Calculate the capital account balance, Cost Accounting

Assignment Help:

You are given the following information about a sole trader as at 1 January 2012:

The value of assets and liabilities were:

  • Non-current assets at net book value £16,800
  • Trade receivables £ 4,204
  • Bank overdraft £ 2,140
  • Trade payables £ 2 766

(a)  Calculate the capital account balance as at 1 January 2012.                      

(b) On 1 January 2012, office equipment is purchased on credit. Select the relevant boxes below to show what effect this transaction will have on the account balances.  You must choose ONE answer for EACH line. 

 

Debit
a

Credit
a

No change
a

Non-current assets

 

 

 

Trade receivables

 

 

 

Trade payables

 

 

 

Bank

 

 

 

Capital

 

 

 

(c)      Which of the following is best described as a current liability? Select ONE answer.    

  • A trade receivable that will be received in the 30 days.
  • A motor vehicle that will be sold in the next two months
  • A trade payable that will be paid in the next month.
  • A bank loan to be repaid in 2 years time.

 


Related Discussions:- Calculate the capital account balance

Cash, This is difficult to perceive cash maintained in the vault as an inve...

This is difficult to perceive cash maintained in the vault as an investment. Fairly, you would be thinking that if we invest cash, then how can cash itself be an investment? Howeve

Net cash inflow, Holmes Electronics' Canadian Branch will help introduce in...

Holmes Electronics' Canadian Branch will help introduce into Canada the just developed new electronic device which, when mounted on an automobile, will tell the driver how many mil

Application of a hand-held clinical thermometer, In an application of a han...

In an application of a hand-held clinical thermometer for the National Health Service it is required to use disposable temperature sensors and digital read out of temperature betwe

Share capital of a company, A company has an authorized share capital of 25...

A company has an authorized share capital of 250 million divided into 1,500,000 ordinary shares of sh.100 each and 1,000,000 preference shares of sh.100 each. 1,000,000 ordinary sh

Accounts payable, Accounts Payable or sundry creditors are generally unsecu...

Accounts Payable or sundry creditors are generally unsecured debts owed through the firm. These are also considered to as payables on open accounts. They may not be evidenced throu

To amortize the office improvements, On July 1, 2008, Falk Company signed a...

On July 1, 2008, Falk Company signed a contract to lease space in a building for 15 years. The lease contract calls for annual (prepaid) rental payments of $100,000 on each July 1

Calculate the capital account balance, You are given the following informat...

You are given the following information about a sole trader as at 1 January 2012: The value of assets and liabilities were: Non-current assets at net book value £16,800

Accounting 561, Your organization (City Rehab) has been approached by an MC...

Your organization (City Rehab) has been approached by an MCO looking for an exclusive arrangement for the rehabilitation of its hip replacement patients. The MCO is aggressively po

Find the cost of equity of company, Outdoor Travel Inc. needs to estimate t...

Outdoor Travel Inc. needs to estimate the cost of capital for the evaluation of capital expenditures. A typical project is financed with 25% debt-to-value ratio (i.e., D/(D+E) =

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd