FINANCE

Question 1

GROSS PROFIT

Answer 1

ADD OTHER INCOME

1. Anything received (right column)
2. Dividends due for investment
3. Decrease in provision or doubtful debts

Question 2

EXPENSES

Answer 2

EXPENSES:

1. Any expense
2. Bad debts
3. Increase in provision for doubtful debts
4. Depreciation
5. Loss on a sale
6. Discounts allowed - left column
7. Debenture interest
8. Loan or overdraft interest
9. Carriage outwards

Question 3

APPROPRIATION ACCOUNT

Answer 3

1. Net profit before tax
2. Less corporation tax
3. Net profit after tax
4. Less dividends
5. Less goodwill written off
6. Add retained profit

Question 4

BALANCE SHEET - FIXED ASSETS

Answer 4

1. TANGIBLES
2. GOODWILL
3. LONG TERM INVESTMENTS

Question 5

TRADING ACCOUNT

Answer 5

1. Sales
   Less sales returns

LESS COST OF SALES

2. Opening Stock
3. Purchases
4. Less purchase returns
5. Add warehouse wages
6. Add market value of finished goods
7. Add carriage inwards

Question 6

CURRENT ASSETS

Answer 6

1. Stock
2. Prepayments
3. Debtors
4. Less provision for doubtful debts
5. Bank (left column)
6. Dividends due for investment
7. Cash

Question 7

CURRENT LIABILITIES

Answer 7

1. Creditors
2. Accruals
3. VAT
4. Corporation Tax
5. Dividends due
6. Bank (right column)
7. Debenture interest

Question 8

BALANCE SHEET FINANCED BY

Answer 8

1. Shares
RESERVES
2. Retained profit
3. Share premium
4. Revaluation reserve
5. Add long term liability