1There is information from the books of a business at 30 April 2002.
Credit sales invoiced during financial year $79,000
Goods sent to customers on 28th April 2003 and invoiced 4th may 2002 $6100
Goods sent to customers dring April 2002 on sale or return basis but not sold by 30 April 2002
What is the amount to be credited to the Trading Account as sales for the year ended 30 April 2002?

• $76 800
  
• $85 100
  
• $85 300
  
• $93 400
  

2. A customer paid a deposit in advance for goods to be supplied at a later date.
How should this be recorded in the seller’s books?
             debit           credit

•  cash           customer
  
•  cash           sales
  
•  customer  prepayment
  
•  customer   sales
  

3. A business sells some of its stock for $80 on credit to a customer. The stock originally cost $50. Which statement actually reflects the effect of this transaction on the Balance Sheet?
current assets owner’s capital

• decrease by $30 decreases by $30
  
• decrease by $30 increases by $30
  
• increase by $30 increases by $30
  
• increase by $30 decreases by $30
  

4. The wages of staff employed in getting goods into a saleable condition have been debited in the Profit and Loss Account. What is the effect of this error?
Gross profit Net profit

•  A overstated no effect
  
•  B overstated overstated
  
•  C understated no effect
  
•  D understated understated
  

5. A company has revalued its fixed assets upwards during the most recent accounting period. What will be the effect of this?

•  A to increase capital employed and increase profits
  
• B to increase capital employed and reduce profits
  
•  C to reduce capital employed and reduce profits
  
•  D to reduce capital employed and no effect on profits