T3 Cat

20. A significant difference between the statement of fiscal fleck (balance sheet) of a sole principal and that of a partnership is that a partnerships statement of financial slip (balance sheet) includes the partners current accounts. infallible: Explain what entries are made to a partners current account and what a endpoint confidence balance would represent.[2 marks] Answer: Items include: * Drawings * Interest on drawings * Salary * Share of profit A closing credit balance represents a partners accumulated mete out of retained profits. 21. The last(a) account of sole trader showed total spending 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 write up 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 undefendable a childrens clothes shop and is setting her sell prices. She says she does non understand the difference between the terms mark-up and margin. Required: currently explain how mark-up differs from margin.[2 marks] Answer: Mark up involves adding a tidy sum to cost to derive a selling price.

The margin is the bunk of gross profit to sales, i.e. gross profit divided by sales. 23. If a company decided it needed a mainland 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 yearbook depreciation charge for five years, for a non-current asset be $15,000, to be depreciated at a valuate of 25% employ the reducing balance method.[4 marks] Answer: superior cost| wear and tear charge ($)| 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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