Chapter (1)

2.

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Bookkeeping & Accounting 1

 Question(1) Complete the gaps in the following table:
Assets liabilities Capital
$ $ $
(a) 30,000 18,000 ?
(b) 69,400 32,100 ?
(c) 47,500 ? 11,700
(d) 71,800 ? 19,400
(e) ? 30,500 28,100
(f) ? 47,200 36,500
Question (2) Complete the gaps in the following table:
Assets liabilities Capital
$ $ $
(a) 93,000 44,000 ?
(b) ? 36,200 38,900
(c) 107,300 ? 41,500
(d) 125,500 77,400 ?
(e) 114,700 ? 33,400
(f) ? 64,600 21,300
Question (3) Which of the items in the following list are liabilities and which of them are assets?
(a) Motor vehich (d) Bank overdraft
(b) Amounts owed to us by customers (e) Inventory of good held for sale
(c) Land (f) Amounts owed by us to suppliers
Question (4) Classify the following items into liabilities and assets:
(a) Computers (f) cash in bank
(b) Buildings (g) bank overdraft
(c) Accounts payable (h) loan from bank
(d) Inventory (i) Vans
(e) Accounts receivable
Question(5) State which of the following are wrongly classified:
Assets Liabilities
Loan from K.Jones Delivery van
bank overdraft Accounts payable
Accounts receivable Computer equipment
Warehouse Machinery
Office furniture Cash in hand
Question (6) Which of the following are shown under the wrong headings?
Assets Liabilities
Cash at bank Bank overdraft
Fixtures and fittings Equipment
Accounts payable Computers
Premises Loan from building society
Inventory
Accounts receivable
Capital (Equity)

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Bookkeeping & Accounting 3

Question (1) Write up the asset, liability and capital accounts to record the following transactions in the
records of B.Spector’s business:
July 1 Started business by putting $ 15,000 of his own money into a business bank account.
2 Bought office furniture by internet transfer from bank account $2,800.
3 Bought computer equipment $1,260 on time from TVC Ltd.
5 Bought a car paying by cheque $4,950.
8 Sold some of the office furniture - orginal cost $750 - for $ 750 on time to Jevons & Co.
15 Paid the amount owing to TVC Ltd $1260 by Internet transfer from bank account.
23 Received the amount due from Jevons & Co $750 by cheque.
31 Bought machinery using the business’s debit card $710.
Question (2) Yor are required to open the asset and liability and capital accounts and record the following
transactions for June in the records of P. Bernard:
June 1 Started business with $17,500 in cash.
2 Paid $9,400 of the opening cash into a bank account for the business.
5 Bought office furniture on time from Dream Ltd for $2,100.
8 Bought a van paying by Internet transfer from the bank account $5,250.
12 Bought equipment from Pearce & Sons on time $2,300.
18 Returned faulty office furniture costing $260 to Dream Ltd.
25 Sold some of the equipment for $200 cash (its original cost).
26 Paid amount owing to Dream Ltd $1,840 by Internet transfer from the bank account.
28 Took $130 out of the bank and added to cash.
30 F. Brown lent us $4.000 - sending us the money by Internet transfer.
Question (3) Write up the assets, capital and liability accounts in the books of D. Gough to record the
following transactions:
2019
June 1 Started business with $16,000 in the bank.
2 Bought van paying by cheque $6,400.
5 Bought office fixtures $900 on time from Old Ltd.
8 Bought van on time from Carton Cars Ltd $7,100.
12 Took $180 out of the bank and put it into the cash till.
15 Bought office fixtures paying by cash $120.
19 Paid Carton Cars Ltd by Internet transfer from the bank account.
21 A loan of $500 cash is received from B.Berry.
25 Paid $400 of the cash in hand into the bank account.
30 Bought more office fixtures paying with the business debit card $480.

