Accounting 9706 · AS & A Level · Preparation of financial statements

Preparation of financial statements — practice question

The business has the following data for the year ending 31 March 2022. Non-current assets at cost on 1 April 2021: $62\,000 Provision for depreciation on non-current assets on 1 April 2021: $12\,000 Expenses settled by cash and cheques during the year: $42\,200 Expenses prepaid on 31 March 2022: $4\,600 Trade receivables on 31 March 2022: $25\,000 A provision for doubtful debts is to be made at $2\%$ of trade receivables. Depreciation on non-current assets is to be charged at $20\%$ by the reducing balance method. What was the total amount of expenses for the year?

  • A$47\,600
  • B$48\,100
  • C$50\,500
  • D$57\,300

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