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
Bakeson Bearings Ltd is preparing to submit a bid for a bearings order.  Janet Lake,  CEO of the Manufacturing Division, has asked Jason Docker, the management accountant, to prepa

according to a factory cost ledger, job no 51 has incurred the following costs: direct material - 30

Encik Farid, a sole trader, started his business on 1 May 2010 under the name Farid Enterprise. The following are his business transactions for the month of May a. Encik Farid b

What are the missing amounts for the below amortization table, given the following information? -  A firm borrows $100,000 from a bank. -  The terms of the loan require the f

Corporation has determined the contribution margin ratio is 35% and the income tax rate is 40%. Required: A) Assume break-even volume in dollars is $1,500,000. What are total fixed

Cost Data Determination How does one decide the cost data for products and the services which are the end result of the productive processes? The response to this question is m


Explain the value attached to this common exercise undertaken by Accountants.

Relationship between Cost Accounting and Business Enterprise Cost accounting, like will be mentioned later to adopts a cost center approach to accounting for costs. A cost cen

Automotive Products  (AP)  designs, manufactures,  and  sells  automotive  parts.  It  has  3 main operating departments: design, engineering, and production.  1.Design  ñ  the