BUS120 Introduction Accounting Worksheet Exam Revision PD2

BUS120 Introduction Accounting

PRACTICE EXERCISES PD2
Profit determination
1. Profit determination
From the following list of ledger balances taken from the books of B. King at 30 June 20xx:
1. prepare all closing entries
2. prepare a Trading Account and post necessary entries to the General Journal
3. prepare a Profit and Loss Account and post necessary entries to the General Journal
4. prepare a classified narrative Balance Sheet

Trial Balance as at 30 June 20xx

TYPE Items DR CR
Inventory – 1 January (opening) 10000
Cash at bank 9600
Purchases 90000
Purchase returns & allowances 2350
Sales 150000
Sales returns & allowances 5500
Plant & machinery 25000
Furniture & fittings 5000
Bad debts 500
Wages 18300
Rates & taxes 1400
Carriage inwards 2250
Debtors 23500
Creditors 15000
Discount revenue 2500
Insurance 750
General expenses 2800
Travellers’ expenses 1750
Drawings A/C – B. King 3500
Capital A/C – B. King 30000
$199850 $199850

Inventory as at 30 June 20xx (closing) - $14000

(Remember to close-off all accounts that have been transferred)

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BUS120 Introduction Accounting Worksheet Exam Revision PD2

Ledger accounts of B. King as at 30 June 20xx:

Inventory
30/6 Balance 10000

Cash at bank
30/6 Balance 9600

Purchases
30/6 Balance 90000

Purchases Returns & Allowances

30/6 Balance 2350

Sales
30/6 Balance 150000

Sales Returns & Allowances

30/6 Balance 5500

Plant & machinery

30/6 Balance 25000

Furniture & fittings

30/6 Balance 5000

Bad debts
30/6 Balance 500

Wages
30/6 Balance 18300

Rates & taxes

30/6 Balance 1400

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BUS120 Introduction Accounting Worksheet Exam Revision PD2

Carriage inwards
30/6 Balance 2250

Debtors
30/6 Balance 23500

Creditors
30/6 Balance 15000

Discount revenue
30/6 Balance 2500

Insurance
30/6 Balance 750

General expense
30/6 Balance 2800

Travellers’ expenses
30/6 Balance 25000

Drawings – B. King
30/6 Balance 3500

Capital – B. King
30/6 Balance 30000

Trading Account

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BUS120 Introduction Accounting Worksheet Exam Revision PD2

Profit and Loss Account

General Journal (GJ)

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BUS120 Introduction Accounting Worksheet Exam Revision PD2
Date Details Folio Debit Credit

Create the TRADING INCOME STATEMENT here …

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BUS120 Introduction Accounting Worksheet Exam Revision PD2

Create your classified narrative BALANCE SHEET here …

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BUS120 Introduction Accounting Worksheet Exam Revision PD2

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