Exercise 5 - Yon Socio Inc.

16 Questions | Total Attempts: 120

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Exercise 5 - Yon Socio Inc.

Prepare an adjusted trial balance for the Company as per 31. 12. 2013 according to the transactions in the quiz.


Questions and Answers
  • 1. 
    None posted share capital increase of 400.000. 100.000 of the 400.000 is premium while the rest is share capital. The increase was made in kind be transferring equipment for the amount of 300.000 to the company and 100.000 to the overdraft account. The capital increase was made as per 31.12.2013.
    • A. 

      The share capital account (equity) is credited 100.000, the share premium account (equity) is credited 300.000, the bank overdraft account (liability) is debited 100.000 while the equipment account (asset) is debited 300.000

    • B. 

      The share capital account (equity) is credited 300.000, the share premium account (equity) is credited 100.000, the bank overdraft account (liability) is debited 100.000 while the equipment account (asset) is debited 300.000

    • C. 

      The share capital account (equity) is debited 100.000, the share premium account (equity) is debited 300.000, the bank overdraft account (liability) is credited 100.000 while the equipment account (asset) is credited 300.000

  • 2. 
    None posted depreciations on building. Estimated scrap value is 200.000 while the depreciation period is 40 years. Straight line depreciations are used. The initial cost of the building can be found in the trail balance.
    • A. 

      The depreciations on buildings account (profit/loss) is credited 22.500 while the accumulated depreciations account (asset) is debited 22.500

    • B. 

      The depreciations on buildings account (profit/loss) is debited 22.500 while the accumulated depreciations account (asset) is credited 22.500

    • C. 

      The depreciations on buildings account (profit/loss) is debited 17.500 while the accumulated depreciations account (asset) is credited 17.500

    • D. 

      The depreciations on buildings account (profit/loss) is credited 17.500 while the accumulated depreciations account (asset) is debited 17.500

  • 3. 
    None posted payment of loan of 65.000 including 15.000 in interests. The remaining amount of 50.000 is instalment. The payment was made from the overdraft account.
    • A. 

      The interest expenses account (profit/loss) is debited 15.000, the trade creditors account (liability) is debited 50.000 while the bank overdraft account (liability) is credited 65.000

    • B. 

      The interest expenses account (profit/loss) is debited 15.000, the longterm loan liabilites account (liability) is debited 50.000 while the bank overdraft account (liability) is credited 65.000

    • C. 

      The interest expenses account (profit/loss) is debited 65.000 while the bank overdraft account (liability) is credited 65.000

    • D. 

      The interest expenses account (profit/loss) is credited 65.000 while the bank overdraft account (liability) is debited 65.000

  • 4. 
    None posted sale of company car for the amount of 30.000 and none posted depreciations. The amount was paid to the overdraft account. Depreciations on the car were 12.000 until the sale. The initial cost of the car can be found in the trial balance.
    • A. 

      The accumulated depreciations on car account (asset) is credited 12.000 while the depreciations on car account (profit/loss) is debited 12.000

    • B. 

      The accumulated depreciations on car account (asset) is debited 12.000 while the depreciations on car account (profit/loss) is credited 12.000

    • C. 

      The gain/loss on fixed assets account (profit/loss) is credited 30.000 while the bank overdraft account (liability) is debited 30.000

    • D. 

      The gain/loss on fixed assets account (profit/loss) is debited 30.000 while the bank overdraft account (liability) is credited 30.000

    • E. 

      The accumulated depreciations on car account (asset) is debited 192.000 while the gain/loss on fixed assets (profit/loss) is credited 192.000

    • F. 

      The accumulated depreciations on car account (asset) is credited 192.000 while the gain/loss on fixed assets (profit/loss) is debited 192.000

    • G. 

      The car account (asset) is debited 200.000 while the gain/loss on fixed assets (profit/loss) is credited 200.000

    • H. 

      The car account (asset) is credited 200.000 while the gain/loss on fixed assets (profit/loss) is debited 200.000

  • 5. 
    None posted invoices to trade debtors (customers) of 120.000. The invoices were unpaid as per 31.12.2013.
    • A. 

      The sales account (profit/loss) is credited 120.000 while the bank overdraft account (liability) is debited 120.000

    • B. 

      The sales account (profit/loss) is credited 120.000 while the trade debtors account (asset) is debited 120.000

    • C. 

      The accrued income account (asset) is credited 120.000 while the bank overdraft account (liability) is debited 120.000

    • D. 

      The sales account (profit/loss) is credited 120.000 while the other debtors account (asset) is debited 120.000

  • 6. 
    None posted receipt of invoices from trade creditors (suppliers of goods) of 34.000. The invoices were unpaid as per 31.12.2013.
    • A. 

      The cost of goods sold acount (profit/loss) is debited 34.000 while the trade creditors account (liability) is credited 34.000

    • B. 

      The cost of goods sold acount (profit/loss) is debited 34.000 while the prepaid expenses account (asset) is credited 34.000

    • C. 

      The inventory account (asset) is debited 34.000 while the trade creditors account (liability) is credited 34.000

  • 7. 
    None posted provision for bad debt of 43.000 on trade debtors (customers).
    • A. 

      The provision for bad debt account (asset) is credited 43.000 while the bad debt account (profit/loss) is debited 43.000.

    • B. 

      The trade debtors account (asset) is credited 43.000 while the bad debt account (profit/loss) is debited 43.000.

    • C. 

      The sales account (profit/loss) is credited 43.000 while the bad debt account (profit/loss) is debited 43.000.

    • D. 

