Sample exam question solutions.pdf

Sample exam question solutions.pdf - SAMPLE EXAM QUESTIONS...

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SAMPLE EXAM QUESTIONS – SOLUTIONS In each case below identify whether the item is a current asset (CA), non-current asset (NCA), current liability (CL), non-current liability (NCL), equity (Eq), revenue (R) or expense (E). White Ltd NCL Non-current borrowings COS Cost of sales E Income tax expense CA Inventories E Wages expense CA Cash CL Current payables E Other expense R Sales revenue CA Accounts Receivable Eq Reserves Eq Contributed equity NCA Property and Equipment E Depreciation expense Eq Retained earnings E Interest expense
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SAMPLE EXAM QUESTIONS – SOLUTIONS PROBLEM SET B 2.5 (a) Accurate Accountants Date Account Titles and Explanation Ref Debit $ Credit $ May 1 Cash Share capital (Issued shares for cash) 100 300 156,000 156,000 2 No entry—not a transaction. 3 Supplies Accounts Payable (Purchased supplies on account) 115 200 3,600 3,600 7 Rent Expense Cash (Paid office rent) 510 100 2,700 2,700 11 Accounts Receivable Service Revenue (Billed client for services provided) 110 400 3,300 3,300 12 Cash Revenue received in advance (Received an advance for future services) 100 210 13,500 13,500 17 Cash Service Revenue (Received cash for revenue earned) 100 400 3,600 3,600 31 Salaries Expense Cash (Paid salaries) 500 100 3,000 3,000 31 Accounts Payable ($3,600 X 40%) Cash (Paid creditor on account) 200 100 1,440 1,440
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SAMPLE EXAM QUESTIONS – SOLUTIONS PROBLEM SET A 2.7 Date Account Titles and Explanation Post Ref Debit Credit May 2 Cash 100 450 Accounts Receivable 115 450 (Received cash from customers on account) 8 Accounts Receivable 115 1,750 Service Revenue 400 1,750 (Invoiced customers for services performed) 12 Salaries Expense 500 600 Cash 100 600 (Paid employee salaries) 15 Revenue Received in Advance 210 300 Service Revenue 400 300 (Performed services for customers who paid in advance) 18 Accounts Payable 200 800 Cash 100 800 (Paid creditors on account) 25 Dividends 310 250 Cash 100 250 (Payment of cash dividend) 31 Electricity Expense 510 350 Cash 100 350 (Paid electricity)
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