ACCT10002 Introduction to Financial Accounting Topic 5
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ACCT10002 Introduction to Financial Accounting
Topic 5 Tutorial Questions
5.1
Discuss the difference between Current Assets and Current Liabilities.
(Use the Whiteboard to provide your answer in bullet point form)
5.2
The Business Bank Statement shows a balance of $23,200 Cr. The Business General Ledger shows a balance of $27,100 Dr
Discuss the reasons for the possible difference. In your response also include an explanation of why the Bank Statement states Cr and the General Ledger is a Dr.
5.3
An Online Bank Statement was available for review. There were two deposits, $3,290 and $1,450 that had not been processed in the accounting system prior to the end of the month. Both amounts were from customers paying their accounts.
The Bank Statement also had an entry for a loan payment of $4,100 (Principal $3023; Interest $1,077.
Required:
a) Complete the necessary journal entries to record both the deposits and loan payment; and
b) If the Online Bank Statement balance was $25,900 Cr what was the General Ledger balance before the journal entries in a) above? (Assume all General Ledger transactions have been recorded on the Online Bank Statement)
5.4
Calculate the Cost of Goods Sold and Gross Profit applying the periodic method from the following information (show your workings):
Opening Inventory 154,250
Sales 846,300
Purchases 411,200
Closing Inventory 161,700
5.5
The following is an Accounts Receivable ageing report for Alpha Corporation Ltd as at 31
December 2022.
Aged Trial Balance (Ageing Report)
|
Customer |
Balance ($) |
Current ($) |
30 days ($) |
60 days ($) |
90 + days ($) |
|
ABC Ltd |
100,000 |
80,000 |
10,000 |
10,000 |
|
|
XYZ Pty Ltd |
300,000 |
150,000 |
150,000 |
|
|
|
MNO Ltd |
200,000 |
60,000 |
60,000 |
80,000 |
|
|
PQR Pty Ltd |
400,000 |
250,000 |
100,000 |
50,000 |
|
|
DEF Ltd |
120,000 |
|
|
60,000 |
60,000 |
|
TUV Pty Ltd |
80,000 |
|
40,000 |
20,000 |
20,000 |
|
GHI Ltd |
300,000 |
250,000 |
20,000 |
30,000 |
|
|
Total |
1,500,000 |
790,000 |
380,000 |
250,000 |
80,000 |
Required:
a) What is ageing of accounts receivable?
b) What does an ageing report do?
c) What percentage (%) of Accounts Receivable is 60+ days?
d) What are the consequences of not collecting your accounts receivable?
5.6
Draw a diagram showing the Accounts payable process (4 steps)
5.7
Balance Sheet (Extract)
As at 30 June 2022
|
Current Assets |
Current Liabilities |
||
|
Cash at Bank |
|
Accounts payable |
|
|
Prepayments |
|
Unearned (Prepaid) Income |
|
|
Inventory |
|
Accrued expenses |
|
|
Accounts Receivable |
|
|
|
|
Total Current Assets |
|
Total Current Liabilities |
|
a) Calculate the Working Capital
b) Calculate the Current Ratio
c) Calculate the Quick Ratio
d) A major customer with a balance of $78,000 went into liquidation. What effect would this have on liquidity?
2023-02-11