Cima C02 Exam Question No 25

Question No 25:

H began trading on 1 July. The company is now preparing its accounts for the accounting year ended 30 June year 1. Rent is charged for the year from 1 April to 31 March, and was $1,800 for the year ended 31 March year 1 and $2,000 for the year ended 31 March year 2. Rent is payable quarterly in advance, plus any arrears, on 1 March, 1 June, 1 September and 1 December.
The charge to H ‘S income statement for rent for the year ended 30 June year 2 is

A. $1,650
B. $1,700
C. $1,850
D. $1,900

Answer: C

Cima C02 Exam Question No 24

Question No 24:

S purchased equipment for $80,000 on 1 July year 1. The company’s accounting year end is 31 December. It is S‘s policy to charge a full year’s depreciation in the year of purchase. S depreciates its equipment on the reducing balance basis at 25% per annum.
What is the net book value of the equipment at 31 December year 4?

A. Nil
B. $25,312
C. $29,531
D. $33,750

Answer: B

Cima C02 Exam Question No 23

Question No 23:

In July year 1, a company sold goods at VAT rate with a net value of $200,000, goods exempt from VAT with a value of $£50,000 and goods at zero VAT rate with a net value of $25,000.
The purchases in July year 1, which were all subject to VAT, were $161,000, including VAT. Assume that the rate of VAT is 15%.
The difference between VAT input tax and VAT output tax is?

A. Dr £9,000
B. Cr £5,850
C. Cr £9,000
D. None of these

Answer: C