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Principles of Accounts for CSEC by David Austen Answers to Chapter 1
ISBN 978-1-4085-0911-1 © Nelson Thornes 2011 1
Chapter 1
Question 1 – p. 12
a) Vehicle Asset b) Shop fittings Asset c) Cash at bank Asset d) Bank loan Liability e) Owner’s investment in the business Capital f) Inventory Asset g) Trade receivables Asset h) Bank overdraft Liability i) Trade payables Liability j) Machinery Asset
Question 2 – p. 12
a) Cash in hand Asset b) Equipment Asset c) Amounts owing to suppliers Liability d) Furniture Asset e) Land Asset f) Loan from a friend Liability g) Value of owner’s stake in the business Capital h) Amounts owed by customers Asset i) Cash at bank Asset j) Fittings Asset
Question 3 – p. 12
Total assets Capital Total liabilities
Assets = Capital + Liabilities
$ $ $
Business A 80,000 60,000 20,000
Business B 42,000 31,000 11,000
Business C 57,000 24,000 33,000
Business D 650,000 490,000 160,000
Business E 190,000 170,000 20,000
Business F 640,000 558,000 82,000
Question 4 – p. 12
Total assets Capital Total liabilities
Assets = Capital + Liabilities
$ $ $
Business G 220,000 190,000 30,000
Business H 912,000 826,000 86,000
Business I 325,000 273,000 52,000
Business J 560,000 483,000 77,000
Business K 917,000 865,000 52,000
Business L 262,000 220,000 42,000
Principles of Accounts for CSEC by David Austen Answers to Chapter 1
ISBN 978-1-4085-0911-1 © Nelson Thornes 2011 2
Question 5 – p. 12
a) Total assets: $123,000 b) Total liabilities: $34,000 c) Capital: $89,000 d)
Marlene’s retail unit
Balance Sheet at 31 December 2011
$ $
ASSETS CAPITAL 89,000
Furniture and fittings 64,000
Inventory 36,000 LIABILITIES
Trade receivables 10,000 Bank loan 20,000
Cash at bank 8,000 Trade payables 14,000
Cash in hand 5,000
123,000 123,000
Question 6 – p. 12
a) Total assets: $141,000 b) Total liabilities: $66,000 c) Capital: $75,000 d)
Andy’s bicycle business
Balance Sheet at 28 February 2011
$ $
ASSETS CAPITAL 75,000
Equipment 78,000
Inventory 33,000 LIABILITIES
Trade receivables 9,000 Bank loan 42,000
Cash at bank 15,000 Trade payables 24,000
Cash in hand 6,000
141,000 141,000
Question 7 – p. 13
a) Total assets: $464,000 b) Total liabilities: $82,000 c) Capital: $382,000
Principles of Accounts for CSEC by David Austen Answers to Chapter 1
ISBN 978-1-4085-0911-1 © Nelson Thornes 2011 3
d)
Donnie’s software business
Balance Sheet at 31 October 2011
$ $ $ $
NON-CURRENT ASSETS CAPITAL 382,000
Premises 300,000
Equipment 90,000 NON-CURRENT LIABILITIES
Delivery vehicle 32,000 Bank loan 60,000
422,000
CURRENT ASSETS
Inventory 16,000
Trade receivables 14,000 CURRENT LIABILITIES
Cash at bank 8,000 Trade payables 22,000
Cash in hand 4,000
42,000
464,000 464,000
e)
Donnie’s software business
Balance Sheet at 31 October 2011
$ $ $ $
CURRENT ASSETS CURRENT LIABILITIES
Cash in hand 4,000 Trade payables 22,000
Cash at bank 8,000
Trade receivables 14,000 NON-CURRENT LIABILITIES
Inventory 16,000 Bank loan 60,000
42,000
NON-CURRENT ASSETS CAPITAL 382,000
Delivery vehicle 32,000
Equipment 90,000
Premises 300,000
422,000
464,000 464,000
Question 8 – p. 13
Answer included in ‘Model answers to selected questions’ in book
Principles of Accounts for CSEC by David Austen Answers to Chapter 2
ISBN 978-1-4085-0911-1 © Nelson Thornes 2011 4
Chapter 2
Question 1 – p. 18
Balance Sheet at 2 March 2011
$ $
ASSETS CAPITAL 40,000
Vehicle 12,000
Equipment 15,000
Bank 13,000
40,000 40,000
Balance Sheet at 3 March 2011
$ $
ASSETS CAPITAL 40,000
Vehicle 12,000
Equipment 15,000 LIABILITIES
Furniture 8,000 Payable 8,000
Bank 13,000
48,000 48,000
Balance Sheet at 4 March 2011
$ $
ASSETS CAPITAL 40,000
Vehicle 12,000
Equipment 15,000 LIABILITIES
Furniture 8,000 Payable 8,000
Bank 28,000 Bank loan 15,000
63,000 63,000
Balance Sheet at 5 March 2011
$ $
ASSETS CAPITAL 37,000
Vehicle 12,000
Equipment 15,000 LIABILITIES
Furniture 8,000 Payable 8,000
Bank 25,000 Bank loan 15,000
60,000 60,000
Principles of Accounts for CSEC by David Austen Answers to Chapter 2
ISBN 978-1-4085-0911-1 © Nelson Thornes 2011 5
Balance Sheet at 6 March 2011
$ $
ASSETS CAPITAL 37,000
Vehicle 12,000
Equipment 15,000 LIABILITIES
Furniture 8,000 Payable 2,000
Bank 19,000 Bank loan 15,000
54,000 54,000
Question 2 – p. 18
Balance Sheet at 2 January 2011
$ $
ASSETS CAPITAL 110,000
Premises 90,000
Vehicle 15,000
Bank 5,000
110,000 110,000
Balance Sheet at 3 January 2011
$ $
ASSETS CAPITAL 110,000
Premises 90,000
Vehicle 15,000 LIABILITIES
Bank 17,000 Bank loan 12,000
122,000 122,000
Balance Sheet at 4 January 2011
$ $
ASSETS CAPITAL 110,000
Premises 90,000
Vehicle 15,000 LIABILITIES
Equipment 24,000 Payable 24,000
Bank 17,000 Bank loan 12,000
146,000 146,000
Balance Sheet at 5 January 2011
$ $
ASSETS CAPITAL 118,000
Premises 90,000
Vehicle 15,000 LIABILITIES
Equipment 24,000 Payable 24,000
Bank 25,000 Bank loan 12,000
154,000 154,000
Principles of Accounts for CSEC by David Austen Answers to Chapter 2
ISBN 978-1-4085-0911-1 © Nelson Thornes 2011 6
Balance Sheet at 6 January 2011
$ $
ASSETS CAPITAL 118,000
Premises 90,000
Vehicle 15,000 LIABILITIES
Equipment 24,000 Payable 4,000
Bank 5,000 Bank loan 12,000
134,000 134,000
Question 3 – p. 18
Total assets Capital Total liabilities
A = C + L
$ $ $
Starting figures 40,000 30,000 10,000
a) Owner withdrew a cheque for $4,000 for private use
36,000 26,000 10,000
b) Purchased new vehicle for $16,000 on credit 52,000 (+16,000)
26,000 26,000 (+16,000)
c) Repaid $2,000 of a loan from the bank. The funds were taken from the business’s bank account
50,000 (−2,000)
26,000 24,000 (−2,000)
d) Purchased some machinery for $7,000 and paid by cheque
50,000 (+7,000 −7,000)
26,000 24,000
e) Paid a payable $5,000 by cheque 45,000 (−5,000)
26,000 19,000 (−5,000)
f) Sold some equipment worth $3,000 and received a cheque for this amount
45,000 (−3,000 +3,000)
26,000 19,000
Principles of Accounts for CSEC by David Austen Answers to Chapter 2
ISBN 978-1-4085-0911-1 © Nelson Thornes 2011 7
Question 4 – p. 18
Total assets Capital Total liabilities
A = C + L
$ $ $
Starting figures 90,000 75,000 15,000
a) Paid a payable $8,000 by cheque 82,000 75,000 7,000
b) Purchased a new vehicle and paid $17,000 by cheque
82,000 (+17,000 −17,000)
75,000 7,000
c) Owner withdrew a cheque for $1,000 for private use
81,000 (−1,000)
74,000 (−1,000)
7,000
d) Purchased some new equipment for $10,000 on credit
91,000 (+10,000)
74,000 17,000 (+10,000)
e) Repaid part of a bank loan $6,000. The funds were taken from the business’s bank account
85,000 (−6,000)
74,000 11,000 (−6,000)
f) Some old machinery worth $6,000 sold on credit for this amount
85,000 (−6,000 +6,000)
74,000 11,000
Question 5 – p. 19
2 February (example) A vehicle has been purchased for $18,000 and paid for by cheque. 3 February The owner withdrew a cheque for $3,000 for private use. 4 February Some equipment was purchased on credit for $16,000. 5 February The payable was paid $6,000 by cheque.
