Bookkeeping Transactions

Transcription

1 Osborne Books Tutor Zone Bookkeeping Transactions Answers to chapter activities Osborne Books Limited, 2016

2 2 b o o k k e e p i n g t r a n s a c t i o n s t u t o r z o n e 1 The accounting system 1.1 (a) Invoice, credit note, cheque, petty cash voucher 1.2 (b) Sales ledger 1.3 The general ledger of a business normally contains the accounts of assets, which are items owned and liabilities, which are items owed, and capital, which is the owner s investment in the business. 1.4 (a) 8,500; (b) 48,720; (c) 38,820; (d) 255,000 2 Financial documents for sales 2.1 INVOICE No 2071 CuCINa COOkwarE Date Mantle Street Mereford MR2 RS4 VAT Reg To R Copolis 21 Sandy Lane, Stourford, ST1 5GH Customer code Delivery note no RC Quantity Product code Price each Total Trade discount Goods 20 LX VAT Total

3 a n s w e r s t o c h a p t e r a c t i v i t i e s (c) Bulk discount 2.3 STaTEMENT OF account To Ramsay Ltd CuCINa COOkwarE Date Mantle Street, Mereford MR2 RS4 Date Details Debit Credit Balance 1 October Invoice , , October Invoice , , October Invoice , October Credit note , October Cheque 4, Product Customer General ledger code Customer code Ace blender British Caterers GL1006 BRI08 Dinner plates Dansk Foods Ltd GL1012 DAN10 Soup spoons Bright Foods GL1004 BRI07 Pasta pan Alba Limited GL1001 ALB09 Coffee grinder Dancer Trading GL1014 DAN12 Canteen mugs Bright Foods GL1012 BRI (c) Purchase order 2.6 (c) (b) 1,881.60

4 4 b o o k k e e p i n g t r a n s a c t i o n s t u t o r z o n e 3 Double-entry and the accounting equation 3.1 (a) Financial transaction, financial document, book of prime entry, double-entry accounts 3.2 Purchases Ledger K Horrobin J Lloyd P Woolley Sales Ledger B Tucker J Perks M Crawford General Ledger Sales Purchases Insurance Motor Vehicles Bank Loan 3.3 Debit Credit Money paid for wages Wages Bank Money received from Sales Bank Sales Insurance of premises Insurance Bank Capital paid in by owner Bank Capital Bank loan received from bank Bank Bank loan Payment for advertising costs Advertising Bank Vehicle purchased Vehicle Bank Vehicle sold Bank Vehicle Bank loan repaid Bank loan Bank 3.4 See next page.

5 a n s w e r s t o c h a p t e r a c t i v i t i e s 5 Debit Sales account Credit Date Details Date Details Mar Bank 5,678 2 Mar Bank 2,190 5 Mar Bank 9,300 Debit Insurance account Credit Date Details Date Details Mar Bank 4,600 Debit Purchases account Credit Date Details Date Details Mar Bank 6,912 2 Mar Bank 6,505 Debit advertising account Credit Date Details Date Details Mar Bank 5,980 Debit wages account Credit Date Details Date Details Mar Bank 97,500

6 6 b o o k k e e p i n g t r a n s a c t i o n s t u t o r z o n e 3.5 (a) (a) Assets minus liabilities equals capital (b) Item asset Liability VAT owed by HM Revenue & Customs 4 Property 4 Bank overdraft 4 Money owing to trade payables 4 Cash 4 Vehicle 4 (c) assets Liabilities Capital 80,000 20,000 60,000 50,000 40,000 10,000 89,500 49,500 40,000 61,700 26,700 35,000 90,867 67,820 23,047 89,100 38,500 50, Transaction Debit Credit The business increases its bank loan 4 The business sells a warehouse 4 The total amount owed by trade receivables decreases 4 The business pays off its bank overdraft 4 The business buys a new computer 4

7 a n s w e r s t o c h a p t e r a c t i v i t i e s Dr DYI Stores (sales ledger) Cr 20-4 Details 20-4 Details 14 Nov Sales 1, Nov Sales returns Nov Sales Nov Balance c/d 1, Nov Sales , , Dec Balance b/d 1, Dr L Dorado 7 Ltd b o o k (purchases k e e p i n g 1 ledger) w o r k b o o k Cr 20-4 Details 20-4 Details 22 Nov Purchases returns Nov Purchases Nov Balance c/d 1, Nov Purchases Nov Purchases , , Dec Balance b/d 1, Dr Marketing (general ledger) Cr 20-4 Details 20-4 Details 18 Nov Bank Nov Balance c/d 2, Nov Bank Nov Bank 1, , , Dec Balance b/d 2,300.00

