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Question 1-2A

Question 1-2A

Fixtures $1,200 + Van $6,000 + Inventory $2,800 + Bank $200 + Cash $175 = Total assets $10,375. Loan $2,500 + Creditors $1,600 + Capital (difference) $6,275 = $10,375.

Question 1-4A

Question 1-2A Fixtures $1,200 + Van $6,000 + Inventory $2,800 + Bank $200 + Cash $175

A Bao Balance Sheet as at 30 June 20X6

 

$

$

Fixed assets

Equipment

3,400

 

Current assets

Inventory of goods

3,600

Debtors

4,500

Cash at bank

2,800

 

10,900

Less

Current liabilities

Creditors

(4,100 )

6,800

 

10,200

Capital

10,200

Question 1-6A

Question 1-2A Fixtures $1,200 + Van $6,000 + Inventory $2,800 + Bank $200 + Cash $175
 

Effect upon

 

Assets

Liabilities

Capital

 
  • (a) + Creditors

+ Van

   
 
  • (b) – Loan from F Du

– Cash

   
 
  • (c) + Inventory

   

– Bank

 
  • (d) + Cash

 

+ Capital

 
  • (e) + Inventory

   

– Debtors

 
  • (f) + Creditors

+ Inventory

   
 
  • (g) – Cash

 

– Capital

 
  • (h) – Creditors

– Bank

   

Frank Wood’s Business Accounting 1 Solutions Manual Hong Kong Edition Third Edition © Pearson Education Limited 2006

Question 1-8A

Question 1-8A J Ho Balance Sheet as at 7 December 20X9

J Ho Balance Sheet as at 7 December 20X9

Fixed assets

Equipment ($6,200 + $110) Car

Current assets

Inventory of goods ($8,100 + $380) Debtors ($4,050 – $640 – $90) Bank ($9,100 – $380 – $1,150 + $640 + $1,300) Cash ($195 + $90 + $200)

Less

Current liabilities

Creditors ($2,800 + $110 – $1,150)

Capital

Question 2-3A

Question 1-8A J Ho Balance Sheet as at 7 December 20X9 Fixed assets Equipment ($6,200 +

$

6,310

7,300

8,480

3,320

9,510

485

21,795

(1,760 )

$

13,610

20,035

33,645

33,645

 

Bank

 
 

$

 

$

(1)

Capital

16,000

(2)

Van

6,400

(25) Cash

400

(12) Cash

180

 

(19)

Carton Cars Ltd

7,100

(30)

Office fixtures

480

 

Office Fixtures

 
 

$

 

(5)

Old Ltd

900

(15) Cash

120

(30) Bank

480

 

Capital

 
   

$

(1)

Bank

16,000

 

Cash

 
 

$

 

$

 

(12) Bank

180

(15)

Office fixtures

120

(21)

Loan: B Bei

500

(25) Bank

400

 

Vans

 
 

$

 

(2)

Bank

6,400

(8)

Carton Cars Ltd

7,100

2
2

Frank Wood’s Business Accounting 1 Solutions Manual Hong Kong Edition Third Edition © Pearson Education Limited 2006

Old Ltd

$
$
 

(5)

Office fixtures

900

Carton Cars Ltd

$

 

$

(19) Bank

7,100

(8)

Van

7,100

Loan: B Bei

   

$

 

(21) Cash

500

Question 2-4A

Question 2-4A

Bank

$

 

$

(1)

(2)

Capital

9,000

2,000

(8)

Cash

200

Loan: B Bao

(15)

Loan: B Bao

500

(17)

Clearcount Ltd

420

Loan: B Bao

$

 

$

(15) Bank

500

(2)

Bank

2,000

(24) Cash

250

 

Display Equipment

$

 

(5)

Clearcount Ltd

420

Capital

   

$

(1)

Cash

750

(1)

Bank

9,000

Cash

$

 

$

(1)

Capital

750

(3)

Computer

600

(8)

Bank

200

(24)

Loan: B Bao

250

Computer

$

 

(3)

Cash

600

Clearcount Ltd

$

 

