Accounting for Non-Accountants 10th Online Material 1 Chapter 5 Extra review questions 1 Enter up the entries needed in the journal to correct the following errors. Narratives are not required: (a) Advertising 34 paid by cash should have been entered as 43. (b) Sale of goods for 220 to N Heyward entered into the account of N Henwood. (c) Private withdrawal of 75 cash had been debited to Heating expenses account. (d) Returns outwards of 25 had been credited to Returns inwards by mistake. (e) A cheque payment of 12 for sundry expenses was missed out of the ledgers. The Journal Dr Cr Advertising 9 Cash 9 N Henwood 220 N Heyward 220 Drawings 75 Heating expenses 75 Returns inwards 25 Returns outwards 25 Sundry expenses 12 Cashbook (Bank) 12 2 You have extracted a trial balance on 31 December 2018 which failed to agree by 202, a shortage on the debit side of the trial balance. A suspense account was opened for the difference. In January 2019, the following errors, made the previous year, were found: (a) The returns inwards daybook had been undercast by 60. (b) The purchases account had been undercast by 110. (c) Commission received of 40 had been credited in error to the Sales account. (d) A credit sale of 32 to M Savage had only been entered in the Sales account.
2 Accounting for Non-Accountants 10th Online Material You are required to: 1 Show the journal entries necessary to correct the errors. 2 Draw up the suspense account after the errors have been corrected. 3 If the net profit for the year had previously been 970, show statement of corrected net profit for the year ended 31 December 2018 after all the above corrections have been made. The Journal Dr Cr Returns inwards 60 Suspense 60 Purchases 110 Suspense 110 Sales 40 Commission received 40 M Savage 32 Suspense 32 Suspense 2018 2018 Jan 1 Balance b/d 202 Jan 31 Returns inwards 60 Jan 31 Jan 31 Purchases 110 Jan 31 Sales 32 202 202 Statement of corrected net profit as at 31 December 2017 Net profit b/d 970 Less Returns inwards undercast 60 Purchases undercast 110 170 800
Accounting for Non-Accountants 10th Online Material 3 3 The following are extracts from the cashbook and the bank statement of A Hadfield. You are required to: (a) Write up the cashbook up to date and state the new balance as on 31 December 2021. (b) Draw up a bank reconciliation statement as on 31 December 2021. Cashbook 2021 2021 Dec 1 Balance b/d 331 Dec 8 W Pagden 71 Dec 8 T Barker 99 Dec 21 R Booth 187 Dec 24 S Prince 274 Dec 27 S Gilham 67 Dec 31 Balance c/d 379 704 704 Bank statement Dr Cr Balance 2021 Dec 1 Balance b/d 331 Dec 11 T Barker 99 430 Dec 12 W Pagden 71 359 Dec 16 Direct debit 95 264 Dec 18 R Booth 187 77 Dec 29 Credit transfer 140 217 Updated Cashbook 2021 2021 Dec 1 Balance b/d 331 Dec 8 W Pagden 71 Dec 8 T Barker 99 Dec 21 R Booth 187 Dec 24 S Prince 274 Dec 27 S Gilham 67 Dec 31 Credit transfer 140 Dec 31 Direct debit 95 Dec 31 Balance c/d 424 844 844
4 Accounting for Non-Accountants 10th Online Material A Hadfield Bank Reconciliation Statement as on 31 December 2021 Balance as per updated cashbook 424 Add Unpresented cheques 67 491 Less Lodgements not yet credited 274 Balance as per bank statement 217 4 From the following details, construct the sales ledger control account for the month of April 2017. 2017 April 1 Sales ledger balances 3,200 Totals for April: Sales daybook 22,750 Returns inwards daybook 800 Cheques and cash received 20,000 Discounts allowed 650 April 30 Sales ledger balances 4,500 Sales ledger control account 2017 2017 Apr 1 Balance b/d 3,200 Apr 30 Returns inwards daybook 800 Apr 30 Sales daybook 22,750 Bank 20,000 Discounts allowed 650 Balance c/d 4,500 25,950 25,950
Accounting for Non-Accountants 10th Online Material 5 5 You are required to prepare a purchases ledger control account from the following for the month of July 2018. 2018 July 1 Purchases ledger balances 8,300 Totals for July: Purchases daybook 29,750 Returns outwards daybook 1,300 Cheques and cash paid to suppliers 29,000 Discounts received 950 July 31 Purchases ledger balances 6,800 Purchases ledger control account 2018 2008 Jul 31 Returns outwards 1,300 Jul 1 Balance b/d 8,300 Bank 29,000 Jul 31 Purchases daybook 29,750 Discounts received 950 Balance c/d 6,800 38,050 38,050 6 From the following data, prepare control accounts for both the purchases ledger and the sales ledger and ascertain the closing balances on each ledger at the end of the month.
6 Accounting for Non-Accountants 10th Online Material 2020 January 1 Purchases ledger balances 3,490 January 1 Sales ledger balances 3,955 Totals for January: Sales daybook 64,217 Purchases daybook 46,959 Cheques and cash paid to suppliers 38,766 Discounts received 1,899 Discounts allowed 2,430 Sales ledger balances set-off against purchases ledger balances 1,000 Returns outwards daybook 1,240 Bad debts 619 Returns inwards daybook 1,900 Cash and cheques received from customers 54,333 January 31 Purchases ledger balances? January 31 Sales ledger balances? Sales ledger control account 2020 2020 Jan 1 Balance b/d 3,955 Jan 30 Returns inwards 1,900 daybook Jan 30 Sales daybook 64,217 Bank 54,333 Discounts allowed 2,430 Set-offs 1,000 Bad debts 619 Balance c/d 7,890 68,172 68,172 Purchases ledger control account 2020 2020 Jan 31 Returns outwards 1,240 Jan 1 Balance b/d 3,490 Bank 38,766 Jan 31 Purchases daybook 46,959 Discounts received 1,899 Set-offs 1,000 Balance c/d 7,544 50,449 50,449