Topic C06: The Accounting Cycle Topic Overview p. 1. Topic Overview

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1 : Topic Overview p. 1 Topic Level Duration Topic Overview BAFS Compulsory Part - Introduction to Accounting C06: S4 3 lessons (40 minutes per lesson) Learning Objectives: 1. To reinforce the concept of the double entry accounting system; and 2. To reinforce accounting knowledge such as recording transactions in books of original entry, posting entries to ledger accounts and preparing trial balance, income statement and balance sheet. Overview of Contents: Lesson 1 Lesson 2 Lesson 3 Double Entry System and Books of Original Entry Ledgers Trial Balance and Financial Statements Resources: Topic Overview and Teaching Plan Power Point Presentation Student Worksheet Suggested Activity: Practical exercise

2 : Topic Overview p. 2 Theme Duration Lesson 1 Double Entry System and Books of Original Entry 40 minutes Expected Learning Outcomes: Upon completion of this lesson, students will be able to: 1. Apply the principles of double entry for the recording of business transactions; and 2. Record transactions in books of original entry. Teaching Sequence and Time Allocation: Activities Part I: Introduction Teacher introduces the lesson by informing the class. that they are going to prepare a set of accounts for Beauty Full Co. Part II: Content Reference PPT#2 Time Allocation 2 minutes Teacher reviews the basic steps of the accounting cycle. PPT#3 Teacher reviews the double entry accounting system PPT#4-36 and goes through the rules of double entry for different types of accounts. Teacher explains the steps of journalising transactions and reviews the six books of original entry. PPT#37 15 minutes (Note: Owing to time constraint, teacher may skip this part if students are familiar with the concepts, or teacher may ask students to review the concepts before the lesson.) Activity : Practice Set Students are required to open a general journal to record the assets, liabilities and capital of Beauty Full Co. Teacher checks answers with the class. PPT#38-40 Student Worksheet p minutes Activity : Practice Set Students are required to record credit sales PPT# minutes transactions in the sales journal and sales returns in Student

3 : Topic Overview p. 3 the returns inward journal. Teacher checks answers with the class. Activity : Practice Set Students are required to record credit purchases transactions in the purchases journal and purchases returns in the returns outwards journal. Teacher checks answers with the class. Part III: Conclusion Teacher concludes the lesson by reviewing key points covered in this lesson. Worksheet pp PPT#45-48 Student Worksheet pp minutes 2 minutes

4 : Topic Overview p. 4 Theme Duration Ledgers 40 minutes Lesson 2 Expected Learning Outcomes: Upon completion of this lesson, students will be able to: 1. Set up ledger accounts; and 2. Post transactions from the books of original entry to the respective ledger accounts. Teaching Sequence and Time Allocation: Activities Part I: Introduction Teacher reviews the progress of the accounting process for Beauty Full Co. Part II: Content Activity : Practice Set Students are required to record other transactions in the general journal and/or the cash book. Teacher checks answers with the class. Teacher explains the commonly used ledgers and what they are used for. Activity : Practice Set Students are required to set up general ledger, accounts receivable ledger and accounts payable ledger accounts. Students are then required to post entries from the books of original entry to the respective ledger accounts. Teacher checks answers with the class. Part III: Conclusion Teacher concludes the session by reviewing the key points covered in this lesson. Reference PPT#49-57 Student Worksheet pp & 35 PPT#58-68 Student Worksheet pp Time Allocation 2 minutes 12 minutes 24 minutes 2 minutes

5 : Topic Overview p. 5 Theme Duration Lesson 3 Trial Balance and Financial Statements 40 minutes Expected Learning Outcomes: Upon completion of this lesson, students will be able to: 1. Balance off ledger accounts at month end; 2. Explain what a trial balance is and the uses of it; 3. Prepare a trial balance; 4. Prepare an income statement; and 5. Prepare a balance sheet. Teaching Sequence and Time Allocation: Activities Part I: Introduction Teacher starts by telling students the uses of trial balance. Part II: Content Teacher explains the procedure of preparing a trial balance. Activity : Practice Set Students are required to balance off the ledgers and cash book accounts and prepare the trial balance of Beauty Full Co. Teacher checks answers with the class. Teacher explains what income statement and balance sheet of a company are and shows how they are prepared based on the trial balance. Teacher describes the format of a vertical style income statement. Activity : Practice Set Students are required to draw up the income statement of Beauty Full Co. Teacher checks answers with the class. Reference PPT#69 PPT#70-72 Student Worksheet p.52 PPT#73 PPT#74 Student Worksheet p.53 PPT#75 Time Allocation 2 minutes 15 minutes 10 minutes

6 : Topic Overview p. 6 Teacher describes the format of a vertical style balance sheet. Activity : Practice Set Students are required to draw up the balance sheet of Beauty Full Co. Teacher checks answers with the class. Part III: Conclusion Teacher concludes the session by highlighting the importance of accounting. PPT#76 Student Worksheet p.54 PPT#77 PPT#78 10 minutes 3 minutes

7 BAFS Compulsory Part Introduction to Accounting : Beauty Full Co. Technology Education Section Curriculum Development Institute Education Bureau, HKSARG April BAFS Compulsory Part Introduction This session aims to reinforce students understanding of the accounting cycle through preparing a set of accounts for a sole proprietorship. Students will work through different steps in the accounting cycle. Duration Three 40-minute lessons Lesson 1 Start the lesson by telling the class that they are required to prepare a set of accounts for a sole proprietorship called Beauty Full Co. The materials are contained in the Student Worksheet. Ask students to read the background information of Beauty Full Co. on Student Worksheet p.2. Contents Lesson 1 Double Entry System and Books of Original Entry Lesson 2 Ledgers Lesson 3 Trial Balance and Financial Statements 1 2

8 Source Documents Evidence of transactions, including: Sales and purchases invoices Debit and credit notes Bank statements Copies of cheques issued and recieved Cash vouchers 3 BAFS Compulsory Part 4 BAFS Compulsory Part Before moving on to the accounting practice set, recap the major steps of the accounting cycle. Have students check the practice set of the source documents which includes: 1. Bank statement for the month of July of Year 1; 2. Copy of seven cheques issued by Beauty Full Co; 3. Copy of four cheques drawn at different banks received and paid by Beauty Full Co; 4. Two cash vouchers; 5. Eight sales invoices; 6. Seven purchase invoices; 7. Two credit notes; and 8. One debit note. 3 4

9 Double Entry System: Assets, Liabilities and Capital Example Types of accounts Assets Capital Liabilities Examples Premises, van, fixtures, stock, cash, cash in bank, accounts receivable, etc. Owner s capital Accounts payable, bank loan, etc. To record An increase A decrease An increase A decrease An increase A decrease Entry in the account Debit Credit Credit Debit Credit Debit 5 BAFS Compulsory Part On July 2 of Year 1, BF Co. purchased a van for 50,000 in cash. Accounts Van Cash Types of Accounts Asset Asset Increase / decrease Increase Decrease Entry in the account Debit Credit 6 BAFS Compulsory Part Before we move on, let s have a quick review on the double entry system. Firstly, make sure students are able to identify different types of accounts, namely, assets, capital, liabilities, stocks, revenue or expenses. Then, explain the rules of double entry for assets, capital and liabilities. See next 4 slides for examples. 5 6

