Bookkeeping Transactions

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

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 09 09 20-4 10 Mantle Street Mereford MR2 RS4 VAT Reg 105 1195 03 To R Copolis 21 Sandy Lane, Stourford, ST1 5GH Customer code Delivery note no RC924 1791 Quantity Product code Price each Total Trade discount Goods 20 LX25 30.00 600.00 120.00 480.00 VAT 96.00 Total 576.00

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 3 2.2 (c) Bulk discount 2.3 STaTEMENT OF account To Ramsay Ltd CuCINa COOkwarE Date 31 10 20-4 10 Mantle Street, Mereford MR2 RS4 Date Details Debit Credit Balance 1 October Invoice 2539 2,308.69 2,308.69 8 October Invoice 2586 1,905.60 4,214.29 14 October Invoice 2610 756.70 4,970.99 18 October Credit note 836 120.45 4,850.54 30 October Cheque 4,093.84 756.70 2.4 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 BRI07 2.5 (c) Purchase order 2.6 (c) 960.00 2.7 (b) 1,881.60

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.

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 20-4 1 Mar Bank 5,678 2 Mar Bank 2,190 5 Mar Bank 9,300 Debit Insurance account Credit Date Details Date Details 20-4 3 Mar Bank 4,600 Debit Purchases account Credit Date Details Date Details 20-4 1 Mar Bank 6,912 2 Mar Bank 6,505 Debit advertising account Credit Date Details Date Details 20-4 3 Mar Bank 5,980 Debit wages account Credit Date Details Date Details 20-4 4 Mar Bank 97,500

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 50,600 3.6 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

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 7 3.7 Dr DYI Stores (sales ledger) Cr 20-4 Details 20-4 Details 14 Nov Sales 1,400.00 25 Nov Sales returns 185.00 17 Nov Sales 180.00 30 Nov Balance c/d 1,655.00 21 Nov Sales 260.00 1,840.00 1,840.00 1 Dec Balance b/d 1,655.00 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 250.60 14 Nov Purchases 834.90 30 Nov Balance c/d 1,004.59 20 Nov Purchases 245.45 25 Nov Purchases 174.84 1,255.19 1,255.19 1 Dec Balance b/d 1,004.59 Dr Marketing (general ledger) Cr 20-4 Details 20-4 Details 18 Nov Bank 240.00 30 Nov Balance c/d 2,300.00 23 Nov Bank 720.00 26 Nov Bank 1,340.00 2,300.00 2,300.00 1 Dec Balance b/d 2,300.00

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 256.00 30 Nov Balance c/d 1,024.00 12 Nov Bank 256.00 19 Nov Bank 256.00 26 Nov Bank 256.00 1,024.00 1,024.00 1 Dec Balance b/d 1,024.00 4 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 20-4 5 Jun Outdoor Supplies 7234 SL190 660.00 110.00 550.00 8 Jun Beavan & Co 7235 SL050 1,050.00 175.00 875.00 12 Jun Larcombe Stores 7236 SL110 828.00 138.00 690.00 16 Jun Weatherproof Ltd 7237 SL220 1,452.00 242.00 1,210.00 22 Jun Beavan & Co 7238 SL050 750.00 125.00 625.00 27 Jun Weatherproof Ltd 7239 SL220 1,890.00 315.00 1,575.00 30 Jun Totals for month 6,630.00 1,105.00 5,525.00 GL1200 GL2200 GL4100

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 20-4 20-4 30 Jun Sales Day Book SDB54 6,630.00 Dr Value added Tax account (GL2200) Cr 20-4 20-4 30 Jun Sales day book SDB54 1,105.00 Dr Sales account (GL4100) Cr 20-4 20-4 30 Jun Sales day book SDB54 5,525.00 SaLES LEDGEr Dr Beavan & Co (SL050) Cr 20-4 20-4 8 Jun Sales SDB54 1,050.00 22 Jun Sales SDB54 750.00 Dr Larcombe Stores (SL110) Cr 20-4 20-4 12 Jun Sales SDB54 828.00 Dr Outdoor Supplies (SL190) Cr 20-4 20-4 5 Jun Sales SDB54 660.00 Dr weatherproof Limited (SL220) Cr 20-4 20-4 16 Jun Sales SDB54 1,452.00 27 Jun Sales SDB54 1,890.00

