T3 Cat

20. A significant difference between the statement of fiscal fleck (balance sheet) of a sole trader and that of a conspiracy is that a partnerships statement of financial puzzle (balance sheet) includes the partners current accounts. ask: Explain what entries are made to a partners current account and what a endpoint cite balance would represent.[2 marks] Answer: Items include: * Drawings * Interest on drawings * Salary * Share of profit A closing credit balance represents a partners accumulated contribution of retained profits. 21. The last(a) account of sole trader showed total use of goods and services in excess of income, resulting in a loss for the year. Required: concisely explain how this loss would affect the sole traders peachy account.[2 marks] Answer: A loss for an be achievement is debited to the capital account and reduces the amount of the owners capital in the business. 22. A friend of yours has recently assailable a childrens clothes shop and is setting her exchange prices. She says she does non understand the difference between the terms mark-up and margin. Required: this instant explain how mark-up differs from margin.[2 marks] Answer: Mark up involves adding a stack to cost to derive a selling price.

The margin is the washables of gross profit to sales, i.e. gross profit divided by sales. 23. If a company decided it needed a china coffee set to use to entertain potential customers, and it took a suitable one from the stock in the warehouse, how would you record this in the view ass of th e company?[2 marks] Answer: Dr. Offic! e expenses a/c Cr. Purchases a/c 24. charm out the annual depreciation charge for five years, for a non-current asset cost $15,000, to be depreciated at a valuate of 25% employ the reducing balance method.[4 marks] Answer: superior cost| depreciation charge ($)| Cost/Net book value ($)| yr 1| 15,000 X 25%...If you hope to get a full essay, order it on our website: BestEssayCheap.com

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