Question 6 – p. 19
2 December (example) Some equipment has been purchased on credit for $22,000. 3 December Borrowed $15,000 from the bank. The funds were paid into the business’s bank account. 4 December Some equipment worth $6,000 was sold for this amount on credit. 5 December The receivable paid $3,000 by cheque. 6 December The payable was paid $11,000 by cheque.
Question 7 – p. 20
Answer included in ‘Model answers to selected questions’ in book
Question 8 – p. 20
Answer included in ‘Model answers to selected questions’ in book
Principles of Accounts for CSEC by David Austen Answers to Chapter 3
ISBN 978-1-4085-0911-1 © Nelson Thornes 2011 8
Chapter 3
Question 1– p. 28
Vehicles 40,000 14,000
Bank
19,000 14,000 4,000 2,000
Capital
2,000 47,000
Bank loan 12,000 4,000
Question 2 – p. 28
Equipment 27,000
4,000
Bank 8,000 4,000
2,000 700
Capital
700 29,000
Payable 2,000 6,000
Question 3 – p. 28
First account affected
Second account affected Transaction
Account Increase/ decrease
Account Increase/ decrease
Owner started business by investing money in a business’s bank account
Bank Increase Capital Increase
Purchased a vehicle and paid by cheque
Vehicle Increase Bank Decrease
Purchased some equipment on credit
Equipment Increase Payable Increase
Owner withdrew a cheque for private use
Capital Decrease Bank Decrease
Paid the payable by cheque Payable Decrease Bank Decrease
Principles of Accounts for CSEC by David Austen Answers to Chapter 3
ISBN 978-1-4085-0911-1 © Nelson Thornes 2011 9
Question 4 – p. 28
First account affected
Second account affected Transaction
Account Increase/ decrease
Account Increase/ decrease
Some furniture was purchased by cheque
Furniture Increase Bank Decrease
A bank loan was arranged. The funds were paid into the business’s bank account
Bank Increase Bank Loan Increase
Purchased a vehicle on credit Vehicle Increase Payable Increase
Sold some unwanted furniture on credit
Furniture Decrease Receivable Increase
Repaid part of the bank loan by a withdrawal of funds from the business’s bank account
Bank loan Decrease Bank Decrease
Question 5 – p. 29
Dr Vehicle Cr 14,000
Dr Bank Cr
7,000 300 6,000 9,200 2,500
Dr Capital Cr
300 17,000 Dr Payable Cr
2,500 4,000 9,000
Dr Equipment Cr
9,000 9,200
Dr Bank loan Cr
6,000
Question 6 – p. 29
Dr Vehicle Cr 13,000
Dr Equipment Cr
8,000 800 5,000
Dr Bank Cr
4,000 1,000 Dr Cash Cr
400 200 100
Principles of Accounts for CSEC by David Austen Answers to Chapter 3
ISBN 978-1-4085-0911-1 © Nelson Thornes 2011 10
Dr Capital Cr
200 24,200 Dr Payable Cr
1,000 1,200 5,000
Dr Receivable Cr
800 100
Question 7 – p. 29
Transaction Accounts affected Increase/decrease Debit/credit
Furniture Increase Debit Purchased some furniture by cheque Bank Decrease Credit
Payable Decrease Debit Paid a payable by cheque
Bank Decrease Credit
Capital Decrease Debit Owner withdrew cash for private use Cash Decrease Credit
Vehicle Increase Debit Purchased a vehicle on credit
Payable Increase Credit
Question 8 – p. 30
Transaction Accounts affected Increase/decrease Debit/credit
Capital Decrease Debit Owner withdrew a cheque for private use
Bank Decrease Credit
Equipment Increase Debit Purchased equipment on credit
Payable Increase Credit
Payable Decrease Debit Paid a payable in cash
Cash Decrease Credit
Receivable Increase Debit Sold some unwanted furniture on credit
Furniture Decrease Credit
Cash Increase Debit Received cash from a receivable
Receivable Decrease Credit
Principles of Accounts for CSEC by David Austen Answers to Chapter 3
ISBN 978-1-4085-0911-1 © Nelson Thornes 2011 11
Question 9 – p. 30
Debit
Receiving value In
Credit Giving value
Out
Account Explanation Account Explanation
Purchased furniture and paid in cash
Furniture Receives value as new asset is purchased
Cash Gives value as money goes out of the account
Purchased machinery and paid by cheque
Machinery Receiving value as new machinery is purchased
Bank Giving value as money goes out of the account
Purchased equipment on credit
Equipment Receiving value as new equipment is purchased
Payable Giving value as supplier provides equipment
Paid the payable by cheque Payable Receiving value as payment is made to supplier
Bank Giving value as money goes out of the account
Owner invested an additional amount in the business’s bank account
Bank Receiving value as money goes into account
Capital Giving value as private resources are transferred to the business
Owner withdrew a cheque for private use
Capital Receiving value as money is given to owner
Bank Giving value as money goes out of the account
Principles of Accounts for CSEC by David Austen Answers to Chapter 3
ISBN 978-1-4085-0911-1 © Nelson Thornes 2011 12
Question 10 – p. 30
Debit Receiving value
In
Credit Giving value
Out
Account Explanation Account Explanation
Purchased a vehicle and paid by cheque
Vehicle Receiving value as new vehicle is purchased
