Académique Documents
Professionnel Documents
Culture Documents
1
ACCT-I-2003
Guide Line
1.3 Distinguished from the following list the items that are liabilities
from those that are assets:
a) Office machinery
b) Loan for C Shirley
c) Fixtures and fittings
d) Motor vehicles
e) We owe for goods
f) Bank balance
1.5 State which of the following are shown under the wrong
classification for J White’s business:
Assets Liabilities
Page 13:
Page 14:
Effect upon
Assets Liabilities
Capital
a) Bought a motor van on credit 500.
b) Repaid by cash a loan owed to P Smith £ 1,000.
c) Bought goods for £ 150 paying by cheque.
d) The owner puts a further £5,000 cash into the business.
e) A debtor returns to us £80 goods. We agree to make an
allowance for them.
f) Bought goods on credit £ 220
g) The owner takes out £100 cash for his personal use.
h) We pay a creditor £190 by cheque.
Page 22:
Page 23
2.2 A Prepare JOURNAL and Write Entries:
Page 24
19X9
June 1 Started business with £5000 in the bank.
June 2 Bought motor van paying by cheque £1200
June 5 Bought office fixtures £400 on credit from Young Ltd
June 12 Took £100 out of the bank and put it into the cash till.
June 15 Bought office fixtures paying by cash £60
June 19 Paid Super Motors a cheque for £800
June 21 A loan of £ 1000 cash is received from J Jarvis.
June 25 Paid £800 of the cash in hand into the bank account.
June 30 Bought more office fixtures paying by cheque £300
Page 32
Accou Accou
nt to nt to
be be
Seria debit credit
l# ed ed
a Goods bought on credit from T Morgan
b Goods returned to us by J Thomas
c Machinery returned to L Jones Ltd
d Goods bought for cash
e Motor van bought on credit from D Davies Ltd
f Goods returned to us by I Prince
g D Picton paid us his account by cheque
h Goods bought by cheque
i We paid creditor, B Henry, by cheque
j Goods sold on credit to J Mullings.
19X8
July 1 Started business with £500 cash,
July 3 Bought goods for cash £85
July 7 Bought goods on credit £116 from E Morgan
July 10 Sold goods for cash £42
July 14 Returned goods to E Morgan £28
July 18 Bought goods in credit £98 from A Moses
July 21 Returned goods to A Moses £19
July 24 Sold goods to a Knight £55 on credit
July 25 Paid E Morgan’s account by cash £88
July 31 A Knight paid us his account in cash £55
Page 33
19X6
Aug 1 Started business with £1000 cash
Aug 2 Paid £900 of the opening cash into the bank
Aug 4 Bought goods on credit £78 from S Holmes
Aug 5 Bought a motor van by a cheque £500
Aug 7 Bought goods for cash £55
Aug 10 Sold goods on credit £98 to D Moore.
Aug 12 Returned goods to S Holmes £18
Aug 19 Sod goods for cash £28
Aug 22 Bought fixtures on credit from Kingston Equipment Co £150
Aug 24 D Watson lent us £100 paying us the money by cheque
Aug 29 We paid S Holmes his account by cheque £60
Aug 31 We paid Kingston Equipment Co by cheque £150
19X7
July 1 Started business with £10000 in the bank
July 2 T Cooper lent us £400 in cash
July 3 Bought goods on credit from F Jones £840 and S Charles £3600
July 4 Sold goods for cash £200
July 6 Took £250 of the cash and paid it into the bank.
July 8 Sold goods on credit to C Moody £180
July 10 Sold goods on credit to J Newman £220
July 11 Bought goods on credit from F Jones £370
July 12 C Moody returned goods to us £40
July 14 Sold goods on credit to H Morgan £190 and J Peat £320
July 15 We returned goods to F Jones £140
July 17 Bought motor ban on credit from Manchester Motors £2600
July 18 Bought office furniture on credit from Faster Supplies Ltd £600
July 19 We returned goods to S Charles £110
July 20 Bought goods for cash £220
July 24 Goods sold for cash £70
July 25 Paid money owing to F Jones by cheque £1070
July 26 Goods returned to us by H Morgan £30
July 27 Returned some of the office furniture costing £160 to Faster
Supplies Ltd.
July 28 E Sangster put a further £500 into the business in the form of
cash.
