Program ZU Final/Midterm : Final

(MBA/ BBA/ ZU) :

Course name : Instructor’s name Nigar Karimli
Financial Accounting :
Student’s name : Group number ZU-019
(BBA /ZU) :
Term (fall, spring): Spring Date of exam : 18/06/2020
1. The following totals appear in the day books for March 20X8.
$
Sales day book 40,000
Purchases day book 20,000
Returns inwards day book 2,000
Returns outward day book 4,000
Opening and closing inventories are both $3,000.
What is the gross profit for March 20X8?

2. Which of the following items should be included in current assets?

(i) Assets which are not intended to be converted into cash
(ii) Assets which will be converted into cash in the long term
(iii) Assets which will be converted into cash in the near future

3. On 1 May 20X9 Marshall's cash book showed a cash balance of $224 and an overdraft of
$336. During the week ended 6 May the following transactions took place.
May 1 Sold $160 of goods to P Dixon on credit.
May 1 Withdrew $50 of cash from the bank for business use.
May 2 Purchased goods from A Clarke on credit for $380 less 15% trade discount.
May 2 Repaid a debt of $120 owing to R Hill, taking advantage of a 10% cash discount. The
payment was by cheque.
May 3 Sold $45 of goods for cash.
May 4 Sold $80 of goods to M Maguire on credit, offering a 121/2% discount if payment made
within 7 days.
May 4 Paid a telephone bill of $210 by cheque.
May 4 Purchased $400 of goods on credit from D Daley.
May 5 Received a cheque from H Larkin for $180. Larkin has taken advantage of a $20 cash
discount offered to him.
May 5 Sold $304 of goods to M Donald on credit.
May 5 Purchased $135 of goods from Honour Co by cheque.
May 6 Received a cheque from D Randle for $482.
May 6 Purchased $100 of goods on credit from G Perkins.
What is the total of the sales day book?

4. Smith Co has the following transactions:

1 Purchase of goods on credit from T Rader: $450
2 Return of goods purchased on credit last month to T Rouble: $700
What are the correct ledger entries to record these transactions?

5. Which of the following statements is/are TRUE or FALSE?

1 Cash purchases are recorded in the purchases day book.
2 The sales day books is used to keep a list of invoices received from suppliers.