BA3 Exam Dumps - Fundamentals of financial accounting

M Ltd owns property costing $80,000 ($50,000 for the land and $30,000 for the building).

The company's accounting policy is to depreciate buildings at the rate of 5% per annum on the straight-line basis.

After five years, what is the net book value of freehold land and building in the financial accounts of M Ltd?

Refer to the exhibit.

Ronald has the following assets and liabilities at 31 December:

The capital balance at 31 December was

Refer to the exhibit.

ABC issued 200,000 $0.50 equity shares at a price of $1.80. This amount was received in cash

What is the correct journal to record this issue?

Which one of the following statements best describes the usefulness of the income statement account of a company:

A trial balance is extracted from the ledger accounts at the end of each accounting period.

Which of the following will a trial balance do?

Which of the following is an example of where the materiality convention should be applied?

Mr UY has just had property P re-valued. Mr UY originally purchased property P for £560,000. It is now worth £780,000.

Which ONE of the following shows how this transaction should be recorded in Mr UY's property account?

A company's cashbook has an opening balance of £4,860 debit. The following transactions then took place:

(a) Cash sales - £23,500, including VAT of £3,500

(b) Receipts from customers - £18,600

(c) Payments to payables £12,400, less cash discounts of £240

(d) Bank Charges - £260

What will be the resulting balance in the cash book?