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Fundamentals of Financial Accounting Questions 196–200 (page: 41)

CORRECT TEXT

At 31 December year 1, the electricity expenses account had a closing accrual of $300 as a result a credit balance was brought down at 1 January year 2

During year 2, electricity invoices totaling $4,000 were paid, including an invoice for $600 for the three months ended 31 March year 3

The charge of electricity in the income statement for year 2 is $

At the beginning of the year, an organization's non-current asset register showed a total net book value for fixed assets of $86,000. The nominal ledger showed non-current assets at
cost of $120,000 and provision for depreciation of $39,000.

The disposal of a non-current asset for $10,000, at a profit of $2,000, had not been accounted for in the non-current asset register.

After correcting for this, the net book value shown in the ledger accounts would be

The accounting concept to be considered when the owner of a business uses business funds to pay for his private household expenses, is the:

Refer to the Exhibit.



Ax minster Limited is calculating its irrecoverable debt charge and allowance for receivables for inclusion in its year-end accounts. The current allowance for receivables is $28,600 and it is estimated that this needs to be raised to $30,400. There are also bad debts of $3,600 which should be written off.

Which is the correct entry to be made to the accounts to record these transactions?

The correct entry to be made to the accounts to record these transactions is:

Which one of the following is an error of original entry?