$

(17) Bank

420

(5)

Display equipment

420

Frank Wood’s Business Accounting 1 Solutions Manual Hong Kong Edition Third Edition © Pearson Education Limited 2006

 

F Chung

   

$

 

(31) Printer

200

Printer

$

 

(31)

F Chung

200

Question 3-2A

Question 3-2A

Cash

$

 

$

(1)

Capital

7,400

(2)

Bank

7,000

(19) Sales

54

(7)

Purchases

362

Purchases

$

 

(4)

J Wat

410

(7)

Cash

362

Returns Outwards

   

$

(12)

J Wat

42

J Wat

$

 

$

(12)

Returns outwards

42

(4)

Purchases

410

(29) Bank

368

 

L Lee

$

 

(10) Sales

218

Bank

$

 

$

(2)

(24)

Cash

7,000

1,500

(5)

Van

4,920

Loan: F Ho

(29)

J Wat

368

(31)

Fun Ltd

820

Sales

   

$

(10)

L Lee

218

(19) Cash

54

Frank Wood’s Business Accounting 1 Solutions Manual Hong Kong Edition Third Edition © Pearson Education Limited 2006

Fixtures

$

 

(22)

Fun Ltd

820

Van

$

 

(5)

Bank

4,920

Loan: F Ho

   

$

(24) Bank

1,500

Fun Ltd

$

 

$

(31) Bank

820

 

(22) Fixtures

820

Capital

   

$

(1)

Cash

7,400

Question 3-4A

Question 3-4A

Bank

$

 

$

(1)

Capital

18,000

 

(21) Printer

620

(18) Cash

250

(29)

B Hon

1,373

Cash

$

 

$

(5)

Sales

210

(18) Bank

250

(12) Sales

305

 

B Hon

$

 

$

(6)

Returns outwards

82

(2)

Purchases

1,455

(29) Bank

1,373

 

G Sze

$

 

$

(28) Returns outwards

47

(3)

Purchases

472

(8)

Purchases

370

P Sin

$

 

$

(10) Sales

483

(23) Returns inwards

160

Frank Wood’s Business Accounting 1 Solutions Manual Hong Kong Edition Third Edition © Pearson Education Limited 2006

H Chan

 

$

 

$

(22) Sales

394

(25) Returns inwards

18

A Choi

 
   

$

(31) Machinery

419

 

Capital

 
   

$

(1)

Bank

18,000

 

Purchases

 
 

$

 

(2)

B Hon

1,455

(3)

G Sze

472

(8)

G Sze

370

 

Sales

 
   

$

(5)

Cash

210

(10)

P Sin

483

(12) Cash

305

(22)

H Chan

394

 

Returns Inwards

 
 

$

 

(23)

P Sin

160

(25)

H Chan

18

 

Returns Outwards

 
   

$

(6)

B Hon

82

(28)

G Sze

47

 

Machinery

 
 

$

 

(31)

A Choi

419

 

Printer

 
 

$

 

(21) Bank

620

6
6

Frank Wood’s Business Accounting 1 Solutions Manual Hong Kong Edition Third Edition © Pearson Education Limited 2006

Question 4-3A

Question 4-3A

Dr

Cr

$

$

Jul

1

Bank

5,000

Cash

1,000

Capital

6,000

"

2

Stationery

75

Bank

75

"

3

Purchases

2,100

T So

2,100

"

4

Cash

340

Sales

340

"

5

Insurance

290

Cash

290

"

7

Computer

700

J Ho

700

"

8

Expenses

32

Bank

32

"

10

C Bao

630

Sales

630

"

11

T So

55

Returns outwards

55

"

14

Wages

210

Cash

210

"

17

Rent

225

Bank

225

"

20

Bank

400

C Bao

400

"

21

J Ho

700

Bank

700

"

23

Stationery

125

News Ltd

125

"

25

F Tang

645

Sales

645

"

31

News Ltd

125

Bank

125

Question 4-4A

Question 4-3A Dr Cr $ $ Jul 1 Bank 5,000 Cash 1,000 Capital 6,000 " 2

Bank

 