10 Example Year 1 July 1 Cash 50,000 Van Cash Year 1 July 1 Van 50,000 Example On July 15 of Year 1, BF Co. bought fixtures for 30,000 from BD Ltd on credit. Accounts Fixtures BD Ltd Types of Accounts?? Increase / decrease?? Entry in the account?? 7 BAFS Compulsory Part 8 BAFS Compulsory Part Using T-accounts to illustrate the entries. Ask the class to fill in the blanks. See next slide for the answer. 7 8

11 Answer On July 15 of Year 1, BF Co. bought fixtures for 30,000 from BD Ltd on credit. Accounts Fixtures BD Ltd Types of Accounts Asset Liability Increase / decrease Increase Increase Entry in the account Debit Credit Example Year 1 July Year 1 July Year 1 July Year 1 July 9 BAFS Compulsory Part 10 BAFS Compulsory Part Ask the class to name the T-accounts and input the correct entries. See next slide for the answer. 9 10

12 Answer Double Entry System: Stocks Year 1 July 15 BD Ltd 30,000 Fixtures Year 1 July Year 1 July BD Ltd Year 1 July 15 Fixtures 30, BAFS Compulsory Part Types of accounts Purchases Returns inwards Returns outwards Sales To record An increase A decrease An increase A decrease An increase A decrease An increase A decrease Entry in the account Debit Credit Credit Debit Debit Credit Credit Debit 12 BAFS Compulsory Part Explain to the class the rules of double entry for the treatment of stocks. See next 8 slides for examples

13 Example On July 8 of Year 1, BF Co. sold goods for 10,000 to M Chan on credit. Accounts Types of Accounts Increase / decrease Entry in the account Example Year 1 July 8 Sales 10,000 M Chan M Chan Sales Asset Sales Increase Increase Debit Credit Sales Year 1 July 8 M Chan 10, BAFS Compulsory Part 14 BAFS Compulsory Part Using T-accounts to illustrate the entries

14 Example On July 22 of Year 1, M Chan refunded goods he bought for 1,000. Accounts Returns Inwards M Chan Types of Accounts Returns Inwards Asset Increase / decrease Increase Decrease Entry in the account Debit Credit Example Year 1 July 22 M Chan 1,000 Returns Inwards M Chan Year 1 July 22 Returns Inwards 1, BAFS Compulsory Part 16 BAFS Compulsory Part Using T-accounts to illustrate the entries

15 Example On July 6 of Year 1, BF Co. purchased goods for 9,000 from F Li on credit. Answer On July 6 of Year 1, BF Co. purchased goods for 9,000 from F Li on credit. Accounts Types of Accounts Increase / decrease Entry in the account Accounts Types of Accounts Increase / decrease Entry in the account Purchases??? Purchases Purchases Increase Debit F Li??? F Li Liability Increase Credit 17 BAFS Compulsory Part 18 BAFS Compulsory Part Ask the class to fill in the blanks. See next slide for the answer

16 Example Answer Year 1 July Year 1 July Year 1 July 6 F Li 9,000 Purchases Year 1 July F Li Year July Year 1 July Year 1 July Year 1 July 6 Purchases 9, BAFS Compulsory Part 20 BAFS Compulsory Part Ask the class to name the T-accounts and input the correct entries. See next slide for the answer

17 Example On July 27 of Year 1, BF Co. returned goods previously bought from F Li for 800. Answer On July 27 of Year 1, BF Co. returned goods previously bought from F Li for 800. Accounts Types of Accounts Increase / decrease Entry in the account Accounts Types of Accounts Increase / decrease Entry in the account F Li??? F Li Liability Decrease Debit Returns Outwards??? Returns Outwards Returns outwards Increase Credit 21 BAFS Compulsory Part 22 BAFS Compulsory Part Ask the class to fill in the blanks. See next slide for the answer

18 Example Answer F Li Year 1 July Year 1 July Year 1 July 27 Returns Outwards 800 Year 1 July Returns outwards Year 1 July Year 1 July Year 1 July Year 1 July 27 F Li BAFS Compulsory Part 24 BAFS Compulsory Part Ask the class to name the T-accounts and input the correct entries. See next slide for the answer

19 Double Entry System: Revenue and Expenses Example Types of Accounts Examples To record Entry in the account On 28 July of Year 1, BF Co. paid motor expenses for 3,500 by cheque. Revenue Expense Commission received, etc. Rent, government rates, motor expense, salary, etc. An increase A decrease An increase A decrease Credit Debit Debit Credit Accounts Motor Expenses Bank Types of Accounts Expense Asset Increase / decrease Increase Decrease Entry in the account Debit Credit 25 BAFS Compulsory Part 26 BAFS Compulsory Part Explain to the class the rules of double entry for revenue and expenses. See next 4 slides for examples

20 Example Year 1 July 28 Bank 3,500 Motor Expenses Bank Year 1 July 28 Motor expenses 3,500 Example On July 3 of Year 1, BF Co. paid rent expenses for 15,300 by cash. Accounts Rent Expenses Cash Types of Accounts?? Increase / decrease?? Entry in the account?? 27 BAFS Compulsory Part 28 BAFS Compulsory Part Using T-accounts to illustrate the entries. Ask the class to fill in the blanks. See next slide for answer

21 Answer On July 3 of Year 1, BF Co. paid rent expenses for 15,300 by cash. Accounts Rent Expenses Cash Types of Accounts Expense Asset Increase / decrease Increase Decrease Entry in the account Debit Credit Example Year 1 July Year 1 July Year 1 July Year 1 July 29 BAFS Compulsory Part 30 BAFS Compulsory Part Ask the class to name the T-accounts and input the correct entries. See next slide for the answer

22 Answer Double Entry System: Drawings Year 1 July 3 Cash 15,300 Rent expense Year 1 July Type of Account To record Entry in the account Cash Drawings An increase A decrease Debit Credit Year 1 July Year 1 July 3 Rent Expense 15, BAFS Compulsory Part 32 BAFS Compulsory Part Explain the rules of double entry for sole proprietor s drawings. See next 4 slides for example

23 Example On July 20 of Year 1, owner of BF Co. drew cash for 5,000. Accounts Drawings Cash Types of Accounts Drawings Asset Increase / decrease Increase Decrease Entry in the account Debit Credit Example Year 1 July 20 Cash 5,000 Drawings Cash Year 1 July 20 Drawings 5, BAFS Compulsory Part 34 BAFS Compulsory Part Using T-accounts to illustrate the entries

