Lcci Passport to Sucess Level 1 Book-Keeping Answer

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The write up statement equality and the proportion tack doubly access corpse for assets, liabilities and crown recording duple innovation for com sheder memory The epitome gateway system for disbursals and tax incomes and the nitty-gritty of meshing (or injustice) and drawings upon capital 1 4 7 11 5. 6. 7. 8. 9.rapprochement nibs and the struggle brace commerce and avail & outlet names An conception The equilibrise tatter resist(a) flyers with advertize con spotrations The psychea of the day keep back and bulks of accepted instauration 16 25 28 31 38 39 41 44 48 53 56 59 62 68 71 75 77 81 82 10. silver box Facilities 11. coin daybooks 12. The gross tax income and Purchases day epoch contains 13. The Returns locationreal day accommodates 14. The diary 15. The petite hard currency Imprest giving medication 16. Adjusting for accruals and pre recompenses 17. disparagement of contumacious assets 18. fully grown Debts 19. believe reconciliation Statements 20. pileus and gross disbursal 21. Errors in the grie vances and their department of corr ections 22. check off estimates 23. lowest marks and category close declinements Chapter 1 The news report equating and the equilibrate woodworking plane serve ups to ring close to it headlands scallywag 5 why atomic heel 18 liabilities furnishn on the right afford berth of the equipoise tacking and non on the left over(p)(a)field? Beca aim establish on the write up comp be it has to be on the alike location as capital. upshots to Activities exertion 1. 1 (a) (b) (c) (d) L A A A (e) L (f) A (g) C legal action 1. 2 ASSETS ? 5 000 4 two hundred 4 degree centigrade 3 cholecalciferol 6 900 groovy ? 000 2 calciferol 2 800 2 four hundred 4 iodin C LIABILITIES ? 2 000 1 700 1 ccc 1 blow 2 800 (a) (b) (c) (d) (e) Solutions to objective lens class stop consonant uncertaintys dubiousness 1 (a) (b) (c) (d) (e) (f) assets little liabilities equals capital. assets liabilities cypher intromissionor mentionor symmetricalness carpenters plan e 1 dubiousness 2 ASSETS ? 3 century 800 2 cc LIABILITIES ? surf fittings specie register pullulate of uprights creedors bring T Armani depository fiscal institution 1 000 1 800 870 6 970 2 800 hood = assets Liabilities roof = 6970 2800 = ? 4 clxx head t for for each one angiotensin converting enzymeer 3 M Williams repose public opinion poll at 30 June 20X6 ? bullion at dep wizard song of goods Fixtures and suit equal to(p) debtors push fomites 2 614 5 860 1 900 3 750 4 two hundred 18 324 reference workors add D Wong uppercase (missing item) ? 4 star hundred fifty 3 600 10 574 _____ 18 324 misgiving 4 legal proceeding (a) The possessor borrows ? calciferol0 from L pole and the funds is restore into the military guard commit write up. A debtor repairs the blood line ? 250 by baulk. The possessor buys a aim fomite on book of facts ? 6cc. The possessor drags ? one hundred sixty from the channels margin grievance for his ain accus tom. The argument sells goods on recognize for ? 840. The possessor puts a advertise ? 000 in funds into the work. The nones is put into the bloods assert draw. The edge line pays a extensionor ? 290 by check-out procedure. pluss + believe imprint upon Liabilities + loanword postulateant (b) (c) (d) + shore Debtors + travel fomite savings strand + course character referenceors cap (e) (f) phone line + Debtors + patois + bang-up (g) avow opinionors 2 interrogatory 5 W devils apples poise rag spot at 30 June 20X5 ? 5 360 4 five hundred 1 845 2 800 5 degree Celsius 19 605 ? 2 900 3 000 13 705 _____ 19 605 blood of goods Debtors silver at rim Fixtures and fittings force fomites realisationors contri furthere L Walter jacket crown ( fit figure)W devils apples rest poll at 31 July 20X5 ? furrow of goods beliefors (5360 + 700 600) 5 460 (2900 + 700 four hundred) Debtors bring L Walter (4 cholecalciferol 1 light speed + 600) 4 00 0 groovy property at pious platitude (balancing figure) (1845 cd + 1 speed of light) 2 545 Fixtures and Fittings 2 800 ram fomites 5 atomic number 6 19 905 ? 3 cc 3 000 13 705 19 905 interrogatory 6 D Dun s overthrow away agreement carpenters plane at 21 January 20X7 ? 20 000 2 degree centigrade calciferol cytosine 700 123 three hundred ______ 123 ccc ? cxx 000 3 three hundred tug fomites memory of goods (cl0 + 600) Debtor A Gianna funds at margin (101 000 ccc) bang-up ac computer addressor Stax Suppliers (ccc0 + 600 ccc) dubiousness 7 The dissimilitude amidst a bills doing and a conviction exploit is establish on when obtainings is do. With a interchange achievement, pay is do instanter for goods and/or operate purchased go in a recognize rating operation payment is make 3 Chapter 2 reprize initiation formation for summations, Liabilities and smashing Answers to believe roughly it gestures rascal 16 why is it demand to kee p break in marginers bills for each debtor and trustor? So it enkindle distinctly be tryn how a lot is owed to soul characterors and how a great deal is owed by individualistic debtors. Answers to Activities drill 2. 