Câu 1: Lake plc makes purchases on credit for £9,801 and purchases for cash of £107 in the year

ended 31 January 20X4. The company's purchases accruals need to be £75 less than at the previous
year end, and prepayments need to be £60 less. What is the figure for purchases included in cost of
sales in Lake plc's statement of profit or loss for the year ended 31 January 20X4?

A. £9,786 B. £9,908 C. £9,923 D. £9,893

Câu 2: Paula and Quinn are in partnership, sharing profits in the ratio 2:1. On 1 July 20X4 they
admitted Paula's son Ryan as a partner. Paula guaranteed that Ryan's profit share would not be less
than £25,000 for the six months to 31 December 20X4. The profit sharing arrangements after Ryan's
admission were Paula 50%, Quinn 30%, Ryan 20%. The profit for the year ended 31 December 20X4
is £240,000, accruing evenly over the year. What should Paula's final profit share be for the year ended
31 December 20X4?

A. £114,000 B. £139,000

C. £139,375 D. 140,000

Câu 3: Ben plc has a draft net profit for the year ended 31 December 20X8 of £56,780 before
accounting for the depreciation on a new machine. Ben plc purchased the machine for £120,000 on 1
October 20X8. The useful life is four years with a residual value of £4,000. Ben plc uses the straight-
line method for depreciation and charges depreciation on a monthly basis. The net profit after charging
depreciation on the machine for the year ended 31 December 20X8 is:

A. £49,280 B. £27,780 C. £49,530 D. £51,947

Câu 4: The carrying amount of machinery has reduced by £10,000 following the disposal of one item
of machinery. Which of the following statements relating to the disposal are correct?

A. Disposal proceeds were £15,000 and the loss on disposal was £5,000

B. Disposal proceeds were £15,000 and the carrying amount of the machinery disposed of was £5,000

C. Disposal proceeds were £5,000 and the carrying amount of the machinery disposed of was £5,000

D. Disposal proceeds were £15,000 and the profit on disposal was £5,000

Câu 5: On 1 January 20X6 Pigeon plc has £300,000 of 50p equity shares in issue, and a balance on
share premium of £750,000. On 1 April 20X6 the company makes a 1 for 3 bonus issue. What is the
balance on Pigeon plc's share premium at 31 December 20X6?
A. £850,000 B. £650,000
C. £450,000 D. £550,000

Câu 6: A car has a list price of £23,500 but the garage gives Ride plc a 10% trade discount. In
settlement the garage accepts payment of £18,000, together with an old company car. The amount to
be capitalised by Ride plc for the new car is:

A. £23,500 B. £16,200 C. £18,000 D. £21,150

Câu 7: Stripes plc purchased new machinery on 1 August 20X4 for £38,000. The scrap value of the
machinery at the end of its six-year useful life has been assessed as £2,000. Stripes plc's policy is to
calculate depreciation monthly on the straight-line basis. The depreciation charge in Stripes plc's
statement of profit or loss for year ended 31 March 20X5 should be:

A. £4,000 B. £6,000 C. £4,500 D. £3,500

Câu 8: Wombat plc is a retailer that owns no properties and only has fixtures and fittings, purchased
within the last six months, as non-current assets. The company has been experiencing trading
problems for some time. The directors have concluded that the company is no longer a going concern
and have changed the basis of preparing the financial statements to the break-up basis. Which two of
the following will be the immediate effects of changing to the break-up basis?

A. All fixtures and fittings are transferred from non-current to current assets.

B. A liquidator is appointed.

C. Fixtures and fittings are value date their resale value.

D. The company ceases to trade.

Câu 9: The asset register showed a total carrying amount of £67,460. A non-current asset costing
£15,000 had been sold for £4,000, making a loss on disposal of £1,250. The balance on the asset
register after accounting for the disposal is:

A. £51,210 B. £42,710 C. £53,710 D. £62,210

Câu 10: On 1 April 20X5 Herepath plc bought a Foxy car for £23,500. The company's depreciation
policy for cars is 30% per annum using the reducing balance method. On 1 April 20X7 the Foxy was
part exchanged for a Vizgo car, which had a purchase price of £28,200. Herepath plc made a payment
to the seller for £19,350, in final settlement. What was Herepath plc's profit or loss on the disposal of
the Foxy?