24 Example On July 28 of Year 1, owner of BF Co. took away goods of 3,000. Accounts Drawings Purchases Types of Accounts Drawings Purchases Increase / decrease Increase Decrease Entry in the account Debit Credit Example Year 1 July 28 Purchases 3,000 Drawings Purchases Year 1 July 28 Drawings 3, BAFS Compulsory Part 36 BAFS Compulsory Part Using T-accounts to illustrate the entries

25 Journalise Transactions Transactions are classified and entered into books of original entry. Books of original entry include: Sales journal Purchase journal Returns inwards journal Returns outwards journal Cash book General journal Open the Books Open a general journal to record the assets, liabilities and capital of Beauty Full Co based on the background information given. 37 BAFS Compulsory Part 38 BAFS Compulsory Part Review original entry in books and explain how to journalise transactions. Transactions are first recorded, or journalised, according to the original entry in books. Original entry, credit sales are recorded in the sales journal. Credit purchases are recorded in the purchases journal, etc. These entries then can be posted to respective ledger accounts based on double entry rules. Ask students to open and record the assets, liabilities and capital of Beauty Full Co in the general journal. See next slide for example

26 Example 39 BAFS Compulsory Part 40 BAFS Compulsory Part Teacher can invite a volunteer to show his/her entries to the class for checking

27 Sales Journals Record credit sales transactions in the sales journal. 41 BAFS Compulsory Part 42 BAFS Compulsory Part Ask students to record credit sales transactions in the sales journal. There are eight credit sales transactions with invoices from no to Teacher can invite a volunteer to show his/her entries to the class for checking

28 Returns Inwards Journal Record the sales returns to the returns inwards journal. 43 BAFS Compulsory Part 44 BAFS Compulsory Part Ask students to record the sales returns in the returns inwards journal. There are two credit notes evidencing sales returns from Francis Au and Rose Ltd. Teacher can invite a volunteer to show his/her entries to the class for checking

29 Purchase Journal Record credit purchases transactions in the purchases journal. 45 BAFS Compulsory Part 46 BAFS Compulsory Part Ask students to record credit purchases transactions in the purchases journal. There are six purchase transactions with different suppliers. Teacher can invite a volunteer to show his/her entries to the class for checking

30 Returns Outwards Journal Record the purchases returns to the returns outwards journal. 47 BAFS Compulsory Part 48 BAFS Compulsory Part Ask students to record the purchases returns in the returns outwards journal. A debit note for the purchases returns has been sent to Billy Woo. Teacher can invite a volunteer to show his/her entries to the class for checking. End of Lesson

31 General Journal & Cash Book Make use of the bank statement, copies of cheques issued and received, cash vouchers and invoice and record the respective transactions in the general journal and cash book. Example Rent Payment To record an increase in expense, entry made in the debit side 49 BAFS Compulsory Part To record a decrease in asset (bank balance), entry made in the credit side 50 BAFS Compulsory Part Lesson 2 Ask the class to record transactions other than sales, returns inwards, purchases and returns outwards in the general journal or the cash book based on the information from the bank statement, copies of cheques, cash vouchers and invoices. See next 4 slides for examples. Show how to record the rent payment in the general journal and the cash book (see next slide)

32 Example Rent Payment Example Debtor Repayment 5% cash discount if paid within 60 days Also record the payment by cheque on the right-hand side (credit) of the cash book 51 BAFS Compulsory Part 52 BAFS Compulsory Part Show how to record a debtor repayment in the general journal and cash book (see next slide). Tell students to be careful with the handling of the 5% cash discount for sales if paid within 60 days. Check the answers with the class

33 Example Debtor Repayment Example Creditor Settlement 5% cash discount if paid within 60 days 53 BAFS Compulsory Part 54 BAFS Compulsory Part Entry made in the cash book. Show how to record a payment to creditor in the general journal and cash book (see next slide). Tell students to be careful with the handling of the 5% cash discount for purchases if paid within 60 days. Check the answers with the class

34 Example Creditor Settlement 55 BAFS Compulsory Part 56 BAFS Compulsory Part Entry made in the cash book. Check the answers with students after they have finished recording the transactions in the general journal and cash book (see next slide)

35 Post Entries to Ledger Accounts Set up the following ledger accounts for Beauty Full Co: General ledger Accounts receivable ledger Accounts payable ledger 57 BAFS Compulsory Part 58 BAFS Compulsory Part Ask students to set up ledger accounts for Beauty Full Co, including the general, accounts receivable and accounts payable ledgers. Based on the journal entries completed earlier, ask students to post entries to the respective ledger accounts. See following slides for examples

36 Example Posting to General Ledger Example Posting to Accounts Receivable Ledger 59 BAFS Compulsory Part 60 BAFS Compulsory Part Example of posting the entry of premises from the general journal to the premises account in the general ledger. Example of posting the entry of debtor from the general journal to the corresponding accounts receivable ledger account

37 Example Posting to Accounts Payable Ledger Example Posting to General Ledger Posted to cash book 61 BAFS Compulsory Part 62 BAFS Compulsory Part Example of posting the entry of creditor from the general journal to the corresponding accounts payable ledger account. Example of posting the entry of rent expense from the general journal to the rent expense account in the general ledger. Note that the entry in the cash book should have been input already

38 Example Posting to General Ledger Example Posting to Accounts Receivable Ledger BAFS Compulsory Part 64 BAFS Compulsory Part Example of posting the entry of credit sales from the sales journal to the sales account in the general ledger. The posting to the account receivable ledger is shown on the next slide. Example of posting the entry of credit sales from the sales journal to the accounts receivable ledger account

39 Example Posting to Accounts Receivable Ledger Example Posting to Accounts Payable Ledger Post to cash book Post to cash sales discount account 1 65 BAFS Compulsory Part 66 BAFS Compulsory Part Example of posting the entry of repayment from the general journal to the corresponding accounts receivable ledger account. Note that the other two postings to cash book and cash sales discount account are not shown here. Example of posting the entry of credit purchases from the purchases journal to the general ledger purchases account. The posting to the account payable ledger is shown on the next slide

40 Example Posting to Accounts Payable Ledger 2 Example Posting to Accounts Payable Ledger Post to cash purchases discount account Post to cash book 67 BAFS Compulsory Part 68 BAFS Compulsory Part Example of posting the entry of credit purchases from the purchases journal to the accounts payable ledger account. Example of posting the entry of settlement from the general journal to the corresponding accounts payable ledger account. Note that the other two postings to cash book and cash purchases discount account are not shown here. End of Lesson

