Construct ten-column worksheets

Contents
Key to resources 2
Introduction 3
Inventory control methods 3
Feedback to activities 18

This learning guide is based on the following resource:

Textbook
Duncan A (2006) Introductory Accounting, National Core Accounting Publications, Bondi

Note
A new edition of this textbook was being published at the same time as this resource.
Where possible, we have provided a second Key to resources to this new edition.

Construct ten-column worksheets 1

©NSW DET 2006 2006/053/12/2006 LRR 3877
 Key to resources

Resource Textbook (2006 edition)

1 Chapter 17 ‘Ten column worksheets’, example for Jackie Tse and Co

2 Chapter 17 ‘Ten column worksheets’, income statement and balance sheet
for Jackie Tse and Co, p 524

Resource Textbook (2007 edition)

1 Chapter 15 ‘Ten column worksheets’, example for Jackie Tse and Co

2 Chapter 15 ‘Ten column worksheets’, income statement and balance sheet
for Jackie Tse and Co, pp 492–494

2 Construct ten-column worksheets

©NSW DET 2006 2006/053/12/2006 LRR 3877
 Introduction
Worksheets are prepared to assist a business with the preparation of their
financial reports.

Inventory control methods

Go to Resource 1

This example uses the perpetual inventory method of inventory control.

Note the following points:
 Sales returns have been transferred to sales in the adjustment column.
 The transfer of the general ledger accounts affecting gross profit to the
trading account column.
 Gross profit has been transferred to the profit and loss account at the
bottom of the worksheet.
 The transfer of the general ledger accounts affecting net profit to the
profit and loss column.
 The transfer of net profit (loss in this case) to the balance sheet column.

Financial reports can be prepared from the information in the worksheet.

Now go to Resource 2

Any balance day adjustments are recorded at the bottom of the worksheet
underneath the trial balance.

Now check the following example for Norm Spence.

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©NSW DET 2006 2006/053/12/2006 LRR 3877
 Norm Spence
Trial balance as at 30th June 20x2
Account Debit Credit
$ $
Sales 69 500
Inventory 7 000
Cost of goods sold 40 700
Discount received 100
Advertising 2 000
Salaries 22 000
Office expenses 1 700
Bad debts 800
Rent received 4 000
Capital 53 100
Mortgage loan due 20x5 28 000
Bank overdraft 2 500
GST clearing 1 500
Land and buildings 45 000
Accounts payable 4 500
Motor vehicles 35 000
Office furniture 3 800
Accounts receivable 5 200
163 200 163 200

Additional information
 Salaries owing – $550
 Advertising paid in advance – $200
 Provide for doubtful debts at 1% of accounts receivable
 Depreciate motor vehicles at 20% per annum straight-line; ie $7 000
 Depreciate office furniture at 15% per annum straight-line; ie $570

Required
(a) A ten-column worksheet incorporating the balance day adjustments
(b) An income statement
(c) A balance sheet

4 Construct ten-column worksheets

©NSW DET 2006 2006/053/12/2006 LRR 3877
 Norm Spence 10-column worksheet
as at 30 June 20x2
Ledger account Trial balance Adjustments Trading account Profit and loss Balance sheet
account
Dr Cr Dr Cr Dr Cr Dr Cr Dr Cr
$ $ $ $ $ $ $ $ $ $
Sales 69 500 69 500
Inventory 7 000 7 000
Cost of goods sold 40 700 40 700
Discount received 100 100
Advertising 2 000 200 1 800
Salaries 22 000 550 22 550
Office expenses 1 700 1 700
Bad debts 800 800
Rent received 4 000 4 000
Capital 53 100 53 100
Mortgage loan due 28 000 28 000
20x5
Bank overdraft 2 500 2 500
GST clearing 1 500 1 500
Accounts payable 4 500 4 500
Accounts receivable 5 200 5 200
Motor vehicles 35 000 35 000
Office furniture 3 800 3 800
Land and buildings 45 000 45 000
163 200 163 200
Accrued expenses 550 550
Expenses prepaid 200 200
Doubtful debts 52 52
Allowance for 52 52
doubtful debts
Depn–motor vehicle 7 000 7 000
Accum. depn–motor 7 000 7 000
vehicle
Depn–office furniture 570 570
Accum. depn–office 570 570
furniture
40 700 69 500
Gross profit 28 800 28 800
34 472 32 900
Net loss 1 572 1 572
8 372 8 372 69 500 69 500 34 472 34 472 97 772 97 772