A. £7,835 profit B. £6,250 loss

C. £5,150 loss D. £2,665 loss

Câu 11: The retained earnings of Zippy plc at 1 January 20X8 were £926,450. The retained earnings
at 31 December 20X8 are £1,426,980. During the year, Zippy plc paid a dividend of £312,000 and
made a bonus issue of 500,000 25p ordinary shares from retained earnings. What is Zippy plc's profit
for the year ended 31 December 20X8?

A. £63,530 B. £1,312,530

C. £937,530 D. £313,530

Câu 12: The carrying amount of a company's non-current assets was £200,000 at 1 August 20X0.
During the year ended 31 July 20X1, the company sold non-current assets for £25,000 on which it
made a loss of £5,000. The depreciation charge for the year was £20,000. The carrying amount of non-
current assets at 31 July 20X1 is:

A. £175,000 B. £195,000

C. £180,000 D. £150,000

Câu 13: Panther Co sells goods with a one year warranty and had a provision for warranty claims of
£64,000 at 31 December 20X0. During the year ended 31 December 20X1, £25,000 in claims were
paid to customers. On 31 December 20X1, Panther Co estimated that 5% of warranties would be
invoked at a cost of £58,000. What amount should Panther Co charge or credit to the statement of
profit or loss for the year ended 31 December 20X1 in respect of the warranty provision?

A. £58,000 charge B. £6,000 credit

C. £33,000 charge D. £19,000 charge

Câu 14: Exe plc, which has a year end of 31 December, purchased a machine on 1 January 20X1 for
£35,000. It was depreciated at 40% per annum on the reducing balance basis. On 1 January 20X4 Exe
plc part-exchanged this machine for a more advanced model. It paid £30,000 and realised a profit on
disposal of £2,440. The price of the new machine was:

A. £10,000 B. £40,000 C. £35,120 D. £34,680

Câu 15: Beta plc purchased some plant and equipment on 1 July 20X1 for £40,000. The scrap
value of the plant at the end of its 10-year useful life is £4,000. Beta plc's policy is to charge
depreciation monthly on the straight-line basis.
The journal entry to record the depreciation charge on the plant in Beta's statement of profit or loss for
the reporting period of 12 months ending 30 September 20X1 should be:

A. Debit Depreciation expense £900; Credit Accumulated depreciation £900

B. Debit Accumulated depreciation £1,000; Credit Depreciation expense £1,000

C. Debit Depreciation expense £1,000; Credit Accumulated depreciation £1,000

D. Debit Accumulated depreciation £900; Credit Depreciation expense £900

Câu 16: A company's share capital consists of 20,000 25p equity shares all of which were issued at a
premium of 20%.

The market value of the shares is currently 70p each. What is the balance on the company's equity
share capital account?

A. £5,000 B. £24,000 C. £6,000 D. £14,000

Câu 17: Asha Ltd, a manufacturing company, receives an invoice on 29 February 20X2 for work done
on one of its machines. £25,500 of the cost is actually for a machine upgrade, which will improve
efficiency.

The accounts department do not notice and charge the whole amount of the invoice to maintenance
costs. Machinery is depreciated at 25% per annum on a straight-line basis, with a proportional charge
in the years of acquisition and disposal.

By what amount will Asha Ltd's profit for the year to 30 June 20X2 be understated?

A. £19,125 B. £23,375 C. £21,250 D. £25,500

Câu 18: Grease plc is a large company with a share capital of 3 million 20p equity shares. To raise
funds it has made a 1 for 4 rights issue of its equity shares at £3.60 per share.

The rights issue was fully taken up but only £1.9 million had been paid up at the year end, 30
September 20X2. Grease plc correctly debited cash at bank with £1.9 million and recorded the other
side of the transaction in the suspense account.
Which adjustment should Grease plc make to correctly record the rights issue?

A. Debit Other receivables £800,000, Credit Share capital £150,000, Credit Share premium £650,000

B. Debit Other receivables £2,700,000, Credit Share capital £150,000, Credit Share premium
£2,550,000

C. Debit Suspense £1,900,000, Debit Other receivables £800,000, Credit Share capital £150,000,
Credit Share premium £2,550,000

D. Debit Suspense £1,900,000, Debit Other receivables £800,000, Credit Share capital £750,000,
Credit Share premium £1,950,000

Câu 19: What is the reasoning behind charging depreciation in historical cost accounting?

A. To ensure funds are available for the eventual replacement of the asset

B. To match the cost of the non-current asset with the revenue that the asset generates

C. To ensure the asset is included in the statement of financial position at the lower of cost and net
realisable value

D. To comply with the consistency concept

Câu 20: A company purchased a car for £18,000 on 1 January 20X0. The car was traded in on 1
January 20X2. The new car has a list price of £30,000 and the garage offered a part-exchange
allowance of £5,000. The company provides depreciation on cars using the reducing balance method
at a rate of 25% per annum.

