By Ian Harrison
Complicated Accounting for A2 has been written in particular to assist scholars, who've already been brought to Accounting, to appreciate totally the intricacies of this complicated topic. it really is damaged down into plausible devices, every one explaining a subject sincerely utilizing available language and together with interspersed inquiries to inspire scholars to use what they've got learnt. Illustrations and diagrams are used all through to aid motives. each one unit is rounded up with a chain of routines and exam-style questions making sure that scholars get lots of perform within the parts within which they have to be trained to go the A2 examination.
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What does the difference in balances represent? Cash paid to credit suppliers during the year is credited to the trade payables adjustment account. True or false? Cash received from credit customers during the year is credited to the trade receivables adjustment account. True or false? Sole traders are required by law to keep a full set of double-entry books. True or false? Incomplete records 31 TEST QUESTIONS QUESTION 9 Fatima Aakloo provides the following information for the year ended 30 April 20*9: Her net assets at 30 April 20*8 were £47,682; her net assets at 30 April 20*9 were £37,901.
True or false? Give an example of an entry in a partner’s capital account. Give two examples of debit entries in a partner’s current account. Give two examples of credit entries in a partner’s current account. TEST QUESTIONS QUESTION 15 Rooney and Timms are in partnership. Their profit for the year ended 31 May 20*9 was £27,967. The partnership agreement provides that Rooney be credited with a partnership salary of £3,000 per annum; that interest on capital be credited to the partners at the rate of 10% per annum on fixed capital accounts; and that residual profits and losses be shared equally.
The profit accrued evenly throughout the year. Required Prepare extracts from the income statements for the year ended 31 December 20*9. Answer Remember that we are dealing with two businesses: Up to 30 June 20*9 Owners were Adele and Gloria From 1 July 20*9 Owners are Adele, Gloria and Carolyn So: Adele and Gloria Income statement extract for the six months ended 30 June 20*9 £ £ Net profit 20,000 Profit share – Adele (10,000) (20,000) Profit share – Gloria (10,000) Adele, Gloria and Carolyn Income statement extract for the six months ended 31 December 20*9 £ £ Net profit 20,000 Profit share – Adele (10,000) Profit share – Gloria ( 6,667) (20,000) Profit share – Carolyn ( 3,333) Note that the profit share has been rounded.