Topic 3.5-3.9 -p1+p2

Question 1

Carriage in

Answer 1

The cost of transporting goods purchased by the business-included in cost of sales.

Question 2

Carriage out

Answer 2

The cost of transporting goods sold by the business-included in expenses

Question 3

Prepayment

Answer 3

Expense paid in advance
CA (dr) and DECREASES (cr) expense of what it is a prepayment of.e.g: rent.

Question 4

Accruals

Answer 4

Expense for services that have been used but not yet invoices to the business yet at the end of the accounting period
Shown as a CL (cr) and increases tge expense (dr)

Question 5

Irr debt

Answer 5

Debt that will not be paid
Dr irr debts -expense in IS
Cr trade rec -decreases this figure in CA

Question 6

Straight line depreciation

Answer 6

Cost * % given

Question 7

Reducing balance method

Answer 7

NBV * % given

Question 8

Double entry for depreciation

Answer 8

Dr depreciation
Cr prov for depreciation

Question 9

Cost account

Answer 9

Dr balance

Question 10

Prov for dep

Answer 10

Cr balance

Question 11

Disposal

Answer 11

Dr cost
Cr prov dep
Shows profit / loss on iS

Question 12

Provision for doubtful debts

Answer 12

Estimate of the likely amount of the trade rec fig that may be irrecoverable