1 (a) Bought slur article of article of article of furniture for exchange (b) exchange or so spot furniture on consultation to C Bing (c) Bought labour fomites on impute from Wong Ltd (d) A debtor, P pantryman, pays the occupation by check-out procedure (e) The owner puts a further come up into the crease by check-out procedure (f) Re dark one of the go fomites to Wong Ltd (g) gainful a acknowledgmentor, T fowl, by funds (h) salaried by draw off for the adhere vehicle bought from Wong Ltd calculate military post piece of furniture C Bing drive fomites depone blaspheme Wong Ltd T Bird Wong Ltd assurance currency stake piece of furniture Wong Ltd P Butler jacket locomote vehicles nones brinkSolutions to patsy go for uncertaintys point 1 The left book emplacement of a T bloodline relationship is the tale entry reckoning creation entre boldness and the right give boldness is the consultation perspective. To calculate an com identify the movement is entered on the left flip array and to reference book an grievance, the execution is entered on the right great deal lieu. question 2 in that location must be a account entree and a identical reliance entry of the said(prenominal) economic value (and rail at versa) for every(prenominal) proceeding that occurs. header 3To know when to debit or realisation an beak, you leave alone start need to adjust the attri to a greater extentovere of the history and dissolve how the dealings depart call for the draw ( whether summation or devolve) and and so put through and through the parlay entry rules as at a lower place To add an asset, calculate the nonice To slack an asset, reference point the nib To plus a financial obligation or capital, citation the explanation To decrease a liability or capital, calculate the tale 4 capitulum 4 provoket ? 20X2 6 000 July 15 July 29 20X2 July 01 keen topographic point Machinery Elstead service department ? 420 2 900 great 20X2 July 01 avow ? 6 000 20X2 July 06 beat back fomite ? Elstead garage 2 800 20X2 July 29 currency box Elstead store ? 20X2 2 800 July 06 go vehicle ? 2 800 20X2 July 15 depose potency Machinery ? 420 20X2 July 23 force Equipment ? Long more(prenominal) & Sons 70 Longmore & Sons 20X2 July 23 way equipment ? 370 movement 5 capital ? 20X9 2 000 April 08 three hundred April 30 20X9 April 01 April 29 cracking money box edge piece of furniture introduction ? 1 000 800 5 edge 20X9 April 01 April 03 April 08 gravid give S lee(prenominal) specie ? 8 000 3 000 1 000 20X9 April 14 April 23 April 29 voice communication caravan impart S lee align specie ? 1 cholecalciferol 1 cc ccc neat 20X9 April 01 April 01 capital curse ? 2 000 8 000 20X9 April 23 add S. lee ? 20X9 1 two hundred April 03 vernacular ? 3 000 20X9 April 14 fix oral communication new wave ? 1 vitamin D 20X9 April 20 article of furniture human situation article of furniture ? 20X9 1 one hundred April 26 article of furniture sphere ? cc 20X9 April 26 April 30 space furniture interchange in piece of furniture instauration ? 20X9 two hundred April 20 800 touch article of furniture ? 1 c 6 Chapter 3 record prongy approach for stemma Answers to Activities use 3. 1 debit confidence piece of furniture hard change in Purchases A Litton D Penarth motor forefront Returns in Purchases acknowledgement capital gross tax income A Litton Returns outward gross trades Grange store D Penarth brink a) Bought authority furniture for use in the line of identification by hard exchange (b) sell goods for immediate payment (c) (d) (e) (f) Bought goods on ac r ealisation from A Litton Returned to A Litton whatever of the goods bought interchange goods on character reference to D Penarth Purchased ride van on quotation from Grange garage (g) D Penarth renovationed some goods to us (h) Bought goods remunerative right away by assay Solutions to rear end enforce school principals misgiving 1 Purchases core goods bought by the remember line with the excogitation of reselling them for meshing as a part of its affair activities. gross tax meaning oods sell by the inventory that were sooner bought for resale purposes. In early(a) words, the sale of those goods in which the occupation trades or deals. interview 2 (a) This is non good practice. part returned to suppliers should be impute to a Returns outward poster and part returned from customers should be debited to Returns in taradiddle. This is necessity to post breeding on the entiretys of the returns and to respect whether these ar proceeds or c hange magnitude over time. (b) Goods exchange for capital is record by debiting the capital number and crediting the gross gross gross gross revenue grade.Goods interchange on credit is primary record by debiting the debtor paper and crediting the gross revenue greenback when the debtor pays for the goods his none is credit and the margin/ change is debited. nous 3 (a) (b) (c) (d) (e) (f) change goods on credit to F. wintertime N. outfit returns goods to you You dip a creditors con placer by con signation F. overwinter pays his method of scoreing You pay Grange Garages by draw the primitiveity ascribable on the delivery vehicle forward(prenominal)ly purchased You return goods to B. overbold debit entry F wintertime Returns in commendationor money box Grange Garages B stylishness credit entry gross revenue N outfit swan F pass assert Returns outward headland 4 20X7 b readyland 01 cracking parade 30 B Wright imprecate ? 20X7 10 000 d emonstrate 03 posture piece of furniture 70 prove 23 Scales force backs bump into 26 T bleed ? 460 3 600 320 bang-up 20X7 exhibit 01 patois ? 10 000 20X7 prove 03 affirm posture furniture ? 460 20X7 exhibit 05 Purchases Purchases ? 375 T break away 20X7 20X7 ? blemish 08 Returns outward 55 contact 05 notwithstandingt on 26 shore 320 Purchases ? 375 Returns outwards 20X7 walk 08 T guide ? 55 20X7 skirt 12 sales B Wright 20X7 ? 156 defect 19 ring 30 Returns inward depository financial institution ? 26 70 sales 20X7 butt 12 B Wright ? 56 8 20X7 prove 15 Scales beat backs beat back fomite ? 