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Bookkeeping & Accounting 5

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Question (2) Enter the following transactions in the accounts of L. Linda:
July 1 Started in business with $20,000 in the bank.
2 D.Rupert lent us $5,000 in cash.
3 Bought goods on time 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 time to H. Rise $1,530.
10 Sold goods on time to P. Taylor $341.
11 Bought goods on time from B. Brown $560.
12 H.Rise returned goods to us $65.
14 Sold goods on time to G.Farm $535 and R. Sim $262.
15 We returned goods to B.Brown $94.
17 Bought van on time from Aberdeen Cars Ltd $9,100.
18 Bought office furniture on time from J.Winter Ltd $1,800.
19 We returned goods to I. Jess $130.
20 Bought goods for cash $770.
24 Goods sold for cash $110.
25 Paid money owing to B.Brown by cheque $1,924.
26 Goods returned to us by G.Farm $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 $9,100 by cheque.
31 Bought office furniture for cash $365.
Question (3) Enter the following transactions in the accounts:
2020
May 1 Started in business with $18,000 in the bank.
2 Bought goods on time from B. Hind $1,455.
3 Bought goods on time from G. Smart $472.
5 Sold goods for cash $210.
6 We returned goods to B. Hind $82.
8 Bought goods on time from G. Smart $370.
10 Sold goods on time 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 time 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 B. Hind by cheque $1,373.
31 Bought machinery on time from A.Cobb $419.

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8 Bookkeeping & Accounting

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Question (2) Enter the following transactions in the accounts, completing the double entry in the books for
the month of August:
August 1 Started in business with $31,000 in the bank and $4,000 in cash.
2 Purchased goods $1,160 on time from A Cliff.
3 Bought fixtures and fittings $4,600 paying by cheque.
5 Sold goods for cash $600.
6 Bought goods on time $1,300 from S. Bell.
10 Paid rent by cash $800.
12 Bought stationery $180, paying in cash.
18 Goods returned to A. Cliff $164.
21 Received rent of $480 by cheque for sublet of corne space.
23 Sold goods on time to R. Coat for $ 3,200.
24 Bought a van paying by cheque $16,400.
30 Paid the month’s wages by cash $1,220.
31 The proprietor took cash for her own personal use $1,020.

Bookkeeping & Accounting 9

 Quesiton (3) Write up the following transaction in the T-accounts of F. Fernandes:
Feb 1 Started in business with $11,000 in the bank and $1,600 cash.
2 Bought goods on time: J. Biggs $830; D. Martin $610,P Lot $590.
3 Bought goods or cash $370.
4 Paid rent in cash $75.
5 Bought stationery paying by cheque $62.
6 Sold goods on time: D. T wigg $370; B. Hogan $290; K. Fletcher $410.
7 Paid wages in cash $160.
10 We returned goods to D. Martin $195.
11 Paid rent in cash $75.
13 B. Hogan returns goods to us $35.
15 Sold goods on time to: T. Lee $205; F. Sharp $280; G. Rae $426.
16 Paid business rates by cheque $970.
18 Paid insurance in cash $280.
19 Paid rent by cheque $75.
20 Bought van on time from B. Black $6,100.
21 Paid motor expenses in cash $24.
23 Paid wages in cash $170.
24 Received part of amount owing from K. Fletcher by cheque $250.
28 Received refund of business rates $45 by cheque.
28 Paid by cheque: J. Biggs $830; D. Martin $415; B. Black $6,100.

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 Chapter ( )

4. Example of Trial Balance

x x x
Trial balance as at
Account Name Dr bal Cr bal
$ $
Assets A/c xx
Liabilities A/c xx
Equity A/c xx
Purchase A/c xx
Revenue A/c xx
Return Inward A/c xx
Return Outward A/c xx
Expenses A/c xx
Income A/c xx
Drawings A/c xx
xx xx