Bank Giving value as money goes out of account
Paid a payable by cheque Payable Receiving value as payment is made to supplier
Bank Giving value as money is given to supplier
Sold some unwanted furniture on credit
Receivable Receiving value as customer receives the value of the furniture
Furniture Giving value as furniture leaves the business
Received cash from a receivable
Cash Receiving value as money is given by a receivable to the business
Receivable Giving value as money is provided by the customer
Owner increased investment in the business by transferring private funds into the business’s bank account
Bank Receiving value as money is given to the business
Capital Giving value as money is provided by the owner
Owner withdrew cash for private use
Capital Receiving value as money is given to the owner
Cash Giving value as money leaves the business
Transferred cash to the business’s bank account
Bank Receiving value as money goes into the bank
Cash Giving value as money leaves the cash register
Question 11– p. 31
Dr Premises Cr Jan 1 Balance 90,000 Dr Equipment Cr Jan 1 Balance 12,000 Jan 5 Receivable 500 3 Payable 4,100 Dr Vehicle Cr Jan 1 Balance 9,000 Dr Bank Cr Jan 1 Balance 3,300 Jan 2 Bank loan 1,000 6 Capital 4,000 7 Cash 200 Dr Cash Cr Jan 1 Balance 700 Jan 4 Capital 300 7 Bank 200 Dr Capital Cr Jan 4 Cash 300 Jan 1 Balance 100,000 6 Bank 4,000
Principles of Accounts for CSEC by David Austen Answers to Chapter 3
ISBN 978-1-4085-0911-1 © Nelson Thornes 2011 13
Dr Bank Loan Cr Jan 2 Bank 1,000 Jan 1 Balance 15,000 Dr Payable Cr Jan 3 Equipment 4,100 Dr Receivable Cr Jan 5 Equipment 500
Ross Balance Sheet at 7 January 2011
$ $ $ $
NON-CURRENT ASSETS CAPITAL 103,700
Premises 90,000
Equipment 15,600 NON-CURRENT LIABILITIES
Vehicle 9,000 Bank loan 14,000
114,600
CURRENT ASSETS CURRENT LIABILITIES
Receivable 500 Payable 4,100
Bank 6,500
Cash 200
7,200
121,800 121,800
Question 12 – p. 31
Answer included in ‘Model answers to selected questions’ in book
Principles of Accounts for CSEC by David Austen Answers to Chapter 4
ISBN 978-1-4085-0911-1 © Nelson Thornes 2011 14
Chapter 4
Question 1– p. 36
Dr Bank Cr Feb 1 Balance 12,000 Feb 2 Purchases 1,200 21 Sales 520 4 Rent 420 8 Insurance 180 18 Rent 420
Dr Cash Cr Feb 1 Balance 400 Feb 19 Insurance 40 5 Sales 330 24 Purchases 60 Dr Capital Cr Feb 1 Balance 12,400 Dr Purchases Cr Feb 2 Bank 1,200 11 Payable 840 24 Cash 60
Dr Rent Cr Feb 4 Bank 420 18 Bank 420 Dr Sales Cr Feb 5 Cash 330 14 Receivable 910 21 Bank 520
Dr Insurance Cr Feb 8 Bank 180 19 Cash 40 Dr Payable Cr Feb 11 Purchases 840 Dr Receivable Cr Feb 14 Sales 910
Question 2 – p. 36
Dr Bank Cr June 1 Balance 14,400 June 2 Purchases 4,700 21 Sales 810 3 Rent 740 19 Electricity 210 Dr Cash Cr June 1 Balance 700 June 7 Wages 580 6 Sales 490 14 Wages 490 24 Purchases 110
Dr Capital Cr June 1 Balance 15,100
Principles of Accounts for CSEC by David Austen Answers to Chapter 4
ISBN 978-1-4085-0911-1 © Nelson Thornes 2011 15
Dr Purchases Cr June 2 Bank 4,700 11 Payable 1,470 24 Cash 110
Dr Rent Cr June 3 Bank 740 Dr Sales Cr June 6 Cash 490 13 Receivable 1,420 21 Bank 810
Dr Wages Cr June 7 Cash 580 14 Cash 490 Dr Payable Cr June 11 Purchases 1,470 Dr Receivable Cr June 13 Sales 1,420 Dr Electricity Cr June 19 Bank 210
Question 3 – p. 36
Dr Equipment Cr April 1 Balance 6,200 18 Bank 1,020 Dr Bank Cr April 1 Balance 8,400 April 8 Drawings 240 21 Sales 720 11 Purchases 510 18 Equipment 1,020
Dr Cash Cr April 1 Balance 300 April 13 Wages 620 5 Sales 1,230 19 Drawings 90 27 Wages 580
Dr Capital Cr April 1 Balance 14,900 Dr Purchases Cr April 4 Payable 3,600 11 Bank 510 Dr Sales Cr April 5 Cash 1,230 9 Receivable 470 21 Bank 720
Dr Drawings Cr April 8 Bank 240 19 Cash 90
Principles of Accounts for CSEC by David Austen Answers to Chapter 4
ISBN 978-1-4085-0911-1 © Nelson Thornes 2011 16
Dr Payable Cr April 4 Purchases 3,600 Dr Receivable Cr April 9 Sales 470 Dr Wages Cr April 13 Cash 620 27 Cash 580
Question 4 – p. 37
Dr Fittings Cr Oct 1 Balance 8,600 Oct 18 Cash 300 Dr Bank Cr Oct 1 Balance 7,800 Oct 11 Rent 770 22 Payable 3,000 29 Drawings 390
Dr Cash Cr Oct 1 Balance 700 Oct 4 Purchases 500 7 Sales 990 12 Drawings 110 18 Fittings 300
25 Receivable 210
Dr Capital Cr Oct 1 Balance 17,100 Dr Purchases Cr Oct 4 Cash 500 6 Payable 4,240 Dr Sales Cr Oct 7 Cash 990 15 Receivable 440 Dr Drawings Cr Oct 12 Cash 110 29 Bank 390 Dr Payable Cr Oct 22 3,000 Oct 6 Purchases 4,240 Dr Receivable Cr Oct 15 Sales 440 Oct 25 Cash 210 Dr Rent Cr Oct 11 Bank 770
Principles of Accounts for CSEC by David Austen Answers to Chapter 4
ISBN 978-1-4085-0911-1 © Nelson Thornes 2011 17
Question 5 – p. 37
Transaction Account to be
debited Account to be
credited
Paid wages in cash Wages Cash
Purchased goods for resale on credit Purchases Payable
Owner withdrew cheque for private use Drawings Bank
Paid payable in cash Payable Cash
Sold goods on credit Receivable Sales
