Which of the following items could appear on the credit side of a receivables ledger control account?
1 Cash received from customers
2 Irrecoverable debts written off
3 Increase in allowance for receivables
4 Discounts allowed5 Sales6 Credits for goods returned by customers7 Cash refunds to customers
An inexperienced bookkeeper has drawn up the following receivables ledger control account:
RECEIVABLES LEDGER CONTROL ACCOUNT
$ $
Opening balance 180,000 Credit sales 190,000
Cash from credit customers 228,000 Irrecoverable debts written off 1,500
Sales returns 8,000 Contras against payables 2,400
Cash refunds to credit customers 3,300 Closing balance (balancing figure) 229,60
0Discount allowed 4,200
423,500 423,500
What should the closing balance be after correcting the errors made in preparing the account?
The payables ledger control account below contains a number of errors:
PAYABLES LEDGER CONTROL ACCOUNT
$ $
Opening balance (amounts owed to suppliers) 318,600 Purchases 1,268,600
Cash paid to suppliers 1,364,300 Contras against debit 48,000
Purchases returns 41,200 balances in 8,200
Refunds received from suppliers 2,700 receivables ledger 402,000
$1,726,800 Discounts received $1,726,800
Closing balance
All items relate to credit purchases.
What should the closing balance be when all the errors are corrected?
X Co sells goods with a one year warranty and had a provision for warranty claims of $64,000 at 31 December 20X0. During
the year ended 31 December 20X1, $25,000 in claims were paid to customers. On 31 December 20X1, X Co estimated that
the following claims will be paid in the following year:
Scenario Probability Anticipated cost
Worst case 5% $150,000
Best case 20% $25,000
Most likely 75% $60,00
What amount should X Co record in the statement of profit or loss for the year ended 31 December 20X1 in respect of the
provision?
W is registered for sales tax. The managing director has asked four staff in the accounts department why the output tax for the last quarter does not equal 20% of sales (20% is the rate of tax). Which one of the following four replies she received was not correct?
The following information relates to Eva Co's sales tax for the month of March 20X3:
$
Sales (including sales tax) 109,250
Purchases (net of sales tax) 64,000
Sales tax is charged at a flat rate of 15%. Eva Co's sales tax account showed an opening credit balance of $4,540 at the
beginning of the month and a closing debit balance of $2,720 at the end of the month.
What was the total sales tax paid to regulatory authorities during the month of March 20X3?
Alana is not registered for sales tax purposes. She has recently received an invoice for goods for resale which cost $500
before sales tax, which is levied at 15%. The total value was therefore $575.
What is the correct entry to be made in Alana’s general ledger in respect of the invoice?
Information relating to Lauren Co's transactions for the month of May 20X4 is shown below:
$
Sales (including sales tax) 140,000*
Purchases (net of sales tax) 65,000
Sales tax is charged at a flat rate of 20%. Lauren Co's sales tax account had a zero balance at the beginning of the month and at the end of the month.
* Lauren Co's sales for the month of $140,000 included $20,000 of sales exempt from sales tax. What was the total sales tax paid to regulatory authorities at the end of May 20X4 (to the nearest $)?
A business commenced with capital in cash of $1,000. Inventory costing $800 plus sales tax ispurchased on credit, and half is sold for $1,000 plus sales tax, the customer paying in cash at once. The sales tax rate is 20%.
What would the accounting equation after these transactions show?
Trade receivables and payables in the financial statements of a sales tax registered trader will appear as described by which
of the following?