BAW1.01.TZ Q copy - Osborne · PDF fileitems owed capital items owned ... (a customer), P Woodman (a supplier), Bank Loan. Purchases Ledger Sales Ledger General Ledger. ... Bank loan

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BookkeepingTransactionsChapter activities

© Osborne Books Limited, 2016

1.1 Examples of financial documents include:

(a) Invoice, credit note, cheque, petty cash voucher

(b) Invoice, credit note, cheque, sales day book

(c) Invoice, credit note, cheque, sales ledger

Tick the appropriate box.

1.2 The accounts of trade receivables are contained in:

(a) Purchases ledger

(b) Sales ledger

(c) General ledger


1.3 Enter the missing words from the selection below to complete the sentence that follows:

items owed capital items owned

The general ledger of a business normally contains the accounts of assets, which are

and liabilities, which are , and

, which is the owner’s investment in the business.

The accounting system1

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

1.4 An extract from the trial balance of a food store is shown below.

On the basis of the figures shown here, calculate the following money amounts:

(a) How much do the customers of Cibo Limited owe the business?

£

(b) How much does Cibo Limited owe its suppliers?

£

(c) What is the total of the expenses of Cibo Limited?

£

(d) What investment do the owners of Cibo Limited have in the business?

£

c h a p t e r a c t i v i t i e s 3

Debit £ Credit £Trade receivables 8,500 Trade payables 48,720 Marketing 6,900 Insurance 1,120 Rates 2,800 Bank 39,000 Cash 325 Rent 28,000 Capital 255,000

Name of business: Cibo Limited Trial Balance as at 31 December (extract)


Financial documents for sales2

2.1 Cucina Cookware has supplied some saucepans to a credit customer, R Copolis. The list price ofthe goods is £30.00 per pan, plus VAT at 20%. R Copolis is to be given a 20% trade discount. Thedelivery note (extract) is shown below.

You are to complete the ten blank boxes in the invoice below with the required details.

DELIVErY NOTE No 1791CuCINa COOkwarE Date 09 09 20-410 Mantle StreetMereford MR2 RS4

R Copolis21 Sandy Lane, Stourford, ST1 5GH Customer code RC924

20 Luxor pans, Code LX25

INVOICE No 2071CuCINa COOkwarE Date 09 09 20-410 Mantle StreetMereford MR2 RS4VAT Reg 105 1195 03

To R Copolis Customer code21 Sandy Lane, Stourford, ST1 5GH Delivery note no

Quantity Product code Price each £ Total £ Trade discount £ Goods £

VAT

Total


2.2 If Cucina Cookware in Task 2.1 had provided a further discount of 10% for orders in excess of£2,000, this would be known as a:

(a) Prompt payment discount

(b) Extended discount

(c) Bulk discount


2.3 The following transactions have been passed through the account of Ramsay Ltd, a new creditcustomer of Cucina Cookware:

Date Document amount (£) 1 October Invoice 2539 2,308.69 8 October Invoice 2586 1,905.60 14 October Invoice 2610 756.70 18 October Credit note 836 120.45 30 October Cheque 4,093.84

You are to complete the statement of account shown below:

Date Details Debit £ Credit £ Balance £

1 October Invoice 2539



18 October Credit note 836

30 October Cheque

STaTEMENT OF aCCOuNT To Ramsay LtdCuCINa COOkwarE Date 31 10 20-410 Mantle Street, Mereford MR2 RS4


2.4 Cucina Cookware codes all sales invoices with a customer code and a general ledger code. A selection of the codes used is given below.

Customer Customer account codeAlba Limited ALB09Bright Foods BRI07British Caterers BRI08Dansk Foods Ltd DAN10Dancer Trading DAN12

Item General ledger codePans GL1001Cutlery GL1004Blenders GL1006Crockery GL1012Coffee equipment GL1014

Indicate in the table below the appropriate customer and general ledger codes that would be

applied to the following sales invoices:

Product Customer General ledger code Customer code

Ace blender British Caterers

Dinner plates Dansk Foods Ltd

Soup spoons Bright Foods

Pasta pan Alba Limited

Coffee grinder Dancer Trading

Canteen mugs Bright Foods


2.5 The financial document which is received by the seller and states what goods or services are to besupplied is known as a:

(a) Delivery note

(b) Sales order

(c) Purchase order


2.6 Carrymatzon Ltd sells goods which have a total list price of £1,200. The following discounts areavailable to the buyer:• 20% normal trade discount • trade discount of 25% for purchases over £2,000The net amount to be charged before VAT will be:

(a) £900.00

(b) £930.00

(c) £960.00

Tick the correct amount.