8 8 b o o k k e e p i n g t r a n s a c t i o n s t u t o r z o n e Dr rent paid (general ledger) Cr 20-4 Details 20-4 Details 5 Nov Bank Nov Balance c/d 1, Nov Bank Nov Bank Nov Bank , , Dec Balance b/d 1, Accounting for sales, returns and discounts 4.1 (b) 2 sales account; 3 Value Added Tax account 4.2 (c) Account of P Lane, a trade receivable 4.3 (d) Sales invoice 4.4 (a) Sales Day Book SDB54 Date Details Invoice account Total VaT Net number code Jun Outdoor Supplies 7234 SL Jun Beavan & Co 7235 SL050 1, Jun Larcombe Stores 7236 SL Jun Weatherproof Ltd 7237 SL220 1, , Jun Beavan & Co 7238 SL Jun Weatherproof Ltd 7239 SL220 1, , Jun Totals for month 6, , , GL1200 GL2200 GL4100

9 a n s w e r s t o c h a p t e r a c t i v i t i e s 9 (b) GENEraL LEDGEr Dr Sales ledger control account (GL1200) Cr Jun Sales Day Book SDB54 6, Dr Value added Tax account (GL2200) Cr Jun Sales day book SDB54 1, Dr Sales account (GL4100) Cr Jun Sales day book SDB54 5, SaLES LEDGEr Dr Beavan & Co (SL050) Cr Jun Sales SDB54 1, Jun Sales SDB Dr Larcombe Stores (SL110) Cr Jun Sales SDB Dr Outdoor Supplies (SL190) Cr Jun Sales SDB Dr weatherproof Limited (SL220) Cr Jun Sales SDB54 1, Jun Sales SDB54 1,890.00

10 1 0 b o o k k e e p i n g t r a n s a c t i o n s t u t o r z o n e 4.5 (a) Sales returns Day Book SrDB18 Date Details Credit note account Total VaT Net number code Jun Outdoor Supplies 224 SL Jun Beavan & Co 225 SL Jun Larcombe Stores 226 SL Jun Beavan & Co 227 SL Jun Totals for month GL1200 GL2200 GL4110 (b) GENEraL LEDGEr Dr Sales ledger control account (GL1200) Cr Jun Sales day book SDB54 6, Jun Sales returns day book SRDB Dr Value added Tax account (GL2200) Cr Jun Sales returns 30 Jun Sales day book SDB54 1, day book SRDB Dr Sales returns account (GL4110) Cr Jun Sales returns day book SRDB

11 a n s w e r s t o c h a p t e r a c t i v i t i e s 1 1 SaLES LEDGEr Dr Beavan & Co (SL050) Cr Jun Sales SDB54 1, Jun Sales returns SRDB Jun Sales SDB Jun Sales returns SRDB Dr Larcombe Stores (SL110) Cr Jun Sales SDB Jun Sales returns SRDB Dr Outdoor Supplies (SL190) Cr Jun Sales SDB Jun Sales returns SRDB (a) and (b) Sales day book Date Details Invoice Total VaT Net Sales Sales 20-X number type 1 type 2 30 June Avalos Ltd ,240 1,040 5,200 5, June Bolster & Co , ,480 2, June Watsons , ,760 1,760 Totals 11,328 1,888 9,440 2,480 6,960

12 1 2 b o o k k e e p i n g t r a n s a c t i o n s t u t o r z o n e 4.7 (a) Sales ledger Durning Ltd 4,368 4 Penyard & Co 2,256 4 Merrimans 2,544 4 Porth plc 5,808 4 General ledger Sales 12,480 4 Value Added Tax 2,496 4 Sales ledger control 14,976 4 (b) Sales ledger Sanchez & Co Honnor Ltd General ledger Sales returns Value Added Tax Sales ledger control 1,056 4

13 a n s w e r s t o c h a p t e r a c t i v i t i e s 1 3 (c) General ledger Discounts allowed 35 4 Value Added Tax 7 4 Sales ledger control 42 4 Sales ledger Peaty & Co 30 4 Daley Ltd Sales day book Date Details Invoice Total VaT Net Product a14 Product B number 30 June Montez Ltd June M Cyrek June A Rowland June Shah Ltd Totals 2, , , Process payments from customers 5.1 (c) There is a dispute over an invoice 5.2 (b) 1, (a) Invoice 490, credit note 295 (b) 3,203 Working: ( 1, , )

