Ethan is a dog biscuit wholesaler. He sells goods to Eli, a pet shop owner, for £5000. Eli discovers that exactly half of the consignment is mouldy, and returns the substandard biscuits to Ethan.
Two of the following statements about Ethan's and Eli's accounting are true:

1. Ethan's sales returns are increased by £2500
2. Eli's sales returns are increased by £2500
3. Ethan's purchases returns are increased by £2500
4. Eli's purchases returns are increased by £2500

Elmira sells goods on credit, requiring payment within 30 days. Because she, typically, does not receive payment for between 45 and 60 days from most of her debtors, she decides to offer a discount of 0.3% for early payment. One of her customers, Ellington Clipboard Limited, takes advantage of the discount and sends a cheque for £5982 to settle an invoice of £6000 sent by Elmira.
How is the discount dealt with in Elmira's profit and loss account?

1. £18 is deducted from sales
2. £18 is added to cost of sales
3. £18 is added to expenses
4. £18 is deducted from expenses

In the profit and loss account, discounts received are:

1. added on to gross profit
2. included in sales
3. deducted from expenses
4. added to cost of sales
   

Floyd pays business insurance annually in advance on 1 March. His payments for 20X1 and 20X2 are as follows:
20X1 £9 468
20X2 £9 612
What figure will appear in his profit and loss account for the year ending 31 October 20X2?

1. £9 576
2. £9 588
3. £9 564
4. £9 552

Giulia deals in fashion goods. At 31 December 20X5 her end of year stock totals £18 270, valued at cost. Included in this amount is stock at a cost price of £4 750. Guilia estimates that its net realisable value, however, is only £680.
Giulia's opening stock at 1 January 20X5 is £16 777. Sales for the year are £193 939 and purchases are £141 338. Purchases returns are £1385.
Applying the rules of stock valuation, Giulia's gross profit for the year is:

1. £55 479
2. £50 734
3. £50 024
4. £51 409

Hari's business supplies goods on credit to many hundreds of customers. Experience has shown that, on average, 1% of Hari's debtors will fail to pay up. Therefore, Hari makes a general provision in each year's accounts of 1% of his year end debtors. Debtors at Hari's 31 December year ends were:
20X7 £309 700
20X8 £316 100
Assuming that there are no other transactions relating to Hari's bad and doubtful debts in 20X8, what is the doubtful debt expense in Hari's profit and loss account for the year ending 31 December 20X8?

1. £3 097
2. £6 258
3. £64
4. £3 161

Evangeline, see information. What is Evangeline's gross profit for the year ending 31 December 20X7?

1. £123 188
   
2. £119 005
3. £117 555
4. £128 821

Etta, see information. What is Etta's net profit for the year ending 31 August 20X6?

1. £52 564
2. £52 281
3. £52 029
4. £52 847

Fraser, see information. What figure for electricity expense should be included in Frazer's accounts to 30 November 20X4? (to the nearest £)?

1. £2 439
2. £2 613
3. £2 839
4. £2 386

Igor, see information. What is Igor's current assets total at 31 August 20X9?

1. £66 920
2. £64 290
3. £61 092
4. £67 382