Sole Traders and Partnership accounts revision
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Last updated about 5 years ago
14 questions
Note from the author:
AAT sole traders and partnerships
10
A statement of profit or loss shows a profit of £14,900. It is discovered that
no allowance has been made for advertising expenses accrued of £620 and rent
prepaid of £450 at the year end. What is the adjusted profit for the year?
A statement of profit or loss shows a profit of £14,900. It is discovered that
no allowance has been made for advertising expenses accrued of £620 and rent
prepaid of £450 at the year end. What is the adjusted profit for the year?
10
A business shows a profit for the year ended of £18,790. The owner of the
business wishes to increase the allowance for doubtful debts by £800 and to
write off irrecoverable debts of £250. What is the adjusted profit for the year?
A business shows a profit for the year ended of £18,790. The owner of the
business wishes to increase the allowance for doubtful debts by £800 and to
write off irrecoverable debts of £250. What is the adjusted profit for the year?
10
Accruals (of expenses) will appear where in the final accounts?
Accruals (of expenses) will appear where in the final accounts?
10
Sales ledger control account will appear where in the final accounts?
Sales ledger control account will appear where in the final accounts?
10
How do we account for allowance for doubtful debt in the final accounts?
How do we account for allowance for doubtful debt in the final accounts?
10
State the meaning of a credit balance for disposal of a non-current asset in a
trial balance
State the meaning of a credit balance for disposal of a non-current asset in a
trial balance
10
A partnership may choose to over-ride some or all of the accounting rules in the
partnership Act 1890 by the partners entering into a separate:
A partnership may choose to over-ride some or all of the accounting rules in the
partnership Act 1890 by the partners entering into a separate:
10
Profits of a two person partnership are £32,100 before the following are taken
into account:
interest on partners capital accounts £1,800
salary of one partner £10,000
interest on partners drawings £700 What is the profit share for each partner 1:1 sharing ratio.
Profits of a two person partnership are £32,100 before the following are taken
into account:
interest on partners capital accounts £1,800
salary of one partner £10,000
interest on partners drawings £700 What is the profit share for each partner 1:1 sharing ratio.
10
Mia, Nell and Olly are in a partnership sharing profits equally. Mia is to
retire and it is agreed that goodwill is worth £30,000.After Mia's retirement,
Nell and Olly will continue to run the partnership and will share profits
equally. What will be the goodwill adjustment to Nell's capital account?
Mia, Nell and Olly are in a partnership sharing profits equally. Mia is to
retire and it is agreed that goodwill is worth £30,000.After Mia's retirement,
Nell and Olly will continue to run the partnership and will share profits
equally. What will be the goodwill adjustment to Nell's capital account?
10
Norman and Oliver are in partnership sharing profits equally. Each has a capital
account with a balance of £75,000. Peter joins as anew partner. The profit share
will be Norman 40%, Oliver 40% and Peter 20%. Goodwill is valued at £40,000. No
goodwill is to be left in the accounts. What will be the balance of Oliver's
capital account after the creation and elimination of goodwill?
Norman and Oliver are in partnership sharing profits equally. Each has a capital
account with a balance of £75,000. Peter joins as anew partner. The profit share
will be Norman 40%, Oliver 40% and Peter 20%. Goodwill is valued at £40,000. No
goodwill is to be left in the accounts. What will be the balance of Oliver's
capital account after the creation and elimination of goodwill?
1
Which of the following accurately describes a business entity?
Which of the following accurately describes a business entity?
1
Briefly state why overstating profits is misleading to potential investors
Briefly state why overstating profits is misleading to potential investors
1
You are asked to cover for a colleage at work who is off sick. Her work involves capital gains tax, which you have no real experience of. Which fundamental principle does this compromise?
You are asked to cover for a colleage at work who is off sick. Her work involves capital gains tax, which you have no real experience of. Which fundamental principle does this compromise?
1
Match the supporting qualitative characteristics with the descriptions.
Match the supporting qualitative characteristics with the descriptions.
| Draggable item | arrow_right_alt | Corresponding Item |
|---|---|---|
comparability | arrow_right_alt | users can compare information with previous years and with similar businesses |
verifability | arrow_right_alt | users are assured of information |
timeliness | arrow_right_alt | users receive information in time to make decisions |
understandability | arrow_right_alt | information is presented clearly and precisely |