MID-TERM TEST 2

Exercice 1:

Stephen Chee
The initial trial balance
as at 31 May 20X1
Initial trial
Accounts balance
Debit Credit
£'000 £'000
121,30
Capital (opening)
0
Trade payables 36,000
120,00
Property – cost
0
Property – accumulated depreciation 20,000
Plant and equipment – cost 80,000
Plant and equipment – accumulated depreciation 38,000
Trade receivables 38,000
Accruals 400
17% bank loan repayable 30,000
Cash at bank 54,500
Financial Expense 5,100
Other Income 4,800
402,20
Revenue
0
208,00
Cost of Sales
0
Irrecoverable debts 4,600
Wages and salaries 58,800
Other operating expenses 17,700
Inventories 42,000
Drawings 24,000
Prepayment
652,70 652,70
0 0

Additional notes were not included in the above initial trial balance:
a. Wages and salaries need to be accrued by $800 – Credit
b. Other operating expenses are prepaid by $300
DECREASE EXPENSES
INCREASE ASSEST (PREPAYMENT)
 Dr Prepayment 10.000
 Cr Distribution expense 10.000

c. Depreciation for the year ended 31 Dec 20X1 has still to be provided as follows:
 Property: $1,800 will be charged for the year
 Equipment: $10,500 will be charged for the year
Dr Depriciation ex ( Expense) – quá trình allocate, hàng năm mình phải làm (lý thuyết
trong slide)
Đc phân bổ vào 2 chi phí
Cr Accumulated de ( Asset  Use up)

d. A credit customer is considered to be not able to collect $260

Dr Distribution/Administrative Expenses
Cr Assest (AR) – Trade Receivacle

Exercice 2:

Exercice 3:
Exercice 4:
Which of the following usually is least important as a mea- sure of short-term liquidity?
A. Quick ratio
B. Current ratio
C. Debt ratio
D. Cashflows from operating activities