Accounting for Business Students by Peter Atrill, Eddie McLaney, David Harvey | 9781488616570 | 1488616574 | Holooly

Accounting for Business

Accounting for Business Students

235 SOLVED PROBLEMS

Question: 4.5

Suppose that the vehicle expenses included in the account shown in Example 4.3 had not included the cost of servicing, which was completed, but not billed, on 6 January. The cost was $250. This needs to be included as an expense, but also shown as a liability—accrued vehicle expenses—in the balance ...

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This will be reflected in the following accounts a...

Question: 4.4

Suppose, in Example 4.3, that sundry expenses included a payment of $200 which related to a later period. The sundry expenses figure would need to be reduced and an asset account set up. The expense would then be transferred to the profit and loss account. The journal will appear as follows: ...

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The accounts after posting will appear as follows:...

Question: 3.3

Better-Price Stores, which we considered in Example 3.2 began the reporting period with unsold inventories of $40,000 and during that year bought inventories at a cost of $289,000. At the end of the year, unsold inventories of $75,000 were still held by the business. ...

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The opening inventories at the beginning of the ye...

Question: 10.A.23

What favourable and unfavourable trends did you observe in Example 10.6? ...

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In terms of the favourable trends revealed, you ma...

Question: 11.8

Goodsports Ltd is a retail shop that operates through three department all in the same premises. The three departments occupy roughly equal areas of the premises. The trading results for the year just ended showed the following: ...

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It seems that general cloths department closed, th...

Question: 12.10

PDH Ltd, small firm of building contractors, has, on your advice, prepared a budget for the next year and is aiming to increase output in an effort to improve profits. The actual results for last year have been finished and both sets of figures are given below. ...

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You ascertain that the materials have been priced ...

Question: 12.7

A business consists of four cost centres: • Preparation department • Machining department • Finishing department • Human resources and training (HRT) department. The first three product cost centres and the last renders a service to the other three. The level of service rendered is thought to be ...

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Preparation department Machining department Fi...

Question: 12.3

Johnson Ltd has overheads of $60,000 each month. Each month 2,500 direct labour hours are worked and charged to units of output (the business’s products). A particular job uses direct materials costing $238. Direct labour worked on the the job is 15 hours and the wage rate is $25 an hour . ...

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First, let us establish 'overhead recovery rate' —...

Question: 4.A.4

Show the ledger entries for the following transactions: (a) F. Lintstone invests $150,000 in a business known as Dino’s Den. (b) The business borrows a further $50,000 from the bank. (c) The business purchases plant and equipment for $30,000, and a vehicle for $20,000. (d) It purchases inventory ...

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Cash Capital 150,000 Plant and equipment 30,000...

Question: 4.11

Let us assume that we have a system of ledger accounts which on June 30, the year end, includes opening stock ($150,000) and purchases ($900,000). The value of closing stock has been determined as $200,000, but this has not yet been recorded. We need to transfer the two current balances to a cost ...

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The ledger accounts would appear as follows: I...

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