What loss on disposal will be recognised in the statement of profit or loss for the year ended 31
December 20X2?

A. £8,500 B. £5,125 C. £11,175 D. £10,125

Câu 21: Derek plc purchased a van on 1 October 20X0 for a total cost of £22,000 by paying £17,500
cash and trading in an old van. The old van had cost £20,000 and the related accumulated depreciation
was £14,200. The loss on disposal of the old van in Derek plc's statement of profit or loss for the year
ended 31 December 20X0 is:
A. £1,300 B. £2,500 C. £2,000 D. £5,800
Câu 22: Evon plc issued 1,000,000 equity shares of 25p each at a price of £1.10 per share, all
received in cash. Which of the following journals records this issue?

A. Debit Cash at bank £1,100,000, Credit Share capital £250,000, Credit Retained earnings £850,000
B. Debit Cash at bank £1,100,000, Credit Share capital £250,000, Credit Share premium £850,000
C. Debit Cash at bank £1,100,000, Credit Share capital £1,100,000
D. Debit Share capital £250,000, Debit Share premium £850,000, Credit Cash at bank £1,100,000
Câu 23: Automat plc purchases a machine for which the supplier's list price is £18,000. Automat plc
pays £13,000 in cash and trades in an old machine which has a carrying amount of £8,000. It is the
company's policy to depreciate such machines monthly at the rate of 10% per annum on cost.
The carrying amount of the new machine after one year is:

A. £18,900 B. £18,000 C. £16,200 D. £21,000

Câu 24: Gilbert plc acquired a new truck on 1 July 20X4 for £99,900 including VAT at 20%. The
company depreciates all vehicles straight-line at 20% per annum on a monthly basis. What is the
carrying amount of Gilbert plc's truck at 31 December 20X4?

A. £74,925 B. £89,910 C. £83,250 D. £66,600

Câu 25: Yvette purchased some plant on 1 January 20X0 for £38,000. The payment for the plant was
correctly entered in the cash at bank account but was incorrectly entered on the debit side of the plant
repairs account. Yvette charges depreciation monthly on the straight-line basis over five years and
assumes no scrap value at the end of the life of the asset.

How will Yvette's profit for the year ended 31 March 20X0 be affected by the error?

A. Understated by £30,400 B. Understated by £38,000

C. Understated by £36,100 D. Overstated by £1,900

Câu 26: Which of the following journals records interest earned on partners' capital account balances?

A. Debit Partners' current accounts, Credit Profit and loss appropriation account

B. Debit Profit and loss appropriation account, Credit Partners' capital accounts

C. Debit Profit and loss appropriation account, Credit Cash at bank

D. Debit Profit and loss appropriation account, Credit Partners' current accounts
Câu 27: In the UK which of the following are responsible for the preparation of company annual
financial statements?

A. The auditors B. The board of directors

C. The shareholders D. The members

Câu 28: Beehive plc bought a car on 1 January 20X7 for £10,000 and decided to depreciate it at 30%
per annum on a reducing balance basis. It was disposed of on 1 January 20X9 for £6,000. The net
effect on the statement of profit or loss for the year ended 31 December 20X9 is a credit of:

A. £5,100 B. £4,000 C. £3,000 D. £1,100

Câu 29: Dash has a property which cost £420,000 on 1 April 20X4. It is being depreciated on the
straight-line basis over 20 years to its residual value of £40,000. On 31 March 20X9, Dash carried out
an impairment review and has assessed that the property had a fair value less disposal costs of
£280,000 and a value in use of £300,000. What is the impairment loss in respect of the property at 31
March 20X9?

A. £25,000 B. £45,000 C. £80,000 D. £15,000

Câu 31: Plummet plc is preparing its statement of profit or loss for the year ended 31 December 20X4.
On the initial trial balance at that date administrative expenses have a debit balance of £684,000 before
accounting for depreciation and profits/losses on disposal in respect of the company's computer
equipment. At 31 December 20X3 Plummet plc had computer equipment that cost £1,004,408, all of
which had been purchased on 1 January 20X2, and it had accumulated depreciation of £697,600. A
computer system costing £6,800 was sold on 1 January 20X4 for £1,800. Computer equipment is
depreciated monthly on a straight-line basis over four years. The amount to be disclosed as
administrative expenses in Plummet plc's statement of profit or loss for the year ended 31 December
20X4 is:

A. £935,002 B. £936,702

C. £933,402 D. £963,702

Câu 32: Sam plc's statement of profit or loss for the year ended 31 December 20X4 showed a profit
for the year of £83,600. It was later found that £18,000 paid for the purchase of a van on 1 January
20X4 had been debited to the motor expenses account. It is the company's policy to depreciate vans at
25% per year on the straight-line basis. What is the profit for the year after adjusting for this error?
A. £97,100 B. £70,100

C. £106,100 D. £101,600

Câu 33: Which of the following journals correctly records a bonus issue of shares?

