Account Alevels
Question 1
Imperial Luxurious is a business providing marketing design services. On 1 March 2011 the following balances were extracted from the books: £ Capital 150 000 Premises 120 000 Fixtures and fittings 24 000 Provisions for depreciation on: premises 5 000 fixtures and fittings 6 000 Debtors 17 500 Creditors 8 500 Bank 8 000
For the month of March the following summarised transactions occurred: • Credit sales of £28 000 were invoiced to customers. • Debtors paid cheques for £24 300 after being allowed £250 discount for prompt settlement. • Additional fixtures and fittings were purchased for £4 000 on credit. • Operating expenses of £4 750 were paid by cheque. • Design materials of £1 350 were purchased on credit. • After receiving £150 discount for prompt settlement, creditors were paid £6 200 by cheque. • Bank charges of £600 were charged to the bank account. • Wages of £12 000 were paid by cheque.
Required:
(a) Prepare the trial balance at 31 March 2011.
(10)
Additional information at 31 March 2011: • Operating expenses of £1 600 were accrued. • Depreciation is charged using the straight line method at the rate of: i) Premises 2% per annum ii) Fixtures and fittings 15% per annum.
(b) Prepare the profit and loss account for the month of March 2011.
(8)
(c) Prepare the statement of financial position as at 31 March 2011.
(4)
(d) Name three (3) adjustments that do not affect the trial balance agreement.
(3)
Question 2
The following information is available from the accounts of Gheetha for the year ended 30 November 2010. On 1 December 2009 the following account balances were in the books: £ Electricity 250 CR Marketing expenses 720 CR Provision for doubtful debts 2000 CR
(i) The electricity account records show the following: Cheque payments £ 7 December 2009 250 14 March 2010 425
Imperial Luxurious is a business providing marketing design services. On 1 March 2011 the following balances were extracted from the books: £ Capital 150 000 Premises 120 000 Fixtures and fittings 24 000 Provisions for depreciation on: premises 5 000 fixtures and fittings 6 000 Debtors 17 500 Creditors 8 500 Bank 8 000
For the month of March the following summarised transactions occurred: • Credit sales of £28 000 were invoiced to customers. • Debtors paid cheques for £24 300 after being allowed £250 discount for prompt settlement. • Additional fixtures and fittings were purchased for £4 000 on credit. • Operating expenses of £4 750 were paid by cheque. • Design materials of £1 350 were purchased on credit. • After receiving £150 discount for prompt settlement, creditors were paid £6 200 by cheque. • Bank charges of £600 were charged to the bank account. • Wages of £12 000 were paid by cheque.
Required:
(a) Prepare the trial balance at 31 March 2011.
(10)
Additional information at 31 March 2011: • Operating expenses of £1 600 were accrued. • Depreciation is charged using the straight line method at the rate of: i) Premises 2% per annum ii) Fixtures and fittings 15% per annum.
(b) Prepare the profit and loss account for the month of March 2011.
(8)
(c) Prepare the statement of financial position as at 31 March 2011.
(4)
(d) Name three (3) adjustments that do not affect the trial balance agreement.
(3)
Question 2
The following information is available from the accounts of Gheetha for the year ended 30 November 2010. On 1 December 2009 the following account balances were in the books: £ Electricity 250 CR Marketing expenses 720 CR Provision for doubtful debts 2000 CR
(i) The electricity account records show the following: Cheque payments £ 7 December 2009 250 14 March 2010 425