Tag: Capital

As at 1 July 2023, Alex plc owed £524,925 to suppliers plus £9,653 to staff in respect of bonuses.

In the year to 30 June 2024, it paid trade suppliers £1,249,506, and £34,682 in staff bonuses.

Alex plc also posted £1,987,345 to its trade payables control account from the purchases journal, and received discounts of £12,824.

At the end of the period, it processed a contra with the receivables ledger of £8,236 and calculated that it owed staff bonuses of £12,762.

In its statement of financial position as at 30 June 2024, Alex plc will have a figure for trade and other payables of?

Select ONE answer:

1. £1,267,352
2. £1,241,704
3. £1,258,176
4. £1,283,824

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 2

1. Notcorrect
2. Correct ==> Dr Bank Payments £1,249,506 + Contra £8,236 + Discount Received £12,824 – Cr Balance B/D £524,925 + Purchases Journal £1,987,345 == > Balance C/D £1,241,704
3. Not correct
4. Not correct

This work is licensed under a Creative Commons Attribution 4.0 International License.

On 1 January 2023 Alex plc has £300,000 of 50p equity shares in issue, and a balance on the share premium account of £750,000.

On 1 April 2023, the company makes a 1 for 3 bonus issue.

The balance on Alex plc’s share premium account as at 31 December 2023 is?

Select ONE answer:

1. £450,000
2. £550,000
3. £650,000
4. £850,000

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 3

1. Not correct
2. Not correct
3. Correct – £0.50 face value * 600,000 shares == > 1/3 Bonus issue = 200,000 shares * £0.50 = £100k == > Dr Share Premium £100k Cr Share Capital £100k == > Share Premium now £650k
4. Not correct

This work is licensed under a Creative Commons Attribution 4.0 International License.

Alex plc is preparing its financial statements for the year ended 30 June 2024. Its initial trial balance shows the following balances:

• Accruals as at 1 July 2023 £948
• Distribution costs paid via the bank £130,647

Of the accruals as at 1 July 2023, £586 related to distribution costs.

As at 30 June 2024 the equivalent figure for distribution costs is £654.

In Alex plc’s Income Statement, the figure for the year-ended 30 June 2024 for distribution costs is?

Select ONE answer:

1. £129,407
2. £130,579
3. £130,715
4. £131,887

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 3

1. Not correct
2. Not correct
3. Correct – Dr Bank Payments £130,647 + Closing Accrual £654 – Cr Opening Accrual Reversed £586 = £130,715 I/S
4. Not correct

This work is licensed under a Creative Commons Attribution 4.0 International License.

Which of the following statements, if any, are correct?

1 All non-current assets must be depreciated.

2 In a company’s published statement of financial position, tangible assets and intangible assets must be shown separately.

Select ONE answer:

1. 1 only
2. 2 only
3. Both 1 and 2
4. Neither 1 nor 2

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 2

1. Notcorrect
2. Correct ==> Land is usually not depreciated
3. Not correct
4. Not correct

This work is licensed under a Creative Commons Attribution 4.0 International License.