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 20-4 10 Jun Outdoor Supplies 224 SL190 90.00 15.00 75.00 18 Jun Beavan & Co 225 SL050 132.00 22.00 110.00 22 Jun Larcombe Stores 226 SL110 54.00 9.00 45.00 30 Jun Beavan & Co 227 SL050 146.40 24.40 122.00 30 Jun Totals for month 422.40 70.40 352.00 GL1200 GL2200 GL4110 (b) GENEraL LEDGEr Dr Sales ledger control account (GL1200) Cr 20-4 20-4 30 Jun Sales day book SDB54 6,630.00 30 Jun Sales returns day book SRDB18 422.40 Dr Value added Tax account (GL2200) Cr 20-4 20-4 30 Jun Sales returns 30 Jun Sales day book SDB54 1,105.00 day book SRDB18 70.40 Dr Sales returns account (GL4110) Cr 20-4 20-4 30 Jun Sales returns day book SRDB18 352.00

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 20-4 20-4 8 Jun Sales SDB54 1,050.00 18 Jun Sales returns SRDB18 132.00 22 Jun Sales SDB54 750.00 30 Jun Sales returns SRDB18 146.40 Dr Larcombe Stores (SL110) Cr 20-4 20-4 12 Jun Sales SDB54 828.00 22 Jun Sales returns SRDB18 54.00 Dr Outdoor Supplies (SL190) Cr 20-4 20-4 5 Jun Sales SDB54 660.00 10 Jun Sales returns SRDB18 90.00 4.6 (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 2021 6,240 1,040 5,200 5,200 30 June Bolster & Co 2022 2,976 496 2,480 2,480 30 June Watsons 2023 2,112 352 1,760 1,760 Totals 11,328 1,888 9,440 2,480 6,960

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 672 4 Honnor Ltd 384 4 General ledger Sales returns 880 4 Value Added Tax 176 4 Sales ledger control 1,056 4

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 12 4 4.8 Sales day book Date Details Invoice Total VaT Net Product a14 Product B14 20-4 number 30 June Montez Ltd 3456 600.00 100.00 500.00 500.00 30 June M Cyrek 3457 540.00 90.00 450.00 450.00 30 June A Rowland 3458 840.00 140.00 700.00 700.00 30 June Shah Ltd 3459 180.00 30.00 150.00 150.00 Totals 2,160.00 360.00 1,800.00 1,200.00 600.00 5 Process payments from customers 5.1 (c) There is a dispute over an invoice 5.2 (b) 1,440.00 5.3 (a) Invoice 490, credit note 295 (b) 3,203 Working: ( 1,238 + 1,560 + 525 120)

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 GL1012 6.5 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? 1,500.00 What would be the VAT (charged @20%) if the invoice was correct? 300.00

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 5 7 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 20-2 4 Mar Taylor Supplies T/I459 PL680 632.40 105.40 527.00 8 Mar Keating & Co 3472 PL320 997.20 166.20 831.00 11 Mar Askews A862 PL040 826.80 137.80 689.00 18 Mar Taylor Supplies T/I550 PL680 1,170.00 195.00 975.00 25 Mar Melia Manufacturing 8817 PL410 682.80 113.80 569.00 28 Mar Askews A902 PL040 519.60 86.60 433.00 31 Mar Totals for month 4,828.80 804.80 4,024.00 GL2350 GL2200 GL5100

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 20-2 20-2 31 Mar Purchases day book PDB38 804.80 Dr Purchases ledger control account (GL2350) Cr 20-2 20-2 31 Mar Purchases day book PDB38 4,828.80 Dr Purchases account (GL5100) Cr 20-2 20-2 31 Mar Purchases day book PDB38 4,024.00 PurCHaSES LEDGEr Dr askews (PL040) Cr 20-2 20-2 11 Mar Purchases PDB38 826.80 28 Mar Purchases PDB38 519.60 Dr keating & Co (PL320) Cr 20-2 20-2 8 Mar Purchases PDB38 997.20 Dr Melia Manufacturing (PL410) Cr 20-2 20-2 25 Mar Purchases PDB38 682.80 Dr Taylor supplies (PL680) Cr 20-2 20-2 4 Mar Purchases PDB38 632.40 18 Mar Purchases PDB38 1,170.00