A. Debit Share premium, Credit Share capital

B. Debit Investments, Credit Cash at bank

C. Debit Share capital, Credit Share premium

D. Debit Cash at bank, Credit Share capital

Câu 34: Afua plc sells small electrical items. It has a year end date of 31 December 20X7. On 28
December it accepted an order from a credit customer for 100 toasters at a price of £35 per toaster. On
30 December, Afua plc dispatched 60 toasters to the customer but they were not received by the
customer until 1 January 20X8. Afua plc remains responsible for the goods until they are delivered to
the customer. The remaining 40 toasters were dispatched on 2 January 20X8 and received by the
customer on 4 January 20X8. How much revenue should Afua plc recognise in respect of the sale of
toasters in the year ended 31 December 20X7?

A. £2,100 B. Nil C. £3,500 D. £1,400

Câu 35: On 1 June 20X3 Spam plc purchased some plant at a price of £43,000. It cost £1,500 to
transport the plant to Spam plc's premises and set it up, plus £900 for a licence to operate it. The plant
had a useful life of eight years and a residual value of £3,500. On 1 June 20X5 the directors of Spam
plc decided to change the depreciation method to reducing balance, at 40%. What is the carrying
amount of Spam plc's machine in its statement of financial position at 31 May 20X6?

A. £20,280 B. £20,025 C. £20,955 D. £20,550

Câu 36: Muncher plc includes profits and losses on disposal of non-current assets in administrative
expenses in its statement of profit or loss. Depreciation is charged on fixtures and fittings at 20% using
the reducing balance method. On 1 July 20X6 some fixtures that cost £4,000 on 1 July 20X3 were sold
for £150. In the administrative expenses account Muncher plc must:

A. debit £1,450 B. debit £1,898

C. credit £1,450 D. credit £1,898

Câu 37: A company buys a machine on 31 August 20X0 for £22,000. It has a useful life of
seven years and a residual value of £1,000. On 30 June 20X4 the machine is sold for £9,000 cash
which has been recorded correctly in the cash at bank account, however a suspense account was
opened to record the other side of the transaction. The company's accounting policy is to charge
depreciation monthly using the straight-line method, with depreciation charged in the month of
purchase but not the month of disposal.What journal entry is required to correctly record the disposal
of the machine and to remove the suspense account?
A. Debit Suspense account £9,000, Debit Accumulated depreciation £11,500, Debit Loss on disposal
£1,500, Credit Machine cost £22,000
B. Debit Machine cost £22,000, Credit Suspense account £9,000, Credit Accumulated depreciation
£11,750, Credit Profit on disposal £1,250
C. Debit Suspense account £9,000, Debit Accumulated depreciation £11,750, Debit Loss on disposal
£1,250, Credit Machine cost £22,000
D. Debit Machine cost £22,000, Credit Suspense account £9,000, Credit Accumulated depreciation
£11,500, Credit Profit on disposal £1,500

Câu 38: A partner's private petrol bills have been treated as part of the partnership's motor vehicle
expenses. Which of the following journals corrects the error?

A. Debit Motor vehicle expenses account, Credit Capital account

B. Debit Drawings account, Credit Motor vehicle expenses account

C. Debit Motor vehicle expenses account, Credit Drawings account

D. Debit Capital account, Credit Motor vehicle expenses account

Câu 39: On 1 January 20X4 Joffa plc purchased a new machine at a cost of £96,720. Delivery costs
were £3,660 and internal administration costs of £9,450 were incurred. At that time Joffa plc planned
to replace the machine in five years, when it would have no value, and to depreciate the machine on a
straight-line basis. Joffa plc decides on 1 January 20X6 that the machine only has one remaining year
of useful life. There is no change to the residual value at the end of its life. How much depreciation
will be charged in respect of this machine in Joffa plc's statement of profit or loss for the year ended
31 December 20X6?