Sold goods for cash Cash Sales
Purchased furniture by cheque Furniture Bank
Owner made additional investment of money in the business
Cash/Bank Capital
Paid rent by cheque Rent Bank
Received cheque from a receivable Bank Receivable
Question 6 – p. 37
Transaction Account to be debited
Account to be credited
Paid salaries by cheque Salaries Bank
Arranged a bank loan. The funds were paid into the business’s bank account
Bank Bank loan
Sold goods and paid the proceeds into the bank Bank Sales
Purchased goods for resale for cash Purchases Cash
Owner withdrew cash for private use Drawings Cash
Paid payable by cheque Payable Bank
Sold goods on credit Receivable Sales
Paid bank loan interest. The funds were transferred from the business’s bank account
Loan interest Bank
Received cash from a receivable Cash Receivable
Question 7 – p. 38
1 January Purchased goods for resale and paid by cheque, $6,000 2 January Cash sales totalled $3,200 3 January Paid general expenses by cheque, $320 4 January Sold goods on credit, $1,730 5 January Purchased goods on credit, $2,290
Question 8 – p. 38
1 May Sold goods on credit, $3,790 2 May Paid wages in cash, $280 3 May Purchased goods for resale and paid in cash, $170 4 May Purchased goods for resale on credit, $1,200 5 May Received cheque from receivable, $2,000
Question 9 – p. 38
Dr Premises Cr March 1 Balance 120,000
Principles of Accounts for CSEC by David Austen Answers to Chapter 4
ISBN 978-1-4085-0911-1 © Nelson Thornes 2011 18
Dr Vehicle Cr March 1 Balance 11,500 Dr Equipment Cr March 1 Balance 8,900 March 17 Bank 400 24 Bank 2,800 Dr Receivables Cr March 1 Balance 7,300 March 15 Bank 2,800 Dr Bank Cr March 1 Balance 6,400 March 3 Payable 1,700 5 Cash 800 10 Insurance 420 15 Receivable 2,800 18 Loan interest 120 17 Equipment 400 24 Equipment 2,800
30 Vehicle exp 230
Dr Cash Cr March 1 Balance 800 March 5 Bank 800 4 Sales 1,470 12 Wages 580 22 Sales 1,280 19 Drawings 250 26 Wages 630
29 Insurance 180
Dr Capital Cr March 1 Balance 116,000 Dr Bank loan Cr March 1 Balance 30,000 Dr Payables Cr March 3 Bank 1,700 March 1 Balance 8,900 8 Purchases 3,200 Dr Sales Cr March 4 Cash 1,470 22 Cash 1,280 Dr Purchases Cr March 8 Payable 3,200 Dr Insurance Cr March 10 Bank 420 29 Cash 180 Dr Wages Cr March 12 Cash 580 26 Cash 630 Dr Loan interest Cr March 18 Bank 120 Dr Drawings Cr March 19 Cash 250 Dr Vehicle expenses Cr March 30 Bank 230
Principles of Accounts for CSEC by David Austen Answers to Chapter 4
ISBN 978-1-4085-0911-1 © Nelson Thornes 2011 19
Question 10 – p. 39
Answer included in ‘Model answers to selected questions’ in book
Principles of Accounts for CSEC by David Austen Answers to Chapter 5
ISBN 978-1-4085-0911-1 © Nelson Thornes 2011 20
Chapter 5
Question 1– p. 44
Trial Balance at 31 December 2010
Dr Cr
$ $
Furniture 15,200
Receivable 2,600
Bank 700
Cash 300
Capital 17,900
Payable 3,300
Purchases 4,100
Sales 3,100
Wages 1,100
Drawings 300
24,300 24,300
Question 2 – p. 44
Trial Balance at 31 January 2011
Dr Cr
$ $
Vehicle 18,900
Receivables 3,300
Bank 1,100
Cash 500
Capital 10,200
Payables 8,400
Bank loan 6,000
Purchases 5,600
Sales 6,500
Rent 900
Drawings 800
31,100 31,100
Principles of Accounts for CSEC by David Austen Answers to Chapter 5
ISBN 978-1-4085-0911-1 © Nelson Thornes 2011 21
Question 3 – p. 45
Trial Balance at 31 December 2010
Dr Cr
$ $
Advertising 600
Bank loan 7,000
Capital 10,500
Cash at bank 1,200
Payables 400
Receivables 900
Drawings 2,300
General expenses 700
Purchases 6,100
Sales 8,800
Vehicle 14,900
26,700 26,700
Question 4 – p. 45
Trial Balance at 31 March 2011
Dr Cr
$ $
Capital 13,700
Cash at bank 600
Cash in hand 100
Payables 2,500
Receivables 1,400
Drawings 2,200
Electricity 300
Furniture 14,900
Loan interest 500
Purchases 7,700
Salaries 11,200
Sales 22,700
38,900 38,900
Question 5 – p. 45
Dr Vehicle Cr April 1 Balance 14,800 Dr Equipment Cr April 1 Balance 11,200 11 Bank 800
Dr Receivables Cr April 1 Balance 4,700 April 18 Bank 2,700 22 Sales 1,600
Principles of Accounts for CSEC by David Austen Answers to Chapter 5
ISBN 978-1-4085-0911-1 © Nelson Thornes 2011 22
Dr Bank Cr April 1 Balance 3,100 April 9 Rent 700 12 Cash 600 11 Equipment 800 18 Receivable 2,700 19 Drawings 600 20 Payables 2,000
Dr Cash Cr April 1 Balance 500 April 7 Drawings 200 4 Cash 1,000 12 Bank 600 25 Sales 800 15 Wages 500 28 Wages 900
Dr Capital Cr April 1 Balance 30,700 Dr Payables Cr April 20 Bank 2,000 April 1 Balance 3,600 1 Purchases 1,100 Dr Sales Cr April 1 Cash 1,000 22 Receivables 1,600 25 Cash 800
Dr Purchases Cr April 1 Payables 1,100 Dr Drawings Cr April 7 Cash 200 19 Bank 600
Dr Rent Cr April 9 Bank 700 Dr Wages Cr April 15 Cash 500 28 Cash 900
Trial Balance at 30 April 2011
Dr Cr
$ $
Vehicle 14,800
Equipment 12,000
Receivables 3,600
Bank 2,300
Cash 100
Capital 30,700
Payables 2,700
Sales 3,400
Purchases 1,100
Drawings 800
Rent 700
Wages 1,400
36,800 36,800
