Financial Year Trading Account
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Questions and Answers

What is the accumulated depreciation of the vehicle on disposal?

  • $21 000 (correct)
  • $9000
  • $22 500
  • $7500
  • What type of account would the motor vehicle be charged to?

  • Motor liabilities
  • Motor expenses (correct)
  • Motor assets
  • Motor revenues
  • What is the profit on disposal of the vehicle?

  • $30 000
  • $7500
  • $9000
  • $1500 (correct)
  • What is the carrying value of the vehicle at the time of disposal?

    <p>$18 000</p> Signup and view all the answers

    What is the cost of the vehicle to the transport business?

    <p>$30 000</p> Signup and view all the answers

    What type of business structure is described in the passage?

    <p>Sole Proprietorship</p> Signup and view all the answers

    What is the correct sales figure to be reported in the trading account for the year ended 30 November 2008?

    <p>75,000</p> Signup and view all the answers

    Which accounting principle is described in the text?

    <p>Prudence</p> Signup and view all the answers

    What is the correct balance on the suspense account?

    <p>1,700 credit</p> Signup and view all the answers

    What journal entry corrects the error in the trial balance?

    <p>Debit suspense account 27,000, credit purchases ledger control account 27,000</p> Signup and view all the answers

    What is the cost price of goods sold on a sale or return basis?

    <p>8,000</p> Signup and view all the answers

    What is the invoice price of goods sold on a sale or return basis?

    <p>10,000</p> Signup and view all the answers

    What is the purpose of a suspense account?

    <p>To temporarily hold transactions that cannot be classified</p> Signup and view all the answers

    What is the effect on the balance sheet when a business sells stock on credit?

    <p>Current assets decrease and owner's capital increases</p> Signup and view all the answers

    What is the cost price of the equipment that was sold for $6000 with a profit of $1590?

    <p>$7590</p> Signup and view all the answers

    What is included in the prime cost of manufacturing?

    <p>Purchase of raw materials</p> Signup and view all the answers

    What is the factory cost of goods manufactured if the selling price per widget is $25 and the cost plus pricing is 20%?

    <p>$20</p> Signup and view all the answers

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