Exercise 2 - Sam & Nok Inc.
Prepare an adjusted trial balance for the Company as per 31. 12. 2013 according to the transactions in the quiz.
- 1.The company made an inventory count and valuation as per 31.12.2013. The inventory count and valuation showed that the inventory had a value of 200.000 as per 31.12.2013.
- A.
The inventory account (asset) is credited 150.000
- B.
The inventory account (asset) is credited 200.000
- C.
The cost of goods sold account (profit/loss) is debited 150.000
- D.
The cost of goods sold account (profit/loss) is debited 200.000
- 2.None posted sales commission for Q4 2013 is 12.000. The sales commission is unpaid as per 31.12.2013.
- A.
The sales commission account (profit/loss) is debited 12.000
- B.
The sales commission account (profit/loss) is credited12.000
- C.
The trade creditors account (liability) is credited 12.000
- D.
The other creditors account (liability) is credited 12.000
- E.
The prepayments account (asset) is credited 12.000
- F.
The transaction should not be included in the books for the fiscal year 2013
- 3.None posted credit note of 5.000 to a customer. The amount is settling an unpaid invoice to the customer. The invoice has been posted previously. The goods sold concerning this credit note has been returned to the company. The returned goods where included in the count and valuation of the inventory as per 31.12.2013.
- A.
The sales account (profit/loss) is credited 5.000
- B.
The trade debtors account (asset) is debited 5.000
- C.
The provision for bad debt account (asset) is credited 5.000
- D.
The sales account (profit/loss) is debited 5.000
- E.
The bad debt account (profit/loss) is debited 5.000
- F.
The trade debtors account (asset) is credited 5.000
- 4.Posted prepaid marketing campaign of 40.000 on the account “Advertising expenses”. The marketing campaign is to take place In Q2 2014.
- A.
The inventory account (asset) is debited 40.000
- B.
The advertising expenses account (profit/loss) is debited 40.000
- C.
The advertising expenses account (profit/loss) is credited 40.000
- D.
The inventory account (asset) is credited 40.000
- E.
The prepaid expenses account (asset) is credited 40.000
- F.
The prepaid expenses account (asset) is debited 40.000
- 5.None posted depreciations on fixed assets:Land and building are depreciated over a period 25 years. It has an expected scrap value of 200.000. Straight line depreciations are used. The original cost price of this asset can be found in the trial balance. The asset should be depreciated for the full year.
- A.
The accumulated depreciations on building account (asset) is credited 32.000
- B.
The depreciations on building account (profit/loss) is debited 24.000
- C.
The depreciations on building account (profit/loss) is debited 32.000
- D.
The depreciations on building account (profit/loss) is debited 8.000
- E.
The accumulated depreciations on building account (asset) is credited 8.000
- F.
The accumulated depreciations on building account (asset) is credited 24.000
- 6.None posted depreciations on fixed assets:Equipment is depreciated over a period 5 years. It has an expected scrap value of 5.000. Straight line depreciations are used. The original cost price of this asset can be found in the trial balance. The asset should be depreciated for the full year.
- A.
The accumulated depreciations on equipment account (asset) is credited 1.000
- B.
The depreciations on equipment account (profit/loss) is debited 1.000
- C.
The depreciations on equipment account (profit/loss) is debited 4.000
- D.
The depreciations on equipment account (profit/loss) is debited 5.000
- E.
The accumulated depreciations on equipment account (asset) is credited 5.000
- F.
The accumulated depreciations on equipment account (asset) is credited 4.000
- 7.None posted depreciations on fixed assets:Car is depreciated over a period 4 years. It has an expected scrap value of 20.000. Straight line depreciations are used. The original cost price of this asset can be found in the trial balance. The asset should be depreciated for the full year.
- A.
The accumulated depreciations on car account (asset) is credited 45.000
- B.
The depreciations on car account (profit/loss) is debited 50.000
- C.
The depreciations on car account (profit/loss) is debited 45.000
- D.
The depreciations on car account (profit/loss) is debited 5.000
- E.
The accumulated depreciations on car account (asset) is credited 50.000
- F.
The accumulated depreciations on car account (asset) is credited 5.000
- 8.None posted depreciations on fixed assets:Plant and machinery is depreciated over a period 6 years. It has an expected scrap value of 15.000. Straight line depreciations are used. The original cost price of this asset can be found in the trial balance. The asset should be depreciated for the full year.
- A.
The accumulated depreciations on plant and machinery account (asset) is credited 2.500
- B.
The depreciations on plant and machinery account (profit/loss) is debited 12.500
- C.
The depreciations on plant and machinery account (profit/loss) is debited 10.000
- D.
The depreciations on plant and machinery account (profit/loss) is debited 2.500
- E.
The accumulated depreciations on plant and machinery account (asset) is credited 12.500
- F.
The accumulated depreciations on plant and machinery account (asset) is credited 10.000
- 9.None posted payment of dividend of 20.000 concerning the fiscal year 2012. The payment was made from the overdraft account 28.12.2013. No dividend tax was withheld.
- A.
The dividend account (liability) is credited 20.000
- B.
The interest expenses account (profit/loss) is debited 20.000
- C.
The miscellaneous expense account (profit/loss) is debited 20.000
- D.
The dividend account (liability) is debited 20.000
- E.
The bank overdraft account (liability) is credited 20.000
- 10.None posted payments from trade debtors (customers) of 80.000 (the invoices were posted previously and are included in the trade debtors’ account as per 31.12.2013). The payments were made to the overdraft account before the end of 2013.
- A.
The sales account (profit/loss) is credited 80.000
- B.
The trade debtors account (asset) is credited 80.000
- C.
The bank deposit account (asset) is debited 80.000
- D.
The bank overdraft account (liability) is debited 80.000
- E.
The transaction should not be included in the books for the fiscal year 2013
- 11.None posted payments to trade creditors (suppliers of goods) of 22.000 before 31.12.2013. The payments were made by bank transfer from the overdraft account.
- A.
The trade creditors account (liability) is debited 22.000
- B.
The transaction should not be included in the books for the fiscal year 2013
- C.
The cost on goods sold account (profit/loss) is debited 22.000
- D.
The trade creditors account (liability) is credited 22.000
- E.
The bank overdraft account (liability) is credited 22.000
- 12.None posted transfer of 30.000 from the bank deposit account to the overdraft account 23.12.2013.
- A.
The bank deposit account (asset) is credited 30.000
- B.
The bank deposit account (asset) is debited 30.000
- C.
The bank overdraft account (liability) is credited 30.000
- D.
The bank overdraft account (liability) is debited 30.000
- 13.None posted settlement of the input and output VAT account to the VAT payable account.
- A.
The output VAT account (liability) is debited 75.000
- B.
The output VAT account (liability) is credited 75.000
- C.
The input VAT account (liability) is debited 30.000
- D.
The input VAT account (liability) is credited 30.000
- E.
The VAT payable account (liability) is debited 75.000 and credited 30.000
- F.
The VAT payable account (liability) is credited 75.000 and debited 30.000
Recent Quizzes
Back to top