2015-08-21
2278
| Administrative expenses; cost of sales; distribution; dividend; extraordinary; ordinary; retained; turnover. |
- As AZ Designs is a small printing company, all their printing contracts are known as _________ activities.
- Recently, a film company paid AZ Designs a large amount of money to use the company’s premises when they were making a film. This was recorded in the Profit and Loss Account as __________ income.
- Income which the company makes in its normal activities is known as ________.
- At the end of the year, some of the profits may be shared out among the shareholders who will receive a _________.
- The costs of getting the goods to the customers are shown as ________ costs in the Profit and Loss Account.
- Materials which are used up in manufacturing and workers’ wages are recorded as ___________.
- The secretary’s salary and expenses incurred in the office are shown as __________.
- The company may decide to keep some of the profits at the end of the year and the amount is shown as __________ profits.
VI. Here is a letter from a firm of accountants to a client. Complete the letter by inserting the missing phrases. Choose from the box below.
| a) adjustments | f) accumulated |
| b) the audited accounts | g) change |
| c) ended 30 April 2010 | h) the bank overdraft |
| d) do not hesitate to contact | i) cheque for £2,500 |
| e) with the final accounts | j) provision for bad |
Dear Mr. Lee
We have pleasure in enclosing five copies of the full accounts for the period … (1).
We are also sending you a list of the adjustments which you need to make to your Nominal Ledger so that the opening balances at 1 May 2010 agree with …(2).
Please put in the details of a …(3) drawn in December 2009 for Customs and Excise into bank payments. These details are missing so the Nominal Ledger understates …(4).
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Increase bank payments by £185.20 and code it direct to purchases. This will cover various small differences which have …(5) over the years.
Make the new Nominal Ledger code headings for …(6) debts.
…(7) the present code headings for plant and equipment at cost to 0011.
We feel it is better to separate the cost and depreciation of the fixed assets in the Nominal Ledger to make it easier to compare …(8). It also makes it easier to find any …(9) which have been made.
If you have any problems with changes or would like to discuss them further, please …(10) us.
Yours sincerely
Lydia Triffs