2.7 The following discounts are available to N Brody Ltd from Anazir & Co: 20% trade discount andprompt payment discount of 2% for settlement within 7 days.N Brody Ltd is invoiced for goods with a list price of £2,000 on 1 June and pays for them on 6 June.The amount he will have to pay after deduction of discount, and including VAT, is:

(a) £1,568.00

(b) £1,881.60

(c) £1,920.00

Tick the correct amount.


Double-entry and the accountingequation3

3.1 The processes up to and including writing up the double-entry accounts in the accounting systemrun in the following order: Select the correct option.

(a) Financial transaction, financial document, book of prime entry, double-entry accounts

(b) Financial transaction, financial document, financial statement, double-entry accounts

(c) Financial transaction, financial document, trial balance, double-entry accounts

3.2 The following accounts are commonly kept in the ledgers of an accounting system of a business.You are to write the names of the accounts in the appropriate boxes below.B Annese (a customer), K Becker (a supplier), Sales, Purchases, S Perks (a customer), Insurance,Motor Vehicles, J Lloyd (a supplier), M Petrov (a customer), P Woodman (a supplier), Bank Loan.

Purchases Ledger Sales Ledger General Ledger


3.3 The table below lists payments and receipts of a business which pass through the Bank Account.Write the names of the two accounts involved in the double-entry in the correct columns. The firstentry is completed to show what is required. The name of the account which is not the Bankaccount is shown in bold type in the left-hand column.

Debit Credit

Money paid for wages Wages Bank

Money received from Sales

Insurance of premises

Capital paid in by owner

Bank loan received from bank

Payment for advertising costs

Vehicle purchased

Vehicle sold

Bank loan repaid

3.4 The Bank Account shown below has been written up by the bookkeeper, but the double-entry tothe second accounts has not yet been done. Using blank double-entry accounts*, complete theaccount name, date, details and amount for each entry.

Dr Bank account Cr

20-4 £ 20-4 £

1 Mar Sales 5,678 1 Mar Purchases 6,9122 Mar Sales 2,190 2 Mar Purchases 6,5053 Mar Rental income 4,600 3 Mar Advertising 5,9805 Mar Sales 9,300 4 Mar Wages 97,500

*Note that blank double-entry accounts can be downloaded from the Products and Resourcessection of www.osbornebooks.co.uk

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

Debit ............................................account Credit

Date Details £ Date Details £









c h a p t e r a c t i v i t i e s 1 1

3.5 Financial accounting is based upon the accounting equation.

(a) The accounting equation is as follows (select the correct option).

(a) Assets minus liabilities equals capital

(b) Assets plus liabilities equals capital

(c) Capital equals liabilities minus assets

(b) Classify each of the following items as an asset or a liability.

Item asset Liability

VAT owed by HM Revenue & Customs

Property

Bank overdraft

Money owing to trade payables

Cash

Vehicle

(c) Fill in the missing figures for the accounting equation by completing the blank boxes below:

assets Liabilities Capital

£ £ £

80,000 20,000

50,000 10,000

89,500 40,000

26,700 35,000

90,867 67,820

38,500 50,600

3.6 An increase or a decrease in an asset or liability or capital will result in either a debit or a credit tothe double-entry account recording that asset or liability or capital.

Indicate with a tick whether a debit or credit will occur in the asset or liability account as a result ofthe transaction in the column on the left.

The first transaction is shown as an example and the accounts involved are shown in bold type.

Transaction Debit Credit

The owner increases the capital of the business 4

The business increases its bank loan

The business sells a warehouse

The total amount owed by trade receivables decreases

The business pays off its bank overdraft

The business buys a new computer

3.7 The date is 30 November 20-4. You work as a bookkeeper for Topwood Supplies, a business thatsells timber. You have been asked to balance the four accounts shown below.