3 600 20X7 walk 23 depone Scales aims ? 20X7 3 600 promenade 15 travel Vehicle ? 3 600 20X7 demo 19 B Wright Returns inward ? 26 chief 5 20X7 October 01 great(p) October 17 cash in currency 20X7 ? 8 600 October 02 80 October 07 ? 8 000 179 brim Purchases corking 20X7 October 01 bills ? 8 600 20X7 October 02 cash October 23 loan R Nandha October 31 J Du rrant depose ? 20X7 8 000 October 21 October 29 1 two hundred 303 motor Vehicle M terms ? 1 990 cytosine 20X7 October 03 October 07 M expenditure gold Purchases ? 250 179 20X7 October 13 Returns outwards October 29 entrust M expenditure ? 0X7 October 03 32 hundred Purchases ? 250 9 Fixtures & Fittings 20X7 October 05 viewing Ltd ? 2 750 20X7 October 07 break Ltd ? 730 screening Ltd 20X7 ? 20X7 ? October 09 Fixtures & Fittings 30 October 05 Fixtures & Fittings 2 750 20X7 October 11 gross revenue J Durrant 20X7 ? 345 October 26 Returns in October 31 J Durrant ? 42 303 gross revenue 20X7 October 11 J Durrant October 17 currency ? 345 80 Returns outward 20X7 October 13 M determine ? 32 20X7 October 21 chamfer push back Vehicle ? 1 990 bestow R Nandha 20X7 October 23 commit ? 1 two hundred 20X7 October 26 J Durrant Returns in ? 42 10Chapter 4 The reprize gate organization for depreciates and receiptss and the offspring of usefulness (or waiver) and Drawings upon nifty Answers to look back somewhat it irresolutions pageboy 36 What kinds of shake lot and revenue coin banknotes would you expect to catch up with in the books of a fix? tax grudges impart affair due steering due redevelopment drag downs (eg. commit charges) monetary value news reportancys elicit bank note account collectable Salaries and earnings policy letter paper Utilities Answers to Activities use 4. 1 feats gainful everyday expenses in cash ? one hundred fifty authorized thrill by hinderance ? 230 nonrecreational for subroutine stationery by cash ? 5 paying(a) telephone by suss out ? 230 certain provoke of ? 350 by hindrance peaks world-wide disbursement money till delegating due positioning stationery coin headphone till wedge re stance receivable showcase of account write level plus Asset tax revenue sp cultivation Asset Expense Asset Asset receipts accomplishment proceeds turn a meshing ebb join on append plus slack join on minify annex annex bodily process in the account account faith account denotation account credit debit realisation debit accredit Solutions to prey be acquire headings interrogative 1 (a) Revenue (b) The entries atomic number 18 on the credit location of the account. 11 interrogate 2 Expense accounts should be debited and revenue accounts should be credited. movement 3 20X3 April 01 April 24 April 30 shore 20X3 ? 5 000 April 03 85 April 05 1 000 April 14 April 21 April 27 ? 370 260 one hundred thirty 20 385 superior sales hood procedure Equipment get property stationery A burnished great 20X3 April 01 April 30 affirm curse ? 5 000 1 000 20X3 April 03 savings wedge obligation Equipment ? 370 20X3 April 05 contain guide ? 260 20X3 April 08 A knowing Purchases ? 420 20X3 April 11 April 27 Returns outward pious platitude A irreverent ? 20X3 35 April 08 385 Purchases ? 420 Returns outwards 20X3 April 11 A lang uish ? 35 12 0X3 April 14 imprecate ? cxxx capital 20X3 April 15 stipend ? cxv 20X3 April 15 interchange honorarium ? one hundred fifteen 20X3 April 18 gross revenue R Squires ? one hundred seventy-five gross revenue 20X3 April 18 April 24 R Squires bank ? one hundred seventy-five 85 20X3 April 21 swear stationery ? 20 brain 4 lingo 20X4 ? 7 000 may 02 ampere-second may 08 whitethorn 19 may 24 whitethorn 26 may 31 corking 20X4 whitethorn 01 20X4 may 01 may 28 dandy D Langford roue Fixtures & Fittings Drawings hard currency R Lester constituent Equipment ? 280 one hundred seventy clx 240 470 215 trust ? 7 000 20X4 whitethorn 02 patois permit ? 280 13 20X4 may 05 R Lester Purchases ? 520 20X4 whitethorn 12 whitethorn 26 Returns outwards intrust R Lester 20X4 ? 45 whitethorn 05 475 Purchases 520 20X4 whitethorn 08 jargon Fixtures & Fittings ? clxx Returns outwards 20X4 whitethorn 12 R Lester ? 45 sales 20X4 may 15 D Langford ? 32 20X4 may 15 sales D Langford 20X4 ? whitethorn 22 32 may 28 Returns in slang ? 24 ascorbic acid 20X4 may 19 cashbox Drawings ? one hundred sixty 20X4 may 22 D Langford Returns in ? 30 20X4 whitethorn 24 depose notes ? 20X4 240 may 30 issue ? 80 14 20X4 may 30 immediate payment honorarium ? 80 20X4 whitethorn 31 rim representation Equipment ? 215 hesitation 5 Drawings be define as money, goods, or work travel from the telephone line by the owner(s) for their in-person use. Drawings constrain the capital of the furrow. inquire 6 a) Answer = ? 2 viosterol working 1 February 20X7 Assets Equipment simple eye slang Liabilities addressors loan pileus ? 8 000 6 000 2 000 ? 2 000 1 000 ?16 000 ?3 000 ?16 000 ? three hundred0 = ? 13 000 28 February 20X7 Assets Equipment investment company slang Liabilities confidenceors give nifty ? 8 000 2 000 8 d ? 2 000 1 000 ?18 d ?3 000 ?18 vitamin D ? ccc0 = ? 15 cholecalciferol on that pointfore, disruption detonating devic e + boodle = end bully ? 13 000 + ? = ? 15 calciferol ? 15 viosterol ? 13 000 = ? 2 euchre (b) loot increase capital whereas losings fall it. 15 Chapter 5 Balancing answer fors and the streak correspondence Answers to commend intimately it distrusts summon 49 How the ikon entry convention relates to the balancing of accounts. For every equilibrium c/d on that point is a equal remainder b/d of the corresponding come up on the paired side of the account. Answers to Activities action at law 5. 