A. £33,460 B. £60,228 C. £65,898 D. £58,032

Câu 41: Your firm bought a machine for £5,000on 1 January 20X1, when it had a useful life of four
years and a residual value of £1,000. Straight-line depreciation is to be applied on a monthly basis. On
31 December 20X3, the machine was sold for £1,600. The amount to be entered in the 20X3 statement
of profit or loss for profit or loss on disposal is:
A. profit of£350 B. loss of £600
C. loss of £400 D. profit of £600
Câu 42: Which of the following is excluded from the cost of a tangible non-current asset?
A. Costs of a design error B. Installation costs
C. Legal fees D. Site preparation costs

Câu 43: Cheetah plc had a provision of £10,000 in its financial statements for the year ended 31
March 20X3 in respect of a legal claim. In July 20X4 the claim was settled at a cost of £13,000. What
is the expense in respect of the legal claim included in Cheetah plc's statement of profit or loss for the
year ended 31 March 20X4?

A. £3,000 B. £13,000 C. £10,000 D. Nil

Câu 44: Crocker plc, a retailer, depreciates all vehicles monthly over five years. On 31 October 20X9
Crocker plc bought a car at a cost of £17,625 plus VAT, trading in an old car that had cost £16,800
including VAT on 1 July 20X7. A payment of £13,500 was also made. VAT is at a rate of 20%. In
respect of this disposal in its statement of profit or loss for the year ended 31 December 20X9 Crocker
plc will show a loss of:

A. £1,310 B. £2,430 C. £4,835 D. £5,955

Câu 45: At 1 July 20X7 Leak plc owed £524,925 to credit suppliers. In the year to 30 June 20X8 it
paid credit suppliers £1,249,506 and posted £1,987,345 to trade payables in respect of goods
purchased on credit. Leak plc took £12,824 in settlement discounts (which it had not expected to take)
from credit suppliers. At the end of the period it processed a contra with trade receivables of £8,236.
What amount for trade payables should be included in the statement of financial position of Leak plc
as at 30 June 20X8?

A. £1,241,704 B. £1,267,352

C. £1,283,824 D. £1,258,176
Câu 46: Sanders plc issued 50,000 equity shares of 25p each at a premium of 50p per share. The cash
received was correctly recorded but the full amount was credited to the share capital account. Which
of the following journals corrects this error?

A. Debit Share capital £25,000, Credit Share premium £25,000

B. Debit Share capital £37,500, Credit Share premium £37,500

C. Debit Share premium £25,000, Credit Share capital £25,000

D. Debit Share capital £25,000, Credit Cash at bank £25,000

Câu 47: Whipper has an machine which cost £40,000 and has a carrying amount of £32,000 on 1
April 20X7. It is being depreciated at 20% per annum on the reducing balance basis. On 31 March
20X8, Whipper performed an impairment review and determined that the fair value less disposal costs
of the machine was £22,400 and the value in use was £21,000. What is the impairment loss in respect
of the machine at 31 March 20X8?

A. £1,60 B. £4,600 C. £17,600 D. £3,200

Câu 48: Klaxon plc issued, for cash, 1,000,000 50p shares at a premium of 30p per share. Which of
the following journals correctly records the share issue?

A. Debit Share capital £1,000,000, Debit Share premium £300,000, Credit Cash at bank £1,300,000

B. Debit Cash at bank £1,300,000, Credit Share capital £1,000,000, Credit Share premium £300,000

C. Debit Cash at bank £800,000, Credit Share capital £500,000, Credit Share premium £300,000

D. Debit Share capital £500,000, Debit Share premium £300,000, Credit Cash at bank £800,000

Câu 49: Dukakis plc had computer equipment with a carrying amount at 1 April 20X2 of £150,000.
On that date it traded in a computer which had cost £24,000 on 1 April 20X0 for a new computer
which cost £34,600, transferring £18,000 to the sellers bank account in full settlement of the purchase.
Dukakis plc depreciates computers at 40% per annum on the reducing balance. What is the journal
entry to record depreciation for the year ended 31 March 20X3 in respect of computers?

