Tag: rights issue

As at 30 September 2023 Alex plc has a negative cash book balance of £2,643.

Its bank statement shows a debit balance of £9,647.

The following matters are discovered:

1. Alex plc’s cashier prepared a paying-inn slip with a total value of £5,016 and paid this into the bank on 30 September 2023 with cash and cheques. No amount in respect of this appears on the month-end bank statement. Alex plc has since been notified by the bank that the paying-in slip total was overcast in error by £90.
2. Alex plc recorded and presented for payment at its bank a cheque for £1,988 from Lucy plc on26 September 2023. This appeared on the bank statement on 27 September. On 30 September, the bank statement shows that it was returned unpaid. Alex plc was informed of this by letter on 1 October 2023.
3. The company held notes and coin at 30 September 2023 of £160.

In Alex plc’s statement of financial position at at 30 September 2023its figure for current liabilities in relation to the overdraft will be?

Select ONE answer:

1. £565
2. £745
3. £4,721
4. £4,881

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 == > Balance per bank Statement = O/D £9,647 + (£5,016 – £90) = O/D £4,721 == > Balance per cash book b/d £2,643 Credit + £90 Credit + £1,988 Credit = New Balance per cash book £4,721 Credit
4. Not correct

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

Alex plc is finalising certain figures that will appear in its financial statements as at 30 April 2024.

Relevant initial trial balance figures are as follows:

• Trade and other payables (excluding interest payable)  £246,800
• 6% debentures as at 1 May 2023  £400,000

Alex plc issued 6% debentures of £120,000 at par on 1 February 2024, repayable at par in ten years’ time.  No interest was outstanding at 1 May 2023, and the company paid interest in respect of debentures of £24,000 in the period to 30 April 2024.

What will be the value of trade and other payables figure (NOW including interest payable) that will appear in Alex plc’s statement of financial position as at 30 April 2024?

Select ONE answer:

1. £222,800
2. £246,800
3. £248,600
4. £272,600

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 == > Total interest charge for the year should be the total of original debentures (£400,000 × 6%) = £24,000 (i.e. cash paid) + new debentures (£120,000 × 6% × 3/12) = £1,800) for a total interest in the I/S for the year of £25,800 == > Therefore the closing accrual should be £1,800, giving a total trade and other payables total of (246,800 + 1,800) = £248,600
4. Not correct

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

Alex plc is finalising certain figures that will appear in its financial statements as at 30 September 2023.

In its initial trial balance for the year-end, Alex plc has a figure for tax payable as at 1 October 2022 of £114,520.

The total tax charge in the income statement for the year to 30 September 2023 is £145,670, and tax paid in the year was £123,090.

The tax payable balance that will appear in Alex plc’s statement of financial position as at 30 September 2023 is?

Select ONE answer:

1. £91,940
2. £114,520
3. £137,100
4. £382,000

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 == > Dr Bank Payments £123,090 + Bal c/d £137,100 = Total £260,190 – Cr Balance B/D £114,520 == > I/S £145,670
4. Not correct

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