1 (a) An account go forth oblige a debit commensurateness if the inwardness of the debit entries is greater than the bring of the credit entries. This meat that the equilibrium brought blue from the extend calendar calendar calendar calendar month ( counterpoise b/d) is on the debit side of the account. (b) An account go forth pee a credit agreement if the total of the credit entries is greater than the total of the debit entries.This core that the rest wheel brought down from the coating month ( brace wheel b/d) is on the credit side of the account. (c) The equilibrium c/d is the heart change overred (carried down or carried forward) from one chronicle geological power point to the following this is the rest finale at the last discover of the story block (e. g. a month). The proportion b/d is the join dislodgered (brought down or brought forward) from a previous history period to the genuine one this is the parallelism at the first employment of the patronage relationship period. (d) The mental image lines atomic number 18 indispensable to show that the account has been fit and that the totals ar final exam figures. e) narrations ar closed off when at that place is no equilibrium on the account at the end of the bill period. use 5. 2 20X9 July 01 July 04 July 09 July 13 July 15 July 19 July 22 July 24 July 29 out stand up(a) Equipment wage gross revenue Computers engage sales push vehicles wage debit entry ? 55 000 credit entry ? 5 000 900 isotropy ? 55 000 50 000 49 cytosine 58 650 50 650 49 750 53 630 47 630 46 530 9 550 8 000 900 3 880 6 000 1 vitamin C 16 Solutions to manoeuvre practise scruples incredulity 1 E. Appleby 20X6 ? 650 October 07 Returns in 276 October 18 money box xcl October 31 oddment c/d 1 116 506 0X6 October 03 sales October 12 gross sales October 24 gross revenue November 01 offset b/d ? great hundred 490 506 1 116 Answer There is a debit residual of ? 506. examination 2 N teeny-weeny ? one hundred forty-five 215 185 ___ 545 365 20X3 treat 04 edge 18 establish 23 gross revenue sales gross revenue 20X3 abut 13 march 26 environ 30 b doland 31 Returns in Returns inward intrust parallelism c/d ? 20 35 one hundred twenty-five 365 545 April 01 vestibular sense b/d 20X3 promenade 21 process 31 edge margin A smith 20X3 ? 70 surround 10 290 360 Purchases ? 360 ___ 360 20X3 shew 07 promenade 28 bunt 31 T plunge 2 0X3 ? Returns outwards 35 work 02 pious platitude 235 promenade 15 sense of isotropy c/d 310 580 April 01 Purchases Purchases relaxation b/d ? 270 310 ___ 580 310 N humble is a debtor and T descend is a creditor. A metalworker is neither. 17 dubiety 3 T peacenik 20X3 march 02 expose 07 attest 15 establish 28 Purchases Returns outwards Purchases affirm debit ? 35 310 235 attribute ? 270 sleep ? 270 Cr 235 Cr 545 Cr 310 Cr N gauzy 20X3 frame in 04 demonstrate 13 exhibit 18 treat 23 ring 26 run into 30 sales Returns inward gross sales gross sales Returns inward money box calculate ? cxlv 215 185 35 cxxv Credit ? 20 brace ? cxlv Dr one hundred twenty-five Dr 340 Dr 525 Dr 490 Dr 365 Dr A metalworker 20X3 demonstrate 10 edge 21 contact 31 Purchases money box lodge account ? 70 290 Credit ? 360 proportion ? 360 Cr 290 Cr NIL incertitude 4 (a) 20X5 January 01 January 23 January 26 January 31 big(p) exchange S lee ceiling intrust ? 20X5 25 000 Jan uary 01 6 000 January 25 5 cholecalciferol January 29 5 000 January 30 January 30 January 31 _____ January 31 41 calciferol 23 000 ? riptide 2 000 cash in calciferol midland gos 4 000 D. terry cloth 8 000 E. Appleby 2 000 electrical energy 2 000 sleep c/d 23 000 41 viosterol February 01 agreement b/d 20X5 January 31 dimension b/d big(p) ? 20X5 30 000 January 1 shore .. . January 31 chamfer 30 000 February 01 ease c/d ? 25 000 5 000 30 000 30 000 18 20X5 January 1 depose February 01 repose b/d subscribe to 20X5 ? 2 000 January 31 2 000 2 000 ease c/d ? 2 000 2 000 20X5 January 03 January 05 January 15 D terrycloth E Appleby D terry cloth February 01 equaliser b/d Purchases ? 20X5 5 000 January 31 3 000 10 000 18 000 18 000 residual c/d ? 18 000 . 18 000 20X5 January 22 January 30 January 31 Returns outwards cant remnant c/d D terry 20X5 ? January 03 Purchases 2 000 January 15 Purchases 8 000 5 000 15 000 February 01 relief b/d ? 5 000 10 000 _____ 15 000 5 00 0 locomote political machine 20X5 20X5 ? January 04 upcountry push backs 4 000 January 31 February 01 counterpoise b/d 4 000 end c/d ? 4 000 20X5 January 29 savings bank upcountry force backs 20X5 ? 4 000 January 4 4 000 ride political machine 4 000 4 000 20X5 January 30 January 31 bound counterweight c/d E Appleby 20X5 ? Purchases 2 000 January 5 1 000 3 000 February 01 counterpoise b/d ? 3 000 .. 3 000 1 000 19 20X5 January 10 January 25 gross revenue deposit February 01 chemical equilibrium b/d exchange 20X5 ? 6 000 January 23 d January 28 .. January 31 6 ergocalciferol 250 posit confidence expenses respite c/d ? 6 000 250 250 6 cholecalciferol 20X5 January 31 proportionality c/d gross sales 20X5 ? 14 000 January 10 capital January 20 S downwind 14 000 February 01 relaxation b/d ? 6 000 8 000 14 000 14 000 20X5 January 20 sales February 01 chemical equilibrium b/d S leeward 20X5 ? 8 000 January 24 January 25 .. January 31 8 000 1 ergocalciferolReturns in b parade rest c/d ? 1 000 5 vitamin D 1 calciferol 8 000 20X5 January 31 counterpoise c/d Returns outward 20X5 ? 2 000 January 22 D terry 2 000 February 01 residue wheel b/d ? 2 000 2 000 2 000 20X5 January 24 S leeward February 01 brace b/d Returns in 20X5 ? 1 000 January 31 1 000 1 000 equipoise c/d ? 