Prepayments – Page 2

FA – L1 – Q37 – Accruals and prepayments

Write up the insurance account for Vulcan's removal business for 20X9, including prepayments and multiple insurance payments.

Question

Vulcan owns a removal business and runs a small fleet of vans. He prepares his accounts to 31 December each year.
The following transactions occur in relation to insurance for the year 20X9.
1 January: The amount prepaid for insurance was GH¢1,140,000.
1 April: He paid GH¢840,000 insurance for the year ended 31 March 20Y0 on six of the vans.
1 May: He paid GH¢3,540,000 insurance for twenty vans for the year ended 30 April 20Y0.
1 July: He paid GH¢560,000 insurance for the remaining vans for the year ended 30 June 20Y0.

Required:
Write up the insurance account for the year ended 31 December 20X9.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accruals, Bookkeeping, Financial accounting, Insurance, Ledger accounts, Non-current Assets, Prepayments, Statement of Financial Position, Trial Balance, Year-end adjustments
Level: Level 1

Topic: Accruals and prepayments

FA – L1 – Q36 – Accruals and prepayments

Write up water expense ledger accounts for 20X8 and 20X9 under different payment scenarios.

Question

Kieran started a business on 1 January 20X8.

Accounting year ended 31 December 20X8:

A new warehouse was acquired on 31 March 20X8. On 21 April 20X8, Kieran received a water bill demand for GH₵1,000,000 for the 12 months to 31 March 20X9. Payment was made, in full, on 30 April 20X8.

Accounting year ended 31 December 20X9:

An office extension was built. The water bill demand for the 12 months to 31 March 20Y0 was GH₵1,600,000. Kieran paid the full amount on 1 June 20X9.

Required:

(a) Write up the water expense ledger account for 20X8 and for 20X9.

(b) Assuming now that payments were made annually in arrears (i.e. GH₵1,000,000 on 31 March 20X9 and GH₵1,600,000 on 31 March 20Y0), write up the water expense ledger account for each of the two accounting years.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accruals, Financial Adjustments, Ledger accounts, Prepayments, Water Expense
Level: Level 1

Topic: Accruals and prepayments

Tag (SQ): Prepayments

Search

Filter by Professional Bodies

Filter by Subject

Filter by Topics

Filter by Levels

FA – L1 – Q37 – Accruals and prepayments

Write up the insurance account for Vulcan's removal business for 20X9, including prepayments and multiple insurance payments.

FA – L1 – Q36 – Accruals and prepayments

Write up water expense ledger accounts for 20X8 and 20X9 under different payment scenarios.

Our Offerings

Contact Info

My Account

Get In Touch

Tag (SQ): Prepayments

Search

Filter by Professional Bodies

Filter by Subject

Filter by Topics

Filter by Levels

FA – L1 – Q37 – Accruals and prepayments

Write up the insurance account for Vulcan's removal business for 20X9, including prepayments and multiple insurance payments.

You're reporting an error for "FA – L1 – Q37 – Accruals and prepayments"

FA – L1 – Q36 – Accruals and prepayments

Write up water expense ledger accounts for 20X8 and 20X9 under different payment scenarios.

You're reporting an error for "FA – L1 – Q36 – Accruals and prepayments"

admin

Pick a Form