Q: Ameer purchased a business that buys and sells electrical household goods.
Ameer purchased a business that buys and sells electrical household goods. When taking over the business, Ameer realised that the existing inventory was obsolete. He therefore decided to have a cleara...
See AnswerQ: Lohit is in business buying and selling goods on credit. The
Lohit is in business buying and selling goods on credit. The following information relates to his bad and doubtful debts for the year ended 31 August 2024. 1. Balance of Allowance for Doubtful Debts A...
See AnswerQ: The balance sheet of Tyrone’s business as at 31 December 2021 included
The balance sheet of Tyrone’s business as at 31 December 2021 included an allowance for doubtful debts of £4,010 and an allowance for prompt payment discounts of £288. Tyrone is now in the process of...
See AnswerQ: The following balances appeared in the trial balance of Dave Bainbridge’s business
The following balances appeared in the trial balance of Dave Bainbridge’s business as at 30 June 2024: Trade receivables ……………………………………. 117,000£ Bad debts expense ……………………………………… 18,720 Bad debts rec...
See AnswerQ: A business, which started trading on 1 January 2022, adjusted
A business, which started trading on 1 January 2022, adjusted its allowance for doubtful debts at the end of each year on a percentage basis, but each year the percentage rate is adjusted in accordanc...
See AnswerQ: (a) As at 31 October 2024, a balance of
(a) As at 31 October 2024, a balance of £12,900 on the allowance for doubtful debts account of Daisy’s business had been brought forward from the previous year end. It was then decided that specific d...
See AnswerQ: Sema plc, a company in the heavy engineering industry, carried
Sema plc, a company in the heavy engineering industry, carried out an expansion programmed during its most recent financial year, in order to meet a permanent increase in contracts. The company select...
See AnswerQ: Which of the following are shown under the wrong headings?
Which of the following are shown under the wrong headings?
See AnswerQ: On 18 August 2024, J. Barton purchased a new machine
On 18 August 2024, J. Barton purchased a new machine from DelFalco Ltd. Barton paid the following amounts in relation to this acquisition: List price of machine ………………………………………………. 195,000£ Costs of p...
See AnswerQ: Indicate which of the following would be revenue items and which would
Indicate which of the following would be revenue items and which would be capital items in a wholesale bakery: (a) Purchase of a new van. (b) Purchase of replacement engine for existing van. (c) Cost...
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