Principles of Accounts for CSEC by David Austen Answers to Chapter 5
ISBN 978-1-4085-0911-1 © Nelson Thornes 2011 23
Question 6 – p. 46
Answer included in ‘Model answers to selected questions’ in book
Principles of Accounts for CSEC by David Austen Answers to Chapter 6
ISBN 978-1-4085-0911-1 © Nelson Thornes 2011 24
Chapter 6
Question 1 – p. 55
a)
$ Sales 16,300
less Purchases 7,500
Gross profit 8,800
b)
$ Gross profit 8,800
less Total expenses 4,200
Profit 4,600
c) Dr Bank Cr Feb Balance 2,300 Feb Purchases 7,500 Sales 16,300 Rent 2,500 Wages of assistant 900 Insurance 800 d)
Sophie Balance Sheet at 28 February 2011
$ $
ASSETS CAPITAL 30,600
Fittings 19,400
Equipment 6,200 LIABILITIES
Bank 6,900 Payables 1,900
32,500 32,500
Question 2 – p. 55
a)
$ Sales 22,500
less Purchases 11,800
Gross profit 10,700
b)
$ Gross profit 10,700
less Total expenses 5,600
Profit 5,100
Principles of Accounts for CSEC by David Austen Answers to Chapter 6
ISBN 978-1-4085-0911-1 © Nelson Thornes 2011 25
c) Dr Bank Cr June Balance 3,500 June Purchases 11,800 Sales 22,500 Wages 4,200 Light and heat 500 Administration expenses 900 d)
Jack Balance Sheet at 30 June 2011
$ $
ASSETS CAPITAL 93,600
Shop premises 92,000
Vehicle 18,000 LIABILITIES
Bank 8,600 Bank loan 25,000
118,600 118,600
Question 3 – p. 55
a)
$ Sales 9,900
less Purchases 3,200
Gross profit 6,700
b)
$ Gross profit 6,700
less Total expenses 2,100
Profit 4,600
c), d), e), f) Dr Equipment Cr Aug 1 Balance 11,600 Dr Furniture Cr Aug 1 Balance 10,500 Dr Bank Cr Aug 1 Balance 2,900 Aug Purchases 3,200 Sales 9,900 Wages 800 Rent 700 Light and heat 600
Dr Capital Cr Aug 1 Balance 23,900 31 Profit 4,600 Dr Payables Cr Aug 1 Balance 1,100 Dr Sales Cr Aug 31 Trading 9,900 Aug Bank 9,900
Principles of Accounts for CSEC by David Austen Answers to Chapter 6
ISBN 978-1-4085-0911-1 © Nelson Thornes 2011 26
Dr Purchases Cr Aug Bank 3,200 Aug 31 Trading 3,200 Dr Wages Cr Aug Bank 800 Aug 31 Profit and loss 800 Dr Rent Cr Aug Bank 700 Aug 31 Profit and loss 700 Dr Light and heat Cr Aug Bank 600 Aug 31 Profit and loss 600 Dr Trading Account for the month ended 31 August 2011 Cr Purchases 3,200 Sales 9,900 Gross profit 6,700 Dr Profit and Loss Account for the month ended 31 August 2011 Cr Wages 800 Gross profit 6,700 Rent 700 Light and heat 600 Profit 4,600 g)
Amy Balance Sheet at 31 August 2011
$ $
ASSETS CAPITAL 28,500
Equipment 11,600
Furniture 10,500 LIABILITIES
Bank 7,500 Payables 1,100
29,600 29,600
Question 4 – p. 56
a)
$ Sales 10,300
less Purchases 2,100
Gross profit 8,200
b)
$ Gross profit 8,200
less total expenses 2,000
Profit 6,200
c), d), e), f) Dr Premises Cr Sept 1 Balance 65,000 Dr Equipment Cr Sept 1 Balance 12,200
Principles of Accounts for CSEC by David Austen Answers to Chapter 6
ISBN 978-1-4085-0911-1 © Nelson Thornes 2011 27
Dr Bank Cr Sept 1 Balance 4,400 Sept Purchases 2,100 Sales 10,300 Insurance 700 Loan interest 200 Wages 1,100
Dr Capital Cr Sept 1 Balance 73,600 30 Profit 6,200 Dr Bank loan Cr Sept 1 Balance 8,000 Dr Sales Cr Sept 30 Trading 10,300 Sept Bank 10,300 Dr Purchases Cr Sept Bank 2,100 Sept 30 Trading 2,100 Dr Insurance Cr Sept Bank 700 Sept 30 Profit and loss 700 Dr Loan interest Cr Sept Bank 200 Sept 30 Profit and loss 200 Dr Wages Cr Sept Bank 1,100 Sept 30 Profit and loss 1,100 Dr Trading Account for the month ended 30 September 2011 Cr Purchases 2,100 Sales 10,300 Gross profit 8,200 Dr Profit and Loss Account
for the month ended 30 September 2011 Cr
Insurance 700 Gross profit 8,200 Loan interest 200 Wages 1,100 Profit 6,200 g)
Neil Balance Sheet at 30 September 2011
$ $
ASSETS CAPITAL 79,800
Premises 65,000
Equipment 12,200 LIABILITIES
Bank 10,600 Bank loan 8,000
87,800 87,800
Question 5 – p. 56
a)
$ Sales 7,700
less Purchases 5,300
Gross profit 2,400
Principles of Accounts for CSEC by David Austen Answers to Chapter 6
ISBN 978-1-4085-0911-1 © Nelson Thornes 2011 28
b)
$ Gross profit 2,400
less Total expenses 3,000
Loss 600
c), d), e), f) Dr Furniture Cr July 1 Balance 11,200 Dr Equipment Cr July 1 Balance 3,200 Dr Bank Cr July 1 Balance 1,800 July Purchases 5,300 Sales 7,700 Rent 1,100 Light and heat 600 Wages 1,300
Dr Capital Cr July 31 Loss 600 July 1 Balance 13,600 Dr Payables Cr July 1 Balance 2,600 Dr Sales Cr July 31 Trading 7,700 July Bank 7,700 Dr Purchases Cr July Bank 5,300 July 31 Trading 5,300 Dr Rent Cr July Bank 1,100 July 31 Profit and loss 1,100 Dr Light and heat Cr July Bank 600 July 31 Profit and loss 600 Dr Wages Cr July Bank 1,300 July 31 Profit and loss 1,300 Dr Trading Account for the month ended 31 July 2011 Cr Purchases 5,300 Sales 7,700 Gross profit 2,400 Dr Profit and Loss Account for the month ended 31 July 2011 Cr Rent 1,100 Gross profit 2,400 Light and heat 600 Loss 600 Wages 1,300
Principles of Accounts for CSEC by David Austen Answers to Chapter 6
ISBN 978-1-4085-0911-1 © Nelson Thornes 2011 29
g) Winston
Balance Sheet at 31 July 2011
$ $