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

21 Nov Sales 260.00


1 3 b o o k k e e p i n g 1 w o r k b o o kDr L Dorado Ltd (purchases ledger) Cr


22 Nov Purchases returns 250.60 14 Nov Purchases 834.90

20 Nov Purchases 245.45

25 Nov Purchases 174.84

Dr rent paid (general ledger) Cr


5 Nov Bank 256.00

12 Nov Bank 256.00

19 Nov Bank 256.00

26 Nov Bank 256.00

Dr Marketing (general ledger) Cr


18 Nov Bank 240.00

23 Nov Bank 720.00

26 Nov Bank 1,340.00


4.1 Which two of the following are general ledger accounts? Tick the correct option.1 sales day book2 sales account3 Value Added Tax account4 account of T Smith, a trade receivable

(a) 1 and 2

(b) 2 and 3

(c) 3 and 4

(d) 2 and 4

4.2 Which one of the following is a sales ledger account? Tick the correct option.

(a) Sales returns account

(b) Value Added Tax account

(c) Account of P Lane, a trade receivable

(d) Sales account

Accounting for sales, returns anddiscounts4

4.3 Which one of the following is entered in the sales day book? Tick the correct option.

(a) Credit note issued

(b) Purchase order

(c) Statement of account sent to B Roberts, a trade receivable

(d) Sales invoice


activities 4.4 and 4.5 The two activities which follow should be carried out as part of one exercise. Note that: • You should work in pounds and pence, where appropriate • The rate of Value Added Tax is to be calculated at 20% (when calculating VAT amounts,

you should ignore fractions of a penny, ie round down to a whole penny) • You should use a coding system incorporating the following codes:

Day book codesSales day book SDB54Sales returns day book SRDB18

Sales ledger account numbersBeavan & Co SL050Larcombe Stores SL110Outdoor Supplies SL190Weatherproof Ltd SL220

General ledger account numbersSales ledger control account GL1200Sales account GL4100Sales returns account GL4110Value Added Tax account GL2200

4.4 DryZone Limited manufactures and sells outdoor clothing. During June 20-4 the following credit transactions took place: 5 Jun Sold goods to Outdoor Supplies £550 + VAT, invoice no 7234 issued 8 Jun Sold goods to Beavan & Co £875 + VAT, invoice no 7235 issued 12 Jun Sold goods to Larcombe Stores £690 + VAT, invoice no 7236 issued 16 Jun Sold goods to Weatherproof Ltd £1,210 + VAT, invoice no 7237 issued 22 Jun Sold goods to Beavan & Co £625 + VAT, invoice no 7238 issued 27 Jun Sold goods to Weatherproof Ltd £1,575 + VAT, invoice no 7239 issued

(a) Enter the above transactions in DryZone Limited’s sales day book for June 20-4, using theformat shown on the next page.

(b) Record the accounting entries in DryZone Limited’s general ledger and sales ledger. (Seethe next two pages.) You will need to retain the ledger accounts for use with Activity 4.5.


Sales Day Book SDB54 Date Details Invoice account Total VaT Net number code £ £ £

Debit ............................................account ..............(Code) Credit




General Ledger












Sales Ledger


4.5 The following list of transactions records the sales returns of DryZone Limited for June 20-4. Thesetransactions are to be:

(a) Entered in the sales returns day book for June 20-4, using the format shown below. (b) Recorded in the general ledger and sales ledger (use the ledgers already prepared in the

answer to Activity 4.4).

10 Jun Outdoor Supplies returns goods £75 + VAT, credit note no 224 issued 18 Jun Beavan & Co returns goods £110 + VAT, credit note no 225 issued 22 Jun Larcombe Stores returns goods £45 + VAT, credit note no 226 issued 30 Jun Beavan & Co returns goods £122 + VAT, credit note no 227 issued

Sales returns Day Book SrDB18 Date Details Credit note account Total VaT Net number code £ £ £


4.6 Sales invoices have been prepared and partially entered in the sales day book, as shown below.

(a) Complete the entries in the sales day book by inserting the appropriate figures for eachinvoice.