41 Uses of Trial Balance Checking the accuracy of double entry records: Under the double entry system, total debit balances and total credit balances are equal. If they are not equal, it means error(s) have been made. There could still be errors even if trial balance balances. Used as a basis for preparing the income statement and the balance sheet. Steps to Prepare Trial Balance Balance off all the ledger accounts and the cash book. List all balances, either debit or credit, of all accounts in the trial balance separately. Add up all the debit and credit balances correspondingly and check whether the totals of debit side and credit side are equal. Check for errors if they are not equal. 69 BAFS Compulsory Part 70 BAFS Compulsory Part Lesson 3 Explain the uses of trial balance. Point out that even the trial balance balances, there could still be errors. For example, 12,000 was recorded as 1,200 on both debit and credit entries, correction should be made if errors are found. Ask students to balance off all the ledger accounts and the cash book, write down the debit balances and the credit balances of all accounts in the trial balance sheet (see next slide for example). Then add up all the debit and credit balances correspondingly and check whether the totals even out. Ask them to check for errors if they are not equal

42 Balance Off an Account Input 400,000 to the credit side of the Premises account to balance it off. The balance is then transfer to next month. 71 BAFS Compulsory Part 72 BAFS Compulsory Part Example of balancing off the premises account and the posting of it to the trial balance. Check the answers with the class

43 Prepare Financial Statements Income Statement Two most important financial statements are: Income statement Balance sheet Less = Add Sales Cost of good sold Gross profit Other incomes Less cash sales discount & returns inwards Calculate from from opening stock, purchase, cash Purchase discount, Returns outwards & closing stock Less Expenses List List all all expenses = Net Profit 73 BAFS Compulsory Part 74 BAFS Compulsory Part Remind students that based on the trial balance, the two most important financial statements, i.e. income statement and balance sheet can be prepared. Describe the format of a vertical style income statement and ask the class to create an income statement of Beauty Full Co for the month of July in Year

44 75 BAFS Compulsory Part Balance Sheet Fixed Assets Current Assets Less Current Liabilities Long-term Liabilities Financed by: Capital + Net Current Assets 76 BAFS Compulsory Part - = Check the answers with the class. Briefly explain the format of the vertical style balance sheet and ask the class to create a balance sheet for Beauty Full Co as at July 31 of Year

45 Conclusions Accounting helps us to Record, classify and summarise data Communicate information Calculate profit and loss Have a better control of the financial resources Enhance effective operations 77 BAFS Compulsory Part 78 BAFS Compulsory Part Check the answers with the class. Conclude the lesson by highlighting the importance and significance of accounting

46 The End 79 BAFS Compulsory Part End of Lesson 3 79

47 : Student Worksheet p. 1 BAFS Compulsory Part - Introduction to Accounting : Beauty Full Co An Accounting Practice Set

48 : Student Worksheet p. 2 Beauty Full Co Background Mr Bobby Fu, a sole proprietor, started his own business Beauty Full Co on June 1 of Year 1. He has little knowledge of accounting. His accounting records are kept on a single entry basis. The balances as at July 1 of Year 1 are extracted as follows: Assets: Premises 400,000; van 90,000; fixtures 120,000; stock 257,800; Bank 250,800; cash in hand 9,000 Debtors: Alan Fung 8,000; Candy Chan 36,000 Liabilities: Creditors: Thomas Liu 12,000; Mandy Hui 40,000 He decides to keep a double entry accounting record starting from July 1 of Year 1. You are required to open the books via the journal to record assets, liabilities, and capital, and then record the daily transactions for the month of July in the books of original entry and the ledgers. A trial balance and financial statements need to be prepared as at 31 July of Year 1. Note: Inventory as at 31 July of Year 1 is 270,000.

49 : Student Worksheet p. 3 STATEMENT OF ACCOUNT WITH BIZ BANK LIMITED 基滙銀行有限公司 月結單 分行 賬戶號碼 Branch: Central Account No.: Beauty Full Company 日期 Date 摘要 Details 存入金額 (CR) / 支出金額 Deposit (CR) / Withdrawals 港幣結餘 Balance in HK Dollars Year 1 July 1 Balance brought forward 250,800 CR , ,800 CR 16 Deposit 7,600 CR 255,400 CR Deposit 41,800 CR 297,200 CR Deposit 7,600 CR 304,800 CR Deposit 15,200 CR 320,000 CR , ,800 CR , ,800 CR , ,400 CR , ,200 CR , ,000 CR , ,000 CR 存入 結餘 Deposits: 72,200 Balance: 171,000 CR 支出 其他賬戶結餘列入 透支 Withdrawals: 152,000 Other net balances Overdraft = OD E & O E 交來票據收妥作實, 倘有錯漏或更改地址時, 請即通知往來存款部主任為荷 Local cheques etc. Although passed to credit are accepted for collection only and will not be available until cleared. Any exception, error, or change of address should be promptly advised to the officer in change of Current Accounts Department.

50 : Student Worksheet p. 4 Biz Bank Limited Hong Kong SAR 香港特別行政區 基滙銀行有限公司 1 July Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 HANDSON PROPERTY 或持票人 HK dollars 港幣 THREE THOUSAND ONLY HK3, BEAUTY FULL CO Note: Rent payment Biz Bank Limited Hong Kong SAR 香港特別行政區 基滙銀行有限公司 24 July Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 MR THOMAS LIU 或持票人 HK dollars 港幣 FIFTEEN THOUSAND AND TWO HK15, HUNDRED ONLY BEAUTY FULL CO

51 : Student Worksheet p. 5 Biz Bank Limited Hong Kong SAR 香港特別行政區 基滙銀行有限公司 24 July Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 MS MANDY HUI 或持票人 HK dollars 港幣 THIRTY EIGHT THOUSAND ONLY HK38, BEAUTY FULL CO Biz Bank Limited Hong Kong SAR 香港特別行政區 基滙銀行有限公司 24 July Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 MR BILLY WOO 或持票人 HK dollars 港幣 ELEVEN THOUSAND AND FOUR HK11, HUNDRED ONLY BEAUTY FULL CO

52 : Student Worksheet p. 6 Biz Bank Limited Hong Kong SAR 香港特別行政區 基滙銀行有限公司 30 July Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 MS AMY CHAN 或持票人 HK dollars 港幣 ELEVEN THOUSAND AND TWO HK11, HUNDRED ONLY BEAUTY FULL CO Note: Paid for salaries Biz Bank Limited Hong Kong SAR 香港特別行政區 基滙銀行有限公司 30 July Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 HK SAR GOVERNMENT 或持票人 HK dollars 港幣 THIRTEEN THOUSAND AND TWO HK13, HUNDRED ONLY BEAUTY FULL CO Note: Government rates

53 : Student Worksheet p. 7 Biz Bank Limited Hong Kong SAR 香港特別行政區 基滙銀行有限公司 31 July Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 EXCELLENT MOTORS 或持票人 HK dollars 港幣 SIXTY THOUSAND ONLY HK60, BEAUTY FULL CO Note: Settlement Purchase of car on credit on 14 July of Year 1.

