Osborne Books Tutor Zone Bookkeeping Controls Answers to practice assessment 1 Osborne Books Limited, 2016
2 b o o k k e e p i n g c o n t r o l s t u t o r z o n e Task 1 Payment Payment of expenses by a travelling sales rep Payment method Standing order Employee payroll Direct debit Variable monthly payment for insurance Bank draft Fixed monthly payment to Water Aid charity BACS credit A paper-based payment for a vehicle purchase CHAPS Electronic payment of 1m for a property purchase Company credit card Cheque paid in at issuer s branch; Faster payment; (d) CHAPS (c) Error in the general ledger Error causes Error does NOT an imbalance cause an imbalance A bank receipt from a trade receivable has 4 been recorded in the cash book only A purchase invoice has not been recorded 4 in the accounting system A cash sale for 87 has been credited to 4 sales account as 78 Rent received of 400 has been credited to 4 rent paid account (d) A credit purchase has not been entered in the purchases account, VAT account or in the purchases ledger control account (e) The journal is a book of prime entry used to record non-regular transactions.
a n s w e r s t o p r a c t i c e a s s e s s m e n t 1 3 Task 2 Wages expense 16,685 4 Wages control 16,685 4 Wages control 5,279 4 HM Revenue & Customs 5,279 4 (c) Wages control 11,131 4 Bank 11,131 4 (d) Wages control 275 4 Trade Union 275 4 Task 3 Irrecoverable debts 650 4 Value Added Tax 130 4 Sales ledger control 780 4
4 b o o k k e e p i n g c o n t r o l s t u t o r z o n e Cash at bank 4,155 4 Loan from bank 4,400 4 Office equipment 4,900 4 Machinery 6,400 4 Capital 20,561 4 Inventory 4,685 4 Sales ledger control 2,641 4 Purchases ledger control 1,933 4 Wages 3,296 4 Miscellaneous expenses 817 4 Journal to record the opening entries of the new business Task 4 VAT control account Details Amount Purchases 8,056 Sales returns 216 Petty cash 21 Irrecoverable debt 58 Office equipment 304 Bank 8,054 Details Amount Balance b/f 8,054 Sales 17,800 Purchases returns 464 Cash sales 312 Discounts received 160 10,081 Credit
a n s w e r s t o p r a c t i c e a s s e s s m e n t 1 5 Task 5 Details Amount Debit Credit Balance of credit customers at 1 June 32,941 4 Goods sold on credit 18,261 4 Payments received from credit customers 15,958 4 Discounts allowed 550 4 Irrecoverable debt written off 227 4 (e) Dr 34,467 (c) Balance on sales ledger control account at 1 July 34,467 Total of the sales ledger balances at 1 July 33,925 Difference 542 (d) (d) Money received from customers was entered twice in the sales ledger
6 b o o k k e e p i n g c o n t r o l s t u t o r z o n e Task 6 CASH BOOK Date Details Bank Date Cheque Details Bank 20-4 20-4 number 01 Jun Balance b/f 1,420 02 Jun 284119 N Charlton 1,729 18 Jun Gourdji Ltd 876 02 Jun 284120 Eiffert Ltd 950 23 Jun T Larcombe 1,214 02 Jun 284121 Gray & Co 2,384 23 Jun Prime Kitchens 3,851 02 Jun 284122 Sykes Timber 1,232 21 Jun Teme Traders 3,470 06 Jun 284123 Decor Supplies 1,099 22 Jun Wyvern Mills 1,584 18 Jun Insure Direct 795 23 Jun Brough Stores 1,436 18 Jun 284124 Aldred & Co 655 26 Jun Balance b/d 1,473 20 Jun 284125 Wain Ltd 3,176 22 Jun Bank charges 235 23 Jun National Gas 123 25 Jun Balance c/d 1,473 13,851 13,851 Task 7 Bank reconciliation statement as at 30 September 20-4 Balance as per bank statement 1,913 Add: Name: Davis & Co 829 Total to add 829 Less: Name: S Musa 391 Name: Ford 128 Total to subtract 519 Balance as per cash book 2,223
a n s w e r s t o p r a c t i c e a s s e s s m e n t 1 7 Cash book balance Bank column totals 2,223 Debit 5,068 Task 8 (1) Account name Amount Debit Credit Purchases returns 500 4 (2) Account name Amount Debit Credit Purchases returns 400 4 (3) Account name Amount Debit Credit Suspense 100 4 (1) Account name Amount Debit Credit Rates 280 4 Bank 280 4 (2) Account name Amount Debit Credit Rates 280 4 Bank 280 4
8 b o o k k e e p i n g c o n t r o l s t u t o r z o n e Task 9 Suspense Details Amount Details Amount Balance b/d 81 Sales returns 990 Sales returns 909 Sales returns Details Amount Details Amount Balance b/d 2,210 Suspense 909 Sales returns day book 552 Balance c/d 2,843 Suspense 990 3,752 3,752
a n s w e r s t o p r a c t i c e a s s e s s m e n t 1 9 Task 10 Account name Debit Credit Suspense 274 Account name Original balance New balance Debit Credit Insurance 3,286 3,322 4 Sales returns 3,089 3,374 4 Purchases ledger control 11,473 12,068 4 (c) Account name Balance Debit in the Credit in the trial balance trial balance Bank loan 9,820 4 Purchases returns 3,216 4 Heating and lighting 2,137 4 (d) Account name Debit Credit Totals 141,652 141,652