Questions from Financial Accounting

Q: Chi Knitwear Ltd is an old-fashioned firm with a handwritten

Chi Knitwear Ltd is an old-fashioned firm with a handwritten set of books. A trial balance is extracted at the end of each month, and a statement of profit or loss and statement of financial position...

Q: The draft final financial statements of RST Ltd for the year ended

The draft final financial statements of RST Ltd for the year ended 30 April 20X9 showed a net profit for the year of £78,263. During the subsequent audit, the following errors and omissions were disco...

Q: Jacobs Ltd has recently completed its draft financial statements for the year

Jacobs Ltd has recently completed its draft financial statements for the year ended 30 December 20X9, which showed a draft profit for the year of £300,000. During the audit a number of mi...

Q: Write journals to correct the following errors. These errors are not

Write journals to correct the following errors. These errors are not suspense account errors. 1. £150 sales invoice posted to the credit customer, D. Brown’s account – should have been posted to the c...

Q: Write journals to correct the following errors. These errors are not

Write journals to correct the following errors. These errors are not suspense account errors. 1. A payment of £4,000 for rent was incorrectly posted to the insurance account. 2. The cost of purchasing...

Q: A colleague from the sales department has approached you with an idea

A colleague from the sales department has approached you with an idea for an expansion plan for the car dealership where you both work. Second-hand cars have higher margins. Therefore, he suggests tha...

Q: Write journals to correct the following errors (suspense account errors):

Write journals to correct the following errors (suspense account errors): 1. The debit side of the cash book is undercast by £3,000. 2. A payment of £475 for an electricity bill is correctly entered i...

Q: Arthur started a new business on 1 January 20X9. You are

Arthur started a new business on 1 January 20X9. You are supplied with the following nominal ledger accounts, which have been closed off and a trial balance extracted. These are Arthurâ€
...

Q: Chocolate is a confectionery shop owned by Thomas McKee. Thomas operates

Chocolate is a confectionery shop owned by Thomas McKee. Thomas operates a manual bookkeeping system and employs a cashier and a bookkeeper. When writing up the books of account for the year ended 31...

Q: The draft trial balance of Regent Ltd as at 31 May 20X9

The draft trial balance of Regent Ltd as at 31 May 20X9 agreed. The business proceeded with the preparation of the draft final financial statements and these showed a profit of £305,660. However, a su...