$

 

$

(1)

Capital

11,000

(5)

Stationery

62

(24)

K Fong

250

(16) Rates

970

(28) Rates

45

(19) Rent

75

 

(28)

J Leung

830

(28)

D Ma

415

(28)

B Bo

6,100

Frank Wood’s Business Accounting 1 Solutions Manual Hong Kong Edition Third Edition © Pearson Education Limited 2006

 

Cash

 
 

$

 

$

(1)

Capital

1,600

(3)

Purchases

370

 

(4)

Rent

75

(7)

Wages

160

(11) Rent

75

(18) Insurance

280

(21)

Motor expenses

24

(23) Wages

170

 

Capital

 
   

$

(1)

Bank

11,000

(1)

Cash

1,600

 

Rent

 
 

$

 

(4)

Cash

75

(11) Cash

75

(19) Bank

75

Wages

 
 

$

 

(7)

Cash

160

(23) Cash

170

Stationery

 
 

$

 

(5)

Bank

62

 

Rates

 
 

$

 

$

(16) Bank

970

(28) Bank

45

Insurance

 
 

$

 

(18) Cash

280

Van

 
 

$

 

(20)

B Bo

6,100

 

Motor Expenses

 
 

$

 

(21) Cash

24

Frank Wood’s Business Accounting 1 Solutions Manual Hong Kong Edition Third Edition © Pearson Education Limited 2006

Purchases

 

$

 

(2)

J Leung

830

(2)

D Ma

610

(2)

P Lo

590

(3)

Cash

370

 

Sales

 
   

$

(6)

D To

370

(6)

B Ho

290

(6)

K Fong

410

(15)

T Lee

205

(15)

F Sin

280

(15)

G Man

426

 

Returns Outwards

 
   

$

(10)

D Ma

195

 

Returns Inwards

 
 

$

 

(13)

B Ho

35

 

J Leung

 
 

$

 

$

(28) Bank

830

(2)

Purchases

830

D

Ma

 

$

 

$

(10)

Returns outwards

195

(2)

Purchases

610

(28) Bank

415

 

P Lo

 
   

$

(2)

Purchases

590

 

B Bo

 
 

$

 

$

(28) Bank

6,100

(20)

Van

6,100

D

To

 

$

 

(6)

Sales

370

 

B Ho

 
 

$

 

$

(6)

Sales

290

(13) Returns inwards

35

Frank Wood’s Business Accounting 1 Solutions Manual Hong Kong Edition Third Edition © Pearson Education Limited 2006

 

K Fong

 

$

 

$

(6)

Sales

410

(24) Bank

250

 

T Lee

 

$

 

(15) Sales

205

 

F Sin

 

$

 

(15) Sales

280

 

G Man

 

$

 

(15) Sales

426

Question 4-6A

K Fong $ $ (6) Sales 410 (24) Bank 250 T Lee $ (15) Sales 205
  • (A) Goods bought on credit $27,000.

  • (B) Borrowed $35,000 and immediately spent it on land and buildings $35,000.

  • (C) Sold goods costing $20,000 for $30,000 on credit.

  • (D) Debtors paid $13,000.

  • (E) Debtors paid $2,000; this amount was taken by proprietors.

  • (F) Took $5,000 drawings by cheque and paid off $3,000 accrued expenses by cheque.

  • (G) Equipment costing $30,000 sold for $21,000 — paid by cheque.

  • (H) Goods taken for own use $1,000.

  • (I) Took $6,000 cash as drawings. Could also be $6,000 cash stolen — thus reducing cash and causing a loss.