(b) Total the last five columns of the sales day book.

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 5,200

30 June Bolster & Co 2022 496 2,480

30 June Watsons 2023 2,112 1,760 1,760

Totals


4.7 You are employed by Perran Limited as an Accounts Assistant. The business has a manualaccounting system. Double-entry takes place in the general ledger; individual accounts of tradereceivables are kept as subsidiary accounts in the sales ledger. The VAT rate is 20%.

Notes: • show your answer with a tick, words or figures, as appropriate • coding is not required

(a) The following credit transactions all took place on 30 June 20-7 and have been entered into the sales day book as shown below. No entries have yet been made in the ledgers.

Sales day book

Date Details Invoice Total VaT Net 20-7 number £ £ £

30 June Durning Ltd 271 4,368 728 3,640

30 June Penyard & Co 272 2,256 376 1,880

30 June Merrimans 273 2,544 424 2,120

30 June Porth plc 274 5,808 968 4,840

Totals 14,976 2,496 12,480

What will be the entries in the sales ledger?

Select your account names from the following list: Durning Ltd, Merrimans, Penyard & Co,Porth plc, Purchases, Purchases ledger control, Purchases returns, Sales, Sales ledgercontrol, Sales returns, Value Added Tax.

Sales ledger account name amount Debit Credit £

What will be the entries in the general ledger?

Select your account names from the following list: Purchases, Purchases ledger control,Purchases returns, Sales, Sales ledger control, Sales returns, Value Added Tax.


General ledger account name amount Debit Credit £

(b) The following credit transactions all took place on 30 June 20-7 and have been entered intothe sales returns day book as shown below. No entries have yet been made in the ledgers.

Sales returns day book Date Details Credit note Total VaT Net 20-7 number £ £ £

30 June Sanchez & Co CN 105 672 112 560

30 June Honnor Ltd CN 106 384 64 320

Totals 1,056 176 880

What will be the entries in the sales ledger? Select your account names from the following list: Honnor Ltd, Purchases, Purchases ledger

control, Purchases returns, Sales, Sales ledger control, Sales returns, Sanchez & Co, ValueAdded Tax.


What will be the entries in the general ledger? Select your account names from the following list: Purchases, Purchases ledger control,

Purchases returns, Sales, Sales ledger control, Sales returns, Value Added Tax. General ledger account name amount Debit Credit £


(c) The following discounts allowed transactions all took place on 30 June 20-7 and have beenentered into the discounts allowed day book as shown below. No entries have yet beenmade into the ledgers.

Date Details Credit note Total VaT Net 20-7 number £ £ £

30 June Peaty & Co DA 212 30 5 25

30 June Daley Ltd DA 213 12 2 10

Totals 42 7 35

What will be the entries in the general ledger?Select your account names from the following list: Discounts allowed; Discounts received;Purchase ledger control; Purchases; Purchases returns; Sales; Sales ledger control; Salesreturns; Value Added Tax.


What will be the entries in the sales ledger?

Select your account names from the following list: Daley Ltd; Discounts allowed; Discountsreceived; Peaty & Co; Purchase ledger control; Purchases; Purchases returns; Sales; Salesledger control; Sales returns; Value Added Tax.



4.8 You are the bookkeeper at Bourne Ltd. Four sales invoices have been issued and have been partially entered in the analysed sales day

book, shown below. Complete the entries in the sales day book by inserting the appropriate details from each invoice,

and then total the day book.

INVOICE NO 3456 30 June 20-4 From: Bourne Ltd 14 Nelson Street Wiston W53 8JK VAT Registration No 631 4572 85

To: Montez Ltd £ 25 items of product A14 @ £20 each 500.00 VAT @ 20% 100.00 Total 600.00


To: M Cyrek £ 30 items of product B14 @ £15 each 450.00 VAT @ 20% 90.00 Total 540.00



To: A Rowland £ 35 items of product A14 @ £20 each 700.00 VAT @ 20% 140.00 Total 840.00


To: Shah Ltd £ 10 items of product B14 @ £15 each 150.00 VAT @ 20% 30.00 Total 180.00

Sales day book

Date Details Invoice Total VaT Net Product a14 Product B14 20-4 number £ £ £ £ £

30 June Montez Ltd 30 June M Cyrek 30 June A Rowland 30 June Shah Ltd

Totals


5.1 If a business receives a remittance advice from a customer and there is an underpayment of theaccount, the reason could be one of the following situations.Choose the correct option.

