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Module 2 (Week 2), Pre-Work, TUTORIAL 1 For Week 3

This document provides 10 questions for a tutorial on accounting concepts covered in a previous lecture. The questions cover calculating values using the accounting equation, as well as calculating costs of goods sold, gross profit, and other accounting values from financial statement figures.

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7 views

Module 2 (Week 2), Pre-Work, TUTORIAL 1 For Week 3

This document provides 10 questions for a tutorial on accounting concepts covered in a previous lecture. The questions cover calculating values using the accounting equation, as well as calculating costs of goods sold, gross profit, and other accounting values from financial statement figures.

Uploaded by

preethi.b
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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C37AF

Introduction to Accounting and Finance

Module 2 (Week 2):


Pre-work for Tutorial 1 (WEEK 3)

1
TUTORIAL 1 (WEEK 3)

Objective of the tutorial:

• To practice numerical examples based on material discussed in Lecture 2 (Week 2)

QUESTION 1
Farook Limited has current assets of £68,420, current liabilities of £50,328, non-current liabilities of £102,000
and equity of £202,359. Using the accounting equation, calculate the figure for non-current assets.

QUESTION 2
Harriet Limited has non-current assets of £425,000, current liabilities of £142,000 and equity of £391,000.
Harriet Limited has no non-current liabilities. Using the accounting equation, calculate the figure for current
assets.

QUESTION 3
Nishi Limited has non-current assets of £622,481, non-current liabilities of £235,148, current assets of
£359,727 and equity of £327,138. Using the accounting equation, calculate the figure for current liabilities.

QUESTION 4
Patrick runs an engineering business. At the financial year end he has the following account balances:
prepayments: £7,500, trade payables: £52,600, inventory: £74,100, long term loan: £250,000, property, plant
and equipment: £325,400, trade receivables: £46,300, bank balance (asset): £22,000, taxation payable:
£10,700. Patrick’s total assets are:

QUESTION 5
On 31 August 2019, the following balances for the financial year have been extracted from Jatinder’s books:
Sales: £357,000, Purchases: £225,000, Value of goods returned by customers: £3,500, Closing inventory:
£32,000, Value of goods returned to suppliers: £4,300, Opening inventory: £28,200. What is Jatinder’s gross
profit for the year ended 31 August 2019?

QUESTION 6
Parminder, a sole trader, makes a profit of £25,600 in the year ended 30 June 2019. Her capital account
balance at 1 July 2018 was £76,750 and she withdrew £55,200 from the business during the year for her
own expenses. What is the balance on Parminder’s capital account at 30 June 2019?

QUESTION 7
If sales are £200,000, opening inventory is £20,000, purchases for the year are £100,000 and gross profit is
£110,000, what is the closing inventory figure?

1
QUESTION 8
Hassan’s purchases for the financial year ended 30 September 2019 were £375,000. At 30 September 2018,
his closing inventory was £35,200 and his inventory at 30 September 2019 has been valued at £37,800.
Purchase returns during the year amounted to £5,730 and discounts allowed by suppliers totalled up to
£1,875. What is Hassan’s cost of sales for the year ended 30 September 2019?

QUESTION 9
Ismail’s sales for the financial year totalled up to £500,000. Opening inventory at the start of the financial
year was valued at £60,000 while closing inventory had a value of £75,000. Purchase returns during the
financial year amounted to a total of £5,000 and gross profit for the financial year was £220,000. What were
Ismail’s purchases during the financial year?

QUESTION 10

Fred runs a general store and has the following statement of profit or loss balances in his books at 31
December 2019: opening inventory: £25,000, wages: £45,000, sales: £275,000, purchases: £130,000, heat
and light: £15,000, closing inventory: £28,700. What is Fred’s gross profit for the year ended 31 December
2019?

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