- Joined
- Dec 11, 2011
- Messages
- 1
- Reaction score
- 0
I'm currently studying AAT Level 3 Diploma in Accounting, in anticipation of my exam after Christmas my tutor has set me some questions to work on, some are post trial balance adjustments which we have never been taught. I will post some of the questions could somebody talk me through how to do them?
1. On 1 January 20X2, a sole trader had a balance b/f on her allowance for doubtful debts account of £345. On 31 December 20X2 she wished to make a specific allowance of £303 against a customer's debt outstanding on that date, but decided no other allowance was needed at that date. The figure which will be included in the allowance for doubtful debts adjustment account for the year ended 31 December 20X2 will be
2. At the end of his accounting period, a sole trader had goods for resale in closing inventory. These will be shown as a current asset in the statement of financial position, and an addition in cost of sales in the income statement.
TRUE
FALSE
3. On 1 January 20X1 a sole trader had a balance b/f on his allowance for doubtful debts account of £150. On 31 December 20X1, the trade receivables outstanding were £8,430. Of these, the trader believed that £80 would definitely be irrecoverable, and that the allowance for doubtful debts should remain the same. The total amount charged to the income statement will be and the total amount credited to trade receivables will be
4. A sole trader paid her buildings insurance policy on 30 September 20X1 for the year commencing 1 October 20X1. Where will this appear in the statement of financial position for the year ended 30 September 20X1?
Other receivables
Other payables
5. A partnership wishes to create an allowance for doubtful debts at 31 December 20X2 of £628. What will be the double entry to record this?
Dr allowance for doubtful debts £628, Cr allowance for doubtful debts adjustment £628
Dr allowance for doubtful debts £628, Cr trade receivables £628
Dr allowance for doubtful debts adjustment £628, Cr allowance for doubtful debts £628
Dr irrecoverable debt expense £628, Cr trade receivables £628
6. A sole trader has a balance b/f on his allowance for doubtful debts account of £206 on 1 July 20X1. On 30 June 20X2, the balance on the trade receivables account was £12,600. He wishes to have a balance c/f on the allowance for doubtful debts account at 30 June 20X2 of 2% of this amount. What amount will be included in the allowance for doubtful debts adjustment account for the year ended 30 June 20X2?
7. A sole trader's statement of financial position for the year ended 31 March 20X1 included in Other payables an accrual for electricity of £275. In the year ended 31 March 20X2, he paid electricity bills for the period up to 31 January 20X2 totalling £1,640. He didn't receive the next bill for the three months to 30 April 20X2 until May 20X2. This showed an amount owing for this quarter of £306. How will this be shown in the financial statements for the year ended 31 March 20X2? The income statement will show heat and light expense of and the statement of financial position will include in Other payables an accrual of
8. A sole trader prepares accounts to 31 December annually. On 31 December 20X1 a stationery bill for £26 was accrued. In the year ended 31 December 20X2 the trader paid a total of £292 for stationery, but on 31 December 20X2 a bill for £34 needed to be accounted for. What will be the figure for stationery expense in the income statement for the year ended 31 December 20X2?
£326
£284
£292
£300
£284
1. On 1 January 20X2, a sole trader had a balance b/f on her allowance for doubtful debts account of £345. On 31 December 20X2 she wished to make a specific allowance of £303 against a customer's debt outstanding on that date, but decided no other allowance was needed at that date. The figure which will be included in the allowance for doubtful debts adjustment account for the year ended 31 December 20X2 will be
2. At the end of his accounting period, a sole trader had goods for resale in closing inventory. These will be shown as a current asset in the statement of financial position, and an addition in cost of sales in the income statement.
TRUE
FALSE
3. On 1 January 20X1 a sole trader had a balance b/f on his allowance for doubtful debts account of £150. On 31 December 20X1, the trade receivables outstanding were £8,430. Of these, the trader believed that £80 would definitely be irrecoverable, and that the allowance for doubtful debts should remain the same. The total amount charged to the income statement will be and the total amount credited to trade receivables will be
4. A sole trader paid her buildings insurance policy on 30 September 20X1 for the year commencing 1 October 20X1. Where will this appear in the statement of financial position for the year ended 30 September 20X1?
Other receivables
Other payables
5. A partnership wishes to create an allowance for doubtful debts at 31 December 20X2 of £628. What will be the double entry to record this?
Dr allowance for doubtful debts £628, Cr allowance for doubtful debts adjustment £628
Dr allowance for doubtful debts £628, Cr trade receivables £628
Dr allowance for doubtful debts adjustment £628, Cr allowance for doubtful debts £628
Dr irrecoverable debt expense £628, Cr trade receivables £628
6. A sole trader has a balance b/f on his allowance for doubtful debts account of £206 on 1 July 20X1. On 30 June 20X2, the balance on the trade receivables account was £12,600. He wishes to have a balance c/f on the allowance for doubtful debts account at 30 June 20X2 of 2% of this amount. What amount will be included in the allowance for doubtful debts adjustment account for the year ended 30 June 20X2?
7. A sole trader's statement of financial position for the year ended 31 March 20X1 included in Other payables an accrual for electricity of £275. In the year ended 31 March 20X2, he paid electricity bills for the period up to 31 January 20X2 totalling £1,640. He didn't receive the next bill for the three months to 30 April 20X2 until May 20X2. This showed an amount owing for this quarter of £306. How will this be shown in the financial statements for the year ended 31 March 20X2? The income statement will show heat and light expense of and the statement of financial position will include in Other payables an accrual of
8. A sole trader prepares accounts to 31 December annually. On 31 December 20X1 a stationery bill for £26 was accrued. In the year ended 31 December 20X2 the trader paid a total of £292 for stationery, but on 31 December 20X2 a bill for £34 needed to be accounted for. What will be the figure for stationery expense in the income statement for the year ended 31 December 20X2?
£326
£284
£292
£300
£284