The use of double-entry and accounting systems

**Section A** AgriGrow Ltd sells specialized farming equipment. A customer purchases a tractor for $55,200, which is inclusive of a 15% sales tax. What is the correct double entry to record this cash sale in AgriGrow Ltd's books?

A company makes a 1 for 4 bonus issue of shares. The nominal value of the shares is $1. The company wishes to utilize its share premium account for this purpose. What is the correct double-entry to record this transaction?

A company operates a petty cash imprest system with a float of $300. At the end of the month, the petty cash box contains $45 in cash and vouchers for office supplies ($120), taxi fares ($80), and postage ($50). The cashier realizes there is a cash shortage. How much cash must be withdrawn from the bank to restore the imprest amount?

A retail business receives a credit note from a supplier for goods returned due to damage. In which book of prime entry should the retail business record this document?

A wholesale distributor has a receivables control account with an opening debit balance of $45,000. During the month, credit sales were $120,000, cash received from credit customers was $95,000, irrecoverable debts written off were $3,000, and discounts allowed were $2,000. What is the closing balance on the receivables control account? (Enter numbers only)

In a manufacturing company, the total of the list of balances from the payables ledger is $34,500, but the payables control account balance is $35,200. It is discovered that a purchase invoice for $700 was entered in the purchase day book but omitted from the supplier's individual account. How should this be resolved?

A service firm uses the imprest system for petty cash with a float of $250. At the end of the month, the petty cash box contains $45 in cash and vouchers for office supplies ($120) and taxi fares ($80). A $5 voucher for postage is found to be missing, though the cash is gone. How much cash must be transferred from the main bank account to restore the imprest amount?

Section A GlobalHealth NGO receives a restricted cash grant of $50,000 specifically designated for purchasing medical equipment. The equipment has not yet been purchased. What is the correct double-entry journal to record the receipt of this grant?

Section A At 30 November, a company's cash book showed a debit balance of $4,200. The bank statement showed a credit balance of $5,100. The following differences were identified: - Unpresented cheques: $1,500 - Lodgements in transit (uncleared deposits): $800 - Bank charges not entered in the cash book: $200 What is the correct cash book balance to be reported in the statement of financial position? (Enter the number only)

Section A A company's payables ledger control account shows a balance of $45,600. A supplier's statement shows a balance of $48,200. The difference is due to a payment of $2,600 made by the company on 30 December, which did not appear on the supplier's statement dated 31 December. What is the correct payables figure to be included in the statement of financial position?

Section A The receivables ledger control account balance is $65,000. The total of the individual customer balances in the receivables ledger is $63,800. Investigation reveals the following: 1. A sales invoice for $1,500 was completely omitted from the books. 2. A credit note for $300 sent to a customer was entered in the control account but omitted from the customer's personal account. What is the corrected balance of the receivables ledger control account? (Enter the number only)

Section A HydroGrid PLC, a public utility company, receives a $24,000 payment on 1 October 20X5 from a large industrial customer for an annual maintenance contract covering the period 1 October 20X5 to 30 September 20X6. HydroGrid's financial year ends on 31 December 20X5. What is the correct double-entry to record the adjustment needed on 31 December 20X5, assuming the full $24,000 was initially credited to Revenue?

Section A A business maintains a petty cash float of $200 using the imprest system. At the end of the month, the petty cash box contains $45 in cash and vouchers for expenses totaling $150. A $5 note is missing and unaccounted for. How much cash must be withdrawn from the bank to restore the imprest amount?

Section B - Case 2 Scenario: EcoBuild Ltd is preparing financial statements for the year ended 30 September 20X6. Draft profit before tax is $450,000. Adjustments required: 1) A machine costing $120,000 bought on 1 April 20X6 was incorrectly expensed in full. Depreciation is 20% straight-line (pro-rata). 2) Closing inventory was undervalued by $15,000. 3) An allowance for receivables of $8,000 needs to be created. 4) Rent of $12,000 paid for the quarter ending 30 November 20X6 was fully expensed. Calculate the amount of rent that has been prepaid at 30 September 20X6 (in $).

Section B - Case 2 Scenario: EcoBuild Ltd is preparing financial statements for the year ended 30 September 20X6. Draft profit before tax is $450,000. Adjustments required: 1) A machine costing $120,000 bought on 1 April 20X6 was incorrectly expensed in full. Depreciation is 20% straight-line (pro-rata). 2) Closing inventory was undervalued by $15,000. 3) An allowance for receivables of $8,000 needs to be created. 4) Rent of $12,000 paid for the quarter ending 30 November 20X6 was fully expensed. How does the adjustment for the prepaid rent affect the draft profit?

Section B - Case 2 Scenario: EcoBuild Ltd is preparing financial statements for the year ended 30 September 20X6. Draft profit before tax is $450,000. Adjustments required: 1) A machine costing $120,000 bought on 1 April 20X6 was incorrectly expensed in full. Depreciation is 20% straight-line (pro-rata). 2) Closing inventory was undervalued by $15,000. 3) An allowance for receivables of $8,000 needs to be created. 4) Rent of $12,000 paid for the quarter ending 30 November 20X6 was fully expensed. What is the correct double-entry to record the creation of the allowance for receivables (adjustment 3)?

Section B - Case 2 Scenario: EcoBuild Ltd is preparing financial statements for the year ended 30 September 20X6. Draft profit before tax is $450,000. Adjustments required: 1) A machine costing $120,000 bought on 1 April 20X6 was incorrectly expensed in full. Depreciation is 20% straight-line (pro-rata). 2) Closing inventory was undervalued by $15,000. 3) An allowance for receivables of $8,000 needs to be created. 4) Rent of $12,000 paid for the quarter ending 30 November 20X6 was fully expensed. What is the correct double-entry to record the prepaid rent adjustment at year-end?