ASSETS CAPITAL 13,000
Furniture 11,200
Equipment 3,200 LIABILITIES
Bank 1,200 Payables 2,600
15,600 15,600
Question 6 – p. 56
a)
$ Sales 12,900
less Purchases 9,200
Gross profit 3,700
b)
$ Gross profit 3,700
less Total expenses 5,200
Loss 1,500
c), d), e), f) Dr Premises Cr April 1 Balance 105,000 Dr Equipment Cr April 1 Balance 16,000 Dr Bank Cr April 1 Balance 2,700 April Purchases 9,200 Sales 12,900 Wages 3,100 Administration exp 1,300 Loan interest 800
Dr Capital Cr April 30 Loss 1,500 April 1 Balance 83,700 Dr Bank loan Cr April 1 Balance 40,000 Dr Sales Cr April 30 Trading 12,900 April Bank 12,900 Dr Purchases Cr April Bank 9,200 April 30 Trading 9,200 Dr Wages Cr April Bank 3,100 April 30 Profit and loss 3,100 Dr Administration expenses Cr April Bank 1,300 April 30 Profit and loss 1,300
Principles of Accounts for CSEC by David Austen Answers to Chapter 6
ISBN 978-1-4085-0911-1 © Nelson Thornes 2011 30
Dr Loan interest Cr April Bank 800 April 30 Profit and loss 800 Dr Trading Account for the month ended 30 April 2011 Cr Purchases 9,200 Sales 12,900 Gross profit 3,700 Dr Profit and Loss Account for the month ended 30 April 2011 Cr Wages 3,100 Gross profit 3,700 Administration exp 1,300 Loss 1,500 Loan interest 800 g)
Dawn Balance Sheet at 30 April 2011
$ $
ASSETS CAPITAL 82,200
Premises 105,000
Equipment 16,000 LIABILITIES
Bank 1,200 Bank loan 40,000
122,200 122,200
Question 7 – p. 57
a), d) Dr Fittings Cr Mar 1 Balance 21,200 24 Bank 1,300 Dr Vehicle Cr Mar 1 Balance 16,400 Dr Receivables Cr Mar 1 Balance 3,200 Mar 9 Bank 1,900 17 Sales 2,400 Dr Bank Cr Mar 1 Balance 2,400 Mar 7 Rent 1,000 9 Receivables 1,900 10 Bank loan 500 30 Cash 700 18 Loan interest 400 21 Payables 1,000
22 Drawings 700
24 Fittings 1,300
Dr Cash Cr Mar 1 Balance 500 Mar 11 Drawings 200 4 Sales 900 14 Wages 700 25 Sales` 1,400 28 Wages 800 30 Bank 700
Dr Capital Cr Mar 31 Drawings 900 Mar 1 Balance 34,900 31 Profit 500 Dr Bank loan Cr Mar 10 Bank 500 Mar 1 Balance 6,000
Principles of Accounts for CSEC by David Austen Answers to Chapter 6
ISBN 978-1-4085-0911-1 © Nelson Thornes 2011 31
Dr Payables Cr Mar 21 Bank 1,000 Mar 1 Balance 2,800 3 Purchases 1,300 Dr Drawings Cr Mar 11 Cash 200 Mar 31 Capital 900 22 Bank 700 Dr Sales Cr Mar 31 Trading 4,700 Mar 4 Cash 900 17 Receivables 2,400 25 Cash 1,400 Dr Purchases Cr Mar 3 Payables 1,300 Mar 31 Trading 1,300 Dr Rent Cr Mar 7 Bank 1,000 Mar 31 Profit and loss 1,000 Dr Wages Cr Mar 14 Cash 700 Mar 31 Profit and loss 1,500 28 Cash 800 Dr Loan interest Cr Mar 18 Bank 400 Mar 31 Profit and loss 400 b)
Trial Balance at 31 March 2011
Dr Cr
$ $
Fittings 22,500
Vehicle 16,400
Receivables 3,700
Bank 100
Cash 400
Capital 34,900
Bank loan 5,500
Payables 3,100
Drawings 900
Sales 4,700
Purchases 1,300
Rent 1,000
Wages 1,500
Loan interest 400
48,200 48,200
c) Dr Trading Account for the month ended 31 March 2011 Cr Purchases 1,300 Sales 4,700 Gross profit 3,400 Dr Profit and Loss Account for the month ended 31 March 2011 Cr Rent 1,000 Gross profit 3,400 Wages 1,500 Loan interest 400 Profit 500
Principles of Accounts for CSEC by David Austen Answers to Chapter 6
ISBN 978-1-4085-0911-1 © Nelson Thornes 2011 32
e)
Thomas Balance Sheet at 31 March 2011
$ $
ASSETS CAPITAL 34,500
Fittings 22,500
Vehicle 16,400 LIABILITIES
Receivables 3,700 Bank loan 5,500
Bank 100 Payables 3,100
Cash 400
43,100 43,100
Question 8 – p. 57
a), d) Dr Premises Cr Sept 1 Balance 66,000 Dr Equipment Cr Sept 1 Balance 17,400 Sept 10 Bank 1,100 Dr Receivables Cr Sept 1 Balance 300 Sept 7 Cash 200 17 Receivables 600 Dr Bank Cr Sept 1 Balance 2,700 Sept 4 Payables 1,800 10 Equipment 1,100 5 Insurance 300 30 Sales 1,300 11 Drawings 600 25 Purchases 900
Dr Cash Cr Sept 1 Balance 600 Sept 13 Wages 1,400 7 Receivables 200 22 Insurance 100 9 Sales 3,300 24 Drawings 300 18 Sales 2,800 28 Wages 1,000
Dr Capital Cr Sept 30 Drawings 900 Sept 1 Balance 70,100 30 Profit 2,000 Dr Bank loan Cr Sept 1 Balance 15,000 Dr Payables Cr Sept 4 Bank 1,800 Sept 1 Balance 1,900 21 Purchases 2,300 Dr Drawings Cr Sept 11 Bank 600 Sept 30 Capital 900 24 Cash 300 Dr Sales Cr Sept 30 Trading 8,000 Sept 9 Cash 3,300 17 Receivables 600 18 Cash 2,800 30 Bank 1,300
Principles of Accounts for CSEC by David Austen Answers to Chapter 6
ISBN 978-1-4085-0911-1 © Nelson Thornes 2011 33
Dr Purchases Cr Sept 21 Payables 2,300 Sept 30 Trading 3,200 25 Bank 900 Dr Insurance Cr Sept 5 Bank 300 Sept 30 Profit and loss 400 22 Cash 100 Dr Wages Cr Sept 13 Cash 1,400 Sept 30 Profit and loss 2,400 28 Cash 1,000 b)
Trial Balance at 30 September 2011
Dr Cr
$ $
Premises 66,000
Equipment 16,300
Receivables 700
Bank 1,500
Cash 4,100
Capital 70,100
Bank loan 15,000
Payables 2,400
Drawings 900
Sales 8,000
Purchases 3,200
Insurance 400
Wages 2,400
95,500 95,500
c) Dr Trading Account for the month ended 30 September 2011 Cr Purchases 3,200 Sales 8,000 Gross profit 4,800 Dr Profit and Loss Account for the month ended 30 September 2011 Cr Insurance 400 Gross profit 4,800 Wages 2,400 Profit 2,000 e)