July 29 Paid Manchester Motors £2600 by cheque
July 31 Bought office furniture for cash £100.
Page 34
Page 40:
4.1 Prepare JOURNAL and Write Entries:
19X7
May 1 Started business with £2000 in the bank.
May 2 Purchased goods £175 on credit from M Mills.
May 3 Bought fixtures and fittings £150 paying by cheqe.
May 5 Sold goods for cash £275
May 6 Bought goods on credit £114 from S Waites.
May 10 Paid rent by cash £ 15
May 12 Bought stationary £27, paying in cash
May 18 Goods returned to M Mills £23
May 21 Let off part of the premises receiving rent by cheque £5
May 23 Sold goods on credit to U Henry for £77
May 24 Bought a motor van paying by cheque £300
May 30 Paid the month’s wages by cash £117
May 31 The proprietor took cash for himself £44.
Page 41
4.2 Prepare JOURNAL and Write Entries:
19X8
March 1 Started business with the cash £1500
March 2 Bought goods on credit from A Hanson £296
March 3 Paid rent by cash £28
March 4 Paid £1000 of the cash of the firm into a bank account.
March 5 Sold goods on credit to E Linton £54
March 7 Bought stationary £15 paying by cheque
March 11 Cash sales £49
March 14 Goods returned by us to a Hanson £17
March 17 Sold goods on credit to S Morgan £29
March 20 Paid for repairs to the building by cash £18
March 22 E Linton returned goods to us £14
March 27 Paid Hanson by cheque £279
March 28 Cash purchases £125
March 29 Bought a motor van paying by cheque £395
March 30 Paid motor expenses in cash £15
March 31 Bought fixtures £120 on credit from A Webster.
Feb 1 started business with £3000 in the bank and £500 cash.
Feb 2 Bought goods on credit: T Small £250; C Todd £190; V Ryan
£180
Feb 3 Bought goods for cash £230
Feb 4 paid rent in cash £10
Feb 5 Bought stationary paying by cheque £49
Feb 6 Sold goods on credit: C Crooks £140; R Rogers £100; B Grant
£240
Feb 7 Paid wages in cash £80
Feb 10 We returned goods to C Todd £60
Feb 11 Paid rent in cash £10
Feb 13 R Rogers returns goods to us £20
Feb 15 Sold goods on credit to: J Burns £90; J Smart £130; N Thorn
£170
Feb 16 Paid rates by cheque £130
Feb 18 Paid insurance in cash £40
Feb 19 Paid rent by cheque £10
Feb 20 Bought motor van on credit from C White £600
Feb 21 Paid motor expenses in cash £6
Feb 23 Paid wages in cash £90
Feb 24 Received part of amount owing from B Grant by cheque £200
Feb 28 Received refund of rates 10 by cheque.
Feb 28 Paid by cheque: T Small £250; C Todd £130; C White £600.
1. MM-1B-2(52)
Recording the Effects of Transactions
The items making up the balance sheet of Travel Connection at
December 31 are listed below in tabular form similar to the illustration
of the accounting equation on page 25.
Owner
's
Assets = Liabilities Equity
Account
s Office Notes Accoun D.Hall
Receiva Automob Equipmen Paya ts Capita
Cash ble iles t ble Payable l
Balan $9,50 $20,0 $35,50
ces 0 $58,400 $9,000 $3,800 00 $25,200 0
During a short period after December 31. Travel Connection had the
following transactions:
1. Bought office equipment at a cost of $5,700. Paid Cost.
2. Collected $ 4,000 of accounts receivable.
3. Paid $7,200 of accounts receivable
4. Borrowed $10,000 from a bank. Signed a note payable for that
amount.
5. Purchased an automobile for $15,500. Paid $3,000 cash and
signed a note payable for the balance of $12,500
Instructions:
a. Solve the question through ACCOUNTING EQUATION.
