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accounting quiz, pls help - Dilara - 11-03-2009 Hi to everyone. Recently I had financial accounting quiz, some of the questions were very confusing for me, could you pls help me with them? Thank you in advance! At 31 march 20x7 accrued rent payable was 300$. during the year ended 31 march 2008 rent paid was 4000 $, including an invoice 1200$ for the quarter ended 30 april 2008. what is the income statement charge for the rent payable for the year ended 31 march 2008? 1) 3300 2) 3900 3) 4100 4) 4700 The net assets of walter’s business decreased by 11,025 $ over the year to 31 october 20x7. during that year he had paid in additional capital of 14,000 $ , drawn cash 875$ each month and on one ocassion taken goods costing 2,625 $ for his own use. The profit / loss made by the business for the year ended 31 october 20x7 was ___ A business has net assets of 286,400 $ on 31 january 2006 and had net assets of 266,800 $ on 31 january 2005. during the year the proprietor of the business took goods for his own use which cost 10,000 and had market value of 14,000 Introduced capital of 50 000 Withdrew 30 000 as salary The profit for the year was ___? - faizicapri - 11-03-2009 @ dilara ANSWERS 1 the answer of ur first question is a) 3300 because the charge for the year is 3700(4000-300) out of which 400 is prepaid for the month of april so net charge for the year is 3300(3700-400) 2 the answer for the 2nd question is LOSS OF RS.11900 which can be computed as follows ADDITIONAL CAPITAL 14000 STOCK WITHDRAWN (2625) CASH DRAWINGS(875*12) (10500) PROFIT/ (LOSS) [BALANCING FIGURE](11900) ------- NET DECREASE IN ASSETS (11025) -------- 3 answer for the 3rd question is PROFIT OF RS.9600 it can be computed as follows CAPITAL INDUCTED 50000 STOCK WITHDRAWN (10000) SALARY (30000) PROFIT(BALANCING AMOUNT) 9600 --------- INCREASE IN NET ASSETS(286,400-266,800) 19600 --------- Regards, Muhammad Faizan Pasha - Osama Rules - 11-03-2009 Salam, All of the answers provided r correct & as they have been audited by ME then no tension!!! [D][D] LOLzz Look all u need to remember is that Opening capital ADD net profit ADD additional capital LESS drawings EQUALS closing capital. Regards.