Question 5-6A

K Fong $ $ (6) Sales 410 (24) Bank 250 T Lee $ (15) Sales 205
 

G Woo

 
 

$

 

$

(1)

Sales

310

(19) Bank

310

(21) Sales

90

(31)

Balance c/d

90

 

400

 

400

(1)

Balance b/d

90

 
 

K Hung

 
 

$

 

$

(1)

Sales

42

(31) Balance c/d

633

(8)

Sales

161

 

(21) Sales

430

 

633

 

633

(1)

Balance b/d

633

 
0
0

Frank Wood’s Business Accounting 1 Solutions Manual Hong Kong Edition Third Edition © Pearson Education Limited 2006

 

F Dai

 
 

$

 

$

(1)

Sales

1,100

(10)

Returns inwards

31

(8)

Sales

224

(19) Bank

750

 

(31)

Balance c/d

543

 

1,324

 

1,324

(1)

Balance b/d

543

 
 

M Lok

 
 

$

 

$

(1)

Sales

309

(10)

Returns inwards

82

 

(12) Cash

227

 

309

309

T So

 
 

$

 

$

(15)

Returns outwards

15

(2)

Purchases

190

(28) Bank

175

 

190

 

190

J Lee

 
 

$

 

$

(31) Balance c/d

278

(2)

Purchases

63

 

(9)

Purchases

215

 

278

 

278

 

(1)

Balance b/d

278

 

P Tin

 
 

$

 

$

(28) Bank

180

(2)

Purchases

210

(31)

Balance c/d

30

 
 

210

 

210

 

(1)

Balance b/d

30

 

F Ruan

 
 

$

 

$

(15)

Returns outwards

21

(2)

Purchases

190

(28) Bank

100

(9)

Purchases

164

(31)

Returns outwards

18

 

(31)

Balance c/d

215

 

354

 

354

 

(1)

Balance b/d

215

Woo, Hung and Dai are debtors. Lee, Tin and Ruan are creditors.

Frank Wood’s Business Accounting 1 Solutions Manual Hong Kong Edition Third Edition © Pearson Education Limited 2006

Question 5-7A

Question 5-7A G Woo

G Woo

 

Dr

Cr

Balance

20X7

$

$

$

May

1

Sales

310

310

Dr

"

19

Bank

310

0

"

21

Sales

90

90

Dr

 

K Hung

 

Dr

Cr

Balance

20X7

$

$

$

May

1

Sales

42

42

Dr

"

8

Sales

161

203

Dr

"

21

Sales

430

633

Dr

 

F Dai

 

Dr

Cr

Balance

20X7

$

$

$

May

1

Sales

1,100

1,100 Dr

"

8

Sales

224

1,324 Dr

"

10

Returns inwards

31

1,293 Dr

"

19

Bank

750

543

Dr

 

M Lok

 

Dr

Cr

Balance

20X7

$

$

$

May

1

Sales

309

309

Dr

"

10

Returns inwards

82

227

Dr

"

12

Bank

227

0

 

T So

 

Dr

Cr

Balance

20X7

$

$

$

May

2

Purchases

190

190

Cr

"

15

Returns outwards

15

175

Cr

"

28

Bank

175

0

 

J Lee

 

Dr

Cr

Balance

20X7

$

$

$

May

2

Purchases

63

63

Cr

"

9

Purchases

215

278

Cr

 

P Tin

 

Dr

Cr

Balance

20X7

$

$

$

May

2

Purchases

210

210

Cr

"

28

Bank

180

30

Cr

2
2

Frank Wood’s Business Accounting 1 Solutions Manual Hong Kong Edition Third Edition © Pearson Education Limited 2006

F Ruan

 

Dr

Cr

Balance

20X7

$

$

$

May

2

Purchases

190

190

Cr

"

9

Purchases

164

354

Cr

"

15

Returns outwards

21

333

Cr

"

28

Bank

100

233

Cr

"

31

Returns outwards

18

215

Cr

Question 6-2A

Question 6-2A
 

Bank

 
 

$

 

$

(1)

Capital

15,000

(6)

Rent

175

(28)

T Pok

71

(7)

Rates

130

(28)

J Fan

42

(23)

J Sin

272

(30) Capital

900

(23)

F Bo

1,200

 

(23)

T Ren

500

(25)

Van

6,200

(30)

Balance c/d

7,536

 

16,013

 

16,013

(1)

Balance b/d

7,536

 

Cash

 
 

$

 

