The profit earned by a business in 2022 was £72,500. The proprietor injected new capital of £8,000 during the year and withdrew goods for his private use which cost £2,200. If net assets at the beginning of 2022 were £101,700 what were the closing net assets? a) £25,000 b) £39,400 c) £168,400 d) £180.000
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- A business has net assets of £296,400 on 31 Jan 2021 and had net assets of £256,250 on 31 Jan 2020. During the year the owner of the business: 1. took goods for his own use which cost £8,000 and had a market value of £12,000; 2. introduced capital of £45,000; and 3. withdrew £35,000 as salary. What was the profit for the year?Fun Runners (Pty) Ltd incurred the following transactions during April 2022:1. Mr. Nike increased his capital contribution with R50 000.2. Stock to the value of R34 000 was purchased using the perpetual inventory system.3. Sell goods of R14 500 to Mrs. Fast on credit. The cost of the goods amounts to R10 000.4. Settle the telephone account, received last week, of R1 400.5. New takkies of R2 300 were sold to the primary school at cost. The school does not have a credit facility with Fun Runners (Pty) Ltd.6. Mr. Nike purchased a new delivery vehicle of R150 000 through bank financing with Pacing Bank Required:Record the transactions incurred by Fun Runners (Pty) Ltd, outlining the basic accounting equation and the general ledger accounts affected. Detailed in the following format:a + to indicate an increase; and – for a decrease on the accounts No Assets Equity Liability Account debited Account CreditedThe Owner's Capital has a beginning balance of P626,000. The owner gave P130,000 additional contribution during the year. Based on the Statement of Comprehensive Income. net income for the year was P355,000. How much money did the owner withdrew from the business? Accounts Payable Accounts Receivable Accrued Expenses Accumulated Depreciation Cash Inventory Investments Your answer Mortgage Payable 57,000 65,000 Notes Payable 37,000 Notes Receivable Your answer 110,000 Owner, Capital 91,000 Prepaid Expenses 89,000 Property, Plant and Equipment 143,000 Unearned Revenue 400,000 130,000 283,000 ? 64,000 850,000 18,000 An entity began October with office supplies of P16,500. During the month, the entity purchased supplies of P27,100. On October 30, supplies on hand totaled P21,200. How much should be recorded as supplies expense for the month?
- Question 1 Nana John is a self-employed as a hairdresser and lives in the UK. She has the following information available for the year ended 2021/22 Trading profit for the year ended 30 June 2021 Nana's statement of profit or loss for the year ended 30th June 2021 is as follows: Income Expenses Depreciation Motor Vehicle Professional fees Property expenses Purchases Other expenses Net profit Note 1 2 3 4 5 £ 2,635 2,200 1,650 12,900 4,700 16,550 £ 63,635 (40,635) 23,000 1. Nana John charges all the running expenses for her motor car to the business. During the year ended 30 June 2021 Nana drove a total of 8,000 miles of which 7,000 were for private journeys. 2. The figure for professional fees includes £1,260 for legal fees in connection with the grant of a new five-year lease of parking spaces for customers' motor cars. 3. Nana lives in a flat that is situated above her hairdressing studio and one-third of the total property expenses of £12,900 relate to this flat. 4. During the year…The owner’s capital of FDNACCT was P100,000 on October 1, 2020, the beginning of its fiscal year. The owner invested an additional P24,000 in the business during the year and withdrew P8,000 for personal use. Net income for the year amounted to P47,800. How much is the owner’s capital of the business on September 30, 2021?Subject:- accounting
- Bhekisizwe (Pty) Ltd, a micro business, registered its business at the commencement of the 2023 year of assessment and started trading immediately. Its cash turnover for the period was R650 000. Calculate the tax payable for Bhekisizwe (Pty) Ltd for the 2023 year of assessment. a. R5 650 b. R4 650 c. R1 650 d. R6 650The Owner's Capital has a beginning balance of P626,000. The owner gave P130,000 additional contribution during the year. Based on the Statement of Comprehensive Income, net income for the year was P355,000. How much should be reported as total assets in the statement of financial position? Accounts Payable Accounts Receivable Accrued Expenses Accumulated Depreciation Cash Inventory Investments Your answer 57,000 Mortgage Payable 65,000 Notes Payable 37,000 Notes Receivable 110,000 Owner, Capital 91,000 Prepaid Expenses 89,000 Property, Plant and Equipment 143,000 Unearned Revenue 400,000 130,000 283,000 ? 64,000 850,000 18,000At 1 January 2021 Javid has an accrual for electricity of £215. During the year to 31 December 2021 he made payments totalling £3,420 for electricity. At the 31 December he has calculated an accrual of £310 Which of these statements is correct concerning the accounting for the electricity in the financial statements for year end 31 December 2021? a. Statement of profit or loss Expense £3,325 Statement of financial position Liability £310 b. Statement of profit or loss Expense £3,325 Statement of financial position Asset £310 c. Statement of profit or loss Expense £3,515 Statement of financial position Asset £310 d. Statement of profit or loss Expense £3,515 Statement of financial position Liability £310
- Flyers Ltd has a year-end of 31 March 2022. During the year it paid £1,700 for rent. At the start of the year, it had an accrual of £400 and at 31 March 2022 had prepaid £250 of rent in respect of the year starting 1 April 2022. What is the charge to the income account for the year ended 31 March 2022? a) £2,050b) £1,050 c) £1,650 d) £2,200Eddy's statement of profit or loss for his first year of trading to 30 September 2019 showed a charge for insurance of £9,000. Eddy actually paid £13,000 for insurance during that financial year. Which of the following statements is true? a. Insurance had been prepaid by £4,000 at the year end. b. Insurance of £4,000 had been accrued for at the year end. c. Insurance of £9,000 had been accrued for at the year end. d. Insurance of £9,000 had been prepaid at the year end.QUESTION 5 Below are relevant extracts from Pitzer Bhd's financial statements for the financial year ended 31 December 2020 and 31 December 2021: 2020 (RM) 2021 (RM) ASSETS: Freehold land Plant and machinery at cost Inventories Bank Tax recoverable 386,000 182,000 44,000 13,000 6,000 20,000 86,400 737,400 477,000 212,000 52,000 55,000 Fixed deposits Account receivables 27,000 97,200 920,200 LIABILITIES & EQUITIES Ordinary Share Capital General reserve Retained earnings 5% Bank loan Bank overdraft Account payables Tax payable Accumulated depreciation of Plant & Machinery 264,000 112,420 36,400 169,400 13,400 69,780 364,000 112,420 135,280 135,400 7,600 62,340 9,960 93,200 920,200 72,000 737,400