Maggie Balance Sheet at 30 September 2011
$ $
ASSETS CAPITAL 71,200
Premises 66,000
Equipment 16,300 LIABILITIES
Receivables 700 Bank loan 15,000
Bank 1,500 Payables 2,400
Cash 4,100
88,600 88,600
Principles of Accounts for CSEC by David Austen Answers to Chapter 6
ISBN 978-1-4085-0911-1 © Nelson Thornes 2011 34
Question 9 – p. 58
a), d) Dr Administration expenses Cr Dec 1 Balance 8,250 Dec 31 Profit and loss 8,690 17 Cash 440 Dr Bank Cr Dec 1 Balance 3,190 Dec 2 Purchases 2,200 30 Cash 6,200 8 Rent 1,250 10 Bank loan 500 22 Payables 2,600 23 Fittings 970 Dr Bank loan Cr Dec 10 Bank 500 Dec 1 Balance 8,000 Dr Capital Cr Dec 31 Drawings 21,810 Dec 1 Balance 31,870 31 Profit 7,990 Dr Cash Cr Dec 1 Balance 340 Dec 15 Wages 1,620 3 Sales 5,220 16 Drawings 600 6 Receivables 330 20 Sales 3,130
17 Administration expenses
440
29 Sales 2,440 28 Wages 1,880
30 Bank 6,200
Dr Drawings Cr Dec 1 Balance 21,210 Dec 31 Capital 21,810 16 Cash 600 Dr Fittings Cr Dec 1 Balance 8,920 23 Bank 970 Dr Loan interest Cr Dec 1 Balance 640 Dec 31 Profit and loss 640 Dr Payables Cr Dec 22 Bank 2,600 Dec 1 Balance 3,480 Dr Purchases Cr Dec 1 Balance 83,470 Dec 31 Trading 85,670 2 Bank 2,200 Dr Receivables Cr Dec 1 Balance 570 Dec 6 Cash 330 13 Sales 210 Dr Rent Cr Dec 1 Balance 13,230 Dec 31 Profit and loss 14,480 8 Bank 1,250
Principles of Accounts for CSEC by David Austen Answers to Chapter 6
ISBN 978-1-4085-0911-1 © Nelson Thornes 2011 35
Dr Sales Cr Dec 31 Trading 152,300 Dec 1 Balance 141,300 3 Cash 5,220 13 Receivables 210 20 Cash 3,130 29 Cash 2,440 Dr Vehicle Cr Dec 1 Balance 13,500 Dr Wages Cr Dec 1 Balance 31,330 Dec 31 Profit and loss 34,830 15 Cash 1,620 28 Cash 1,880 b)
Trial Balance at 31 December 2010
Dr Cr
$ $
Administration expenses 8,690
Bank 1,870
Bank loan 7,500
Capital 31,870 Cash 720
Drawings 21,810
Fittings 9,890
Loan interest 640
Payables 880
Purchases 85,670
Receivables 450
Rent 14,480
Sales 152,300
Vehicle 13,500
Wages 34,830
192,550 192,550
c) Dr Trading Account for the year ended 31 December 2010 Cr Purchases 85,670 Sales 152,300 Gross profit 66,630 Dr Profit and Loss Account
for the year ended 31 December 2010 Cr
Administration expenses
8,690
Gross profit 66,630
Loan interest 640 Rent 14,480 Wages 34,830 Profit 7,990
Principles of Accounts for CSEC by David Austen Answers to Chapter 6
ISBN 978-1-4085-0911-1 © Nelson Thornes 2011 36
e) Bill
Balance Sheet at 31 December 2010
$ $ $ $
NON-CURRENTASSETS CAPITAL 18,050
Vehicle 13,500
Fittings 9,890 NON-CURRENT LIABILITIES
23,390 Bank loan 7,500
CURRENT ASSETS
Receivables 450 CURRENT LIABILITIES
Bank 1,870 Payables 880
Cash 720
3,040
26,430 26,430
Question 10 – p. 58
Answer included in ‘Model answers to selected questions’ in book
Principles of Accounts for CSEC by David Austen Answers to Chapter 7
ISBN 978-1-4085-0911-1 © Nelson Thornes 2011 37
Chapter 7
Question 1 – p. 67
Dr Cash Cr
Feb 1 Balance 450 Feb 8 Drawings 150
14 Sales 1,200 24 Wages 990
28 Balance c/d 510
1,650 1,650
Mar 1 Balance b/d 510
Question 2 – p. 67
Dr Bank Cr
Oct 1 Balance 2,200 Oct 6 Payables 1,400
12 Cash 500 12 Insurance 300
17 Receivables 1,300 24 Drawings 400
31 Balance c/d 1,900
4,000 4,000
Nov 1 Balance b/d 1,900
Question 3 – p. 67
Dr Bank loan Cr
May 10 Bank 600 May 1 Balance 8,000
31 Balance c/d 7,400
8,000 8,000
June 1 Balance b/d 7,400
Question 4 – p. 67
Dr Payables Cr
Dec 15 Bank 2,900 Dec 1 Balance 3,200
31 Balance c/d 1,700 28 Purchases 1,400
4,600 4,600
Jan 1 Balance b/d 1,700
Question 5 – p. 67
Dr Cash Cr
Aug 1 Balance 370 Aug 12 Purchases 120
14 Sales 130 28 Drawings 210
31 Balance c/d 170
500 500
Sept 1 Balance b/d 170 Dr Capital Cr
Aug 31 Drawings 11,900 Aug 1 Balance 39,400
31 Balance c/d 45,900 31 Profit 18,400
57,800 57,800
Sept 1 Balance b/d 45,900
Principles of Accounts for CSEC by David Austen Answers to Chapter 7
ISBN 978-1-4085-0911-1 © Nelson Thornes 2011 38
Dr Premises Cr
Aug 1 Balance 74,000 Dr Receivables Cr
Aug 1 Balance 3,600 Aug 31 Balance c/d 5,300
26 Sales 1,700
5,300 5,300
Sept 1 Balance b/d 5,300 Dr Payables Cr
Aug 31 Balance c/d 4,200 Aug 1 Balance 2,100
11 Purchases 800
25 Purchases 1,300
4,200 4,200
Sept 1 Balance b/d 4,200
Question 6 – p. 68
Dr Bank Cr
Jan 1 Balance 3,240 Jan 8 Rent 1,050
15 Cash 620 14 Drawings 450
28 Cash 290 29 Salaries 2,140
31 Balance c/d 510
4,150 4,150
Feb 1 Balance b/d 510
Dr Payables Cr
Jan 31 Balance c/d 6,190 Jan 1 Balance 4,150
16 Purchases 2,040
6,190 6,190
Feb 1 Balance b/d 6,190
Dr Capital Cr
Jan 31 Drawings 3,870 Jan 1 Balance 62,100
31 Balance c/d 73,310 31 Profit 15,080
77,180 77,180
Feb 1 Balance b/d 73,310
Dr Fittings Cr
Jan 1 Balance 14,900
Dr Equipment Cr
Jan 1 Balance 4,980 Jan 31 Balance c/d 8,050
18 Bank 3,070
8,050 8,050
Feb 1 Balance b/d 8,050
Principles of Accounts for CSEC by David Austen Answers to Chapter 7