54 : Student Worksheet p. 8 Eastern Bank Limited 司 Hong Kong SAR 香港特別行政區 東方銀行有限公 16/7/Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO, 或持票人 HK dollars 港幣 SEVEN THOUSAND & SIX HUNDRED HK7, ONLY MR ALAN FUNG Southern Bank Limited 司 Hong Kong SAR 香港特別行政區 南方銀行有限公 16/7/Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO, 或持票人 HK dollars 港幣 FORTY ONE THOUSAND & EIGHT HK41, HUNDRED ONLY MISS CANDY CHAN

55 : Student Worksheet p. 9 Western Bank Limited 司 Hong Kong SAR 香港特別行政區 西方銀行有限公 16/7/Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 BEAUTY FULL CO, 或持票人 HK dollars 港幣 SEVEN THOUSAND & SIX HUNDRED HK7, ONLY MR FRANCIS AU Northern Bank Limited 司 Hong Kong SAR 香港特別行政區 北方銀行有限公 16/7/Year 1 Day 日 Month 月 Year 年 Pay or bearer 祈付 Beauty Full Co. 或持票人 HK dollars 港幣 FIFTEEN THOUSAND & TWO HK15, HUNDRED ONLY ROSE LTD

56 : Student Worksheet p. 10 Beauty Full Co SALES INVOICE Rm 1111, 24 Tin Tin Road Date: 3 July Year 1 Kowloon Invoice No.: Tel.: Customer: Francis Au Item No Qty Description Unit Price Discount Total A Pink Blouse ,200 Order Total Amount 11,200 Terms: 5% cash discount if paid within 60 days

57 : Student Worksheet p. 11 Beauty Full Co SALES INVOICE Rm 1111, 24 Tin Tin Road Date: 3 July Year 1 Kowloon Invoice No.: Tel.: Customer: Una Shum Item No Qty Description Unit Price Discount Total A Earring ,600 Order Total Amount 15,600 Terms: 5% cash discount if paid within 60 days

58 : Student Worksheet p. 12 Beauty Full Co SALES INVOICE Rm 1111, 24 Tin Tin Road Date: 5 July Year 1 Kowloon Invoice No.: Tel.: Customer: Rose Ltd Item No Qty Description Unit Price Discount Total B White Blouse ,600 Order Total Amount 19,600 Terms: 5% cash discount if paid within 60 days

59 : Student Worksheet p. 13 Beauty Full Co SALES INVOICE Rm 1111, 24 Tin Tin Road Date: 6 July Year 1 Kowloon Invoice No.: Tel.: Customer: Lily Man Item No Qty Description Unit Price Discount Total C Yellow shirts ,600 Order Total Amount 9,600 Terms: 5% cash discount if paid within 60 days

60 : Student Worksheet p. 14 Beauty Full Co SALES INVOICE Rm 1111, 24 Tin Tin Road Date: 8 July Year 1 Kowloon Invoice No.: Tel.: Customer: Olivia Pau Item No Qty Description Unit Price Discount Total B Suits ,600 Order Total Amount 23,600 Terms: 5% cash discount if paid within 60 days

61 : Student Worksheet p. 15 Beauty Full Co SALES INVOICE Rm 1111, 24 Tin Tin Road Date: 8 July Year 1 Kowloon Invoice No.: Tel.: Customer: Candy Chan Item No Qty Description Unit Price Discount Total A Red Shoes ,000 Order Total Amount 8,000 Terms: 5% cash discount if paid within 60 days

62 : Student Worksheet p. 16 Beauty Full Co SALES INVOICE Rm 1111, 24 Tin Tin Road Date: 9 July Year 1 Kowloon Invoice No.: Tel.: Customer: Una Shum Item No Qty Description Unit Price Discount Total B Suits ,400 Order Total Amount 4,400 Terms: 5% cash discount if paid within 60 days

63 : Student Worksheet p. 17 Beauty Full Co SALES INVOICE Rm 1111, 24 Tin Tin Road Date: 9 July Year 1 Kowloon Invoice No.: Tel.: Customer: Queenie Chiu Item No Qty Description Unit Price Discount Total D Necklace ,400 Order Total Amount 13,400 Terms: 5% cash discount if paid within 60 days

64 : Student Worksheet p. 18 Thomas Liu 30 Ng Fong Street, Kwai Chung Invoice: Date: 2 July Year 1 To: Beauty Full Co Rm 1111, 24 Tin Tin Road, Kowloon Quantity Description Discount Order Unit price Total % 100 Roots Sandals Terms: 5% cash discount if paid within 60 days

65 : Student Worksheet p. 19 Ellen Li 80 Kimberley Road, Tsimshatsui Invoice No: Date: 2 July Year 1 Customer: Beauty Full Co Rm 1111, 24, Tin Tin Road, Kowloon Order Description Quantity Price/unit Total 4910 Analyst T shirts Terms: 5% cash discount if paid within 60 days

66 : Student Worksheet p. 20 Denise Hung 7/F Kaiser Estate, Tokwawan 77 SHENG HEUNG ROAD, TOKWAWAN, KOWLOON Invoice: Date: 2 July Year 1 QUANTITY DESCRIPTION DISCOUNT ORDER PRICE/UNIT TOTAL % 200 Barker Ladies Jean Customer : Beauty Full Co Rm 1111, 24 Tin Tin Road, Kowloon Terms: 5% cash discount if paid within 60 days

67 : Student Worksheet p. 21 Billy Woo 30 Catherine Street, Kowloon 2 July Year 1 INVOICE X374 QUANTITY DESCRIPTION ORDER PRICE/UNIT TOTAL Suits ,800 13,800 Beauty Full Co Rm 1111, 24 Tin Tin Road, Kowloon Terms: 5% cash discount if paid within 60 days

68 : Student Worksheet p. 22 Ellis Wang 30 Ng Fong Street, Kwai Chung Invoice: Date 22 July Year 1 Beauty Full co Rm 1111, 24 Tin Tin Road, Kowloon Quantity Description Order Unit price Total 400 Cat Sandals ,800 17,800 Terms: 5% cash discount if paid within 60 days

69 : Student Worksheet p. 23 Ocean Co. 80 Kimberley Road, Tsimshatsui Invoice No.: July Year 1 Customer: Beauty Full Co Rm 1111, 24 Tin Tin Road, Kowloon Order Description Quantity Price/unit Total 4910 Cat T shirts ,400 Terms: 5% cash discount if paid within 60 days 14,400

70 : Student Worksheet p. 24 Beauty Full Co. Rm 1111, 24 Tin Tin Road Kowloon 11 July Year 1 To: Francis Au 334 Martha Road Kowloon 80 Pink Blouses Less: 20% trade discount Credit Note No. 4/01 Per Unit Total 4, ,200 Beauty Full Co. Rm 1111, 24 Tin Tin Road Kowloon 11 July Year 1 To: Rose Ltd 1 Lagune Road Kowloon Credit Note No. 334/01 Per Unit Total 90 White Blouses 40 3,600

71 : Student Worksheet p. 25 3,600 Beauty Full Co. Rm 1111, 24 Tin Tin Road Kowloon 19 July Year 1 To: Billy Woo, 30 Catherine Street, Kowloon Debit Note No. 3674/01 Per Unit Total 9 Suits 200 1,800 1,800