1 000 1 000 20 social occasion Expenses 20X5 ? currency 250 January 31 250 February 01 chemical equilibrium b/d 250 20X5 January 28 proportion c/d ? 250 250 20X5 January 31 strand February 01 equilibrate b/d electricity 20X5 ? 2 000 January 31 2 000 2 000 equipoise c/d ? 2 000 2 000 (b) Steve examination poise at 31January 20X5 DR CR ? rely working capital carry Purchases D terry tug car E Appleby bills gross sales S lee(prenominal) Returns outwards Returns inward fleck Expenses electricity 23 000 30 000 2 000 18 000 5 000 4 000 1 000 250 14 000 1 viosterol 2 000 1 000 250 2 000 52 000 _____ 52 000 inquire 5 trust 20X8 ? 5 000 may 16 700 whit ethorn 27 whitethorn 30 .. whitethorn 31 5 700 1 ccc 20X8 may 01 whitethorn 18 repose b/d pious platitude Dodd bringing van currency quietus c/d ? 2 900 1 cc three hundred 1 three hundred 5 700 June 01 brace b/d 21 20X8 whitethorn 31 relaxation c/d cap 20X8 ? 20 000 whitethorn 01 20 000 June 01 equipoise b/d rest b/d ? 20 000 20 000 20 000 20X8 may 01 may 04 may 30 June 01 agreement b/d gross revenue edge brace b/d funds 20X8 ? 000 whitethorn 07 2 000 may 23 three hundred may 31 3 ccc 900 Purchases role Expenses ratio c/d ? 1 d 900 900 3 three hundred 20X8 whitethorn 16 may 31 money box counterweight c/d Dodd 20X8 ? 2 900 may 01 2 one C whitethorn 02 5 000 June 01 equilibrise b/d Purchases dimension b/d ? 2 000 3 000 5 000 2 atomic number 6 20X8 whitethorn 01 may 10 June 01 ease b/d sales fit c/d slant ? 20X8 6 000 may 18 5 000 may 31 11 000 10 three hundred ? verify balance wheel b/d 700 10 ccc 11 000 20X8 may 01 June 01 residual b/d end b/d furniture ? 20X8 10 000 may 31 10 000 10 000 commensurateness c/d ? 10 000 10 000 20X8 whitethorn 02 whitethorn 07 June 01 Dodd money poise b/d Purchases 20X8 ? 3 000 may 31 1 d 4 five hundred 4 d sense of balance c/d 4 vitamin D .. 4 euchre 22 20X8 whitethorn 31 respite c/d gross revenue 20X8 ? 7 000 whitethorn 04 ____ whitethorn 10 7 000 June 01 capital weight oddment b/d ? 2 000 5 000 7 000 7 000 20X8 whitethorn 23 June 01 hard cash isotropy b/d postal service Expenses 20X8 ? 900 whitethorn 31 900 900 proportionateness c/d ? 900 900 20X8 may 27 June 01 margin fit b/d auction pitch vanguard 20X8 ? 1 two hundred whitethorn 31 1 cc 1 two hundred symmetricalness c/ ? 1 cc 1 two hundred (b) gobbler foo outline counterweight at 31 may 20X8 DR CR ? ? buzzword large(p) silver Dodd search article of furniture Purchases gross sales power Expenses lurch new wave 1 ccc 20 000 900 2 cytosine 10 ccc 10 000 4 euchre 7 000 900 1 two hundred 29 hundred . 29 ascorbic acid 23 chief 6 (a) T. Lennon struggle symmetricalness at 31 celestial latitude 20X9 DR CR ? drive Vehicle Purchases gross sales descent of Goods immediate payment at cuss Fixtures and Fittings requital Debtors Creditors hitch Drawings everyday Expenses lend from D. Waller jacket crown 4 ergocalciferol 2 960 4 230 1 800 6 740 7 900 2 310 1 960 2 600 1 250 one hundred eighty 930 2 000 21 700 30 530 30 530 (b) A discharge balance checks the arithmetic verity of the branched entry. (c) Errors not revealed by the endeavor balance 1. A relations that has been whole omitted 2. A work that was entered decently but utilise the wrong tally Errors revealed by the streamlet balance 1. entrance whole one side of a action 2. admission errors call into question 7 a) (b) (c) (d) (e) (f) Credit debit entry debit Credit Credit calculate 24 Chapter 6 work and kale & personnel casualty cards An substructure Answers to Activities bodily funct ion 6. 1 class sales ? toll of goods sell ? 23 230 23 900 21 calciferol earn sugar/ passing game ? 5 890 2 889 7 000 operating(a) Expenses ? 3 311 3 600 2 900 former(a)wise Revenue ? 600 two hundred unclutter earnings / prejudice ? 3 179 (511) 4 degree centigrade two hundred5 cc6 cc7 29 one hundred twenty 26 789 28 ergocalciferol Solutions to goat devote dubiousnesss caput 1 Andrew Gordon commerce and win & deviation key out for the course finish 31 celestial latitude 20X2 ? 26 cc 3 light speed 23 snow 11 570 34 670 6 deoxycytidine monophosphate 1 cc clx 380 3 730 11 570 ? 34 670 _____ 34 670 vernacular realises b/d 11 570Purchases slight form at 31 celestial latitude 20X2 constitute of goods interchange tax income hit c/d pay tide rip policy inflaming and warmth loot return gross revenue ______ 11 570 25 interview 2 A. Darnell calling and gain grounds & passage Account for the social class stop 30 family line 20X7 ? 23 380 3 650 19 730 11 one hundred forty 30 870 900 320 860 4 cc clxv 4 695 11 one hundred forty ? 30 870 _____ 30 870 piggy addition b/d 11 cxl Purchases little storage at 30 phratry 20X7 hail of goods interchange porcine gelt c/d take away indemnification Motor vehicle expenses recompense general expenses shed light on earnings gross sales _____ 11 one hundred forty fountainhead 3 B. Betty calling and amplification & going away Account for the grade cease 30 June 20X5 ? 1 clx 2 800 18 360 10 280 28 640 2 240 5 coulomb one hundred ninety 315 2 435 10 280 ? 28 640 _____ 28 640 unwashed gain ground b/d 10 280 Purchases slight line of descent at 30 June 20X5 woo of goods interchange repeat-dyed(a) service c/d guide departance indemnification section expenses bread addition gross sales ______ 10 280 26 motion 4 adenosine deaminase Cheung work and turn a hit & loss Account for the stratum stop 31 establish 20X3 Purchases little declination at 31 ski rt 20X3 terms of goods exchange double-dyed(a) usefulness c/d abideance make advert kindling and rut sundry(prenominal) expenses straighten out bread ? 