14 1 4 b o o k k e e p i n g t r a n s a c t i o n s t u t o r z o n e 6 Process documents from suppliers 6.1 (c) By the buyer when the goods arrive 6.2 (b) The delivery note 6.3 (c) Bulk discount 6.4 Supplier Product ordered Supplier code General ledger code Nextday Ltd Office desks NE009 GL1011 Pimania Ltd Black gel pens PI006 GL1008 Nero Associates A4 copy paper NE003 GL1009 Omega Traders Red fibre tip pens OM004 GL1008 Masters Ltd Suspension files MA008 GL1010 Nextday Ltd Office holiday planner NE009 GL Has the correct item been supplied? Yes Has the correct price been charged? No What should the correct net figure be after deduction of discount? 1, What would be the VAT if the invoice was correct?

15 a n s w e r s t o c h a p t e r a c t i v i t i e s Accounting for purchases, returns and discounts 7.1 (a) 1 Purchases account; 2 Value Added Tax account 7.2 (d) Account of M Ostrowski, a trade payable 7.3 (b) and (d) are True, (a) and (c) are False 7.4 (a) Purchases Day Book PDB38 Date Details Invoice account Total VaT Net number code Mar Taylor Supplies T/I459 PL Mar Keating & Co 3472 PL Mar Askews A862 PL Mar Taylor Supplies T/I550 PL680 1, Mar Melia Manufacturing 8817 PL Mar Askews A902 PL Mar Totals for month 4, , GL2350 GL2200 GL5100

16 1 6 b o o k k e e p i n g t r a n s a c t i o n s t u t o r z o n e (b) GENEraL LEDGEr Dr Value added Tax account (GL2200) Cr Mar Purchases day book PDB Dr Purchases ledger control account (GL2350) Cr Mar Purchases day book PDB38 4, Dr Purchases account (GL5100) Cr Mar Purchases day book PDB38 4, PurCHaSES LEDGEr Dr askews (PL040) Cr Mar Purchases PDB Mar Purchases PDB Dr keating & Co (PL320) Cr Mar Purchases PDB Dr Melia Manufacturing (PL410) Cr Mar Purchases PDB Dr Taylor supplies (PL680) Cr Mar Purchases PDB Mar Purchases PDB38 1,170.00

17 a n s w e r s t o c h a p t e r a c t i v i t i e s (a) Purchases returns Day Book PrDB12 Date Details Credit note account Total VaT Net number code Mar Taylor Supplies T/R270 PL Mar Keating & Co CN368 PL Mar Taylor Supplies T/R275 PL Mar Askews CN/A303 PL Mar Totals for month GL2350 GL2200 GL5110 (b) GENEraL LEDGEr Dr Value added Tax account (GL2200) Cr Mar Purchases day 31 Mar Purchases returns book PDB day book PRDB Dr Purchases ledger control account (GL2350) Cr Mar Purchases returns 31 Mar Purchases day day book PRDB book PDB38 4, Dr Purchases returns account (GL5110) Cr Mar Purchases returns day book PRDB

18 1 8 b o o k k e e p i n g t r a n s a c t i o n s t u t o r z o n e PurCHaSES LEDGEr Dr askews (PL040) Cr Mar Purchases returns 11 Mar Purchases PDB PRDB Mar Purchases PDB Dr keating & Co (PL320) Cr Mar Purchases returns 8 Mar Purchases PDB PRDB Dr Taylor Supplies (PL680) Cr Mar Purchases returns 4 Mar Purchases PDB PRDB Mar Purchases PDB38 1, Mar Purchases returns PRDB Purchases day book Date Details Invoice Total VaT Net Purchases Purchases 20-X number type 1 type 2 30 June Kinnear & Co , ,560 4, June Boswells B/364 4, ,840 3, June Zamora Ltd Z274 3, ,960 2,960 Totals 13,632 2,272 11,360 4,560 6, (a) Purchases ledger Thorpe Ltd 2,112 4 Avalos plc 2,832 4 Barkers 6,144 4 Floyd & Co 5,616 4