72 : Student Worksheet p. 26 Cash Voucher For what required No Date 4/7/Year 1 AMOUNT Motor expenses 2,600 2,600 Signature Passed by Cash Voucher For what required No Date 7/7/Year 1 AMOUNT Drawings 4,000 4,000 Signature Passed by

73 : Student Worksheet p. 27 Excellent Motors 22 Maple Street, Kowloon To: Beauty Full Co Rm 1111, 24 Tin Tin Road, Kowloon Tel: Invoice: 223/01 Date: 14 July Year 1 Motor Van 60,000 Payment Due Date: 31 August Year 1

74 : Student Worksheet p. 28 GENERAL JOURNAL JULY Page 1 Date Description Debit Credit Year 1 July

75 : Student Worksheet p. 29 GENERAL JOURNAL JULY Page 2 Date Description Debit Credit Year 1 July

76 : Student Worksheet p. 30 GENERAL JOURNAL JULY Page 3 Date Description Debit Credit Year 1 July

77 : Student Worksheet p. 31 SALES JOURNAL JULY Page 1 Date Invoice Account Debited Number Amount Year 1 July

78 : Student Worksheet p. 32 RETURNS INWARDS JULY Page 1 Date Invoice Account Credited Number Amount Year 1 July

79 : Student Worksheet p. 33 PURCHASES JOURNAL JULY Page 1 Date Purchase Account Debited Order No. Amount Year 1 July

80 : Student Worksheet p. 34 RETURNS OUTWARDS JULY Page 1 Date Purchase Account Debited Order No. Amount Year 1 July

81 : Student Worksheet p. 35

82 To p i c C 0 6 : T h e A c c o u n t i n g C y c l e S t u d e n t Wo r k s h e e t p. 3 6 CASH BOOK JULY Page 1 Date Description Discount Cash Bank Date Description Discount Cash Bank Year 1 Year 1 July July

83 : Student Worksheet p. 37 ACCOUNTS RECEIVABLE LEDGER NAME Page 1 ADDRESS ACC. No. Year 1 Explanation Year 1 Explanation July July NAME Page 2 ADDRESS ACC. No. Year 1 Explanation Year 1 Explanation July July

84 : Student Worksheet p. 38 ACCOUNTS RECEIVABLE LEDGER NAME Page 3 ADDRESS ACC. No. Year 1 Explanation Year 1 Explanation July July NAME Page 4 ADDRESS ACC. No. Year 1 Explanation Year 1 Explanation July July

85 : Student Worksheet p. 39 ACCOUNTS RECEIVABLE LEDGER NAME Page 5 ADDRESS ACC. No. Year 1 Explanation Year 1 Explanation July July NAME Page 6 ADDRESS ACC. No. Year 1 Explanation Year 1 Explanation July July

86 : Student Worksheet p. 40 ACCOUNTS RECEIVABLE LEDGER NAME Page 7 ADDRESS ACC. No. Year 1 Explanation Year 1 Explanation July July NAME Page 8 ADDRESS ACC. No. Year 1 Explanation Year 1 Explanation July July

87 : Student Worksheet p. 41 ACCOUNTS PAYABLE LEDGER NAME Page 1 ADDRESS ACC. No. Year 1 Explanation Year 1 Explanation July July NAME Page 2 ADDRESS ACC. No. Year 1 Explanation Year 1 Explanation July July

88 : Student Worksheet p. 42 ACCOUNTS PAYABLE LEDGER NAME Page 3 ADDRESS ACC. No. Year 1 Explanation Year 1 Explanation July July NAME Page 4 ADDRESS ACC. No. Year 1 Explanation Year 1 Explanation July July

89 : Student Worksheet p. 43 ACCOUNTS PAYABLE LEDGER NAME Page 5 ADDRESS ACC. No. Year 1 Explanation Year 1 Explanation July July NAME Page 6 ADDRESS ACC. No. Year 1 Explanation Year 1 Explanation July July

90 : Student Worksheet p. 44 ACCOUNTS PAYABLE LEDGER NAME Page 7 ADDRESS ACC. No. Year 1 Explanation Year 1 Explanation July July NAME Page 8 ADDRESS ACC. No. Year 1 Explanation Year 1 Explanation July July

91 : Student Worksheet p. 45 GENERAL LEDGER NAME Page 1 ACC. No. Year 1 Explanation Year 1 Explanation July July NAME Page 2 ACC. No. Year 1 Explanation Year 1 Explanation July July

92 : Student Worksheet p. 46 GENERAL LEDGER NAME Page 3 ACC. No. Year 1 Explanation Year 1 Explanation July July NAME Page 4 ACC. No. Year 1 Explanation Year 1 Explanation July July

93 : Student Worksheet p. 47 GENERAL LEDGER NAME Page 5 ACC. No. Year 1 Explanation Year 1 Explanation July July NAME Page 6 ACC. No. Year 1 Explanation Year 1 Explanation July July

94 : Student Worksheet p. 48 GENERAL LEDGER NAME Page 7 ACC. No. Year 1 Explanation Year 1 Explanation July July NAME Page 8 ACC. No. Year 1 Explanation Year 1 Explanation July July

95 : Student Worksheet p. 49 GENERAL LEDGER NAME Page 9 ACC. No. Year 1 Explanation Year 1 Explanation July July NAME Page 10 ACC. No. Year 1 Explanation Year 1 Explanation July July

96 : Student Worksheet p. 50 GENERAL LEDGER NAME Page 11 ACC. No. Year 1 Explanation Year 1 Explanation July July NAME Page 12 ACC. No. Year 1 Explanation Year 1 Explanation July July

97 : Student Worksheet p. 51 GENERAL LEDGER NAME Page 13 ACC. No. Year 1 Explanation Year 1 Explanation July July NAME Page 14 ACC. No. Year 1 Explanation Year 1 Explanation July July

98 : Student Worksheet p. 52 GENERAL LEDGER NAME Page 15 ACC. No. Year 1 Explanation Year 1 Explanation July July NAME Page 16 ACC. No. Year 1 Explanation Year 1 Explanation July July

99 : Student Worksheet p. 53 Beauty Full Co. Trial Balance as at 31 July Year 1 Acc. No. Account Debit Balances Credit

100 : Student Worksheet p. 54 Beauty Full Co. INCOME STATEMENT for the month ended 31 July Year 1

