CH11 - The Accounts Of Sole Traders Flashcards
Balance ob drawings
Will be DEBITED to OWNER’S CAPITAL in the SOFP
On 1 Dec 20X1 Pat borrowed $40,000 at a fixed rate of interest. A single capital repayment is due on 1 Dec 20X9. During the year to 30 November 20X7 the interest of $300 per month has been paid on the last day of each month.
How should the loan be reported in Pat’s SOFP at 30 Nov 20X7?
Current liability Nil
Non-current liability $40,000
Start byr 1 Dec 20X9
$300 per month has been paid tu maksudnya dah byr, so xde current liability.
When he closed his ledger accounts at 30 April 20X7 Luther’s wages expense account had a debit balance of $87963. Luther also had to make an accrual of $1,268 for outstanding wages.
What is Luther’s opening balances for wages at 1 May 20X7?
$1268 credit
His opening balance will show the outstanding liability at the beginning of the year. This will be the accrual reversed (credited) and this will be offset by the subsequent payment.
Wages Accrual c/d 1268 SOPL 87963
Accrual b/d 1268
On 1 Nov 20X4 Leah took out a business development loan of $30,000. The loan is to be repaid in 10 equal six monthly instalments. Leah made the first repayment of $3,000 on 1 May 20X5.
How should the outstanding balance of $27,000 be reported on Leah’s SOFP at 31 May 20X5?
Current liability $6000
Non-current liability $21,000
Capital
Liability mengurangkan capital
Drawing mengurangkan capital
In Theo’s SOPL for the year ended 31 May 20X6 the charge for motor repairs was $2,850. This included an accrual of $220.
When Theo’s opening trial balance at 1 June 20X6 is prepsred, what will be the correct balance on the motor repairs account?
$220 (credit)
Loan question
Loan require her to repay,
Maksudnya dia kena byr jadi amount tu drb dgn 12 months.
Loan has been paid,
Maksudnya dia dh byr and no current liabilities
Capital account
Loss - Debit
Drawings - Debit
Profit - Credit
