Calculate the capital account balance, Cost Accounting

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.

 

Posted Date: 2/16/2013 3:06:26 AM | Location : United States







Related Discussions:- Calculate the capital account balance, Assignment Help, Ask Question on Calculate the capital account balance, Get Answer, Expert's Help, Calculate the capital account balance Discussions

Write discussion on Calculate the capital account balance
Your posts are moderated
Related Questions
Economic Order Quantity This constitutes the quantity purchased of either raw materials or stocks which is considered most optimum. It is the quantity such minimizes both ord

Alameda Service center just purchased an automobile hoist for $ 14000. The hoist has a 6 year lifeand an estimated salvage value of $1481. Installation costs were $3020, and freigh

Determine the additional cash a company could obtain from its working capital accounts if it can improve its average collection period by three days and inventory turnover by 0.5 t

Example of Process Cost Report Let suppose that the beginning work in progress in a Company in the month of November was 1,000 units that were 100 percent complete in terms of

Is there a way to figure out labor cost and factory inventory when no direct information regarding them is available.

The following information is available for the automotive division of Ford Motor Company for 2009.  The company uses the LIFO inventory method.

UTILITY OF BREAK EVEN POINT IN MANAGERIAL DECISION MAKING 1. It assists in determination of sales mix 2. It assists in exploring new markets 3. It assists in deciding abo

In this exercise you will familiarize yourself with index models, beta and CAPM estimation. Download the spreadsheet data_question3.xlsx from Sakai and use the data contained there

In this section we have tried to develop the concept of flow of funds inside the organization. Starting along with the funds requirement for an organization, we have tried to trace

What is the major value of the weighted cost of capital calculation for the firm?