!"#$%# &'()*#+,,- .

/ Chapter 3 l The asset of stock

3.4A Enter the following transactions in the appropriate accounts:

20X6
Aug 1 Started in business with £7,400 cash.
== 2 Paid £7,000 of the opening cash into the bank.
== 4 Bought goods on credit £410 from J Watson.
== 5 Bought a van by cheque £4,920.
== 7 Bought goods for cash £362.
== 10 Sold goods on credit £218 to L Less.
== 12 Returned goods to J Watson £42.
== 19 Sold goods for cash £54.
== 22 Bought fixtures on credit from Firelighters Ltd £820.
== 24 F Holmes lent us £1,500 paying us the money by cheque.
== 29 We paid J Watson his account by cheque £368.
== 31 We paid Firelighters Ltd by cheque £820.

3.5 Enter the following transactions in the accounts of L Linda:

20X7
July 1 Started in business with £20,000 in the bank.
== 2 R Hughes lent us £5,000 in cash.
== 3 Bought goods on credit from B Brown £1,530 and I Jess £4,162.
== 4 Sold goods for cash £1,910.
== 6 Took £200 of the cash and paid it into the bank.
== 8 Sold goods on credit to H Rise £1,374.
== 10 Sold goods on credit to P Taylor £341.
== 11 Bought goods on credit from B Brown £488.
== 12 H Rise returned goods to us £65.
== 14 Sold goods on credit to G Pate £535 and R Sim £262.
== 15 We returned goods to B Brown £94.
== 17 Bought van on credit from Aberdeen Cars Ltd £4,370.
== 18 Bought office furniture on credit from J Winter Ltd £1,800.
== 19 We returned goods to I Jess £130.
== 20 Bought goods for cash £390.
== 24 Goods sold for cash £110.
== 25 Paid money owing to B Brown by cheque £1,924.
== 26 Goods returned to us by G Pate £34.
== 27 Returned some of office furniture costing £180 to J Winter Ltd.
== 28 L Linda put a further £2,500 into the business in the form of cash.
== 29 Paid Aberdeen Cars Ltd £4,370 by cheque.
== 31 Bought office furniture for cash £365.

3.6A Enter the following transactions in the accounts:
20X9
May 1 Started in business with £18,000 in the bank.
== 2 Bought goods on credit from B Hind £1,455.
== 3 Bought goods on credit from G Smart £472.
== 5 Sold goods for cash £210.
== 6 We returned goods to B Hind £82.
== 8 Bought goods on credit from G Smart £370.
== 10 Sold goods on credit to P Syme £483.
== 12 Sold goods for cash £305.
== 18 Took £250 of the cash and paid it into the bank.
== 21 Bought a printer by cheque £620.
== 22 Sold goods on credit to H Buchan £394.
== 23 P Syme returned goods to us £160.
== 25 H Buchan returned goods to us £18.
== 28 We returned goods to G Smart £47.
== 29 We paid Hind by cheque £1,373.
== 31 Bought machinery on credit from A Cobb £419.

37
Part 1 l Introduction to double entry bookkeeping

Review questions
6.1 You are to enter up the necessary accounts for the month of May from the following infor-
mation relating to a small printing firm. Then balance off the accounts and extract a trial balance
as at 31 May 20X6.
20X6
May 1 Started in business with capital in cash of £800 and £2,200 in the bank.
== 2 Bought goods on credit from the following persons: J Ward £610; P Green £214;
M Taylor £174; S Gemmill £345; P Tone £542.
== 4 Sold goods on credit to: J Sharpe £340; G Boycott £720; F Titmus £1,152.
== 6 Paid rent by cash £180.
== 9 J Sharpe paid us his account by cheque £340.
== 10 F Titmus paid us £1,000 by cheque.
== 12 We paid the following by cheque: M Taylor £174; J Ward £610.
== 15 Paid carriage by cash £38.
== 18 Bought goods on credit from P Green £291; S Gemmill £940.
== 21 Sold goods on credit to G Boycott £810.
== 31 Paid rent by cheque £230.

