Accounting: AS Level and A Level

Teachers Supplement
This supplement contains the answers to the end-of-chapter Additional exercises in the text book.
Chapter 1 Double-entry bookkeeping: cash transactions
Q1

Farook
Bank

June 1
1
5
10
12
13
14

Farook Capital
Amna Loan
Sales
Sales
Purchases Returns
Insurance
Office Furniture

$
15 000
5 000
1 500
2 400
900
100
800

June 2
3
4
6
7
8
9
10
11
13
15

Premises
Office Furniture
Purchases
Insurance
Motor Van
Motor Van Expenses
Purchases
Wages
Sales Returns
Drawings
Amna Loan

Farook Capital
$

June 15

Bank

$
8000
2000
5000
600
3000
50
2000
400
1200
200
1000

June 1

Bank

15 000

Amna Loan
$
1000
June 1

Bank

$
5000

Premises

June 2

Bank

$
8000

Office Furniture

June 3

Bank

$
2000

June 14

Bank

$
800

Purchases
June 4
9

Bank
Bank

$
5000
2000

Purchases Returns
$
June 12

Bank

$
900

Sales
$
June 5
10

June 12

Bank

$
1500
2400

Bank
Bank

Sales Returns
$
1200

Insurance

June 6

Bank

$
600

June 13

$
100

Bank

Motor Van
June 7

June 8

June 10

Bank

$
3000

Bank

Motor Van Expenses

$
50

Bank

Wages
$
400

Drawings

June 13

Bank

$
200

Q2
Debit account

Credit account

1. Local taxes paid by cheque

Local Taxes

Bank

2. Bank pays interest to trader

Bank

Bank Interest
Receivable

3. Sundry expenses paid by cheque

Sundry Expenses

Bank

4. Postage and stationery paid by cheque

Postage and Stationery

Bank

5. Telephone bill paid by cheque

Telephone Expenses

Bank

6. Carriage inwards paid by cheque

Carriage Inwards

Bank

7. Carriage outwards paid by cheque

Carriage Outwards

Bank

8. Interest paid by cheque to brother in respect

of aloan received from him

Interest Payable

Bank

9. Interest paid to bank

Interest Payable

Bank