ISBN 978-1-4085-0911-1 © Nelson Thornes 2011 39
Question 7 – p. 68
Dr Purchases Cr
Oct 14 Bank 3,820 Oct 31 Trading 5,910
29 Payables 2,090
5,910 5,910
Dr Sales Cr
Oct 31 Trading 7,070 Oct 5 Cash 1,250
11 Bank 3,780
25 Receivables 2,040
7,070 7,070
Dr Rent Cr
Oct 11 Bank 3,750 Oct 31 Profit and loss 3,750
Dr Drawings Cr
Oct 15 Bank 1,980 Oct 31 Capital 1,980
Dr Receivables Cr
Oct 1 Balance 4,240 Oct 29 Bank 6,280
25 Sales 2,040
6,280 6,280
Dr Trading Account for the month ended 31 October 2011 Cr
Purchases 5,910 Sales 7,070
Gross profit 1,160
7,070 7,070
Question 8 – p. 68
Dr Sales Cr
April 30 Trading 5,810 April 7 Bank 3,720
14 Receivables 2,090
5,810 5,810
Dr Wages Cr
April 14 Cash 2,640 April 30 Profit and loss 4,910
28 Cash 2,270
4,910 4,910
Dr General expenses Cr
April 6 Bank 320 April 30 Profit and loss 410
18 Cash 90
410 410
Dr Insurance Cr
April 17 Bank 560 April 30 Profit and loss 560
Principles of Accounts for CSEC by David Austen Answers to Chapter 7
ISBN 978-1-4085-0911-1 © Nelson Thornes 2011 40
Dr Payables Cr
April 29 Bank 3,770 April 1 Balance 1,040
17 Purchases 2,730
3,770 3,770
Dr Profit and Loss Account for the month ended 30 April 2011 Cr
Wages 4,910 Gross profit 12,880
General expenses 410
Insurance 560
Profit 7,000
12,880 12,880
Question 9 – p. 69
Receivables
Date Details Dr Cr Balance
$ $ $
June 1 Balance 4,800 Dr
11 Sales 3,450 8,250 Dr
17 Bank 3,600 4,650 Dr
24 Sales 1,400 6,050 Dr
30 Bank 2,900 3,150 Dr
Question 10 – p. 69
Payables
Date Details Dr Cr Balance
$ $ $
Aug 1 Balance 2,700 Cr
5 Purchases 7,400 10,100 Cr
11 Purchases 1,200 11,300 Cr
18 Bank 6,300 5,000 Cr
24 Bank 3,500 1,500 Cr
Question 11 – p. 69
Cash
Date Details Dr Cr Balance
$ $ $
May 1 Balance 630 Dr
8 Office expenses 170 460 Dr
17 Drawings 80 380 Dr
22 Sales 1,050 1,430 Dr
22 Bank 1,200 230 Dr
Principles of Accounts for CSEC by David Austen Answers to Chapter 7
ISBN 978-1-4085-0911-1 © Nelson Thornes 2011 41
Payables
Date Details Dr Cr Balance
$ $ $
May 1 Balance 1,820 Cr
17 Purchases 1,440 3,260 Cr
25 Bank 2,300 960 Cr
Question 12 – p. 69
Bank
Date Details Dr Cr Balance
$ $ $
Sept 1 Balance 1,420 Dr
8 Rent 520 900 Dr
11 Drawings 200 700 Dr
11 Sales 1,600 2,300 Dr
18 Cash 750 3,050 Dr
27 Purchases 1,580 1,470 Dr
Bank loan
Date Details Dr Cr Balance
$ $ $
Sept 1 Balance 10,000 Cr
10 Bank 600 9,400 Cr
15 Bank 3,000 12,400 Cr
Question 13 – p. 69
a), b), e), f)
Dr Bank Cr
Dec 1 Balance 2,040 Dec 5 Payables 5,840
8 Receivables 6,400 14 Purchases 1,290
18 Equipment 860
31 Balance c/d 450
8,440 8,440
Jan 1 Balance b/d 450
Dr Capital Cr
Dec 31 Drawings 17,780 Dec 1 Balance 124,650
31 Balance c/d 134,560 31 Profit 27,690
152,340 152,340
Jan 1 Balance b/d 134,560
Principles of Accounts for CSEC by David Austen Answers to Chapter 7
ISBN 978-1-4085-0911-1 © Nelson Thornes 2011 42
Dr Cash Cr
Dec 1 Balance 310 Dec 23 Wages 1,450
22 Sales 2,180 28 Drawings 290
31 Balance c/d 750
2,490 2,490
Jan 1 Balance b/d 750
Dr Drawings Cr
Dec 1 Balance 17,490 Dec 31 Capital 17,780
28 Cash 290
17,780 17,780
Dr Equipment Cr
Dec 1 Balance 12,200 Dec 31 Balance c/d 13,060
18 Bank 860
13,060 13,060
Jan 1 Balance b/d 13,060
Dr General expenses Cr
Dec 1 Balance 2,080 Dec 31 Profit and loss 2,080
Dr Insurance Cr
Dec 1 Balance 3,650 Dec 31 Profit and loss 3,650
Dr Payables Cr
Dec 5 Bank 5,840 Dec 1 Balance 5,840
Dr Premises Cr
Dec 1 Balance 88,000
Dr Purchases Cr
Dec 1 Balance 142,300 Dec 31 Trading 143,590
14 Bank 1,290
143,590 143,590
Dr Receivables Cr
Dec 1 Balance 3,140 Dec 8 Bank 6,400
1 Sales 4,560 31 Balance c/d 1,300
7,700 7,700
Jan 1 Balance b/d 1,300
Dr Sales Cr
Dec 31 Trading 245,300 Dec 1 Balance 238,560
1 Receivables 4,560
22 Cash 2,180
245,300 245,300
Principles of Accounts for CSEC by David Austen Answers to Chapter 7
ISBN 978-1-4085-0911-1 © Nelson Thornes 2011 43
Dr Vehicle Cr
Dec 1 Balance 31,000
Dr Wages Cr
Dec 1 Balance 66,840 Dec 31 Profit and loss 68,290
23 Cash 1,450
68,290 68,290
c)
Trial Balance at 31 December 2010
Dr Cr
$ $
Bank 450
Capital 124,650
Cash 750
Drawings 17,780
Equipment 13,060
General expenses 2,080
Insurance 3,650
Payables –
Premises 88,000
Purchases 143,590
Receivables 1,300
Sales 245,300
Vehicle 31,000
Wages 68,290
369,950 369,950
d)
Dr Trading Account for the year ended 31 December 2010 Cr
Purchases 143,590 Sales 245,300
Gross profit 101,710
245,300 245,300
Dr Profit and Loss Account
for the year ended 31 December 2010 Cr
General expenses 2,080 Gross profit 101,710
Insurance 3,650
Wages 68,290
Profit 27,690
101,710 101,710
Principles of Accounts for CSEC by David Austen Answers to Chapter 7
ISBN 978-1-4085-0911-1 © Nelson Thornes 2011 44
g) Mike
Balance Sheet at 31 December 2010
$ $ $ $
NON-CURRENT ASSETS CAPITAL 134,560
Premises 88,000
Vehicle 31,000
Equipment 13,060
132,060
CURRENT ASSETS
Receivables 1,300
Bank 450
Cash 750
2,500
134,560 134,560
Question 14 – p. 70
Answer included in ‘Model answers to selected questions’ in book