Accounting Quiz

by dilara

Hi to everyone. Recently I had financial accounting quiz, some of the questions were very confusing for me, could you pls help me with them? Thank you in advance!

At 31 march 20x7 accrued rent payable was 300$. during the year ended 31 march 2008 rent paid was 4000 $, including an invoice 1200$ for the quarter ended 30 april 2008. what is the income statement charge for the rent payable for the year ended 31 march 2008?
1) 3300 2) 3900 3) 4100 4) 4700

The net assets of walter’s business decreased by 11,025 $ over the year to 31 october 20x7. during that year he had paid in additional capital of 14,000 $ , drawn cash 875$ each month and on one ocassion taken goods costing 2,625 $ for his own use.
The profit / loss made by the business for the year ended 31 october 20x7 was ___

A business has net assets of 286,400 $ on 31 january 2006 and had net assets of 266,800 $ on 31 january 2005. during the year the proprietor of the business took goods for his own use which cost 10,000 and had market value of 14,000
Introduced capital of 50 000
Withdrew 30 000 as salary
The profit for the year was ___?

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Nov 04, 2009 Answers to the accounting quiz by: Ana Orwel 1.Total payment for rent made in the year ended 31.03.2008 is $4000. From this amount we will have to deduct those amounts which are not related to the expenses of the current year. First we have to deduct $300 rent payable at the beginning of the year, as this amount related to the rent expenses for the prior year. Next we know that the total payment included $1200 payment for the 3 months ended 30.04.2008. From this 3 month period one month should be excluded, since it is next year month, i.e. $1200/3=$400 have to be deducted from total payment of $4000 Finally we get $4000-$300-$400=$3300 rent expenses for the year ended 31.03.2008 to be charged to the income statement 2.To calculate the profit (loss) for the year I would suggest using the below layout: +Increase in capital=$14000 -Drawings for the year=$875*12=($10500) -Taking out of goods=($2625) +/- Profit (Loss)=X? Not known Total change in net assets=-$11025 Let us find X value, i.e. -$11025-$14000+$10500+$2625=-$11900 Loss for the year. 3.Here I will use the same layout as in the question No.2, but also include opening value of net assets: Opening value of net assets=$266800 +Increase in capital=$50000 -Taking out of goods=($10000), we take cost, but not market value, since the goods in the balance sheet are accounted for at cost -Salary=($30000). Important! This is part of profit/loss, since it is an expense. +/- Profit (Loss)=X? Not known Closing value of net assets=$286400 Again we will have to find X=$286400+$30000+$10000-$50000-$266800=$9600, profit excluding salary expenses. The final answer is loss, i.e. $9600-$30000=-$20400 X Close Editor Nov 04, 2009 Rating Submitted by: Ana Orwel Title Comment 1.Total payment for rent made in the year ended 31.03.2008 is $4000. From this amount we will have to deduct those amounts which are not related to the expenses of the current year. First we have to deduct $300 rent payable at the beginning of the year, as this amount related to the rent expenses for the prior year. Next we know that the total payment included $1200 payment for the 3 months ended 30.04.2008. From this 3 month period one month should be excluded, since it is next year month, i.e. $1200/3=$400 have to be deducted from total payment of $4000 Finally we get $4000-$300-$400=$3300 rent expenses for the year ended 31.03.2008 to be charged to the income statement 2.To calculate the profit (loss) for the year I would suggest using the below layout: +Increase in capital=$14000 -Drawings for the year=$875*12=($10500) -Taking out of goods=($2625) +/- Profit (Loss)=X? Not known Total change in net assets=-$11025 Let us find X value, i.e. -$11025-$14000+$10500+$2625=-$11900 Loss for the year. 3.Here I will use the same layout as in the question No.2, but also include opening value of net assets: Opening value of net assets=$266800 +Increase in capital=$50000 -Taking out of goods=($10000), we take cost, but not market value, since the goods in the balance sheet are accounted for at cost -Salary=($30000). Important! This is part of profit/loss, since it is an expense. +/- Profit (Loss)=X? Not known Closing value of net assets=$286400 Again we will have to find X=$286400+$30000+$10000-$50000-$266800=$9600, profit excluding salary expenses. The final answer is loss, i.e. $9600-$30000=-$20400 Cancel Delete Delete & Ban Updating Comments page...

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