Questions from Financial Accounting


Q: Strayway PLC sells two planes to Elliott & Elliott Budget Airlines PLC

Strayway PLC sells two planes to Elliott & Elliott Budget Airlines PLC for 5 million euros each payable in two years’ time on presentation of an accepted bill of exchange to be presented through Lloyd...

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Q: Penrith European Car Sales plc sells a new car with ‘free’

Penrith European Car Sales plc sells a new car with ‘free’ 5,000 kilometre and 20,000 kilometre services for a combined price of €41,500. The cost of the car from the manufacturer is €30,000. The two...

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Q: Facts: Henry Falk subscribes to an online monthly gardening magazine

Facts: Henry Falk subscribes to an online monthly gardening magazine and selects the option of a three-year subscription from the following options: One issue ……………………………..………..€12 Twelve issues …………...

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Q: TYV is a manufacturing entity and produces a range of products in

TYV is a manufacturing entity and produces a range of products in several factories. TYV’s trial balance at 30 September 2014 is shown below Notes: (i) On 1 October 2013 two of TYV...

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Q: You have been given the task, by one of the partners

You have been given the task, by one of the partners of the firm of accountants for which you work, of assisting in the preparation of a trend statement for a client, Mercury. Mercury has been in exis...

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Q: Assume the same facts as in Question 4(b) but

Assume the same facts as in Question 4(b) but add the presence of a 7.5% value added tax on the sales and a 1% transaction cost paid to the supplier of credit card transactions. Required: (a) Show th...

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Q: Five G Telephones enters into telephone contracts on the following terms and

Five G Telephones enters into telephone contracts on the following terms and options: Xyz mobile phones …………………………………..€1,000 Basic Y phones ……………………………………………€200 Basic connection service options:...

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Q: The following are criticisms made of the IASB’s 2015 exposure draft proposing

The following are criticisms made of the IASB’s 2015 exposure draft proposing updates to its Conceptual Framework. 1 The framework does not consider the meaning of the term ‘true and fair view’ despit...

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Q: Assume the facts as per Question 6 with the following additional costs

Assume the facts as per Question 6 with the following additional costs: There is a five euro cost to add a customer to the phone system and those who buy the phone outright do not default on payments...

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Q: Assume that in Question 3 you had also been told that cars

Assume that in Question 3 you had also been told that cars without the inclusion of free services are typically sold by other sales outlets for €40,000. Required: Re-do the entries for the sale and t...

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