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©NSW DET 2006 2006/053/12/2006 LRR 3877
 Norm Spence
Income statement
For period ended 30th June 20x2
$ $ $
Sales 69 500
Less: Cost of goods sold 40 700
Gross profit 28 800
Add: Other operating income 4 100
Discount received 100
Rent received 4 000
Total income 32 900
Less: Operating expenses 34 472
Marketing 1 800
Advertising 1 800
Administration 31 820
Salaries 22 550
Office expenses 1 700
Depreciation – Motor vehicle 7 000
Depreciation – Office furniture 570
Financial 852
Bad debts 800
Doubtful debts 52
Net loss 1 572

6 Construct ten-column worksheets

©NSW DET 2006 2006/053/12/2006 LRR 3877
 Norm Spence
Balance sheet
As at 30th June 20x2
$ $ $
Current assets 12 348
Inventory 7 000
Accounts receivable 5 200
Less: Allowance doubtful debts 52 5 148
Expenses prepaid 200
Total income
Non-current assets 76 230
Land & buildings 45 000
Motor vehicles 35 000
Less: Accumulated depreciation 7 000 28 000
Office furniture 3 800
Less: Accumulated depreciation 570 3 230
Total assets 88 578
Current liabilities 9 050
Accounts payable 4 500
GST clearing account 1 500
Bank (overdraft) 2 500
Accrued expenses 550
Non-current liabilities 28 000
Mortgage loan 28 000
Total liabilities 37 050
Net assets 51 528

Owner’s equity 51 528

Capital 53 100
Less: Loss 1 572

Commentary
 Note the balance day adjustments shown underneath the trial balance.
The money amounts are shown in the adjustment column.
 The totals of the adjustment column must agree.
 Gross profit is the balance of the trading account column and is
transferred to the profit and loss account.

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©NSW DET 2006 2006/053/12/2006 LRR 3877
  Net loss is the balance of the profit and loss account and is transferred to
the balance sheet column.
 The income statement, if required, is prepared from the details in the
trading account and profit and loss account columns.
 The balance sheet, if required, is prepared from the details in the
balance sheet column.

8 Construct ten-column worksheets

©NSW DET 2006 2006/053/12/2006 LRR 3877
 Activity 1

Note: The answer is at the end of this guide. From the following trial balance and
additional information for Annie Best, you are required to prepare a ten-column worksheet.
Use the template provided.

A Best
Trial balance as at 30 June 20x3
Account Debit Credit
$ $
Sales 18 500
Discount received 200
Advertising 350
Sales representatives’ salaries 1 250
Motor vehicle expenses 300
Cost of goods sold 14 950
Inventory 6 000
Cartage outwards 400
Office expenses 170
Telephone expenses 30
Rent received 250
Loan interest paid 100
Bank 1 000
GST clearing account 1 000
Accounts receivable 8 500
Motor vehicles 18 000
Accounts payable 5 000
Loan – Avcon 20 000
Capital – A Best 4 100
$50 050 $50 050

continued overleaf …

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©NSW DET 2006 2006/053/12/2006 LRR 3877
 Additional information
 Prepaid advertising – $50
 Sales representatives’ salaries owing – $200
 Rent received in advance – $75
 Depreciate motor vehicles 20% per annum on cost; ie, $3600

10 Construct ten-column worksheets

©NSW DET 2006 2006/053/12/2006 LRR 3877
Ledger account Trial balance Adjustments Trading Profit and loss Balance sheet
account account

Dr Cr Dr Cr Dr Cr Dr Cr Dr Cr
$ $ $ $ $ $ $ $ $ $

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©NSW DET 2006 2006/053/12/2006 LRR 3877
12 Construct ten-column worksheets
©NSW DET 2006 2006/053/12/2006 LRR 3877
 Activity 2

From the following information for Slyvester Crimmins prepare a ten-column worksheet.
Use the template provided.