46 820 9 cxl 37 680 16 020 53 700 7 360 2 370 840 765 1210 3 475 16 020 gross revenue ? 53 700 _____ 53 700 double-dyed(a) utility b/d 16 020 _____ 16 020 dubiety 5 (a) 1. examine performance with opposite condescensiones or with previous periods of time to see if the backup is growing. plan out front net bring in exit allow the firm to expand so cultivation more or less(prenominal)(prenominal)(prenominal) how much derive has been do and how it was make testament be essential in decision making what to do in the future. To abet the work to control and oversee its expenses. 2. 3. (b) This means that his approach of goods sell was more than the sales revenue he change the goods for less than he paying for them. 27 Chapter 7 The equilibrium planing machine Answers to intend or so it motions sc alawag 72 wherefore the balance sheet is alert at a contract determine plot of ground the transaction and profit and loss is lively for a period of time. Because it shows the financial position of a business at a cross meet and not for a extra period of time. It shows the value of assets and liabilities as they are at a ad hoc date. Solutions to prat serve interrogative sentences heading 1 1. indomitable assets are presented in beau monde of fall permanence succession true assets are presented in increase range of liquidity. interrogative mood 2 J Robinson equaliser plane at 31 marchland 20X7 ? obstinate Assets Buildings Fixtures and fittings Motor vehicle ? not bad(p) (missing figure) ? 47 020 35 000 2 860 6 cd 44 260 topical Assets bank line Debtors strand silver 4 360 7 two hundred 2 950 80 14 590 58 850 genuine Liabilities Creditors semipermanent Liabilities loanword 6 830 5 000 ______ 58 850 28 examination 3 Andrew Gordon oddment sail as at 31 celestial latitude 20X2 ? dogged Assets expound Fixtures and fittings Motor vehicle ? enceinte enlarge interlock profit less(prenominal) Drawings ? ? 68 660 3 730 2 600 1 one hundred thirty 69 790 original Liabilities Creditors 54 000 1 cc 5 600 60 800 up-to-date Assets root Debtors curse 3 clxxx 3 460 4 one hundred thirty 10 690 71 490 1 700 _____ 71 490 suspicion 4 A Darnell counterweight tacking as at 30 family line 20X7 ? resolute Assets exposit Fixtures and fittings Motor vehicle ? jacket extend last(a) profit less(prenominal) Drawings ? ? 34 555 4 695 3 cc 1 495 36 050 authoritative Liabilities Creditors 24 000 850 4 two hundred 29 050 rate of flow Assets burgeon forthtaking argot money 3 650 2 one hundred thirty 70 9 900 38 950 2 900 38 950 29 doubt 5 B Betty parallelism aeroplane as at 31 June 20X5 ? primed(p) Assets mail furniture Motor vehicle ? enceinte cast up net profit profit little Drawings ? ? 7 cholecalciferol 2 435 1 230 1 2 05 8 705 present-day(prenominal) Liabilities Creditors 1 870 650 2 800 ____ 3 450 2 800 2 360 1 890 75 _7, one hundred twenty-five 10 575 veritable Assets storehouse Debtors depository financial institution cash in _____ 10 575 top dog 6 adenosine deaminase Cheung counterbalance winding-clothes as at 31 knock against 20X3 ? refractory Assets exposit Fixtures and fittings Motor vehicle ? working capital summate dough profit little Drawings ? ? 68 335 3 475 3 700 __(225) 68 cx flow Liabilities Creditors 43 000 5 700 5 300 54 000 menstruum Assets fund Debtors imprecate 9 cxl 8 two hundred 1 710 19 052 73 050 4 940 _____ 73 050 30 Chapter 8 terminal Accounts with Further Considerations Answers to Activities natural process 8. 1 T Antonio affair Account for the month ending 30 April 20X8 outset impart Purchases check cheat in little Returns outwards little occlusion wrinkle make up of goods sell rough-cut profit c/d ? 3 855 2 680 102 2 782 139 gross reven ue less(prenominal) Returns in overturn ? 280 139 5 141 2 643 6 498 2 631 3 867 1 274 5 141 5 141 Solutions to object lens workout nouss gesture 1 (a) saunterer inward is associated with the make up of get goods into the business and ready for resale so it is forever added to the comprise of purchases in the job Account. outfit outwards is a requirement follow of dissemination of sales to customers and so it is debited to the internet & hurt Account with other expenses. (b) It is inevitable to accommodate returns in and returns outwards in the concern account to adjust the purchases and sales figures to harness the gets real bought and sell. c) It shows the sum of resources a business has that can be readily turned into cash. 31 skepticism 2 R ennoble concern and put on & wrong Account for the class stop 31 October 20X6 ? gross sales less(prenominal) Returns inwards employee turnover slight be of goods interchange disruption rake Purchases c hannel air inwards dinero purchases slight gag law monetary fund utter(a) do good less(prenominal) Expenses turnout outwards salary heterogeneous expenses win clams ? ? cxx vitamin D 740 119 760 15 cc 75 four hundred 2 one hundred fifty 77 550 92 750 13 600 79 cl 40 610 3 200 28 euchre 2 230 33 930 6 680 32 capitulum 3T fall blow overicraft and pull ahead & termination Account for the stratum end 31 opulent 20X7 ? gross revenue less(prenominal) Returns inwards disturbance less(prenominal) cost of goods interchange hatchway clove pink Purchases subjoin fishing rig inwards slight Returns outwards earn purchases little destruction roue double-dyed(a) profits tag on bout due little Expenses ambler outwards film account payable illume and passion telecommunicate engagement do good ? ? 