Answer Accounting

CHAPTER 3
PREPARING SIMPLE LEDGER ACCOUNTS
Question 1
Vehicles account
40,000
14,000
Bank account
19,000 14,000
4,000 2,000
Capital account
2,000 47,000
Bank Loan account

12,000
4,000
Question 2
Equipment account
27,000
4,000
Bank account
8,000 4,000
2,000
700
Capital account
700 29,000
Trade payables account

2,000 6,000
Question 3
First Account Affected Second Account

Transaction Affected
Account Increase/ Account Increase/
Decrease Decrease
Owner started business by Bank Increase Capital Increase
investing money in a
business bank account
Purchased a vehicle and Vehicle Increase Bank Decrease
paid by cheque
Purchased some Equipment Increase Trade Increase
equipment on credit payable
The owner withdrew a Capital Decrease Bank Decrease
cheque for private use
Question 4
First Account Affected Second Account Affected
Transaction Account Increase/ Account Increase/
Decrease Decrease
Some furniture was Furniture Increase Bank Decrease
purchased by cheque
A bank loan was arranged. Bank Increase Bank loan Increase
The funds were paid into
the business bank account
Purchased a vehicle on Vehicle Increase Trade Increase
credit payable
Sold some unwanted Furniture Decrease Trade Increase
furniture on credit Receivable
Question 5
Dr Vehicle account Cr
14,000
Dr Bank account Cr
7,000 300
6,000 9,200
2,500
Dr Capital account Cr
300 17,000
Dr Trade payable account Cr

2,500 4,000
9,000
Dr Equipment account Cr
9,000
9,200
Dr Bank loan account Cr

6,000
Question 6
13,000
8,000 800
5,000
Dr Bank account Cr
4,000 1,000
Dr Cash account Cr
400 200
100
200 24,200
1,000 1,200
5,000
Dr Trade receivable account Cr

800 100
Question 7
Transaction Accounts affected Increase/Decrease Debit/Credit

Purchased some Furniture Increase Debit
furniture by cheque Bank Decrease Credit
Paid a payable by Trade payable Decrease Debit

cheque Bank Decrease Credit
Owner withdrew cash Capital Decrease Debit

for private use Cash Decrease Credit
Purchased a vehicle Vehicle Increase Debit

on credit Trade payable Increase Credit
Question 8
Transaction Accounts affected Increase/Decrease Debit/Credit

Owner withdrew a Capital Decrease Debit
cheque for private use Bank Decrease Credit
Purchased equipment Equipment Increase Debit

on credit Trade payable Increase Credit
Paid the payable in cash Trade payable Decrease Debit

Cash Decrease Credit
Sold some unwanted Trade receivable Increase Debit

furniture on credit Furniture Decrease Credit
Received cash from the Cash Increase Debit

receivable Trade receivable Decrease Credit
Question 9
Dr Premises account Cr
Jan 1 Balance 90,000
Jan 1 Balance 12,000 Jan 5 Trade receivable 500
3 Trade payable 4,100
Jan 1 Balance 9,000
Dr Bank account Cr
Jan 1 Balance 3,300 Jan 2 Bank loan 1,000
6 Capital 4,000
7 Cash 200
Dr Cash account Cr
Jan 1 Balance 700 Jan 4 Capital 300
7 Bank 200
Jan 4 Cash 300 Jan 1 Balance 100,000
6 Bank 4,000
Dr Bank loan account Cr

Jan 2 Bank 1,000 Jan 1 Balance 15,000

Jan 3 Equipment 4,100

Jan 5 Equipment 500
Ross
Statement of financial position
at 7 January 2014
$ $
NON-CURRENT ASSETS
Premises 90,000
Equipment 15,600
Vehicle 9,000
114,600
CURRENT ASSETS
Trade receivable 500
Bank 6,500
Cash 200
7,200
121,800
$ $
CAPITAL 103,700
NON-CURRENT LIABILITIES
Bank loan 14,000
CURRENT LIABILITIES
Trade payable 4,100
121,800
Question 10
Apr 1 Balance 16,000
Dr Furniture account Cr
Apr 1 Balance 11,000
2 Bank 2,400

Apr 1 Balance 4,400 Apr 4 Bank 2,900
Dr Bank account Cr
Apr 1 Balance 2,800 Apr 2 Furniture 2,400
4 Trade receivable 2,900 3 Capital 200
5 Bank loan 7,200
7 Cash 100
Dr Cash account Cr
Apr 1 Balance 900 Apr 6 Trade payable 400
7 Bank 100
Apr 3 Bank 200 Apr 1 Balance 32,900

Apr 6 Cash 400 Apr 1 Balance 2,200
Dr Bank Loan account Cr

Apr 5 Bank 7,200
Becky
Statement of financial position at 8 April 2014
$ $
NON-CURRENTASSETS
Vehicle 16,000
Furniture 13,400
29,400
CURRENT ASSETS
Trade receivable 1,500
Bank 10,400
Cash 400
12,300
41,700
$ $
CAPITAL 32,700
NON-CURRENT LIABILITIES
Bank loan 7,200
CURRENT LIABILITIES
Trade payable 1,800
41,700

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Answer Accounting

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CHAPTER 3

PREPARING SIMPLE LEDGER ACCOUNTS

Bank Loan account

Trade payables account

First Account Affected Second Account

Dr Trade payable account Cr

Dr Bank loan account Cr

Dr Trade receivable account Cr

Transaction Accounts affected Increase/Decrease Debit/Credit

Paid a payable by Trade payable Decrease Debit

Owner withdrew cash Capital Decrease Debit

Purchased a vehicle Vehicle Increase Debit

Transaction Accounts affected Increase/Decrease Debit/Credit

Purchased equipment Equipment Increase Debit

Paid the payable in cash Trade payable Decrease Debit

Sold some unwanted Trade receivable Increase Debit

Received cash from the Cash Increase Debit

Dr Bank loan account Cr

Dr Trade payable account Cr

Dr Trade receivable account Cr

Dr Trade receivable account Cr

Dr Trade payable account Cr

Dr Bank Loan account Cr

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