Information
 Accrued office wages – $250
 Insurance paid in advance – $450
 Create an allowance for doubtful debts equal to 2% of accounts
receivable (nearest $).
 Depreciate delivery van – $3000
 Depreciate office equipment – $1800

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©NSW DET 2006 2006/053/12/2006 LRR 3877
 Slyvester Crimmins
Trial balance as at 30 June 20x2
Debit Credit
$ $
Capital – S Crimmins 113 065
Inventory 23 213
Cost of goods sold 71 861
GST clearing account 2 000
Sales 204 434
Discount allowed 1 479
Discount received 1 233
Cash at bank 15 431
Accounts payable 17 365
Accounts receivable 32 167
Bad debts 3 500
Sales salaries and commissions 42 236
Office wages 29 150
Rates and taxes 1 500
Insurance 1 200
Rent expense 12 000
Commission received 8 140
Delivery van 15 000
Office equipment 12 000
Land and buildings 160 000
Mortgage on land & buildings 100 000
Shares in ABC Ltd 15 000
Accumulated depreciation:
Delivery van 5 500
Office equipment 2 000
Drawings 18 000
$453 737 $453 737

14 Construct ten-column worksheets

©NSW DET 2006 2006/053/12/2006 LRR 3877
Ledger account Trial balance Adjustments Trading a/c Profit & loss a/c Balance sheet

Dr Cr Dr Cr Dr Cr Dr Cr Dr Cr
$ $ $ $ $ $ $ $ $ $

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©NSW DET 2006 2006/053/12/2006 LRR 3877
 Activity 3

From the following list of account balances you are required to complete a ten-column
worksheet. Use the template provided.

Stay Tuned & Co

Ledger balances at 30 June 20x7

Sales $25 250

Inventory 3 700
Cost of goods sold 19 340
Wages 3 000
Rates 100
Discounted allowed 350
Rent expense 600
Insurance 80
Stationery 50
Commission expense 126
Interest expense 120
General expenses 60
Plant 1 900
Bank overdraft 250
Accounts receivable 3 400
Allowance for doubtful debts 100
Land & buildings 12 800
Accounts payable 1 020
Mortgage 1 000
Drawings 1 000
GST clearing (credit balance) 200
Capital ?
Additional information:
 Write off bad debts $440 (including GST)
 Prepaid insurance $15
 Accrued wages $50
 Depreciation plant $190
 Allowance for doubtful debts is to be made equal to 5% of Accounts
receivable after bad debt write off.

16 Construct ten-column worksheets

©NSW DET 2006 2006/053/12/2006 LRR 3877
Ledger account Trial balance Adjustments Trading Profit and loss Balance sheet
account account

Dr Cr Dr Cr Dr Cr Dr Cr Dr Cr
$ $ $ $ $ $ $ $ $ $

Construct ten-column worksheets 17

©NSW DET 2006 2006/053/12/2006 LRR 3877
 Feedback to activities
Activity 1
Annie Best
10-column worksheet
as at 30 June 20x3

Ledger account Trial balance Adjustments Trading a/c Profit & loss Balance sheet

Dr $ Cr $ Dr $ Cr $ Dr $ Cr $ Dr $ Cr $ Dr $ Cr $

Sales 18 500 18 500

Discount received 200 200
Advertising 350 50 300
Sales reps’ salaries 1 250 200 1 450
Motor vehicle expenses 300 300
Cost of goods sold 14 950 14 950
Inventory 6 000 6 000
Cartage outwards 400 400
Office expenses 170 170
Telephone expenses 30 30
Rent received 250 75 175
Loan interest paid 100 100
Bank 1 000 1 000
GST clearing a/c 1 000 1 000
Account receivable 8 500 8 500
Motor vehicles 18 000 18 000
Accounts payable 5 000 5 000
Loan–Avcon 20 000 20 000
Capital–A. Best 4 100 4 100
50 050 50 050
Expenses prepaid 50 50
Accrued expenses 200 200
Income rec’d in advance 75 75
Depn.–motor vehicles 3 600 3 600
Accum.depn–m/vehicles 3 600 3 600
14 950 18 500
Gross profit 3 550 3 550
6 350 3 925
Net loss 2 425 2 425
3 925 3 925 18 500 18 500 6 350 6 350 34 975 34 975