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 7 7.5 (a) Purchases returns Day Book PrDB12 Date Details Credit note account Total VaT Net number code 20-2 12 Mar Taylor Supplies T/R270 PL680 98.40 16.40 82.00 18 Mar Keating & Co CN368 PL320 64.80 10.80 54.00 26 Mar Taylor Supplies T/R275 PL680 44.40 7.40 37.00 30 Mar Askews CN/A303 PL040 102.00 17.00 85.00 31 Mar Totals for month 309.60 51.60 258.00 GL2350 GL2200 GL5110 (b) GENEraL LEDGEr Dr Value added Tax account (GL2200) Cr 20-2 20-2 31 Mar Purchases day 31 Mar Purchases returns book PDB38 804.80 day book PRDB12 51.60 Dr Purchases ledger control account (GL2350) Cr 20-2 20-2 31 Mar Purchases returns 31 Mar Purchases day day book PRDB12 309.60 book PDB38 4,828.80 Dr Purchases returns account (GL5110) Cr 20-2 20-2 31 Mar Purchases returns day book PRDB12 258.00

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 20-2 20-2 30 Mar Purchases returns 11 Mar Purchases PDB38 826.80 PRDB12 102.00 28 Mar Purchases PDB38 519.60 Dr keating & Co (PL320) Cr 20-2 20-2 18 Mar Purchases returns 8 Mar Purchases PDB38 997.20 PRDB12 64.80 Dr Taylor Supplies (PL680) Cr 20-2 20-2 12 Mar Purchases returns 4 Mar Purchases PDB38 632.40 PRDB12 98.40 18 Mar Purchases PDB38 1,170.00 26 Mar Purchases returns PRDB12 44.40 7.6 Purchases day book Date Details Invoice Total VaT Net Purchases Purchases 20-X number type 1 type 2 30 June Kinnear & Co 4513 5,472 912 4,560 4,560 30 June Boswells B/364 4,608 768 3,840 3,840 30 June Zamora Ltd Z274 3,552 592 2,960 2,960 Totals 13,632 2,272 11,360 4,560 6,800 7.7 (a) Purchases ledger Thorpe Ltd 2,112 4 Avalos plc 2,832 4 Barkers 6,144 4 Floyd & Co 5,616 4

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 336 4 Thornton Ltd 672 4 General ledger Purchases returns 840 4 Value Added Tax 168 4 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

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 B14 20-4 number 30 June Blenheim Ltd 7234 600.00 100.00 500.00 500.00 30 June P Olumbi 6945 1,008.00 168.00 840.00 840.00 30 June Carholme Ltd 2176 1,296.00 216.00 1,080.00 1,080.00 30 June S Lucas 3085 720.00 120.00 600.00 600.00 Totals 3,624.00 604.00 3,020.00 1,920.00 1,100.00 8 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 1,200 8.5 (a) (c) To Manzini & Co (b) (d) 31 May (c) (c) Invoice 2449, Invoice 2687 (d) (a) 3,897

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 1 9 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

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 20-1 20-1 30 Sep Bank CB45 120 Dr Sales ledger control account Cr 20-1 20-1 30 Sep Bank CB45 1,150 Dr Purchases ledger control account Cr 20-1 20-1 30 Sep Bank CB45 760 Dr Purchases account Cr 20-1 20-1 30 Sep Bank CB45 240 Dr General expenses account Cr 20-1 20-1 30 Sep Bank CB45 75 Dr wages account Cr 20-1 20-1 30 Sep Bank CB45 2,365 Dr Office equipment account Cr 20-1 20-1 30 Sep Bank CB45 890

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 20-1 20-1 30 Sep Bank CB45 1,150 PurCHaSES LEDGEr Dr Nugent & Co Cr 20-1 20-1 30 Sep Bank CB45 760

Dr Cash Book Cr Date Details Cash Bank Date Details Cash Bank 20-7 20-7 3 Sep Balance b/d 360 3 Sep Balance b/d 1,076 3 Sep Sales 245 4 Sep Rates 307 5 Sep Ahmed Ltd 1,160 8 Sep Wages 390 8 Sep XJ Supplies 720 10 Sep Balance c/d 1,968 10 Sep Drawings 500 10 Sep Rent 525 10 Sep Balance c/d 215 2 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 9.3 605 3,128 605 3,128 11 Sep Balance b/d 215 11 Sep Balance b/d 1,968