2. MM 1B-2 (52)
Recording the Effects of Transactions
Water Wise Landscaping was organized on September 1 of the currant
year and had the following account balance at December 31, listed in
tabular form:
Owner
's
Assets = Liabilities Equity
J.Gree
Office Notes Accoun n
Buildin Equipmen Paya ts Capita
Cash land g t ble Payable l
Balan $14,8 32,00
ces 00 50,000 45,000 22,500 0 25,300 75,000
Early in January, the company carried out the following transactions:
Instructions:
3. MM 2-2 (89)
Double Entry and the Accounting Equation
A number of transactions are described below in terms of the balance
sheet accounts debited and credited:
1. Debit Cash, credit Account Receivable.
2. Debit Accounts Payable, credit Cash.
3. Debit Cash, credit Tom Hill, Capital.
4. Debit Equipment, credit Account Payable.
5. Debit land, credit Cash and Notes Payable.
6. Debit Accounts Payable, credit Equipment.
Instructions:
Transactio
n Assets = Liabilities + Owner's Equity
1 NE NE NE
4. MM 2A-1 (93)
Elizabeth Carver, a certified public accountant, resigned from her
position with a large CPA firm in order to begin he own public
accounting practice. The business transactions during the September
while new venture was being organized are listed below:
Instructions:
5 MM 2A-5 (95)
Preparing a journal Entries, posting to ledger.
Instructions:
6. MM 2A-6 (96)
Instructions:
a. Journalize the March transactions.
b. Post a ledger accounts.
7. MM 2B-1 (97)
Recording transaction in a Journal.
Instructions:
Prepare journal entries to record the above transactions. Select the
appropriate account titles from the following chart of accounts.
8. MM 2B-5 (99)
Journal Entries
Instructions:
a. Prepare Journal entries for the month of November
Bay Plumbers performs repair work on both a cash and credit basis.
Credit customers are required to pay within 30 days from date of
billing. The ledger accounts used by the company include:
Instructions:
Prepare a journal entry (including explanation) for each of the above
transaction.
The account titles and numbers used by the Scott Crop Dusting were:
Instructions:
Other Information:
Dr Stein estimated the useful life of medical instruments at three years
and of office equipment at five years. The account titles to be used and
the account numbers are as follows:
Cash______________________10 April Stein, drawing__________41
Accounts Receivable__________ 13 Income summary____________
45
Medical Instruments__________ 20 Fees earned_________________
49
Accumulated depreciation: Medical supplies
expenses______ 50
Medical instruments________ 21 Rent expenses_______________
52
Office equipment____________ 22 Salaries
expense______________ 53
Accumulated depreciation: Utilities
expense______________ 53
Office equipment___________ 23 Depreciation expenses:
Notes payable_______________ 30 medical
instruments________ 54
Accounts payable_____________ 31 Depreciation expense:
April Stein, Capital____________ 40 Office
equipment__________ 55
Instructions:
a. Journalize the above instructions.
b. Post to ledger accounts
Instructions:
a. Write an analysis of each transaction. An example of the type of
analysis desired is as follows for transaction 1 above.
1 (a) Rent is an operating expense. Expenses are recorded by
debits. Debit Rent Expense, $4,000.
1. (b) The asset Cash was decreased. Decrease in assets are
recorded by credits. Credit Cash, $4,000.
b. Prepare a journal entry (including explanation) for each of the
above transactions.
The business was organized and operations were began during the
month of March. Transactions during March were as follows:
Mar 1. Tony poletti deposited $ 50,000 cash in a bank account in the
name of the business.
Mar 5 Purchased land for $160,000, of which $40,000 was paid in a
cash. A short term note payable was issued for the balance of
$120,000.
Mar 6 An arrangement was made with the Century Club agreed to pay
$1,200 monthly, payable in advance. Cash was collected for the month
of March.
Mar 7 Arranged with Times Printing Company for a regular
advertisement in the Times at a monthly cost of $390. Paid for
advertising during March by check $390
Mar 15 Parking receipts for the first half of the month were $1,836,
exclusive of the monthly fee from Century Club.
Mar 31 Received bill for light and power from Pacific Power Company
in the amount of &78, to be paid by April 10.
Mar 31 Paid $2,720 to employees for services rendered during the
month (Payroll taxes are to be ignored)
Mar 31 Parking receipts for the second half of the month amounted to
$5,338.
Mar 31 Poletti withdrew $2,000 for personal use,
Mar 31 Paid $5,000 cash on the note payable incurred with the
purchase of land. (You are to ignore any interest on the note)
Instructions:
a. Journalize the March transactions.
b. Post to ledger accounts.