18 Construct ten-column worksheets

©NSW DET 2006 2006/053/12/2006 LRR 3877
 Activity 2
Sylvester Crimmins
10-column worksheet
as at 30 June 20x2

Ledger account Trial balance Adjustments Trading account Profit & loss a/c Balance sheet

Dr Cr Dr Cr Dr Cr Dr Cr Dr Cr
$ $ $ $ $ $ $ $ $ $
Capital – S Crimmins 113 065 113 065
Inventory 23 213 23 213
GST clearing 2 000 2 000
Cost of goods sold 71 861 71 861
Sales 204 434 204 434
Discount allowed 1 479 1 479
Discount received 1 233 1 233
Cash at bank 15 431 15 431
Accounts payable 17 365 17 365
Accounts receivable 32 167 32 167
Bad debts 3 500 3 500
Sales salaries & 42 236 42 236
commission
Office wages 29 150 250 29 400
Rates and taxes 1 500 1 500
Insurance 1 200 450 750
Rent expense 12 000 12 000
Commission received 8 140 8 140
Delivery van 15 000 15 000
Office equipment 12 000 12 000
Premises 160 000 160 000
Mortgage on premises 100 000 100 000
Shares in ABC Ltd 15 000 15 000
Accum. Depn.
Delivery van 5 500 3 000 8 500
O/equipment 2 000 1 800 3 800
Drawings 18 000 18 000
453 737 453 737
Accrued expenses 250 250
Expenses prepaid 450 450
Allowance – doubtful 643 643
debts
Doubtful debts 643 643
Depreciation:
Delivery van 3 000 3 000
O/equipment 1 800 1 800
71 861 204 434
Gross profit 132 573 132 573
96 308 141 946
Net profit 45 638 45 638
6 143 6 143 204 434 204 434 141 946 141 946 291 261 291 261

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©NSW DET 2006 2006/053/12/2006 LRR 3877
 Activity 3
Stay Tuned and Co
10-column worksheet
as at 30 June 20x7

Ledger account Trial balance Adjustments Trading account Profit & loss a/c Balance sheet

Dr Cr Dr Cr Dr Cr Dr Cr Dr Cr
$ $ $ $ $ $ $ $ $ $
Sales 25 250 25 250
Inventory 3 700 3 700
Cost of goods sold 19 340 19 340
Wages 3 000 50 3 050
Rates 100 100
Discount allowed 350 350
Rent 600 600
Insurance 80 15 65
Stationery 50 50
Commission expense 126 126
Interest expense 120 120
General expense 60 60
Plant 1 900 1 900
Bank overdraft 250 250
Accounts receivable 3 400 440 2 960
Allowance – doubtful 100 48 148
debts
Land & buildings 12 800 12 800
Accounts payable 1 020 1 020
Mortgage 1 000 1 000
Drawings 1 000 1 000
GST clearing 200 40 160
Capital 18 806 18 806
46 626 46 626
Bad debts 400 400
Expenses prepaid 15 15
Accrued expense 50 50
Depreciation – Plant 190 190
Accum.Depreciation – 190 190
Plant
Doubtful debts* 48 48
19 340 25 250
Gross profit 5 910 5 910
5 159 5 910
Net profit 751 751
743 743 25 250 25 250 5 910 5 910 22 375 22 375

* $3 400 – 440 = 2 960 + 5% = 148 Less 100 = 48

20 Construct ten-column worksheets

©NSW DET 2006 2006/053/12/2006 LRR 3877