6.2 Enter the following transactions of an antiques shop in the accounts and extract a trial bal-
ance as at 31 March 20X6.
20X6
March 1 Started in business with £8,000 in the bank.
== 2 Bought goods on credit from the following persons: L Frank £550; G Byers £290; P Lee
£610.
== 5 Cash sales £510.
== 6 Paid wages in cash £110.
== 7 Sold goods on credit to: J Snow £295; K Park £360; B Tyler £640.
== 9 Bought goods for cash £120.
== 10 Bought goods on credit from: G Byers £410; P Lee £1,240.
== 12 Paid wages in cash £110.
== 13 Sold goods on credit to: K Park £610; B Tyler £205.
== 15 Bought shop fixtures on credit from Stop Ltd £740.
== 17 Paid G Byers by cheque £700.
== 18 We returned goods to P Lee £83.
== 21 Paid Stop Ltd a cheque for £740.
== 24 B Tyler paid us his account by cheque £845.
== 27 We returned goods to L Frank £18.
== 30 G Prince lent us £1,000 by cash.
== 31 Bought a van paying by cheque £6,250.

6.3A Record the following details relating to a carpet retailer for the month of November 20X7
and extract a trial balance as at 30 November 20X7:

20X7
Nov 1 Started in business with £15,000 in the bank.
== 3 Bought goods on credit from: J Small £290; F Brown £1,200; T Rae £610; R Charles
£530.
== 5 Cash sales £610.
== 6 Paid rent by cheque £175.
== 7 Paid business rates by cheque £130.
== 11 Sold goods on credit to: T Potts £85; J Field £48; T Gray £1,640.
== 17 Paid wages by cash £290.
== 18 We returned goods to: J Small £18; R Charles £27.


66

 == 18 We returned goods to P Lee £83.
== 21 Paid Stop Ltd a cheque for £740.
== 24 B Tyler paid us his account by cheque £845.
== 27 We returned goods to L Frank £18.
== 30 G Prince lent us £1,000 by cash.
== 31 Bought a van paying by cheque £6,250.

6.3A Record the following details relating to a carpet retailer for the month of November 20X7
and extract a trial balance as at 30 November 20X7:
20X7
Nov 1 Started in business with £15,000 in the bank.
== 3 Bought goods on credit from: J Small £290; F Brown £1,200; T Rae £610; R Charles
£530. am Page 67
BA10_C06.qxd 16/12/04 11:21
== 5 Cash sales £610.
== 6 Paid rent by cheque £175.
== 7 Paid business rates by cheque £130.
BA10_C06.qxd 16/12/04
== 11 11:21 am Page
Sold goods 67 to: T Potts £85; J Field £48; T Gray £1,640.
on credit
== 17 Paid wages by cash £290.
== 18 We returned goods to: J Small £18; R Charles £27. Chapter 6 l The trial balance

== 19 Bought goods on credit from: R Charles £110; T Rae £320; F Jack £165.
66 == 20 Goods were returned to us by: J Field £6; T Potts £14. Chapter 6 l The trial bala
== 21 Bought van on credit from Turnkey Motors £4,950.
== 23 We paid the following by cheque: J Small £272; F Brown £1,200; T Rae £500.
==== 19
25 Bought goods on
Bought another credit
van, paying from:
by R Charles
cheque £110; T Rae
immediately £320; F Jack £165.
£6,200.
==== 20
26 Goods
Received were returned
a loan of £750tocash us by:
fromJ Field £6; T Potts £14.
B. Bennet.
==== 21
28 Bought
Receivedvan on credit
cheques from:from Turnkey
T Potts £71; J Motors
Field £42.£4,950.
==== 30 We
23 Proprietor
paid thebrings a further
following £900 into
by cheque: the business,
J Small by a payment
£272; F Brown £1,200; T into the business
Rae £500.
== bank account.
25 Bought another van, paying by cheque immediately £6,200.