19 a n s w e r s t o c h a p t e r a c t i v i t i e s 1 9 General ledger Purchases 13,920 4 Value Added Tax 2,784 4 Purchases ledger control 16,704 4 (b) Purchases ledger Church Stores Thornton Ltd General ledger Purchases returns Value Added Tax Purchases ledger control 1,008 4 (c) General ledger Discounts received 55 4 Value Added Tax 11 4 Purchases ledger control 66 4 Purchases ledger Rimkus 18 4 D R Thorne Ltd 48 4

20 2 0 b o o k k e e p i n g t r a n s a c t i o n s t u t o r z o n e 7.8 Purchases day book Date Details Invoice Total VaT Net Product a14 Product B number 30 June Blenheim Ltd June P Olumbi , June Carholme Ltd , , , June S Lucas Totals 3, , , , Prepare payments to suppliers 8.1 (b) A decrease in the total amount owing shown on the statement of account 8.2 (c) Advise the supplier of the total amount being paid by the customer 8.3 (b) Will mean the supplier s statement of account will show a higher balance owing than the purchases ledger account 8.4 (a) Cheque for 1,200 (b) Invoice 1290 (c) 760 Working: 1,960 1, (a) (c) To Manzini & Co (b) (d) 31 May (c) (c) Invoice 2449, Invoice 2687 (d) (a) 3,897

21 a n s w e r s t o c h a p t e r a c t i v i t i e s Cash book 9.1 (a) Sales ledger Thorntons Ltd 5,000 4 (b) General ledger Sales ledger control 5,000 4 Rent 2,250 4 Wages 3,695 4 Office expenses 88 4

22 2 2 b o o k k e e p i n g t r a n s a c t i o n s t u t o r z o n e 9.2 (a) True (b) False the balance b/d of 975 on 1 October shows that, according to the cash book, there is a bank overdraft. (c) GENEraL LEDGEr Dr Sales account Cr Sep Bank CB Dr Sales ledger control account Cr Sep Bank CB45 1,150 Dr Purchases ledger control account Cr Sep Bank CB Dr Purchases account Cr Sep Bank CB Dr General expenses account Cr Sep Bank CB45 75 Dr wages account Cr Sep Bank CB45 2,365 Dr Office equipment account Cr Sep Bank CB45 890

23 a n s w e r s t o c h a p t e r a c t i v i t i e s 2 3 (d) SaLES LEDGEr Dr Cooper Limited Cr Sep Bank CB45 1,150 PurCHaSES LEDGEr Dr Nugent & Co Cr Sep Bank CB45 760

24 Dr Cash Book Cr Date Details Cash Bank Date Details Cash Bank Sep Balance b/d Sep Balance b/d 1,076 3 Sep Sales Sep Rates Sep Ahmed Ltd 1,160 8 Sep Wages Sep XJ Supplies Sep Balance c/d 1, Sep Drawings Sep Rent Sep Balance c/d b o o k k e e p i n g t r a n s a c t i o n s t u t o r z o n e , , Sep Balance b/d Sep Balance b/d 1,968

25 a n s w e r s t o c h a p t e r a c t i v i t i e s (a) Bank transfer of 10,000 to increase the owner s capital 9.5 (c) Bank charges of Statement True False (a) The cash book is the book of prime entry for bank and cash receipts and payments (except for 4 some low-value cash payments) (b) The trade receivables column total from cash book is debited to the sales ledger control 4 account in the general ledger (c) The trade payables column total from cash book is debited to the purchases ledger control 4 account in the general ledger (d) The amount of VAT on credit purchases is recorded in the VAT column on the payments 4 side of cash book

26 2 6 b o o k k e e p i n g t r a n s a c t i o n s t u t o r z o n e 9.7 (a) Cash book credit side Details Cash Bank VaT Trade Cash Stationery payables purchases expenses Thorpe & Co E Rojas Melia Ltd Southern Stationery Watson & Co 1,750 1,750 Totals 240 2, , (b) Cash book debit side Details Cash Bank VaT Trade Cash receivables sales Balance b/f 521 1,155 S Paine Ltd Bromfields F Bridger Totals 833 2, , (c) 593 (d) 308 (e) Debit Credit 4

27 a n s w e r s t o c h a p t e r a c t i v i t i e s (a) Cash book credit side Details Cash Bank VaT Trade Cash Other payables purchases expenses Balance b/f 1,625 Toni Gray A-Z Insurers Amos plc 1,764 1,764 J Gosai Totals 264 4, , (b) Cash book debit side Details Cash Bank VaT Trade Other receivables income Balance b/f 510 CBT plc 1,380 1,380 Notley Ltd 1,465 1,465 Kristina Ltd Totals 760 2,845 2, (c) 496 (d) 2,154