101 : Student Worksheet p. 55 Beauty Full Co. BALANCE SHEET as at 31 July Year 1

102

103 : Student Worksheet Answer p.1 Date GENERAL JOURNAL JULY Page 1 Description Debit Year 1 July 1 Premises GL01 400,000 Van GL02 90,000 Fixtures GL03 120,000 Inventory GLO4 257,800 Accounts Receivable: Alan Fung AR01 8,000 Candy Chan AR02 36,000 Bank CB01 250,800 Cash CB01 9,000 Credit Account Payable: Thomas Liu AP01 12,000 Mandy Hui AP02 40,000 Capital GL05 1,119,600 Being assets, liabilities and capital as 1,171,600 1,171,600 at this date entered to open the books 1 Rent expense GL12 3,000 Bank CB01 3,000 Being rent expense paid for the month 4 Motor expense GL13 2,600 Cash in hand CB01 2,600 Being motor expense paid for the month 7 Drawings Bobby Fu GL14 4,000 Cash in hand CB01 4,000 Being cash drawings made by sole proprietor 14 Van GL03 60,000 Other Accounts Payable Excellent Motor AP08 60,000 Being motor van acquired on credit 16 Bank CB01 7,600 Discount Allowed GL Account Receivable Alan Fung AR01 8,000 Being Accounts Receivable Alan Fung repaid GENERAL JOURNAL JULY Page 2

104 : Student Worksheet Answer p.2 Date Description Debit Year 1 July 16 Bank CB01 41,800 Discount Allowed GL07 2,200 Credit Accounts Receivable Candy Chan AR02 44,000 Being Accounts Receivable Candy Chan repaid 16 Bank CB01 7,600 Discount Allowed GL Accounts Receivable Francis Au AR03 8,000 Being Accounts Receivable Francis Au repaid 16 Bank CB01 15,200 Discount Allowed GL Accounts Receivable Rose Ltd AR05 16,000 Being Accounts Receivable Rose Ltd repaid 24 Accounts Payable Thomas Liu AP03 16,000 Discount Received GL Bank CB01 15,200 Being Accounts Payable Thomas Liu settled 24 Accounts Payable Mandy Hui AP02 40,000 Discount Received GL10 2,000 Bank CB01 38,000 Being Accounts Payable Mandy Hui settled 24 Accounts Payable Billy Woo AP06 12,000 Discount Received GL Bank CB01 11,400 Being Accounts Payable Billy Woo settled 30 Salaries expense GL15 11,200 Bank CB01 11,200 Being salaries expense paid to Amy Chan for the month Date GENERAL JOURNAL JULY Page 3 Description Debit Credit

105 : Student Worksheet Answer p.3 Year 1 July 30 Government rates GL16 13,200 Bank CB01 13,200 Being government rates for the month settled 31 Other Accounts Payable Excellent Motor GL15 60,000 Bank CB01 60,000 Being motor van payment settled 31 Trading GL04 257,800 Stock 257,800 Being Opening stock transferred to Trading account 31 Stock GL04 270,000 Trading 270,000 Being Closing stock transferred to Trading account Date Invoice Number SALES JOURNAL JULY Page 1 Account Debited Year 1 Amount

106 : Student Worksheet Answer p.4 July Francis Au GL06 11, Una Shum GL06 15, Rose Ltd. GL06 19, Lily Man GL06 9, Olivia Pau GL06 23, Candy Chan GL06 8, Una Shum GL06 4, Queenie Chiu GL06 13,400 Total for the month 105,400 Date Invoice Number RETURNS INWARDS JULY Page 1 Account Credited Year 1 Amount

107 : Student Worksheet Answer p.5 July Francis Au GL08 3, Rose Ltd. GL08 3,600 Total for the month 6,800 Date Purchase Order No. PURCHASES JOURNAL JULY Page 1 Account Debited Year 1 Amount

108 : Student Worksheet Answer p.6 July Thomas Liu GL09 4, Ellen Li GL09 11, Denise Hung GL09 7, Billy Woo GL09 13, Ellis Wang GL09 17, Ocean Co. GL09 14,400 Total for the month 68,800 Date Purchase Order No. RETURNS OUTWARDS JULY Page 1 Account Debited Year 1 Amount

109 : Student Worksheet Answer p.7 July Billy Woo GL10 1,800 Total for the month 1,800

110 T o p i c C 0 6 : T h e A c c o u n t i n g C y c l e S t u d e n t W o r k s h e e t A n s w e r p. 8 CASH BOOK JULY Page 1 Date Description Discount Cash Bank Date Description Discount Cash Bank Year 1 Year 1 July 1 Balance b/f GJ01 9, ,800 July 1 Rent expense GJ01 3, Accounts Receivable - Alan Fung GJ ,600 4 Motor expenses GJ01 2, Accounts Receivable - Candy Chan GJ02 2,200 41,800 7 Drawings GJ01 4, Accounts Receivable - Francis Au GJ , Accounts Payable - Thomas Liu GJ , Accounts Receivable - Rose Ltd. GJ , Accounts Payable - Mandy Hui GJ02 2,000 38, Accounts Payable - Billy Woo GJ , Salaries - Amy Chan GJ02 11, Government rates GJ03 13, Van GJ03 60, Balance c/f 2, ,000 3,800 9, ,000 3,400 9, ,000

111 : Student Worksheet Answer p.9 ACCOUNTS RECEIVABLE LEDGER NAME Alan Fung Page 1 ADDRESS ACC. No. Year 1 Explanation Year 1 Explanation July 1 Balance b/f GJ01 8,000 July 16 Bank GJ01 7,600 Discount Allowed CB ,000 8,000 NAME Candy Chan Page 2 ADDRESS ACC. No. Year 1 Explanation Year 1 Explanation July 1 Balance b/f GJ01 36,000 July 16 Bank GJ02 41,800 8 Sales SJ01 8,000 Discount Allowed CB1 2,200 44,000 44,000

112 : Student Worksheet Answer p.10 ACCOUNTS RECEIVABLE LEDGER NAME Francis Au Page 3 ADDRESS 334 Martha Road, Kowloon ACC. No. Year 1 Explanation Year 1 Explanation July 3 Sales SJ01 11,200 July 11 Returns inwards RI01 3, Bank GJ02 7,600 Discount Allowed CB ,200 11,200 NAME Una Shum Page 4 ADDRESS ACC. No. Year 1 Explanation Year 1 Explanation July 3 Sales SJ01 15,600 July 31 Balance c/d 20,000 9 Sales SJ01 4,400 20,000 20,000 Aug 1 Balance b/f 20,000

113 : Student Worksheet Answer p.11 ACCOUNTS RECEIVABLE LEDGER NAME Rose Ltd. Page 5 ADDRESS 1 Lagune Road, Kowloon ACC. No. Year 1 Explanation Year 1 Explanation July 5 Sales SJ01 19,600 July 11 Returns Inwards RI01 3, Bank GJ02 15,200 Discount Allowed CB ,600 19,600 NAME Lily Man Page 6 ADDRESS ACC. No. Year 1 Explanation Year 1 Explanation July 6 Sales SJ01 9,600 July 31 Balance c/d 9,600 Aug 1 Balance b/f 9,600 ACCOUNTS RECEIVABLE LEDGER