== 26 Received a loan of £750 cash from B. Bennet.
6.4A
== Record the following
28 Received chequestransactions
from: T Potts for£71;
the Jmonth of January of a small finishing retailer,
Field £42.
balance off all the accounts, and then extract a trial balance as at 31 January 20X8: into the business
== 30 Proprietor brings a further £900 into the business, by a payment

20X8 bank account.
Jan 1 Started in business with £10,500 cash.
6.4A
== Record
2 Putthe following
£9,000 transactions
of the cash into a bank foraccount.
the month of January of a small finishing retailer,
balance
== off3 all the accounts,
Bought goods for and
cashthen£550.extract a trial balance as at 31 January 20X8:
== 4 Bought goods on credit from: T Dry £800; F Hood £930; M Smith £160; G Low £510.
20X8
== 5 Bought stationery on credit from Buttons Ltd £89.
Jan 1 Started in business with £10,500 cash.
== 6 Sold goods on credit to: R Tong £170; L Fish £240; M Singh £326; A Tom £204.
==== 28 Put
Paid£9,000
rent byof the cash
cheque £220.into a bank account.
==== 10 Bought fixtures on credit£550.
3 Bought goods for cash from Chiefs Ltd £610.
==== 4 Bought goods on
11 Paid salaries in cash £790.credit from: T Dry £800; F Hood £930; M Smith £160; G Low £510.
==== 5 Bought stationery on credit
14 Returned goods to: F Hood £30; M Smith from Buttons£42.Ltd £89.
==== 6 Sold goods on credit
15 Bought van by cheque £6,500. to: R Tong £170; L Fish £240; M Singh £326; A Tom £204.
==== 8 Paid rent by cheque £220.
16 Received loan from B Barclay by cheque £2,000.
==== 10
18 Bought fixtures to
Goods returned onuscredit
by: Rfrom TongChiefs Ltd £610.
£5; M Singh £20.
==== 11
21 Paid
Cash salaries in cash £790.
sales £145.
==== 14
24 Returned
Sold goodsgoods to: Fto:
on credit Hood £30;
L Fish MA
£130; Smith
Tom £42.
£410; R Pleat £158.
==== 26 Bought
15 We paidvan the by
following
chequeby cheque: F Hood £900; M Smith £118.
£6,500.
==== 29 Received
16 Received cheques
loan from from: R Pleatby
B Barclay £158;
chequeL Fish£2,000.
£370.
==== 30 Goods
18 Received a further
returned toloan
us by: from B Barclay
R Tong £5; M bySingh
cash £500.
£20.
==
== 30 Received £614
21 Cash sales £145. cash from A Tom.
== 24 Sold goods on credit to: L Fish £130; A Tom £410; R Pleat £158.
6.5
==
Note, this question should not be attempted until cash discounts and trade discounts have
26 We paid the following by cheque: F Hood £900; M Smith £118.
been covered (see Chapters 13 and 14).
== 29 Received cheques from: R Pleat £158; L Fish £370.
On 1 October 20X9, the owner of the USS Enterprise, Mr Kirk, decided that he will boldly go and
== 30 Received a further loan from B Barclay by cash £500.
keep his records on a double entry system. His assets and liabilities at that date were:
== 30 Received £614 cash from £
A Tom.
Fixtures and equipment 20,000

6.5 Note, this question should not be attempted until cash discounts and trade discounts have
Stock including weapons 15,000
been covered (see Chapters 1317,500
Balance at Universe Bank
and 14).
Cash On 1 October 20X9, the owner of the USS Enterprise, Mr Kirk, decided that he will boldly go and
375
keep his records
Creditors – Spock on a double entry
3,175 system. His assets and liabilities at that date were:
– Scott 200£
Fixtures and equipment
– McCoy 20,000
500
Stock including weapons 15,000
Balance at Universeduring
Kirk’s transactions Bank October 17,500
were as follows:
Cash 375
Creditors – Spock 3,175
1 Sold faculty phasers, original cost £500, to Klingon Corp, for cash £5,000