Financial Year Trading Account

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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?

$18 000 Signup and view all the answers

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

$30 000 Signup and view all the answers

What type of business structure is described in the passage?

Sole Proprietorship 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?

75,000 Signup and view all the answers

Which accounting principle is described in the text?

Prudence Signup and view all the answers

What is the correct balance on the suspense account?

1,700 credit Signup and view all the answers

What journal entry corrects the error in the trial balance?

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

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

8,000 Signup and view all the answers

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

10,000 Signup and view all the answers

What is the purpose of a suspense account?

To temporarily hold transactions that cannot be classified Signup and view all the answers

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

Current assets decrease and owner's capital increases Signup and view all the answers

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

$7590 Signup and view all the answers

What is included in the prime cost of manufacturing?

Purchase of raw materials 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%?

$20 Signup and view all the answers

Financial Year Trading Account

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