ACFI1301 Sample Questions for Accounting Exercise
Hello, dear friend, you can consult us at any time if you have any questions, add WeChat: daixieit
ACFI1301 Sample Questions for Accounting Exercise
SAMPLE QUESTIONS
Simone begins a business selling hats. Simone employs you to be her financial accountant.
Answer the following questions, each question can be answered independently and has no relevance to other questions.
Question 1: Accounting terminology
Identify the missing word to complete the text below:
“An asset is a resource __________ by the entity as a result of past events and from which future economic benefits are expected to flow to the entity”.
1 mark
Question 2: Accounting for inventory
a) Simone purchases inventory totalling £4,500. What journal entry would Simone use to record this transaction? Assume this inventory was bought on credit (i.e. cash will be paid later). 2 marks
b) At the end of the accounting period, Simone’s closing inventory is £2,100. The total purchases in the period amounted to £12,000 and she had no inventory at the start of the accounting period. Calculate the Cost of Sales.
3 marks
c) Simone noticed that a box of hats she purchased for £120 has been damaged and she can only sell these hats for £90. How should the inventory be valued according to the accounting standard IAS 2?
1 mark
Question 3: Accounting for Theory
Explain the matching concept.
2 marks
Question 4: Accounting for Depreciation (straight line)
Simone bought some shop fittings when she opened her shop. Calculate the annual depreciation using the straight-line method:
A shelf cost £5000. After 5 years, at the end of its life, it will be worth £1000. 4 marks
Question 5: Ledger Accounts
The opening balance in the petty cash account is £500. This is also the float amount. The following transactions crossed the petty cash account.
£
Paid for stationary 20
Paid for fuel 70
Paid for milk for the staff kitchen 5
Returned some stationary 8
Paid for a small invoice 150
How much does the petty cash account need to be topped up by?
6 marks
Question 6: Accounting for Cost of Sales/Trading Account
|
|
£ |
Revenue |
|
1500000 |
|
|
|
Less: Cost of Sales |
|
|
Opening inventory |
0 |
|
Purchases |
650000 |
|
Closing Inventory |
100000 |
|
|
|
|
|
|
|
Based on the above extract, what is the Gross Profit of the business?
4 Marks
Question 7: Double Entry Accounting and Journals
Assume the financial year end of Simone’s business is 31 October 2020. The following adjustments need to be made at year end. What is the double entry?
Adjustment |
Dr or Cr |
Account |
Dr or Cr |
Account |
a) Depreciation for the year amounting to £2,400 |
|
|
|
|
b) Rent of £1,250 paid in November for the month of October |
|
|
|
|
2 x 4 marks
Question 8: Producing a subsection of the Statement of Financial Position
Here is a list of some of the ledger balances.
|
Debit £ |
Credit £ |
Profit |
|
125658 |
Office equipment: cost |
10000 |
|
Office equipment: depreciation |
|
1550 |
Vehicles: cost |
3500 |
|
Vehicles: depreciation |
|
700 |
Cash at bank |
|
9200 |
Capital |
|
4300 |
Accrued costs |
|
9000 |
Prepaid costs |
7100 |
|
Calculate the non-current asset value. 4 marks
Question 9: Bank Reconciliation
Simone’s cash book balance at 31 October 2020 was a debit balance of £1240. You compare the transactions below to the Bank Statement.
£
|
|
|
When checking the bank statement you identify the following: |
|
|
|
|
|
Unpresented cheque for purchases in Simone’s business |
450 |
|
Cash deposit not showing on the bank account |
140 |
|
Bank charges not showing on cash book |
75 |
|
Calculate the bank statement balance for Simone at 31 October 2020.
4 marks
Question 10: Accounting Equation
Simone injected £12,000 into her hat business at the start of the venture. Her business generated a profit for the year of £62,400. Simone drew £12,000 worth of goods in the same financial period. What is the equity in Simone’s business at the end of the accounting period?
3 marks
2022-01-11