In the final account of a limited liability company, debenture interest paid is recorded in the
capital account
profit and loss account
trading account
current account
Correct answer is B
Debenture interest is recorded on the debit side of the profit and loss account.
Use the following information to answer the question
|
$ |
|
|
Trade creditors (31/12/2020) |
4,000 |
| Paid for purchases in 2021: Cheques | 110,000 |
| Carriage inwards | 1,000 |
| Trade creditors (31/12/2021) | 6,000 |
The balance c/d on trade creditors will be recorded in the balance sheet as
current asset
short-term liability
long-term liability
fixed asset
Correct answer is B
The balance c/d on trade creditors will be recorded in the balance sheet as a "short-term liability."
Trade creditors represent amounts owed by a business to its suppliers for goods or services that have been purchased on credit. These amounts are typically expected to be paid within a short period, usually within a year. As a result, trade creditors are classified as short-term liabilities on the balance sheet.
In the given information, the trade creditors balance on December 31, 2021, is $6,000. This represents the amount that the business still owes to its suppliers at the end of the year. Since it is an amount payable in the short term, it will be recorded as a short-term liability on the balance sheet.
Use the following information to answer the question
| $ | |
|
Trade creditors (31/12/2020) |
4,000 |
| Paid for purchases in 2021: Cheques | 110,000 |
| Carriage inwards | 1,000 |
| Trade creditors (31/12/2021) | 6,000 |
The total purchase in 2021 is
$121,000
$113,000
$117,000
$111,000
Correct answer is D
To determine the total purchase in 2021, we need to sum up the amounts paid for purchases in 2021 and the carriage inwards.
The amounts are as follows:
Paid for purchases in 2021 (cheques): $110,000
Carriage inwards: $1,000
Adding these two amounts together gives us:
$110,000 + $1,000 = $111,000
Therefore, the total purchase in 2021 is $111,000.
Which of the following items is classified as capital expenditure in public sector accounting?
Training and conference cost
Construction works's cost
Wages and salaries
Financial charges
Correct answer is B
Capital expenditure are expenditure incurred on long term project. They usually add to the value of the assets. They are normally paid from development fund.
A reason a business is not able to keep full set of accounting records is that
the business does not make profit
double entry is expensive to maintain
the business is not a trading concern
double entry shows the true profit
Correct answer is B
The double entry system is comparatively an expensive way of maintaining the financial accounts. The accountants may charge a handsome amount as fees. Maintaining incomplete records consumes less time.