(a) The customer has paid a sales invoice twice in error

(b) The customer has failed to take a sales credit note into account

(c) There is a dispute over an invoice

(d) The payment has been late

5.2 A business receives payment of an invoice for goods costing £1,200 before VAT at 20% is added.The invoice allows deduction of prompt payment discount at 5% for payment within 14 days of theinvoice date.The payment is received 21 days after the invoice date.Choose the correct amount of payment due on this invoice.

(a) £1,200.00

(b) £1,440.00

(c) £1,368.00

Process payments from customers5


G FlynnBaCS rEMITTaNCE aDVICE

To: Johnston & Co Date: 30 Sept 20-4 The following payment will reach your bank account within 3 working days.

Invoice number Credit note number amount £ 468 1,238523 525

Total amount paid 1,763

You are required to check the remittance advice against the sales ledger account.

(a) State the two documents missing from the remittance advice. Include their reference numbers.

(b) State the total amount that should have been sent to settle the account:

£

5.3 The account shown below is in the sales ledger of Johnston & Co. The customer, G Flynn, is a newcustomer who opened the account at the beginning of September. Initial terms were for settlementof the account at the end of the month by BACS transfer.

Also shown below is the BACS remittance advice sent by G Flynn at the end of September.

G Flynn

Date Details amount Date Details amount20-4 £ 20-4 £

5 Sept Sales invoice 468 1,238 10 Sept Credit note 295 120

15 Sept Sales invoice 490 1,560

25 Sept Sales invoice 523 525


6.1 A goods received note is issued:

(a) By the buyer when ordering goods

(b) By the supplier when despatching goods

(c) By the buyer when the goods arrive


6.2 A purchase order should be checked by the buyer against:

(a) The supplier’s account

(b) The delivery note

(c) The remittance advice


6.3 Discount given by the supplier specifically when the buyer orders very large quantities of goods isknown as:

(a) Trade discount

(b) Settlement discount

(c) Bulk discount


Process documents from suppliers6


6.4 Praxis Stationery codes all purchase invoices with a supplier code and a general ledger code. Aselection of the codes used is given below.

Supplier Supplier account codeMasters Ltd MA008Nero Associates NE003Nextday Ltd NE009Omega Traders OM004Pimania Ltd PI006

Item General ledger codePens GL1008Paper GL1009Filing GL1010Furniture GL1011Planners GL1012

During the week Praxis Stationery receives a number of supplier invoices to settle.You are to code these invoices using the lists shown above and the table below.

Supplier Product ordered Supplier code General ledger code

Nextday Ltd Office desks

Pimania Ltd Black gel pens

Nero Associates A4 copy paper

Omega Traders Red fibre tip pens

Masters Ltd Suspension files

Nextday Ltd Office holiday planner


6.5 A supply of box files has been delivered to Praxis Stationery by Stationery Supplies Ltd. Thepurchase order sent from Praxis Stationery, and the invoice from Stationery Supplies, are shownbelow.

PurCHaSE OrDEr No 1070PraXIS STaTIONErY Date 12 08 20-345 Jarvis Street, Mereford MR1 2GH

To: Stationery SuppliesPlease supply 500 Box files (burgundy) Product code BFB672Purchase price: £4 each, plus VAT @ 20%.Discount: less 25% trade discount, as agreed.

INVOICESTATIONERY SUPPLIES LIMITED67 Grossmith StreetNorwich NR1 4FG VAT Reg 119 8426 22

To: Date 14 08 20-3Praxis Stationery No. 236445 Jarvis Street, Mereford MR1 2GH Account P562

Quantity Product code Price (£) Total (£) Net (£) VAT (£) Total (£)

500 BFB672 6.00 3000.00 2250.00 450.00 2700.00

Check the invoice against the purchase order and answer the following questions.

