The Accounting Worksheet (specific practice)

Question 1

Paying tax owed from previous financial year

Answer 1

Down in cash, down in other current liabilities

Question 2

Prepaid rent being used up within this financial year

Answer 2

Down in other current assets, down in expenses

Question 3

Rent payment

Answer 3

Down cash, down expenses

Question 4

Advanced rent payment for the next financial year

Answer 4

Up other current assets, up expenses

Question 5

Credit purchases of inventory

Answer 5

Up inventory, up trade payables

Question 6

Sales from the gallery - some cash, some credit

Answer 6

Up cash (cash amount), up trade receivables (credit amount), up income (total)

Question 7

Inventory sold

Answer 7

Down inventory, down expenses

Question 8

Purchase of fixtures some paid in cash, some still owing

Answer 8

Down cash (cash amount), up other current liabilities (amount owing) and up PPE (total)

Question 9

Wages paid owing from last financial year

Answer 9

Down cash on hand, down other current liabilities

Question 10

Wages for current year

Answer 10

Down cash, down expenses

Question 11

Wages still outstanding for next year

Answer 11

Down other current assets, down expenses

Question 12

Utilities for the current year

Answer 12

Down cash, down expenses

Question 13

Received money from purchases that were on credit

Answer 13

Up cash, down trade receivables

Question 14

Loan repayments ($10, 000 of principal, $4, 000 of interest)

Answer 14

Cash on hand down 14, loans down 10 and expenses down 4

Question 15

Paid suppliers amount owing from credit purchases

Answer 15

Cash down, trade payables down

Question 16

Received interest earned from bank account

Answer 16

Cash up, other current liabilities up

Question 17

Investing by owners in entity through purchasing more shares

Answer 17

Up cash on hand, up contributed equity

Question 18

Depreciation of fuxtures and fittings

Answer 18

Down PPE, down expenses

Question 19

Paying dividends

Answer 19

Down cash, down dividends

Question 20

Income tax expense still owing

Answer 20

Up other current liabilities and down expenses