabilities - Capital

Question 19

It is essential that every business keeps a complete record of ALL transactions

Question 20

At the beginning of the financial year,trade receivables are £6,000 and trade payables are £4,000.Cash received from receivables in the year are £40,000 and cash paid to payables are £20,000.Closing receivables are £3,000 and closing payables are £5,000.
What are the purchases of the business in the year?

A) £43,000
B) £37,000
C) £25,000
D) £19,000