Accounting Answers

the equipment is expected to have a 5 year useful life and be worth about $11000 at the end of five years. Review the unjustedt balance in accumulated depreciation and prepare the necessary adjusting entry to record the monthly depreciation, if any

How does QuickBooks make it easier to maintain your inventory?

How easy is it to make adjustments to the inventory quantity?

Do you like being able to maintain non-inventory products?

How do you feel the whole aspect works?

Bright Star Resort recorded the following figures for December 2019: Labour costs were

R50 000, overheads were R180 000 and the gross profit was R110 500.

2.1 Calculate the net profit that was achieved during the month.

Write a short note on objective and limitations of accounting

Why differentiation is made between current liabilities and non current liabilities

Recognise the following transaction in the accounting records(general journal).


1. The following events, as authorised by the owner on 31 december 2019,still has to be recognised:

•A loss to the amount of R66 800 resulting from the confirmation that certain inventory items' cost price is more than the net realisable value thereof.

•A donation of trade inventories to a local institution to the amount of R10 00.

In which situation would QuickBooks' batch invoicing feature be most useful?

A. If your company charges a standard monthly fee for many customers

B. If your company sends various amounts of the same inventory item to different customers

C. If your company sends the same inventory item to different customers

D. If your company charges the same sales tax to many different customers

What is the cost of goods sold?

A. The difference between the wholesale and resale prices

B. The wholesale purchase price

C. The selling price

D. The price of any discounts provided

The Enter Sales Receipts window does NOT affect Accounts Receivable.


True or False

At 31 December 2005 the capital structure of Dompo, a limited liability company, was as follows:

1,000,000 ordinary shares of GHS 1 each Share premium account

Revaluation reserve

Retained earnings

GHS 1,000,000

200,000 100,000 50,000

The authorized share capital of the company was GHS 1,000,000.

The directors of the company are considering the following proposals. None of them is a qualified accountant:

a. Making a bonus issue of one ordinary share for every two held, in order to raise GHS500,000 for the company.

b. Paying a dividend of 10p per share

c. Increasing the revaluation reserve to GHS 300,000 by revaluing goodwill from GHS

800,000 to GHS 1,000,000.

d. Combining all reserves into a single figure.

Comment on the validity of these proposals.