A. Debit Depreciation expense £70,384, Credit Accumulated depreciation £70,384

B. Debit Depreciation expense £56,544, Credit Accumulated depreciation £56,544

C. Debit Accumulated depreciation £56,544, Credit Depreciation expense £56,544

D. Debit Accumulated depreciation £70,384, Credit Depreciation expense £70,384

Câu 51: As at 1 June 20X4 Brazil plc had 400,000 10p equity shares, which it issued in 20X1 at £2.20
each, fully paid. It also had 200,000 £1 8% irredeemable preference shares issued at par in 20X2. On
31 January 20X5 Brazil plc made a further issue of 45,000 of the £1 irredeemable 8% preference
shares at £1.50 fully paid. On the same date Brazil plc made a 1 for 4 bonus issue of equity shares.
Brazil plc wishes to use the share premium in respect of the bonus issue. What is the balance of share
premium that Brazil plc will present in its statement of financial position as at 31 May 20X5?

A. £762,500 B. £830,000

C. £852,500 D. £452,500

Câu 52: Diamond Ltd issues 250,000 equity shares with a nominal value of £2 each at a price of £3.55
each for cash. Which of the following sets of entries would be made to record this transaction?

A. Credit Bank £887,500, Debit Share capital £250,000, Debit Share premium £637,500

B. Debit Bank £887,500, Credit Share capital £250,000, Credit Share premium £637,500

C. Credit Bank £887,500, Debit Share capital £500,000, Debit Share premium £387,500

D. Debit Bank £887,500, Credit Share capital £500,000, Credit Share premium £387,500

Câu 53: Vernon plc purchased some new equipment on 1 April 20X1 for £6,000. The scrap value of
the new equipment in five years' time has been assessed as £300. Vernon charges depreciation
monthly on the straight-line basis. What is the journal entry to record the depreciation charge for the
equipment in Vernon plc's reporting period of 12 months to 30 September 20X1?

A. Debit Depreciation expense £570, Credit Accumulated depreciation £570

B. Debit Accumulated depreciation £570, Credit Depreciation expense £570

C. Debit Accumulated depreciation £600, Credit Depreciation expense £600

D. Debit Depreciation expense £600, Credit Accumulated depreciation £600

Câu 54: Drange plc has share capital of 300,000 £1 shares at 1 March 20X7. These were issued at
£1.50 per share. On 28 February 20X8 Drange plc made a 2 for 3 bonus issue. Before accounting for
this, the balance on retained earnings at 28 February 20X8 was £717,000. What is the balance
of retained earnings to be included in Drange plc's statement of financial position at 28 February
20X8?

A. £717,000 B. £517,000

C. £667,000 D. £567,000

Câu 55: The retained earnings of Posti plc at 1 July 20X5 were £900,000. The retained earnings at 30
June 20X6 are £1,080,000. The profit for the year is £455,000. What was the total dividend paid
during the year?

A. £635,000 B. £445,000 C. £275,000 D. £180,000

Câu 56: A company has a balance of £3,200 (debit) on its income tax payable account at 31 December
20X7 relating to the income tax payable on the 20X6 profits. The company's estimated income tax
liability for the year to 31 December 20X7 is £24,500. What is the income tax charge in the statement
of profit or loss for the year ended 31 December 20X7?

A. £24,500 B. £21,300 C. £30,900 D. £27,700

Câu 57: Cataract plc purchases a machine for which the supplier's list price is £28,000. Cataract plc
pays £23,000 in cash and trades in an old machine, which has a carrying amount of £8,000. It is the
company's policy to depreciate machines at the rate of 10% per annum on cost. What is the carrying
amount of the machine after one year?

A. £22,200 B. £18,000 C. £20,700 D. £25,200

Câu 58: Redruth plc began trading on 1 April 20X3. The carrying amount of plant and equipment in
Redruth plc's financial statements as at 31 March 20X5 was £399,960. The cost of these assets was
£614,500. On 31 March 20X6 an asset costing £11,500 was acquired. Depreciation is charged on plant
and equipment monthly at an annual rate of 25% straight-line. There are no residual values. The
carrying amount of Redruth plc's plant and equipment in its statement of financial position at 31
March 20X6 is:

A. £308,595 B. £299,970

C. £257,835 D. £254,960
Câu 59: How should interest charged on partners' drawings be dealt with in partnership financial
statements?

A. Added to profit in allocating the profit among the partners

B. Debited as an expense in the profit and loss account

C. Credited as income in the profit and loss account

D. Deducted from profit in allocating the profit among the partners

Câu 60: Demolition plc purchases a machine for £15,000 on 1 January 20X1. After incurring
transportation costs of £1,300 and spending £2,500 on installing the machine it breaks down and costs
£600 to repair. Depreciation is charged at 10% per annum. At what carrying amount will the machine
be shown in Demolition plc's statement of financial position at 31 December 20X1?
A. £16,920 B. £18,800 C. £13,500 D. £14,670