Practice exam answers

lv9783

Hi
Does anyone have the answers to the Sarah Glass,David Nix, Fresh Produce?
Could you email it to me at zenaclifton@hotmail.co.uk

Thank you would be a great help

definite.studies

Did you get the answers? I do have them but I would have to type them in as my scanner is not working at the moment.

If you want the answers today, it would save me time if you sent me your answers then I could comment on only the bits you get wrong.

lv9783

question 2.1 (b) (c) and (d) for Sarah Glass Exam
The journal entry for David Nix 2.1 (d)

What is rent payable is that like the expense account and the double entry would be accruals?

And the same for receivable with the double entry being prepayments?

definite.studies

Please provide your suggested answers and I will comment on them. I have not gone through the question recently, so I can only compare what you have done with the model answer.

lv9783

ok sarah glass question 2.1
(b)
rent payable is £3000 per month already in the tb is 33,000 so
DR 3000 Rent
CR 3000 Accruals

(c)
invoice relating to goods received been left out 2350 including VAT 17.5%
goods already been included in stock calculation.

DR purchases 2000
DR vat 350
CR plca 2350

(d)
stock valued at 30,040
includes 625 which is the cost of the carpet that is dirty and needs cleaning
cost of cleaning 50 and carpet sold for 300

dont know where to start with this one

David Nix Exam
2.1

(f)
closing stock value in tb = 58,450
the reduction of stock due to decrease in selling price in total is 220

journal entries would be
DR ?
CR closing stock 220

definite.studies

sarah glass question 2.1
(b)
rent payable is £3000 per month already in the tb is 33,000 so
DR 3000 Rent
CR 3000 Accruals
correct.

(c)
invoice relating to goods received been left out 2350 including VAT 17.5%
goods already been included in stock calculation.

DR purchases 2000 correct
DR vat 350 correct
CR plca 2350 correct


(d)
stock valued at 30,040
includes 625 which is the cost of the carpet that is dirty and needs cleaning
cost of cleaning 50 and carpet sold for 300

dont know where to start with this one

The stock should be valued at the lower of cost and net realisable value which is calculated as £300 - £50 = £250. The reduction in value is £625 - £250 = £375. The revised stock valuation is now £30,040 - £375 = £29,665.

David Nix Exam
2.1

(f)
closing stock value in tb = 58,450
the reduction of stock due to decrease in selling price in total is 220

journal entries would be
DR ?
CR closing stock 220

DR Stock (Trading account) 220
CR Stock (BS) 220

I would assume these are the two Closing stock accounts at the bottom of the TB even if the wording is a bit different.

lv9783

Thank you so much that is a big help