Questions from Business Accounting

Q: G. Brown’s sales including VAT were £130,000 in

G. Brown’s sales including VAT were £130,000 in November 2020, then £150,000 in December 2020, and £110,000 during January 2021. Suppose that the rate of VAT was 20% until 31 December 2020 and 22.5% f...

Q: Mudgee Ltd issued the following invoices to customers in respect of credit

Mudgee Ltd issued the following invoices to customers in respect of credit sales made during the last week of May 2020. The amounts stated are all net of Value Added Tax. All sales made by Mudgee Ltd...

Q: On 1 March 2020, B. Cox, Middle Road,

On 1 March 2020, B. Cox, Middle Road, Paisley, a VAT-registered business, sold the following goods on credit to T. Ross, 24 Peter Street, Loughborough, Order No. 9841: 20,000 Coils Sealing Tape @ £6.7...

Q: Robles & Co is a VAT-registered business. During the

Robles & Co is a VAT-registered business. During the quarter just ended, it bought goods and services to the value of £51,690 excluding VAT, and its sales were £81,906 including VAT. All of the busine...

Q: Explain why it is important to keep notes of all the workings

Explain why it is important to keep notes of all the workings you use in a financial calculation.

Q: Explain how to calculate depreciation using the reducing balance method.

Explain how to calculate depreciation using the reducing balance method.

Q: Enter the following transactions in the appropriate accounts: Aug

Enter the following transactions in the appropriate accounts: Aug 1 Started in business with £7,400 cash. 2 9aid £7,000 of the opening cash into the bank. 4 Bought goods on time £410 from J. Watson. 5...

Q: From the following figures, calculate the closing inventory that would be

From the following figures, calculate the closing inventory that would be shown using the (i) FIFO, (ii) LIFO, (iii) AVCO methods on a perpetual inventory basis.

Q: Draw up trading account parts of the income statement using each of

Draw up trading account parts of the income statement using each of the three methods from the details in Review question 18.3A. Review Question 18.3A:

Q: (a) Tomasz’s business buys and sells various products, including

(a) Tomasz’s business buys and sells various products, including Product J. The business has 100 units of J in stock at 1 February valued (using the FIFO assumption) at £...