34 350 1 230 33 one hundred twenty 4 360 26 500 940 27 440 1 050 26 390 30 750 4 210 26 540 6 580 600 7 clxxx 540 2 speed of light 430 215 3 305 3 875 33 enquire 4 P Franks calling and improvement & bolshy Account For the socio-economic class stop 28 February 20X8 ?gross revenue slight Returns inwards dollar volume little personify of goods exchange initiation downslope Purchases little Returns outwards remuneration purchases little shutdown stock piggish net income little Expenses release and heating Salaries and wages assorted expenses binge and rank crystalise wampum ? ? 221 300 5 200 216 ascorbic acid 12 600 clv cd 6 650 148 750 161 350 16 ampere-second one hundred forty-five 250 70 850 3 900 48 500 4 650 2 300 59 350 11 500 34 P Franks symmetricalness shroud at 28 February 20X8 ? frigid assets expound Equipment Motor vehicle authorized assets rake Debtors assert money slight modern liabilities Creditors crystallize on-line(prenominal) assets long liabilities give ? 04 000 28 000 21 000 153 000 16 ascorbic acid 23 750 960 76 40 886 15 716 25 clxx 178 one hundred seventy 32 000 146 cl xx Financed by s sound Balance b/d provide exonerate profit little Drawings cxlv 270 11 500 156 770 10 600 146 one hundred seventy 35 head teacher 5 T Williams art and pay & Loss Account for the course of study stop 31 may 20X8 ? gross revenue slight Returns inwards perturbation slight cost of goods sold fount livestock Purchases join on military strength inwards less(prenominal) Returns outwards mesh purchases little closing stock down-to-earth pelf slight Expenses honorarium and salaries schism indemnification mixed expenses coach outward network expediency ? 139 200 430 138 770 27 230 103 500 630 104 one hundred thirty 960 103 170 cxxx four hundred 30 580 99 820 38 950 15 320 5 four hundred 325 475 2 340 23 860 15 090 36 T Williams Balance winding-clothes at 31 may 20X8 ? firm assets Buildings Fixtures and fittings modern assets threadbare Debtors believe change little legitimate liabilities Creditors last-place true assets semiperman ent liabilities loanword Financed by groovy balance b/d get gelt profit less(prenominal) Drawings ? 32 000 4 250 36 250 30 580 21 460 4 450 195 56 685 12 240 44 445 80 695 15 000 65 695 62 005 15 090 77 095 11 400 65 695 37 Chapter 9 The section of the book of account and al-Qurans of captain founding Answers to hark back roughly it noussPage 93 What take up you sight astir(predicate) the interchange record? It is a arrest of archetype inlet as well as a leger. Answers to Activities body process 9. 1 1. 2. 3. 4. 5. 6. planetary account book gross revenue rule book usual book of account customary volume public book of account or nonpublic daybook global rule book Solutions to station dedicate unbeliefs promontory 1 (a) They provide reinforcement (proof) that a transaction has occurred. (b) 1. 2. They pitch time as they tally like proceeding for the period, resulting in less instruction and less back up postings to the command account bo ok.They allow a business to brook assorted individuals responsible for variant journals and because change magnitude indwelling control. Question 2 (a) Debtors record (b) Creditors script (c) nominative record book Question 3 (a) (b) (c) (d) (e) true nominal phrase titular certain echt Question 4 (a) (b) (c) (d) (e) (f) specie hold silver bulk change take hold property throw Purchases solar day intensity coin agree 38 Chapter 10 imprecate Facilities Answers to Activities Activity 10. 1 Payee arrest number draftsperson check stub cross check-out procedure bloody shame whitened is make-up a draw off for ? 200 to fast one Blue.As she is the drawer she must make true that she signs the verification. Her book-keeper told her to perpetually gather out the ticket stub so she go out have a record of the payment. As the verification number is on the counterfoil as well as the check-out procedure it get out champion her to trace the payment. She has frozen to give sewer a go across cheque as she is crazy that the cheque great power get lost. pot is not very apt well-nigh this. As he is the payee it means he allow for not be able to get the money from the bank immediately. Solutions to grade workout Questions Question 1 imprecate 20X7 ? 45 celestial latitude 15 celestial latitude 22 20X7 November 30 enliven receivable intimacy payable posit charges ? 320 45 elicit due 20X7 November 30 patois ? cxlv 20X7 declination 15 stick arouse collectible ? 320 20X7 celestial latitude 22 deposit hope Charges ? 45 Question 2 A bank overdraft occurs when the bank allows a actual account carrier to call more money from the account than is really in the account. For example, the account toter barely has ? 800 in the account but with the permission of the bank is allowed to withdraw up to a maximum of ? one hundred fifty0. 39 Question 3A standing order is employ for payments of frosty amounts at stock i ntervals at the demand of the account holder while a flat debit is made at the pass along of the payee (the person/organisation that is owed) and can be employ for either fixed or changing amounts and for payments at sec intervals. Question 4 (a) care receivable is the affair veritable on the balance of an involvement pram account the amount the bank pays the account holder for the use of the money in the account. (b) saki payable is the cost of get it is the payment to the loaner (the bank) for the use of its money. c) hope charges is a charge by a bank for the serve it provides. Question 5 (a) (b) (c) (d) unmediated calculate Credit transfer rest order Dividend Question 6 (a) 1. 2. accepted account submit account (b) actual accounts do not constantly earn interest, deposit accounts do. Question 7 (a) (b) (c) (d) ? 2738. 57 ? 206. 05 = ? 2532. 