Accounts Important

7/25/2019 Accounts Important

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Quiz

1. Fill in the Blanks:

a. A partnership firm normally requires a maximum of persons.

b. Owners of a Partnership are liable to for all liabilities of the firm.

d. Partners have a relationship between them.

e. he individuals who own the partnership business are !alled !olle!tively referred to as

.

Answers

"a# $% persons

"b# Pay

"!# &e'al

"d# Partnership

2.(hi!h of the followin' statements are )*+ or FA&,+-

a. A partner may sometimes not work in a partnership that he part owns.

b. he interests of partners may not be used as future !apital in the business.

!. A partnership firm has separate le'al entity from its owners.

Answers

"a# rue

"b# False

"!# False

3.(hi!h of the followin' statement are )*+ or FA&,+ -

"a# he members of a !ooperative 'et a fixed rate of dividend from profit.

"b# A !ooperative so!iety !an not enter into any !ontra!t.

"!# he liability of the members of a !ooperative is unlimited.

"d# A !ooperative so!iety needs not be re'istered.

"e# A member of a !ooperative so!iety may have votin' power based the amount of shares owned.

Answers

"a# rue

"b# rue

"!# False

"d# False

"e# False


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4. Fill in the blanks:

"a# A !ooperative so!iety may not !ease to exist with the of a member.

"b# /ew members of a !ooperative are obtained .

"!# is the primary motive of a !ooperative.

"d# he maximum membership to 'et a !ooperative re'istered is .

"e# 0ost !ooperative so!iety are restri!ted by .

Answers

"a# death

"b# 1oluntarily

"!# ,ervi!e

"d# *nlimlited

"e# 2apital

5.(hi!h of the followin' statements are )*+ or FA&,+ -

"a# he minimum membership for a publi! limited !ompany is 3%.

"b# A !ompany is dissolved with the entry of a new member.

"!# he members of a !ompany may transfer their shares throu'h on the sto!k market.

"d# he liability of the members of a 4oint ,to!k 2ompany is limited.

Answer

"a# False

"b# False

"!# rue

"d# rue

6. Fill in the blanks:

"a# A !ompany has existen!e.

"b# A !ompany may en5oy the benefits of operation.

"!# A partnership may be mana'ed by .

"d# (hen the s!ale of operation of the business is a sole proprietorship form is preferred.

"e# he !apital of a sole trader may not be in the sto!k market.

Answer

"a# Perpetual

"b# &ar'e ,!ale

"!# Partners

"d# ,mall

"e# not


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7.Fill in the blanks with suitable word6words:

"a# A!!rual !on!ept relates to the determination of 777777777777.

"b# 8oods of )s.3%%%% are sold on $3th 0ar!h $%%9 but payment is re!eived on %th April $%%;.


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Answer

Previous|

QuizQuestion 1

On >e!ember ?@ $%%@ 4ohn enry found that the debit side of his trial Balan!e ex!eeded the !redit

side by CD$. he differen!e was put to a suspense a!!ount. February of $% the followin' errors

were dis!overed in the books:

. 93 paid for the pur!hase of Fixtures had been entered to Pur!hases a!!ount.
http://wizznotes.com/accounts/double-entry/effect-of-transactions-on-the-balance-sheethttp://wizznotes.com/accounts/double-entry/effect-of-transactions-on-the-balance-sheet


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$. 2ommissions re!eived of $ was debited to the 2ommissions re!eived a!!ount.

?. he )eturns


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). 8uberman keeps a three !olumn 2ash Book. All !heques re!eived are banked immediately. All

small payments of $% or less are paid out of a petty !ash float of 3% and re!orded in a Petty 2ash

Book with four analysis !olumns: Posta'e@ ravellin'@ ,undry +xpenses@ and small pur!hases of

sto!k.

*sin' the followin' information@ you are required to:

. (rite up his 2ash Book and balan!e it.

$. (rite up the Petty 2ash Book and balan!e it.

O!tober 9 Balan!es: Bank 3;C

2ash $9

Petty 2ash D

; )eimbursed petty 2ash Float

; + (inters settled his debt of 3G% by !ash

less 3H dis!ount.

D )e!eived !heque from A. Adam 9;3

D Paid for sto!k by !heque. C;?

$% Bank !har'es for servi!es. ?

$ 2ash sales for the week ;$%

$ Pur!hased posta'e stamps $

$ Pur!hased small items of sto!k ;

$$ Banked !ash 3%%

$$ Paid for sto!k by !heque 93%

$? >rew !heques for wa'es. ?%%

$? Paid taxi fare for errands ;.93

$C ,ent ). Boone a !heque to settle a debt

of ;3% @ less CH !ash dis!ount.

$9 )eimbursed petty !ash float

$9 Paid for posta'e of pa!ka'e. G

$G 2ash sales for the week @$;3

$G Banked !ash @33?.?3

?% A. AdamEs !heque for 9;3 marked

>ishonoured was returned.

? Paid for !leanin' and paintin'. 3

Solution

.


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$.


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Question 3

he followin' were transa!tions for 8reen Food +nterprises for the month of 4une $%%;.

,eptember ,old 8oods to 1. Bentley C@3%%

,eptember 9 1. Bentley returned 'oods to us @$%%

,eptember D Bou'ht 'oods on !redit from 0. 0i!key G@C%%

,eptember ,old 'oods on !redit to 2. )yan $@C%%

,eptember ; 2redit pur!hases from >is!ount (holesalers ?@%%%

,eptember $$ )eturned 'oods to 0. 0i!key C%%

,eptember $C Bou'ht Fixtures from Best Furnishin's for use in the business C@D%%

,eptember $G ,old 'oods on !redit to B. 8umby @?3%

)equired:

"A# 0ake +ntries in the books of ori'inal entry "subsidiary books# for 8reen Food +nterprises.