$

(5)

(26)

Sales

610

(17) Wages

 

290

Loan: B Ban

750

(30)

Balance c/d

1,070

1,360

 

1,360

(1)

Balance b/d

1,070

 

Purchases

 
 

$

 

$

(3)

J Sin

290

(30) Balance c/d

 

3,225

(3)

F Bo

1,200

 

(3)

T Ren

610

(3)

R Chen

530

(19)

R Chen

110

(19)

T Ren

320

(19)

F Jia

165

3,225

 

3,225

(1)

Balance b/d

3,225

 

Frank Wood’s Business Accounting 1 Solutions Manual Hong Kong Edition Third Edition © Pearson Education Limited 2006

 

Sales

 
 

$

 

$

(30) Balance c/d

2,383

(5)

Cash

610

 

(11)

T Pok

85

(11)

J Fan

48

(11)

T Gao

1,640

 

2,383

 

2,383

 

(1)

Balance b/d

2,383

 

Capital

 
 

$

 

$

(30) Balance c/d

15,900

(1)

Bank

15,000

 

(30) Bank

900

 

15,900

15,900

 

(1)

Balance b/d

15,900

 

Rent

 
 

$

 

$

(6)

Bank

175

(30) Balance c/d

175

(1)

Balance b/d

175

 
 

Rates

 
 

$

 

$

(7)

Bank

130

(30) Balance c/d

130

(1)

Balance b/d

130

 
 

Wages

 
 

$

 

$

(17) Cash

290

(30) Balance c/d

290

(1)

Balance b/d

290

 
 

Returns Outwards

 
 

$

 

$

(30) Balance c/d

45

(18)

J Sin

18

 

(18)

R Chen

27

 

45

 

45

 

(1)

Balance b/d

45

 

Returns Inwards

 
 

$

 

$

(20)

J Fan

6

(30) Balance c/d

20

(20)

T Pok

14

 
 

20

 

20

(1)

Balance b/d

20

 

Frank Wood’s Business Accounting 1 Solutions Manual Hong Kong Edition Third Edition © Pearson Education Limited 2006

 

Vans

 
 

$

 

$

(21)

Turnkey Motors

4,950

(30) Balance c/d

11,150

(25) Bank

6,200

 

11,150

 

11,150

(1)

Balance b/d

11,150

 
 

J Sin

 
 

$

 

$

(18)

Returns outwards

18

(3)

Purchases

290

(23) Bank

272

 

290

 

290

F Bo

 
 

$

 

$

(23) Bank

1,200

(3)

Purchases

1,200

T Ren

 
 

$

 

$

(23) Bank

500

(3)

Purchases

610

(30)

Balance c/d

430

(19) Purchases

320

 

930

930

 

(1)

Balance b/d

430

 

R Chen

 
 

$

 

$

(18)

Returns outwards

27

(3)

Purchases

530

(30)

Balance c/d

613

(19) Purchases

110

 

640

640

 

(1)

Balance b/d

613

 

F Jia

 
 

$

 

$

(30) Balance c/d

165

(19) Purchases

165

 

(1)

Balance b/d

165

 

T Pok

 
 

$

 

$

(11) Sales

85

(20)

Returns inwards

14

 

(28) Bank

71

 

85

85

J Fan

 
 

$

 

$

(11) Sales

48

(20)

Returns inwards

6

 

(28) Bank

42

 

48

48

Frank Wood’s Business Accounting 1 Solutions Manual Hong Kong Edition Third Edition © Pearson Education Limited 2006

T Gao

 

$

 

$

(11) Sales

1,640

(30) Balance c/d

 

1,640

(1)

Balance b/d

1,640

 
 

Turnkey Motors

 
 

$

 

$

(30) Balance c/d

4,950

(21)

Van

4,950

 

(1)

Balance b/d

4,950

 

Loan: B Ban

 
 

$

 

$

(30) Balance c/d

750

(26) Cash

750

 

(1)

Balance b/d

750

 

Trial Balance as at 30 November 20X7

 
 

Dr

Cr

$

$

Bank

 