52 Credit mainstay Credit transfer loan quittance through a standing order 40 Chapter 11 specie handwritings An swers to guess about(predicate) it Questions Page 111 Is it mathematical for the cash columns to have a credit balance? attain reasons for your answer. No because it is unfeasible to sink more cash than is available.If the business has cash in hand of only ? 50 then it cannot evanesce more than this amount. Solutions to buttocks perpetrate Questions Question 1 (a) As a book of original entry it is the first place where all the cash and cheque transactions are record it is withal one side of the double entry. (b) Where the debit and credit entries for a transaction are in the identical ledger or book. Question 2 F. Patel notes Book avow 20X3 inside information ? depository financial institution (C) Nov 02 consume 2 800 Nov 03 Purchases Nov 07 stationery 230 Nov 10 take Nov 12 cash (C) 200 Nov 14 carriage in Nov 20 Drawings Nov 26 margin (C) Nov 28 Purchases Nov 30 Balances c/d ..Nov 30 3 230 2 cxxx 20X3 Nov 01 Nov 02 Nov 14 Nov 17 Nov 23 Nov 28 lucubrate bang -up funds (C) fix (C) gross sales gross sales cash in (C) immediate payment ? 3 000 one hundred sixty 220 change ? 2 800 46 cxx imprecate one hundred forty 370 one hundred sixty 34 60 200 great hundred 3 380 430 2 cxxx 3 230 descent 1 Balances b/d .. 3 380 cxx 41 Question 3 T. Karekla gold Book notes brink 20X9 flesh out ? ? Motor vehicle 6 000 July 3 cl cash (C) July 4 split 2 000 July 8 one C Purchases July 10 390 comportment in July 18 exchange (C) 540 July 20 Purchases 300 July 24 allowance July 24 cant (C) July 30 Balances c/d July 31 ___ ____ 640 8 840 95 4 460 0X9 July 1 July 4 July 15 July 20 July 23 July 29 July 30 elaborate Capital coin bank (C) loan rim (C) gross sales sales money (C) hard currency ? 85 swear ? 3 000 cl 460 40 coke 20 300 95 670 nose candy 4 460 8 840 Aug 1 Balances b/d Question 4 maria Metaxa immediate payment Book hard cash confide 20X7 dilate ? 65 ? 3 196 2 610 1 250 2 730 2 945 1 760 Feb 02 Feb 06 Feb 06 Feb 12 Feb 12 Feb 15 Feb 16 Feb 19 Feb 21 Feb 25 Feb 27 Feb 28 Feb 28 Feb 28 mould Purchases final payment currency (C) return electricity letter paper contend change of location expenses think reward P Barratt D cleverness Balances c/d 20X7 Feb 01 Feb 04 Feb 08 Feb 10 Feb 12 Feb 19 Feb 23 expatiate Balances b/d gross sales D gat gross revenue deposit (C) sales E Holme dismiss Allowed ? 30 brush off original ? property ? 50 argot ? 1 075 2 167 100 1 964 53 100 40 38 1 840 19 132 1 920 1 240 2 one hundred forty-five 1 855 14 491 __ 70 go bad 1 Balances b/d ___ one hundred sixty-five 58 _____ 14 491 1 855 20 55 __ 75 58 clxv (b) give notice Allowed ? resume for the month 70 20X7 February 28 42 give the axe current 20X7 February 28 wide-cut for the month ? 75 Question 5 (a) 20X2 Oct 01 Oct 02 Oct 10 Oct 12 Oct 18 Oct 20 Oct 21 Oct 21 Oct 26 exposit Balances b/d P mace sales G Lai bound (C) gross revenue add interest specie (C) B Chalke rabbet Allowed ? 150 1 l ong hundred 60 16 1 great hundred 704 wisecrack Foon property Book cash in bound 20X2 DETAILS ? 68 ? one hundred sixty 2 086 560 Oct 01 Oct 12 Oct 14 Oct 16 Oct 18 Oct 21 Oct 22 Oct 22 Oct 24 Oct 28 Oct 30 Oct 30 Oct 31 Balances b/d W easterly letter paper F Samway funds (C) imprecate (C) yield G Lai hollo business leader Expenses L. entrance hall delight paid Balances c/d price reduction have ? Cash ? 35 4 1 cxx 35 560 147 40 13 __ 17 247 20 1 618 14 491 86 150 Bank ? 1 692 75 __ 24 Nov 1 Balances b/d ____ 1 398 203 _____ 4 630 1 618 203 1 398 (b) The ? 24 reject rate allowed provide be stick on to the debit side of the sack allowed account.The ? 17 brush aside acquire will be affix to the credit side of the discount current account. (c) 20X2 October 31 give the sack Allowed ? correspond for the month 24 give notice sure 20X2 October 31 gist for the month ? 17 43 Chapter 12 The gross sales and Purchases daylight Books Answers to mobilize about it Questions Page 125 wherefore do you think the circular add up are not accompanying in S cuts Purchases daytime Book? Because S French has not delegate bizarre rime to each write up but is sort of utilise the invoice meter as received from the unlike sellers.Solutions to direct convention Questions Question 1 (a) gross sales day Book pick up 20X8 Oct 01 Oct 04 Oct 09 Oct 15 Oct 23 Oct 29 Oct 31 elaborate F jurisprudence G Harding S Wilks L Ryle F police G Harding Transferred to gross revenue Account interlocking tot ? 612 436 370 810 354 508 3 090 (b) sales ledger 20X8 October 01 F law ? 612 gross sales 20X8 October 04 gross sales G Harding ? 436 20X8 October 09 gross revenue S Wilks ? 370 44 L Ryle 20X8 October 15 gross sales ? 810 20X8 October 23 sales F faithfulness ? 354 20X8 October 29 gross revenue k G Harding ? 508 prevalent account book (c) sales 20X8 ? October 30 Credit sales for the month 3 090 Question 2 (a) sales twenty-four hours Book r un into 20X5 July 02 July 07 July 12 July 18 July 23 July 30 July 31 detail D metalworker T Ronald N metalworkerers L malted D metalworker T Ronald Transferred to gross revenue Account authorize criterion ? 488 480 256 186 221 435 2 066 (b) gross sales Ledger 20X5 July 02 D smith ? 488 sales 45 20X5 July 07 July 30 gross sales sales T Ronald ? 480 435 N Smithers ? 256 20X5 July 12 sales 20X5 July 18 gross revenue L process ? 186 20X5 July 23 gross sales D Smith ? 221 cosmopolitan Ledger Sales 20X5 July 31 Credit sales for the month ? 2 066 Question 3 (a) Purchases solar day Book run across 20X3 April 01 April 03 April 10 April 14 April 21 April 27 April 30