Qn 1: What is the formula for finding profit or loss by comparing beginning and ending capitals?
Ans: Profit for the year = Ending capital - Beginning capital - Additional capital + Drawings
Qn 2: Which control account is drawn up to find credit sales?
Ans: Trade Receivables (Sales ledger) control account
Qn 3: The Net Book Value (NBV) of a car was $8000 as at 1 January 2018 and $6000 as at 31 December 2018. Calculate the depreciation expense
Ans: NBV (beginning) - NBV (ending) = $8000 - $6000 = $2000
Qn 4: The Gross profit margin of ABC was 10%. Gross profit was $32,000. Calculate the Sales revenue
Ans: $32,000/0.1 = $320,000
Qn 5: ABC had a beginning inventory of $5000 & ending inventory of $3000. Inventory turnover rate was 8 times. Find the cost of sales
Ans: [(5,000+3,000)/2] x 8 = $32,000
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