"B# Post the books of ori'inal entry to the led'er at the end of the month.

Solution

"A#


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"B#


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Quiz

Question 1

he re!ords of ). 8raham showed the followin' pur!hases and sales of sto!k for the months of 0ay

and 4une $%%9.

0ay $ Pur!hased $ boxes of wine at C% per box

0ay ; Pur!hased $% boxes of sodas at $% per box

4une G Pur!hased % boxes of vine'ar at 9% per box

4une $3 Pur!hased 3 boxes of vine'ar at % per box

4une ?% ,old ?$ boxes at 93 ea!h.

)equired:

*se the &


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Question 2

he Followin' balan!es were extra!ted from the rial balan!e of . Brooks (holesale at the end of

$%%3.

2reditors C%%

Pur!hases ?$@%%%

)eturns Outwards ?@9%%

Openin' ,to!k C@G%%

2losin' ,to!k ?@$%%

)ent owin' 9%%

>ebtors $@%%%

2ash in hand $@G%%

)equired:. 2al!ulate the followin' )atios:

"a#2urrent )atio

"b#A!id est )atio

"!#)ate of ,to!k urnover

$. (hat is the purpose of ea!h ratio-

?.


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$.

"a# 2urrent )atio provides indi!ation of the business to meet its short term finan!ial !ommitments.

he !omparison is made with "!urrent# assets whi!h will be!ome liquid within a year and "!urrent#

liabilities whi!h should be paid within the same period of one year. his will indi!ate if the business

has enou'h short term assets to meet its short term payments.

"b# A!id test ratio indi!ates the ability of the business to meet it short term payments 'iven the

situation where all debtors settle and all !reditors are paid at the same time.

"!# ,to!k turn provides an indi!ation as to how fast or slow sto!k is been sold.


19/30


Quiz

Question 1

,am BrownEs a!!ountin' period is from 4anuary to >e!ember ?. he followin' provides

information for three periods.

Year Debtor Balances Provision or Doubtul Debts

$%%% $%@%%% 3H

$%% ?%@%%% 9H

$%%$ $3@%%% CH

)equired:

(rite up the Provision for >oubtful >ebts A!!ount for ea!h of the three years endin' >e!ember ?

$%%% to $%%$.

Solution

Question 2


20/30

/ovelty 2hemi!als bou'ht a 0otor 1ehi!le for %@%%% on 4anuary 3@ $%%$. he estimated useful

life of the vehi!le is ten years. he disposal value is estimated at %@%%%. Annual depre!iation is on

the strai'ht line method.

)equired for years $%%$@ $%%? and $%%C:

"a#he a!!umulated >epre!iation a!!ount 0otor 1ehi!le

"b#he Balan!e ,heet extra!ts for motor vehi!le and its related depre!iation.

"!#he Profit and &oss a!!ounts extra!ts for annual depre!iation

Solution


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Question 3

he rial balan!e of (holesome 8ro!eries as at >e!ember ?@ $%%3 is shown below.

/otes:

2losin' ,to!k G@%%%

)ent paid in advan!e C@%%%

(a'es and ,alaries owin' ?@C%%

e!ember ?$@ $%%3

$. he Balan!e ,heet as at >e!ember ?@ $%%3.


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Solution

.

$.


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$.


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?.he fi'ure whi!h represented the ori'inal differen!e in the rial Balan!e is %??.

Question 2

he followin' >etails were extra!ted from the books of An'ene BisorJ$%%;

O!tober >ebit balan!es for ,ales &ed'er ?@%3%

2redit balan!es for ,ales &ed'er 3%

2redit balan!es for Pur!hases &ed'er $@3%%

>ebited balan!es for Pur!hases &ed'er D$3

otals for the month endin' O!tober ?@ $%%;

2redit sales %@%3%

2ash and !heques re!eived ;@%%

Bad >ebts written off ?;3

>is!ounts Allowed $3%

)eturns ishonoured !heques from !ustomers ;%%

Pur!hases 4ournal 3@;3%

2heques paid to suppliers ;@3%%

>is!ount )e!eived G;%

)eturns Outwards ?%%

)equired:

"A#+nter up the ,ales &ed'er 2ontrol a!!ounts and he Pur!hases &ed'er 2ontrol A!!ounts for

O!tober $%%;.

"B#From whi!h books would the total of 2redit ,ales@ >is!ount allowed@ and )eturns


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Lou are informed that:

Bank !har'es of ;% shown on the bank statement have not been entered in the !ash book.

Four !heques in the sums of %%@ 3%@ $3 and ;3 have not been presented to the bank

A ,tandin' Order for *tilities of $%% was paid by the bank but not entered to the !ash book.

A !ustomers !heque for C%% was returned by the bank marked Mrefer to drawerN. /o entry was

made in the !ash book.

he bank did not !redit (ethernorthEs !urrent a!!ount with a lod'ement of $@3%% made on April

?% $%%.

wo !ustomers >. 0ark and F. 8arvey deposited $%% and ?%% respe!tively dire!tly into the

!urrent a!!ount of (ethernorth.

)equired:

"a#,how the ad5ustments you will make in (ethernorthEs 2ash Book.

"b#Prepare a Bank )e!on!iliation ,tatement as at April ?%@ $%% to show the Bank ,tatement

balan!e.

Solution


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