Bookkeeping & Accounting 11

Question(1) Record the following details relating to a carpet wholesaler for the month of November and
extract a trial balance as at 30 November.
Nov 1 Started in business with $15,000 in the bank.
3 Bought goods on time from J. Small $290; F. Brown $1,200; R. Charles $530; T. Rae $610.
5 Cash sales $610.
6 Paid rent by cheque $175.
7 Paid business rates by cheque $130.
11 Sold goods on time to: T. Potts $85; J. Field $48; T. Bray $1,640.
17 Paid wages by cash $290.
18 We returned goods to: J. Small$18; R. Charles $27.
19 Bought goods on time:R.Charles $110: T.Rae $320;F.Jack $165.
20 Goods were returned to us by: J. Field $6; T.Bray $14.
21 Bought van on time from Turnkey Motors $4950.
23 We Paid the following by cheque: J. Small $272; F. Brown $1200; T. Rae $500.
25 Bought another van, paying by cheque immediately $6,200.
26 Received loan of $750 cash from B. Bennet.
28 Received cheques from: T. Potts $71; J. Field $42.
30 Proprietor brings a further $900 into the business by a payment into the business bank account.

Question(2) Record the following transactions for the month of June of a small finishing retailer balance-
off all the accounts and then extract a trial balance as at 30 June.
June 1 Started in business with $10,500 cash.
2 Put $9,000 of the cash into a bank account.
3 Bought goods for cash $550.
4 Bought goods on time from: T. Dry $800; F. Hood $930; M. Smith $160; G. Low $510.
5 Bought stationery on time from Buttons Ltd $89.
6 Sold goods on time to: R. Tong $170; L. Fish $240; M. Singh $326; A. Tom $204.
8 Paid rent by cheque$220.
10 Bought fixtures on time from Chiefs Ltd $89.
11 Paid salaries in cash $790.
14 Returned goods to: F. Hood $30; M. Smith $42.
15 Bought van by cheque $6,500
16 Received loan from B. Barclay by cheque $2,000.
18 Goods returned to us by: R. Tong $5; M. Singh $20.
21 Cash sales $145.
24 Sold goods on time to: L Fish $130; A. Tom $410; R. Pleat $158.
26 We paid the following by cheque: F. Hood $900; M. Smith $118.
29 Received cheques from: R. Pleat $158; L. Fish $370.
30 Received a further loan from B. Barclay by cash $500.
30 Received $614 cash from A. Tom.

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Question (3)

Question (4)

Bookkeeping & Accounting 13

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Bookkeeping & Accounting 15
 Question (2) From the following trial balance of G . Still, draw up statement of profit and loss for the year ending 30
September 2020, and statement of financial position as at that date.
Dr Cr
$ $
Inventory: 1 October 2019 41,600
Carriage outwards 2,100
Carriage inwards 3,700
Returns inwards 1,540
Returns outwards 3,410
Purchases 188,430
Sales 380,400
Salaries and wages 61,400
Warehouse rent 3,700
Insurance 1,356
Motor expenses 1910
Office expenese 412
Lighting and heating expenses 894
General expenses 245
Premises 92,000
Motor vehicles 13,400
Fixtures and fittings 1,900
Accounts receivable 42,560
Accounts payable 31,600
Cash at bank 5,106
Drawing 22,000
Capital 68,843
484,253 484,253
Inventory at 30 September 2020 was $44,780.

Question (3) The following trial balance was extracted from the books of F. Sorley on 30 April 2020. From it,
and the note about inventory, prepare statement of profit and loss for the year ending 30 April 2020
and statement of financial position as at that date.
Dr Cr
$ $
Sales 210,420
Purchases 108,680
Inventory: 1 May 2019 9,410
Carriage outwards 1,115
Carriage inwards 840
Returns inwards 4,900
Returns outwards 3,720
Salaries and wages 41,800

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 Motor expenses 912
Rent 6,800
Sundry expenses 318
Motor vehicles 14,400
Fixtures and fittings 912
Accounts receivable 23,200
Accounts payable 14,100
Cash at bank 4,100
Cash in hand 240
Drawings 29,440
Capital 18,827
247,067 247,067
Inventory at 30 April 2020 was $11,290.

Question (4)

Bookkeeping & Accounting 17