114 : Student Worksheet Answer p.12 NAME Olivia Pau Page 7 ADDRESS ACC. No. Year 1 Explanation Year 1 Explanation July 8 Sales SJ01 23,600 July 31 Balance c/d 23,600 Aug 1 Balance b/f 23,600 NAME Queenie Chiu Page 8 ADDRESS ACC. No. Year 1 Explanation Year 1 Explanation July 9 Sales SJ01 13,400 July 31 Balance c/d 13,400 Aug 1 Balance b/f 13,400 ACCOUNTS PAYABLE LEDGER

115 : Student Worksheet Answer p.13 NAME Thomas Liu Page 1 ADDRESS 30 Ng Fong Street, Kwai Chung ACC. No. Year 1 Explanation Year 1 Explanation July 24 Bank GJ01 15,200 July 1 Balance b/f GJ01 12,000 Discount Receivable 2 Purchases PJ01 4, ,000 16,000 NAME Mandy Hui Page 2 ADDRESS ACC. No. Year 1 Explanation Year 1 Explanation July 24 Bank GJ01 38,000 July 1 Balance b/f Gj01 40,000 Discount Receivable CB1 2,000 40,000 40,000 ACCOUNTS PAYABLE LEDGER

116 : Student Worksheet Answer p.14 NAME Ellen Li Page 3 ADDRESS 80 Kimberley Road, Tsimshatsui ACC. No. Year 1 Explanation Year 1 Explanation July 31 Balance c/d 11,200 July 3 Purchases PJ01 11,200 Aug 1 Balance b/f 11,200 NAME Denise Hung Page 4 ADDRESS 7/F Kaiser Estate, 77 Sheung Heung Road, Tokawanwan ACC. No. Year 1 Explanation Year 1 Explanation July 31 Balance c/d 7,600 July 2 Purchases PJ01 7,600 Aug 1 Balance b/f 7,600 ACCOUNTS PAYABLE LEDGER

117 : Student Worksheet Answer p.15 NAME Billy Woo Page 5 ADDRESS 30 Catherine Street, Kowloon ACC. No. Year 1 Explanation Year 1 Explanation July 19 Returns Outwards RO01 1,800 July 2 Purchases PJ01 13, Bank GJ02 11,400 Discount Receivable CB ,800 13,800 NAME Ellis Wang Page 6 ADDRESS 30 Ng Fong Street, Kwai Chung ACC. No. Year 1 Explanation Year 1 Explanation July 31 Balance c/d 17,800 July 22 Purchases PJ01 17,800 Aug 1 Balance b/f 17,800 ACCOUNTS PAYABLE LEDGER NAME Ocean Co. Page 7

118 : Student Worksheet Answer p.16 ADDRESS ACC. No. 80 Kimberley Road, Tsimshatsui Year 1 Explanation Year 1 Explanation July 31 Balance c/d 14,400 July 22 Purchases PJ01 14,400 Aug 1 Balance b/f 14,400

119 : Student Worksheet Answer p.17 GENERAL LEDGER NAME Premises Page 1 ACC. No. 001 Year 1 Explanation Year 1 Explanation July 1 Balance b/f GJ01 400,000 July 31 Balance c/d 400,000 Aug 1 Balance b/d 400,000 NAME Van Page 2 ACC. No. 002 Year 1 Explanation Year 1 Explanation July 1 Balance b/d GJ01 90,000 July 31 Balance c/d 150, Excellent Motor GJ01 60, , ,000 Aug 1 Balance b/d 150,000

120 : Student Worksheet Answer p.18 GENERAL LEDGER NAME Fixtures Page 3 ACC. No. 003 Year 1 Explanation Year 1 Explanation July 1 Balance b/f GJ01 120,000 July 31 Balance c/d 120,000 Aug 1 Balance b/d 120,000 NAME Stock Page 4 ACC. No. 004 Year 1 Explanation Year 1 Explanation July 1 Balance b/f GJ01 257,800 July 31 Trading 257,800 July 31 Trading 270,000 July 31 Balance c/d 270,000 Aug 1 Balance b/d 270,000

121 : Student Worksheet Answer p.19 GENERAL LEDGER NAME Capital Page 5 ACC. No. 005 Year 1 Explanation Year 1 Explanation July 31 Drawings GL14 4,000 July 1 Balance b/f GJ01 1,119, Balance c/d 1,129, Net profit for the month 13,400 1,133,000 1,133,000 Aug 1 Balance b/d 1,129,000 NAME Sales Page 6 ACC. No. 006 Year 1 Explanation Year 1 Explanation July 31 Trading 105,400 July 3 Francis Au SJ01 11,200 3 Una Shum SJ01 15,600 5 Rose Ltd SJ01 19,600 6 Lily Man SJ01 9,600 8 Olivia Pau SJ01 23,600 8 Candy Chan SJ01 8,000 9 Una Shum SJ01 4,400 9 Queenie Chiu SJ01 13, , ,400

122 : Student Worksheet Answer p.20 GENERAL LEDGER NAME Discount Allowed Page 7 ACC. No. 007 Year 1 Explanation 16 Accounts Receivable July - AF 16 Accounts Receivable - CC 16 Accounts Receivable FA 16 Accounts Receivable - RL Year 1 Explanation GJ July 31 Profit & loss 3,800 GJ01 2,200 GJ GJ ,800 3,800 NAME Returns inwards Page 8 ACC. No. 008 Year 1 Explanation Year 1 Explanation July 11 Francis Au RI01 3,200 July 31 Trading 6, Rose Ltd RI01 3,600 6,800 6,800 GENERAL LEDGER

123 : Student Worksheet Answer p.21 NAME Purchases Page 9 ACC. No. 009 Year 1 Explanation Year 1 Explanation July 2 Thomas Liu PJ01 4,000 July 31 Trading 68,800 2 Ellen Li PJ01 11,200 2 Denise Hung PJ01 7,600 2 Billy Woo PJ01 13, Ellis Wang PJ01 17, Ocean Co PJ01 14,400 68,800 68,800 NAME Discount Received Page 10 ACC. No. 010 Year 1 Explanation Year 1 Explanation July 31 Profit & loss 3,400 July 24 Accounts Payable-TL GJ Accounts Payable -MH GJ02 2, Accounts Payable-BW GJ ,400 3,400 GENERAL LEDGER NAME Returns outwards Page 11 ACC. No. 011

124 : Student Worksheet Answer p.22 Year 1 Explanation Year 1 Explanation July 31 Trading 1,800 July 19 Billy Woo RO01 1,800 NAME Rent expense Page 12 ACC. No. 012 Year 1 Explanation Year 1 Explanation July 1 Bank GJ01 3,000 July 31 Profit & loss 3,000 GENERAL LEDGER NAME Motor expenses Page 13

125 : Student Worksheet Answer p.23 ACC. No. 013 Year 1 Explanation Year 1 Explanation July 31 Bank GJ01 2,600 July 31 Profit & loss 2,600 NAME Drawings Page 14 ACC. No. 014 Year 1 Explanation Year 1 Explanation July 7 Drawings GJ02 4,000 July 31 Capital 4,000 GENERAL LEDGER