28 2 8 b o o k k e e p i n g t r a n s a c t i o n s t u t o r z o n e 10 Petty cash book 10.1 (b) They must have relevant documentation attached to show that the amount claimed is correct 10.2 (c) Debit petty cash control 122; credit bank Statement True False (a) Petty cash vouchers are financial documents against which payments are made out of petty cash 4 (b) The petty cash book is a part of double-entry bookkeeping only 4 (c) (d) Receipts from the bank to top-up the petty cash imprest amount are recorded on the debit side of petty cash book Petty cash book is the book of prime entry for low-value cash payments (b) (c) General ledger Petty cash book 65 4 Bank 65 4

29 a n s w e r s t o c h a p t e r a c t i v i t i e s General ledger VAT Postage Travel expenses Office expenses Bank (a) Petty cash book Details amount Details amount VaT Stationery Postage Balance b/f Envelopes Ring binders Postage stamps A4 paper Balance c/d Total Totals (b) (a) Stationery (c) (e) Postage VAT (c) 61.80

30 3 0 b o o k k e e p i n g t r a n s a c t i o n s t u t o r z o n e 10.9 (a) GENEraL LEDGEr Dr Value added Tax account Cr Aug Petty cash book PCB Dr Travel account Cr Aug Petty cash book PCB Dr Postage account Cr Aug Petty cash book PCB Aug Petty cash book PCB Dr Stationery account Cr Aug Petty cash book PCB Dr Sundry expenses account Cr Aug Petty cash book PCB Dr Purchases ledger control account Cr Aug Petty cash book PCB Dr Petty cash control account Cr Aug Balance b/d Aug Petty cash book PCB Aug Petty cash book PCB Aug Balance c/d Aug Bank CB Sep Balance b/d Dr Cash book (bank column) Cr Aug Petty cash PCB (b) PurCHaSES LEDGEr Dr T Carline Cr Aug Petty cash book PCB

31 a n s w e r s t o c h a p t e r a c t i v i t i e s (a) Amount in petty cash box Balance on petty cash account Difference 1.00 (b) Petty cash reimbursement Date: Amount required to restore the cash in the petty cash box

32 3 2 b o o k k e e p i n g t r a n s a c t i o n s t u t o r z o n e 11 The initial trial balance 11.1 (a) Drawings account 11.2 (d) Capital account 11.3 Bank (cash at bank) 2,649 2,649 Loan from bank 8,500 8,500 Office equipment 12,200 12,200 Vehicles 20,750 20,750 Inventory 8,608 8,608 Petty cash control VAT owing to HM Revenue & Customs 1,261 1,261 Purchases 89,738 89,738 Purchases returns 2,107 2,107 Purchases ledger control 26,846 26,846 Sales 147, ,924 Sales returns 3,842 3,842 Sales ledger control 37,411 37,411 Discounts received Discounts allowed Capital 34,731 34,731 Drawings 13,244 13,244 Advertising 2,827 2,827 Insurance Heating and lighting 4,326 4,326 Rent and rates 5,368 5,368 Telephone Miscellaneous expenses Wages 18,164 18,164 Totals 221, ,645

33 a n s w e r s t o c h a p t e r a c t i v i t i e s Sales ledger control 40,272 40,272 Sales 175, ,843 Sales returns 2,316 2,316 Purchases ledger control 22,433 22,433 Purchases 105, ,871 Purchases returns 1,045 1,045 Office equipment 18,395 18,395 Vehicles 34,170 34,170 Rent and rates 6,842 6,842 Advertising 3,776 3,776 Insurance 2,097 2,097 Wages 37,864 37,864 Heating and lighting 3,791 3,791 Postages and telephone 1,946 1,946 Miscellaneous expenses Discounts received Discounts allowed Capital 75,737 75,737 Drawings 25,650 25,650 Inventory 12,415 12,415 Petty cash control Bank (overdraft) 3,086 3,086 VAT owing to HM Revenue & Customs 2,041 2,041 Loan from bank 15,560 15,560 Totals 296, ,399

34 3 4 b o o k k e e p i n g t r a n s a c t i o n s t u t o r z o n e 11.5 Item Capital revenue Capital revenue expenditure expenditure income income Receipts from sale of goods to credit customers 4 Increase in owner s capital 4 Purchase of office equipment 4 Purchase of stationery for use in the office 4 Bank loan received 4 Redecoration of property 4