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Quiz

1. The document provides accounting questions and tasks related to transactions, financial statements, inventory valuation, and business entities. It asks the student to record journal entries, calculate account balances, and explain key accounting concepts and terminology. 2. Questions include journalizing transactions for a sole proprietor business, preparing entries for purchases and sales with trade discounts and sales tax, recording a share issue, making a bonus share issue journal entry, bad debt allowance, inventory methods, and defining accruals/prepayments, FIFO/LIFO, irrecoverable debt, tangible/intangible assets, and sole traders/partnerships. 3. The document tests the student's understanding of basic accounting principles including debits and

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25 views4 pages

Quiz

1. The document provides accounting questions and tasks related to transactions, financial statements, inventory valuation, and business entities. It asks the student to record journal entries, calculate account balances, and explain key accounting concepts and terminology. 2. Questions include journalizing transactions for a sole proprietor business, preparing entries for purchases and sales with trade discounts and sales tax, recording a share issue, making a bonus share issue journal entry, bad debt allowance, inventory methods, and defining accruals/prepayments, FIFO/LIFO, irrecoverable debt, tangible/intangible assets, and sole traders/partnerships. 3. The document tests the student's understanding of basic accounting principles including debits and

Uploaded by

aigerim
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Name：

Course：

1. Transactions are recorded on either the debit or the credit side of a ledger account
according to the following table: Choose “increase” or “decrease” fill the table.
Debit Credit
Asset Asset
Liability Liability
Capital Capital
Expense Expense
Sales income Sales income

2. XYZ started a business on 1 May and, during the first month, entered into the
following transactions:
1 May XYZ starts business as a sole proprietor with $20,000 in cash
2 May Pays $15,000 cash into a business bank account
4 May Purchases goods on credit from JM for $2,000
6 May Purchases goods from ERD on credit for $3,000
7 May Pays wages in cash $60
10 May Pays rent by cheque $80
12 May Sells goods for cash $210
16 May Buys furniture for $1,500 paying by cheque
19 May Sells goods on credit to SP for $580
22 May Buys goods for cash $3,900
24 May Buys fittings for cash $600
Pays carriage outwards costs by cheque $25
25 May Pays wages by cash $110
Sells goods for cash $430
27 May Receives part payment from SP of $330 by cheque
Pays carriage inwards costs by cheque $20
28 May Pays advertising by cheque $25
Sells goods for cash $890
29 May Sells goods on credit to KM for $8,090
30 May Withdraws $100 cash for his personal use
Prepare the accounting entries for the transactions.
3. The following transactions relate to PTL during December 20X1:

2 Dec Bought goods on credit from R Williams, list price $350, trade
discount 20 per cent
8 Dec Bought goods on credit from Samuel, list price $750, trade
discount 30 per cent
10 Dec Sold goods on credit to Mary Smythe for $400, no discount,
payment terms 30 days
18 Dec Bought goods on credit from Amir, list price $1,000, trade
discount 25 per cent
26 Dec Sold goods on credit John Blair, $800, no discount All transactions are subject to sales
tax at 20 per cent.

4. an entity that issued 10,000 new ordinary shares, with a nominal value of 50c each, at an issue
price of $2.50. Write-up the accounting entries.
5. Suppose an entity had the following share capital and reserves balances immediately prior to
making a bonus issue of '1 for 5' shares. Please write up the accounting entries and The
resultant share capital and reserves balances
$
Share capital ($0.50) 80,000
Share premium 15,000
Retained earnings 170,000
_____________________________
Total equity 265,000

6. X sold goods to Y on credit on 1 January 20X1 valued at $350. On 30 November 20X1, X


was advised that Y was unable to pay the debt. On 5 December 20X1, Y eventually pay the
debt. On 31 December X set up allowance to $5000. Write up all the relevant accounting
entries.

7. Inventory valuation method


8. Please explain the terminologies shown:
(1) Accrual and Prepayment
(2) FIFO and LIFO
(3) Irrecoverable debt
(4) Tangible and intangible non-current asset.
(5) Sole Traders and Partnerships

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