Section a – all 35 questions are compulsory and must be attempted

What amount should be charged to the statement of profit or loss in the year ended 30 June 20X9 for electricity?

1. 
   $6,600 B $5,400 C $5,500
   

D $5,300

17. 
    At 30 June 20X5 a company’s allowance for receivables was $39,000. At 30 June 20X6 trade receivables totalled $517,000. It was decided to write off debts totalling $37,000 and to adjust the allowance for receivables to the equivalent of 5% of the trade receivables based on past events.
    

What figure should appear in the statement of profit or loss for the year ended 30 June 20X6 for receivables expense?

1. 
   $61,000
   
2. 
   $52,000
   
3. 
   $22,000
   
4. 
   $37,000
   
1. 
   The total of the list of balances in Valley’s payables ledger was $438,900 at 30 June 20X6. This balance did not agree with Valley’s payables ledger control account balance. The following errors were discovered:
   

1. 
   A contra entry of $980 was recorded in the payables ledger control account, but not in the payables ledger.
   
2. 
   The total of the purchase returns daybook was undercast by $1,000.
   
3. 
   An invoice for $4,344 was posted to the supplier’s account as $4,434.
   

What amount should Valley report in its statement of financial position for accounts payable at 30 June 20X6?

1. 
   $436,830
   
2. 
   $438,010
   
3. 
   $439,790
   
4. 
   $437,830
   
1. 
   According to IAS 2 Inventories, which TWO of the following costs should be included in valuing the inventories of a manufacturing company?
   

1. 
   Carriage inwards
   
2. 
   Carriage outwards
   
3. 
   Depreciation of factory plant
   
4. 
   General administrative overheads
   

1. 
   1 and 4
   
2. 
   1 and 3
   
3. 
   3 and 4
   
4. 
   2 and 3
   
1. 
   Prisha has not kept accurate accounting records during the financial year. She had opening inventory of $6,700 and purchased goods costing $84,000 during the year. At the year end she had $5,400 left in inventory. All sales are made at a mark up on cost of 20%.