Acca f3 Financial Accounting (int) Study Text

  Exam question bank

427

33 

A sole trader took some goods costing $800 from inventory for his own use. The normal selling 

price of the goods is $1,600.  

Which of the following journal entries would correctly record this?

Dr Cr 

$ $ 

A Drawings 

account 

800 

 

 Inventory 

account 

 

800 

B Drawings 

account 

800 

 

 Purchases 

account 

 

800 

C Sales 

account 

1,600 

 

 Drawings 

account 

 

1,600 

(1 mark) 

34 

Which of the following calculates a trader’s net profit for a period?  

A 

Closing net assets + drawings – capital introduced – opening net assets  

B 

Closing net assets – drawings + capital introduced – opening net assets  

C 

Closing net assets – drawings – capital introduced – opening net assets  

D 

Closing net assets + drawings + capital introduced – opening net assets.  

(2 marks) 

35 

A fire on 30 September destroyed some of a company’s inventory and its inventory records. The 

following information is available:

$

Inventory 1 September

318,000

Sales for September 

612,000

Purchases for September

412,000

Inventory in good condition at 30 September

214,000

Standard gross profit percentage on sales is 25%

Based on this information, what is the value of the inventory lost? 

A $96,000 

B $271,000 

C $26,400 

D $57,000 

(2 marks) 

36 

The inventory value for the financial statements of Q for the year ended 31 May 20X6 was based on 

an inventory count on 4 June 20X6, which gave a total inventory value of $836,200.

Between 31 May and 4 June 20X6, the following transactions took place:

$

Purchases of goods

8,600

Sales of goods (profit margin 30% on sales) 

14,000

Goods returned by Q to supplier 

700

What adjusted figure should be included in the financial statements for inventories at 31 May 

20X6?

A $838,100 

B $853,900 

C $818,500 

D $834,300 

(2 marks) 

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428

Exam question bank  

37 

Annie is a sole trader who does not keep full accounting records. The following details relate to her 

transactions with credit customers and suppliers for the year ended 30 June 20X6:

$

Trade receivables, 1 July 20X5

130,000

Trade payables, 1 July 20X5

60,000

Cash received from customers 

686,400

Cash paid to suppliers 

302,800

Discounts allowed 

1,400

Discounts received 

2,960

Contra between payables and receivables ledgers 

2,000

Trade receivables, 30 June 20X6

181,000

Trade payables, 30 June 20X6 

84,000

What figure should appear in Annie’s income statement for the year ended 30 June 20X6 for 

purchases?

A $331,760 

 

B $740,800 

 

C $283,760 

 

D $330,200 

 

(2 marks) 

38 

P and Q are in partnership, sharing profits equally.  

On 30 June 20X5, R joined the partnership and it was agreed that from that date all three partners 

should share equally in the profit.

In the year ended 31 December 20X5 the profit amounted to $300,000, accruing evenly over the 

year, after charging a bad debt of $30,000 which it was agreed should be borne equally by P and Q 

only.

What should P’s total profit share be for the year ended 31 December 20X5? 

A $ 

95,000 

B $122,500 

C $125,000 

 

D $110,000 

 

(2 marks) 

39 

Goodwill should never be shown on the statement of financial position of a partnership. 

Is this statement true or false? 

A True 

B False 

(1 mark) 

40 

A and B are in partnership sharing profits and losses in the ratio 3:2 respectively. Profit for the year 

was $86,500. The partners’ capital and current account balances at the beginning of the year were 

as follows:

A B 

$

$

Current accounts 

5,750CR 

1,200CR 

Capital accounts 

10,000CR 

8,000CR 

A’s drawings during the year were $4,300, and B’s were $2,430.  

What should A’s current account balance be at the end of the year? 

A 57,650 

B 51,900 

C 61,950 

D 53,350 

(2 marks) 

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  Exam question bank

429

41 

Should dividends paid appear on the face of a company’s income statement?  

A Yes 

 

B No 

 

(1 mark) 

42 

Which of the following journal entries are correct, according to their narratives?  

 Dr 

Cr

$ $ 

1 Suspense 

account 

18,000

 

Rent received account 

 

18,000 

 

Correction of error in posting $24,000 cash received for rent to the rent received amount as 

$42,000

2 

Share premium account 

400,000

 

Share capital account 

 

400,000 

 

1 for 3 bonus issue on share capital  of 1,200,000 50c shares 

3 

Trade investment in X 

750,000

 

Share capital account 

 

250,000 

 

Share premium account 

 

500,000 

 

500,000 50c shares issued at $1.50 per share in exchange for shares in X 

A 

1 and 2  

B 

2 and 3  

C 

1 only  

D 

3 only  

(2 marks) 

43  

Which of the following should appear in a company’s statement of changes in equity?  

1 

Profit for the financial year 

2 

Amortisation of capitalised development costs 

3 

Surplus on revaluation of non-current assets 

A 

All three items 

B 

2 and 3 only 

C 1 

only 

D 

1 and 2 only 

(2 marks) 

44 

At 31 December 20X4 a company’s capital structure was as follows:  

$

Ordinary share capital(500,000 shares of 25c each) 

125,000

Share premium account 

100,000

In the year ended 31 December 20X5 the company made a rights issue of 1 share for every 2 held 

at $1 per share and this was taken up in full. Later in the year the company made a bonus issue of 

1 share for every 5 held, using the share premium account for the purpose.

What was the company’s capital structure at 31 December 20X5?

Ordinary share capital 

Share premium account 

 $ 

$

A 450,000 

25,000

B 225,000 

250,000

C 225,000 

325,000

D 212,500 

262,500

(2 marks) 

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