Acca financial Accounting (FA) Study Text ac ca (FA)

Incomplete records 

84  Ashley set up Spark Co on 1 January 2005. He purchased the entire share 

capital of the entity for $7,600 cash. With the cash received, Spark Co 

acquired the following assets: 

Van $2,000 

Inventory $1,000 

Receivables $500 

Prepaid insurance for inventory 

$100 

At the end of the first year of trading, Spark Co had the following: 

Van $1,800 

Fixtures $500 

Inventory $840 

Receivables $600 

Payables $400 

Cash $3,400 

What was Spark Co's profit or loss for the year? 

$________ profit/loss* 

* delete which does not apply 

 

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PRACTICE QUESTIONS 

488

 

KAPLAN PUBLISHING

 

85  An entity started has opening net assets of $10,000. At the end of the 

year’s trading the entity had earned a profit of $5,000 and had the 

following assets and liabilities: 

Non-current assets  

$20,000 

Current assets 

$15,000 

Current liabilities 

$8,000 

During the year the entity paid dividends of $2,000.