1) Glen had net assets of $21,450 at 31 March 20X9. During the year to 31 March 20X9, he introduced $5,600 additional capital into the business and his profit for the year was $9,500. During the year ended 31 March 20X9 he withdrew $7,350.
What was the balance on Glen’s capital account at 1 April 20X8?
2) Which of the following would change the capital of a business?
3) The following information relates to Arthur’s food truck business in the year ended 31 December 20X9:
Inventory drawings of foods
What was the value of sales revenue of the business for the year ended 31 December 20X9?
4) The profit of a business may be calculated using which of the following formulae?
5) Which accounting concept requires that amounts of goods taken from inventory by the proprietor of a business are treated as drawings?
6) The following transactions relate to Honda’s business:
1 May Purchase of goods for resale on credit $3000
2 May Honda injects long term capital into the business $5,600
3 May Payment of rent made $1,500
5 May Honda withdraws cash from the business $8,500
7 May Goods which had cost $8,000 were sold on credit 13,00
At the start of the week, the assets of the business were $29,400 and liabilities amounted to $18,700.
At the end of the week, what was the amount of Honda’s capital?
8) On 1 January 20X9 Cedric Co revalued its property to $160,000. Up to the date of the revaluation, the asset had been accounted for at a cost of $150,000, and had accumulated depreciation $60,000. The property had a useful life of 50 years from the date of purchase and no residual value.
What are the accounting entries required to record the property revaluation in the accounting records?
9) In accordance with IFRS Standards, in which TWO financial statements would you expect to find dividends paid?
A. Statement of cash flows
B. Statement of financial position
C. Statement of profit or loss and other comprehensive income
D. Statement of changes in equity
10) Which of the following would decrease the revenue reserve?