Section A – ALL 25 questions are compulsory and MUST be attempted
Please use the Candidate Registration Sheet provided to indicate your chosen answer to each multiple choice question.Each question within this section is worth 2 marks.
The following information is available for a sole trader who keeps no accounting records:
Net business assets at 1 July 2004186,000Net business assets at 30 June 2005274,000During the year ended 30 June 2005:Cash drawings by proprietor68,000Additional capital introduced by proprietor50,000Business cash used to buy a car for the proprietor’s wife,who takes no part in the business20,000
Using this information, what is the trader’s profit for the year ended 30 June 2005?A
Evon, a limited liability company, issued 1,000,000 ordinary shares of 25c each at a price of $1·10 per share, allreceived in cash.
What should be the accounting entries to record this issue?A
Debit:Cash$1,100,000Credit:Share capital$250,000Share premium$850,000
Debit:Share capital$250,000Share premium$850,000Credit:Cash$1,100,000
Debit:Cash$1,100,000Credit:Share capital$250,000Retained earnings$850,0002