Asb – 1110 Management and Financial Accounting Mock Test

ASB – 1110 Management and Financial Accounting
Mock Test
1 hour 15 minutes

1. 
   The following transactions took place in the month of February 2019 for ET Electrical, a business trading in electronic products owned by Ethan.
   

1 January	Started business £7000 in cash
7 January	Bought inventories on credit costing £1000
11 January	Bought some office furniture for £500 by cash
15 January	Sold inventories costing £900 for £1100 on credit
18 January	Received £850 from trade receivables by cash
21 January	Paid trade payables £800 by cash
24 January	Paid wages for the month £650 by cash
28 January	Bought inventories on credit for £1000
31 January	Borrowed £1500 from the Commercial Finance Company by cash

Required

1. 
   Record the transactions 10 marks
   
2. 
   Prepare a trial balance for ET Electrical 10 marks
   

20 marks

2. 
   From the following trial balance of a still Company, draw an income statement and a statement of financial position(Vertical or horizontal format)
   

	£
Opening inventories	30500
Carriage outwards	3000
Inventories bought	250300
Sales Revenue	445000
Salaries and wages	53500
Rent	2750
Insurance	1295
Motor expenses	1890
Office expenses	525
Lighting and heating expenses	785
General expenses	334
Premises	110000
Motor vehicles	10510
Fixture and fittings	1445
Trade receivables	36035
Trade Payables	29800
Cash at bank	7100
Drawings	24000
Equity (Opening balance)	61059
Closing inventories	45800
Discount allowed	1760
Interest received	3840
Interest payable	3970

30 marks

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