      The sales account (profit/loss) is credited 43.000 while the provision for bad debt account (asset) is debited 43.000.

  • 8. 
    None posted credit notes from trade creditors (suppliers of goods) of 20.000 regarding returned goods. The credit notes offset posted and unpaid invoices from trade creditors (suppliers of goods).
    • A. 

      The inventory account (asset) is debited 20.000 while the trade creditors account (liability) is credited 20.000

    • B. 

      The cost of goods sold account (profit/loss) is credited 20.000 while the trade creditors account (liability) is debited 20.000

    • C. 

      The inventory account (asset) is credited 20.000 while the trade creditors account (liability) is debited 20.000

  • 9. 
    None posted payment of trade creditors (suppliers of goods) for the amount of 17.000. The payment was made from the overdraft account.
    • A. 

      The trade creditors account (liability) is credited 17.000 while the bank overdraft account (liability) is debited 17.000

    • B. 

      The trade creditors account (liability) is debited 17.000 while the bank overdraft account (liability) is credited 17.000

    • C. 

      The cost of goods sold account (profit/loss) is debited 17.000 while the bank overdraft account (liability) is credited 17.000

    • D. 

      The cost of goods sold account (profit/loss) is credited 17.000 while the bank overdraft account (liability) is debited 17.000

  • 10. 
    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 300.000 as per 31.12.2013.
    • A. 

      The inventory account (asset) is credtied 300.000 while the cost of goods sold account (profit/loss) is debited 300.000

    • B. 

      The inventory account (asset) is credtied 14.000 while the cost of goods sold account (profit/loss) is debited 14.000

    • C. 

      The inventory account (asset) is debited 300.000 while the cost of goods sold account (profit/loss) is credited 300.000

    • D. 

      The inventory account (asset) is debited 14.000 while the cost of goods sold account (profit/loss) is credited 14.000

  • 11. 
    None posted payment of VAT to the tax authorities of 11.000. The amount consists of output VAT of 33.000 and input VAT of 22.000. The payment was made from the overdraft account.
    • A. 

      The VAT payable account (liability) is debited 11.000, the bank overdraft account (liability) is credited 11.000

    • B. 

      The VAT payable account (liability) is credited 11.000, the bank overdraft account (liability) is debited 11.000

    • C. 

      The input VAT account (liability) is debited 22.000, the output VAT account (liability) is credited 33.000 while the VAT payable account (liability) is debied 11.000

    • D. 

      The input VAT account (liability) is credited 22.000, the output VAT account (liability) is debited 33.000 while the VAT payable account (liability) is credited 11.000

  • 12. 
    1. None posted wages regarding December 2013 specified below:
    Wages 50.000 Withheld pension contribution 7.000 Taxable income 43.000 Withheld income tax 18.000 Net wages 25.000 Payment was made from the overdraft account.    
    • A. 

      The wages account (profit/loss) is debited 50.000, the payable withheld income taxes account (liability) is credited 18.000, the payable pension contribution account (liability) is credited 7.000 while the bank overdraft account (liability) is credited 25.000

    • B. 

      The wages account (profit/loss) is debited 50.000, the pensions contribution account (profit/loss) is debited 7.000, the payable withheld income taxes account (liability) is credited 18.000, the payable pension contribution account (liability) is credited 7.000 while the bank overdraft account (liability) is credited 25.000

    • C. 

      The wages account (profit/loss) is debited 43.000, the pensions contribution account (profit/loss) is debited 7.000, the payable withheld income taxes account (liability) is credited 18.000, the payable pension contribution account (liability) is credited 7.000 while the bank overdraft account (liability) is credited 25.000

    • D. 

      The wages account (profit/loss) is credited 43.000, the pensions contribution account (profit/loss) is credited 7.000, the payable withheld income taxes account (liability) is debited 18.000, the payable pension contribution account (liability) is debited 7.000 while the bank overdraft account (liability) is credited 25.000

  • 13. 
     None posted payment of corporation tax of 21.000 from the overdraft account as per end of December 2013.
    • A. 

      The corporation tax payable account (liability) is debited 21.000 while the bank overdraft account (liability) is credited 21.000.

    • B. 

      The corporation tax account (profit/loss) is debited 21.000 while the bank overdraft account (liability) is credited 21.000.

    • C. 

      The corporation tax account (profit/loss) is credited 21.000 while the bank overdraft account (liability) is debited 21.000.

  • 14. 
    None posted payment of other creditors of 3.000. The payment was made from the overdraft account.
    • A. 

      The bank overdraft account (liability) is credited 3.000 while the trade creditors account (liability) is debited 3.000

    • B. 

      The bank overdraft account (liability) is credited 3.000 while the other creditors account (liability) is debited 3.000

    • C. 

      The bank overdraft account (liability) is credited 3.000 while the inventory account (asset) is debited 3.000

  • 15. 
    None posted settlement of the input and output VAT account to the VAT payable account.
    • A. 

      The output VAT account (liability) is debited 26.000, the input VAT account (liability) is credited 17.000 while the VAT payable account is credited 26.000 and debited 17.000

    • B. 

      The output VAT account (liability) is credited 26.000, the input VAT account (liability) is debited 17.000 while the VAT payable account is debited 26.000 and credited 17.000

  • 16. 
    None posted payment of dividend of 21.000. No dividend taxes withheld. The payment was made from the overdraft account.
    • A. 

      The bank overdraft account (liability) is debited 21.000 while the dividend for the year account (liability) is credited 21.000

    • B. 

      The bank overdraft account (liability) is credited 21.000 while the dividend for the year account (liability) is debited 21.000

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