In the income statement what will the figure for rent be? a) £4,200 b) £4,500 c) £5,300 d) £5,000
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Tamsin Trading Limited is preparing its financial statements for the year ended 30 June 2020. Its initial
trial balance includes the following:A debit balance on the rent account of £5,000. This comprises cash paid in the year £5,300 and an accrual carried forward at 1 July 2019 of £300. Included in the £5,300 was the latest bill which was paid on 20 June 2020 for £1,200 and related to the three month period ending 31 August 2020.
In the income statement what will the figure for rent be?
a) £4,200 b) £4,500 c) £5,300 d) £5,000
2. Tibet sells goods to Dempsey Ltd, on credit. Which accounts are to be debited and credited, respectively?
a) Credit Sales A/c & Debit Inventory
b) Debit Receivables A/c - Dempsey Ltd & Credit Sales A/c
c) Debit Equipment A/c & Credit Sales A/c
8. The asset - vehicle worth £21,200 will be
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a) Debit Depreciation A/c & Credit Non-Current Asset A/c
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b) Debit Inventory A/c & Credit Depreciation A/c
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c) Debit Balance Sheet A/c & Credit Profit or Loss A/c
12. Aqua Ltd has operating profit for the year ended 30 June 2020 of £56,300, after charging depreciation of £18,500 and making a profit on the disposal of a car of £1,000. The balance sheet shows the following:
Inventory
Trade Receivables Trade Payables
2019 2020 ££ 8,500 13,200 17,000 15,500 12,600 14,200
What is the net cash from operating activities?
a) £71,200
b) £72,200
c) £78,100
d) £77,100
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