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 5 9.4 (a) Bank transfer of 10,000 to increase the owner s capital 9.5 (c) Bank charges of 35 9.6 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

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 96 16 80 E Rojas 144 24 120 Melia Ltd 755 755 Southern Stationery 192 32 160 Watson & Co 1,750 1,750 Totals 240 2,697 72 2,505 200 160 (b) Cash book debit side Details Cash Bank VaT Trade Cash receivables sales Balance b/f 521 1,155 S Paine Ltd 840 840 Bromfields 394 394 F Bridger 312 52 260 Totals 833 2,389 52 1,234 260 (c) 593 (d) 308 (e) Debit Credit 4

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 7 9.8 (a) Cash book credit side Details Cash Bank VaT Trade Cash Other payables purchases expenses Balance b/f 1,625 Toni Gray 264 44 220 A-Z Insurers 650 650 Amos plc 1,764 1,764 J Gosai 960 960 Totals 264 4,999 44 2,724 220 650 (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 250 250 Totals 760 2,845 2,845 250 (c) 496 (d) 2,154

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 122 10.3 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 4 4 10.4 (b) 146.27 10.5 (c) 113.15 10.6 General ledger Petty cash book 65 4 Bank 65 4

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 9 10.7 General ledger VAT 5.12 4 Postage 9.53 4 Travel expenses 19.55 4 Office expenses 25.60 4 Bank 77.00 4 10.8 (a) Petty cash book Details amount Details amount VaT Stationery Postage Balance b/f 100.00 Envelopes 12.00 2.00 10.00 Ring binders 24.00 4.00 20.00 Postage stamps 15.00 15.00 A4 paper 10.80 1.80 9.00 Balance c/d 38.20 Total 100.00 Totals 100.00 7.80 39.00 15.00 (b) (a) Stationery (c) (e) Postage VAT (c) 61.80

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 20-8 20-8 31 Aug Petty cash book PCB28 10.64 Dr Travel account Cr 20-8 20-8 31 Aug Petty cash book PCB28 24.55 Dr Postage account Cr 20-8 20-8 31 Aug Petty cash book PCB28 7.65 16 Aug Petty cash book PCB28 4.80 Dr Stationery account Cr 20-8 20-8 31 Aug Petty cash book PCB28 23.20 Dr Sundry expenses account Cr 20-8 20-8 31 Aug Petty cash book PCB28 20.00 Dr Purchases ledger control account Cr 20-8 20-8 31 Aug Petty cash book PCB28 19.35 Dr Petty cash control account Cr 20-8 20-8 1 Aug Balance b/d 150.00 31 Aug Petty cash book PCB28 105.39 31 Aug Petty cash book PCB28 4.80 31 Aug Balance c/d 150.00 31 Aug Bank CB 100.59 255.39 255.39 1 Sep Balance b/d 150.00 Dr Cash book (bank column) Cr 20-8 20-8 31 Aug Petty cash PCB28 100.59 (b) PurCHaSES LEDGEr Dr T Carline Cr 20-8 20-8 31 Aug Petty cash book PCB28 19.35

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 3 1 10.10 (a) Amount in petty cash box 78.25 Balance on petty cash account 79.25 Difference 1.00 (b) Petty cash reimbursement Date: 31.10.20-7 Amount required to restore the cash in the petty cash box 166.03

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 66 66 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 147,924 147,924 Sales returns 3,842 3,842 Sales ledger control 37,411 37,411 Discounts received 276 276 Discounts allowed 135 135 Capital 34,731 34,731 Drawings 13,244 13,244 Advertising 2,827 2,827 Insurance 967 967 Heating and lighting 4,326 4,326 Rent and rates 5,368 5,368 Telephone 971 971 Miscellaneous expenses 379 379 Wages 18,164 18,164 Totals 221,645 221,645

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 3 3 11.4 Sales ledger control 40,272 40,272 Sales 175,843 175,843 Sales returns 2,316 2,316 Purchases ledger control 22,433 22,433 Purchases 105,871 105,871 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 558 558 Discounts received 654 654 Discounts allowed 317 317 Capital 75,737 75,737 Drawings 25,650 25,650 Inventory 12,415 12,415 Petty cash control 119 119 Bank (overdraft) 3,086 3,086 VAT owing to HM Revenue & Customs 2,041 2,041 Loan from bank 15,560 15,560 Totals 296,399 296,399

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