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Dec02 owner of the company invested 40 000 in

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Dec/02 Owner of the company invested €40 000 in machinery.Dec/03 Bought materials from Mrs Stanley for €60 000 on creditDec/05 Paid Mrs Stanley a cheque for €10 000 for goods purchased onDecember 3rd.Dec/6Using funds in the bank, bought a machine for €20 000Dec/20 Sold goods to Graham Ltd €150 000 and received the moneyinto the bankDec/22 Sold goods to JGH Ltd worth €100 000 and received €20 000 ofthe money into the bankDec/28 Bought a company vehicle worth €40 000 paying by chequeCapitalBankMachineryJan/1Bal b/d€60000MaterialPage 5 of 11
Mrs Stanley (payables)SalesVehiclesJGH Ltd (receivable)Trial BalanceName of AccountCapitalBankMachineryMaterialMrs StanleySalesVehiclesJGH ReceivablesPage 6 of 11
SECTION C:Definitions / short questions /calculations(Total Marks : 24)Question 1. (6 marks)2 marks for a clear definition1 mark for a vague / partly-correct definition0 marks for a wrong definitionDefine the following:Current LiabilityAmount due to be paid creditors with in twelve months. Examplesales and income tax payable, interest payable, bank accountoverdraft.
Question 2. (6 marks)Page 7 of 11
3 marks for a clear explanation1-2 mark for a vague / partly-correct explanation0 marks for a wrong explanationDefine the following:
Question 3Given the information calculate the share income for the business (8 marks)2 marks for each correct calculationThe business had an authorised capital of150,000 ordinary shares at £5 each50,000 6% preference shares at £9 eachThe business has issued150,000 ordinary shares at a premium of £3 each30,000 6% preference shares at parAccountAmount £Issued ordinary sharecapital750,000Issued Preference capital27000Share premium account450000Total capital in bankPage 8 of 11

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Term
Winter
Professor
N/A
Tags
Generally Accepted Accounting Principles, Total capital, Mrs Stanley

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