Exercise

3.1 Which of the following would be a credit balance in the trial balance？ （ ）

A．Bank overdraft

B．Drawings

C．Purchases

D．Carriage outwards

3.2 A business has opening inventory of ￡ 7，200 and closing inventory of ￡ 8，100.Purchases for the year were ￡ 76，500， carriage inwards was ￡ 50 and carriage outwards was ￡ 180.The figure for cost of sales is（）．

A．￡ 75，550

B．￡ 75，650

C．￡ 75，830

D．￡ 77，450

3.3 Muse began trading on 1 January 20×8 and had zero inventories at that date． During 20×8 it made purchases of ￡ 455，000， incurred carriage inwards of ￡ 24，000， and carriage outwards of ￡ 29，000.Closing inventories at 31 December 20×8 were ￡ 52，000.

In the statement of profit or loss for the year ended 31 December 20×8， the cost of sales figure is（）．

A．￡ 456，000

B．￡ 427，000

C．￡ 432，000

D．￡ 531，000

3.4 Indicate whether the following statements （3.4 ＆3.5） are true or false．（）

A van for sale by a dealer is shown as a non-current asset in its statement of financial position．

A．True

B．False

3.5 Import duties may be included in the cost of inventory．（ ）

A．True

B．False

3.6 For the year ended 31 October 20×3 a company did a physical count of inventory on 4 November 20×3， leading to an inventory cost at this date of ￡ 483，700.

Between 1 November 20×3 and 4 November 20×3 the following transactions took place：

1 Goods costing ￡ 38，400 were received from suppliers．

2 Goods that had cost ￡ 14，800 were sold for ￡ 20，000.

3 A customer returned， in good condition， some goods which had been sold to him in October for ￡ 600 and which had cost ￡ 400.

4 The company returned goods that had cost ￡ 1，800 in October to the supplier， and received a credit note for them．

What figure should be shown in the company's financial statements at 31 October 20×3 for closing inventory， based on this information？ （）

A．￡ 458，700

B．￡ 505，900

C．￡ 508，700

D．￡ 461，500

3.7 The cost of inventory in the financial statements of Quebec Ltd for the year ended 31 December 20×4 of ￡ 836，200 was based on an inventory count on 4 January 20×5.Between 31 December 20×4 and 4 January 20×5， the following transactions took place：

What adjusted figure should be included in the financial statements for inventories at 31 December 20×4？（）

A．￡ 838，100

B．￡ 842，300

C．￡ 818，500

D．￡ 834，300

3.8 A statement of financial position is best described as（）．

A．A snapshot of the entity's financial position at a particular point in time

B．A record of an entity's financial performance over a period of time

C．A list of all the income and expenses of the entity at a particular point in time

D．A list of all the assets and liabilities of the entity over a period of time

3.9 Which of the following calculations could produce an acceptable figure for a trader's net profit for a period if no accounting records had been kept？ （）

A．Closing net assets plus drawings minus capital introduced minus opening net assets

B．Closing net assets minus drawings plus capital introduced minus opening net assets

C．Closing net assets minus drawings minus capital introduced minus opening net assets

D．Closing net assets plus drawings plus capital introduced minus opening net assets

3.10 A sole trader fixes his prices to achieve a gross profit percentage on sales revenue of 40％． All his sales are for cash． He suspects that one of his sales assistants is stealing cash from sales revenue． His trading account for the month of June 20×3 is as follows：

Assuming that the cost of sales figure is correct， how much cash could the sales assistant have taken？ （）

A．￡ 5，040

B．￡ 8，400

C．￡ 22，000

D．It is not possible to calculate a figure from this information

3.11 Aluki fixes prices to make a standard gross profit percentage on sales of 20％． The following information for the year ended 31 January 20×3 is available to compute her sales total for the year．

What is the sales figure for the year ended 31 January 20×3？（ ）

A．￡ 669，375

B．￡ 702，600

C．￡ 772，375

D．￡ 741，480

3.12 Wanda keeps no accounting records． The following information is available about her position and transactions for the year ended 31 December 20×4：

Based on this information， what was Wanda's profit for 20×4？（ ）

A．￡ 42，000

B．￡ 242，000

C．￡ 138，000

D．￡ 338，000

3.13 The following information is available for a sole trader who keeps no accounting records：

Using this information， what is the trader's profit for the year ended 30 June 20 × 5？（）

A．￡ 126，000

B．￡ 50，000

C．￡ 86，000

D．￡ 90，000

3.14 The following information is available about the transactions of Razil， a sole trader who does not keep proper accounting records：

Based on this information， what is Razil's sales revenue for the year？ （ ）

A．￡ 982，800

B．￡ 1，090，000

C．￡ 2，520，000

D．￡ 1，080，000

3.15 Prepare the statement of profit or loss for the year ended 31 July 20×1， in respect of T． Mann， from the following details in Exhibit 3.11：

3.16 From the following trial balance of G． Still （Exhibit 3.12）， draw up a statement of profit or loss for the year ending 30 September 20×7， and a statement of financial position as at that date．

Note ：Inventory at 30 September 20×7 was ￡ 44，780

3.17 From the following trial balance of S． Shah （Exhibit 3.13）， draw up a statement of profit and loss for the year ended 30 June 20×1 and statement of financial position as at that date．

Note ：Inventory at 30 June 20×1 was ￡ 28，320.

3.18 The following is the trial balance of T． Owen as at 31 March 20×6 （Exhibit 3.14）．Draw up a set of financial statements for the year ended 31 March 20×6.

Note ：Inventory at 31 March 20×6 was ￡ 58，440.

3.19*F． Brown drew up the following trial balance as at 30 September 20×5 （Exhibit 3.15）． You are to draft the statement of profit or loss for the year ending 30 September 20×5 and a statement of financial position as at that date．

Note ：Inventory at 30 September 20×5 was ￡ 89，404.

Reference

1.Alan Sangster，Frank Wood's Business Accounting Volume 1（2019）， Pearson．

2.Andrew Thomas and Anne Marie Ward． Introduction to Financial Accounting （2019），McGraw-Hill Education．

3.ACCA FA Financial Accounting／ FIA FFA Interactive Text 2020， BPP Learning Media．

4.ACCA FA Financial Accounting／ FIA FFA Practice ＆ Revision Kit 2020， BPP Learning Media．

5.Accounting （Study Manual 2020）， The Institute of Chartered Accountants in England and Wales．

6.Accounting （Question Bank 2020）， The Institute of Chartered Accountants in England and Wales． pUbpng60WdaMXqsNh6tzL6WwFXekHfz4CCSTpzC2CO6ZC5mIjqkOW0emfbODJwMy