Has the correct item been supplied? Yes or No? Has the correct price been charged? Yes or No?

What should the correct net figure be after deduction of discount? £

What would be the VAT (charged @20%) if the invoice was correct? £


7.1 Which two of the following are general ledger accounts? Tick the correct option.1 Purchases account2 Value Added Tax account3 Purchases day book4 Account of J Vincent, a trade payable

(a) 1 and 2

(b) 2 and 3

(c) 3 and 4

(d) 2 and 4

7.2 Which one of the following is a purchases ledger account? Tick the correct option.

(a) Purchases account

(b) Value Added Tax account

(c) Purchases returns account

(d) Account of M Ostrowski, a trade payable

Accounting for purchases, returns anddiscounts7


7.3 Show whether the following statements are true or false.

True False

(a) Discounts received are debited to discounts received account

(b) VAT on discounts received is credited to the VAT account

(c) Discounts received are credited to purchases ledger control account

(d) Discounts received are debited to individual supplier accounts in thepurchases ledger

activities 7.4 and 7.5 These two activities which follow should be carried out as part of one exercise. Note that: • You should work in pounds and pence, where appropriate • The rate of Value Added Tax is to be calculated at 20% (when calculating VAT amounts,

you should ignore fractions of a penny, ie round down to a whole penny) • You should use a coding system incorporating the following codes:

Day book codespurchases day book PDB38purchases returns day book PRDB12

Purchases ledger account numbersAskews PL040Keating & Co PL320Melia Manufacturing PL410Taylor Supplies PL680

General ledger account numberspurchases ledger control account GL2350purchases account GL5100purchases returns account GL5110Value Added Tax account GL2200


7.4 Scott Products Limited manufactures and sells chocolate products. During March 20-2 the followingcredit transactions took place:

4 Mar Purchased goods from Taylor Supplies £527 + VAT, invoice no T/I459 8 Mar Purchased goods from Keating & Co £831 + VAT, invoice no 3472 11 Mar Purchased goods from Askews £689 + VAT, invoice no A862 18 Mar Purchased goods from Taylor Supplies £975 + VAT, invoice no T/I550 25 Mar Purchased goods from Melia Manufacturing £569 + VAT, invoice no 8817 28 Mar Purchased goods from Askews £433 + VAT, invoice no A902

You are to:

(a) Enter the above transactions in Scott Products Limited’s purchases day book for March20-2, using the format shown below.

(b) Record the accounting entries in Scott Products Limited’s general ledger and purchasesledger. (You will need to retain the ledger accounts for use with Activity 7.5.)

Please refer to the notes on the previous page for further instructions and codes.

Purchases Day Book PDB38 Date Details Invoice account Total VaT Net

number code £ £ £


Debit ............................................account ...............(Code) Credit




Debit ...........................................account ...............(Code) Credit


General Ledger










Purchases Ledger


7.5 Note: you will need to have completed Activity 7.4 before attempting this Activity. Set out below are the purchases returns of Scott Products Limited for March 20-2. These

transactions are to be:

(a) Entered in the purchases returns day book for March 20-2, using the format shown below.

(b) Recorded in the general ledger and purchases ledger (use the ledgers already prepared in the answer to Activity 7.4.)

12 Mar Returned goods to Taylor Supplies £82 + VAT, credit note no T/R270 received 18 Mar Returned goods to Keating & Co £54 + VAT, credit note no CN368 received 26 Mar Returned goods to Taylor Supplies £37 + VAT, credit note no T/R275 received 30 Mar Returned goods to Askews £85 + VAT, credit note no CN/A303 received

Purchases returns Day Book PrDB12 Date Details Credit note account Total VaT Net

number code

£ £ £


7.6 Purchases invoices have been prepared and partially entered in the purchases day book, as shownbelow.

(a) Complete the entries in the purchases day book by inserting the appropriate figures for eachinvoice.

(b) Total the last five columns of the purchases day book.

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 4,560 4,560 30 June Boswells B/364 768 3,840 30 June Zamora Ltd Z274 3,552 2,960 Totals


7.7 You are employed by Larcombe Limited as an Accounts Assistant. The business has a manualaccounting system. Double-entry takes place in the general ledger; individual accounts of payablesare kept as subsidiary accounts in the purchases ledger. The VAT rate is 20%.

