A Level Accounting Retrieval Practice 1

Explain which error has occurred

• Compensation

• Omission

• Commission

• Principle

Which of these answers will be incorrect?

• The preparation of the trial balance would not discover this error as it an error of omission

• The error might not be discovered because the total of the trade payables balances and the purchase ledger control account balances agree

• The double entry will still be correct

• The error might not be discovered because the total of the trade receivables balances and the Sales ledger control account balances agree

The answer to this part of the question is (550). In the comment box explain how to get that figure. (Hint - You need to work out the revenue you can make off the items after replacing the damaged packaging. Then subtract the original cost of the items to get a figure)

How much did the goods originally cost? State which is correct

• £2 800 × 100/125 = £2 240

• £2 800 × 100/25 = £11 200

• £2 800 × 25% = £700

  £2 800 - £700 = £2 100

• £2 800 × 125/100= £3 500

Using the Cost of Sales Formula work out the Cost of Sales figure. (Do not include the £ sign or put in any gaps)

Calculate the amount of Shares that have been issued (Remember the formula - Share capital/Nominal Value of each share)

A bonus issue of 2 new shares for every 5 shares held was made. What is the Bonus Issued amount? (Do not include the £ sign or any gaps in the number provided)

A rights issue of 1 new share for every 4 shares held was made at a 20p per share premium. This was fully subscribed. Remember to answer this you need to include the entry from 30 June 2022. What is the Share Premium amount? (Hint - The Share premium amount uses the per share premium price)

A rights issue of 1 new share for every 4 shares held was made at a 20p per share premium. This was fully subscribed. Remember to answer this you need to include the entry from 30 June 2022. What is the Nominal value amount? (Hint - The Nominal Value amount uses the nominal price per share)

Property is revalued to £1 950 000. It had originally cost £1 800 000 and had been owned for 5 years when revalued. It has been depreciated at 6% per annum using the straight line method. What is the Revaluation of the Property amount? (Do not include a £ sign or leave any gaps in the numbers) (Hint - The revaluation amount is; the Revalued Property amount - Original value of the property after depreciation)