7,536

Cash

1,070

Purchases

3,225

Sales

 

2,383

Returns outwards

45

Returns inwards

 

20

Capital

 

15,900

Vans

 

11,150

Rent

175

Rates

130

Wages

290

R Chen

 

613

T Ren

430

F Jia

165

T Gao

 

1,640

Turnkey Motors

 

4,950

Loan: B Ban

750

 

25,236

25,236

6
6

Frank Wood’s Business Accounting 1 Solutions Manual Hong Kong Edition Third Edition © Pearson Education Limited 2006

Question 6-4A

Question 6-4A E Pak Corrected Trial Balance as at 31 December 20X9

E Pak Corrected Trial Balance as at 31 December 20X9

Motor vehicles Office equipment Sales Purchases Sales returns Purchases returns Carriage inwards Carriage outwards Wages Insurance Rent and rates Lighting and heating Drawings Commission received Bank overdraft Cash in hand Motor vehicle expenses General expenses Capital Debtors Creditors

Question 7-3A

Question 6-4A E Pak Corrected Trial Balance as at 31 December 20X9 Motor vehicles Office equipment

Dr

$

30,000

10,000

287,220

1,460

200

780

45,190

3,000

5,270

4,810

35,000

150

7,070

5,300

52,800

488,250

Cr

$

402,400

390

2,410

26,400

32,700

23,950

488,250

B Mui Trading and Profit and Loss Account for the year ended 31 December 20X8

 

$

Sales

Less

Cost of goods sold:

 

Purchases

121,040

Less

Closing inventory

(14,486 )

Gross profit

 

Less

Expenses:

Salaries

39,560

 

Rates

2,400

Motor expenses

910

General expenses

305

Insurance Net profit

1,240

$

235,812

(106,554 )

129,258

(44,415 )

84,843

Frank Wood’s Business Accounting 1 Solutions Manual Hong Kong Edition Third Edition © Pearson Education Limited 2006

Question 7-4A

Question 7-4A G Go Trading and Profit and Loss Account for the year ended 30 June

G Go Trading and Profit and Loss Account for the year ended 30 June 20X8

 

$

$

Sales

382,420

Less

Cost of goods sold:

Purchases

245,950

Less

Closing inventory

(29,304 )

(216,646 )

Gross profit

165,774

Less

Expenses:

Salaries and wages

48,580

Equipment rental

940

Insurance

1,804

Lighting and heating

1,990

Motor expenses

2,350

Sundry expenses

624

(56,288 )

Net profit

109,486

Question 8-3A

Question 8-3A

B Mui Balance Sheet as at 31 December 20X8

 

$

$

Fixed assets

Premises

53,000

Car

4,300

57,300

Current assets

Inventory

14,486

Debtors

21,080

Bank

2,715

Cash

325

38,606

Less

Current liabilities

Creditors

(11,200 )

27,406

 

84,706

Capital Balance at 1.1.20X8

23,263

Add Net profit

84,843

108,106

Less

Drawings

(23,400 )

84,706

Frank Wood’s Business Accounting 1 Solutions Manual Hong Kong Edition Third Edition © Pearson Education Limited 2006

Question 8-4A

Question 8-4A G Go Balance Sheet as at 30 June 20X8

G Go Balance Sheet as at 30 June 20X8

 

$

$

Fixed assets

Building

174,000

Fixtures

4,600

Lorry

19,400

198,000

Current assets

Inventory

29,304

Debtors

44,516

Bank

11,346

85,166

Less

Current liabilities

Creditors

(23,408 )

61,758

 

259,758

Capital Balance at 1.7.20X7

194,272

Add Net profit

109,486

303,758

Less

Drawings

(44,000 )

259,758

Question 8-6A

Question 8-6A G Hung Balance Sheet as at 30 June 20X9

G Hung Balance Sheet as at 30 June 20X9

 

$

$

$

Fixed assets

Office equipment

5,000

Motor vehicles

5,400

10,400

Current assets

Inventory

6,900

Debtors

16,255

Cash in hand

55