Question 96
At the beginning of the year, an organization's non-current asset register showed a total net book value for fixed assets of £86,000. The nominal ledger showed non-current assets at cost of £120,000 and provision for depreciation of £39,000.
The disposal of a non-current asset for £10,000, at a profit of £2,000, had not been accounted for in the non-current asset register.
After correcting for this, the net book value shown in the ledger accounts would be
Question 97
In times of rising prices, the historical cost convention results in:
Question 98
Which ONE of the following is a possible explanation for a debit balance on the purchase ledger account of a supplier?
(i) An invoice has been posted twice
(ii) A credit note has been posted twice
(iii) A payment has been recorded against the wrong supplier account
(iv) A payment has been posted twice
(v) A contra was posted to the supplier account but not the customer account (vi) Goods returned had been posted to the wrong supplier account
Question 99
Refer to the exhibit.
The following information is available for a company:
The company has declared an ordinary dividend of $0.05 per share.
What is the total dividend payment to be made by the company?
Question 100
A company had a gross profit margin of 40%. Sales for the period were $280,000 and opening and closing inventories were $18,000 and $16,000 respectively.
Purchases for the period were therefore