Notes: • Show your answer with a tick, words or figures, as appropriate • Coding is not required

(a) The following credit transactions all took place on 30 June 20-8 and have been entered into the purchases day book as shown below. No entries have yet been made in the ledgers.

Purchases day book Date Details Invoice Total VaT Net 20-8 number £ £ £

30 June Thorpe Ltd 4729 2,112 352 1,760

30 June Avalos plc A346 2,832 472 2,360

30 June Barkers 9784 6,144 1,024 5,120

30 June Floyd & Co F/242 5,616 936 4,680

Totals 16,704 2,784 13,920

What will be the entries in the purchases ledger?

Select your account names from the following list: Avalos plc, Barkers, Floyd & Co,Purchases, Purchases ledger control, Purchases returns, Sales, Sales ledger control, Salesreturns, Thorpe Ltd, Value Added Tax.

Purchases ledger account name amount Debit Credit £


Select your account names from the following list: Purchases, Purchases ledger control,Purchases returns, Sales, Sales ledger control, Sales returns, Value Added Tax.



(b) The following credit transactions all took place on 30 June 20-8 and have been entered intothe purchases returns day book as shown below. No entries have yet been made in theledgers.

Purchases returns day book Date Details Credit note Total VaT Net 20-8 number £ £ £

30 June Church Stores 616 336 56 280

30 June Thornton Ltd CN55 672 112 560

Totals 1,008 168 840

What will be the entries in the purchases ledger? Select your account names from the following list: Church Stores, Purchases, Purchases

ledger control, Purchases returns, Sales, Sales ledger control, Sales returns, Thornton Ltd,Value Added Tax.


What will be the entries in the general ledger? Select your account names from the following list: Purchases, Purchases ledger control,

Purchases returns, Sales, Sales ledger control, Sales returns, Value Added Tax. General ledger account name amount Debit Credit £


(c) The following discounts received transactions all took place on 30 June 20-8 and have beenentered into the discounts received day book as shown below. No entries have yet beenmade into the ledgers.

Discounts received day book Date Details Credit note Total VaT Net 20-8 number £ £ £

30 June Rimkus 433 18 3 15

30 June D R Thorne Ltd 17/72 48 8 40

Totals 66 11 55


Select your account names from the following list: Discounts allowed; Discounts received;Purchase ledger control; Purchases; Purchases returns; Sales; Sales ledger control; Salesreturns; Value Added Tax.


What will be the entries in the purchases ledger?Select your account names from the following list: D R Thorne Ltd; Discounts allowed;Discounts received; Purchase ledger control; Purchases; Purchases returns; Rimkus; Sales;Sales ledger control; Sales returns; Value Added Tax.



7.8 You are the bookkeeper at Bourne Ltd. Four purchases invoices have been received and have been partially entered in the analysed

purchases day book, shown below. Complete the entries in the purchases day book by inserting the appropriate details from each

invoice, and then total the day book.

INVOICE NO 7234 30 June 20-4 From: Blenheim Ltd 18 Blenheim Road Wiston WS2 1JC VAT Registration No 361 4596 08

To: Bourne Ltd £ 50 items of product B14 @ £10 each 500.00 VAT @ 20% 100.00 Total 600.00

INVOICE NO 6945 30 June 20-4 From: P Olumbi Unit 4, Albany Estate Tritton TR3 0PY VAT Registration No 176 4522 04

To: Bourne Ltd £ 70 items of product A14 @ £12 each 840.00 VAT @ 20% 168.00 Total 1,008.00


INVOICE NO 2176 30 June 20-4 From: Carholme Ltd Racecourse Road Wiston WS6 8PY VAT Registration No 572 1493 09

To: Bourne Ltd £ 90 items of product A14 @ £12 each 1,080.00 VAT @ 20% 216.00 Total 1,296.00

INVOICE NO 3085 30 June 20-4 From: S Lucas 26 Railway Terrace Kings Ashby KA1 2DK VAT Registration No 376 1794 14

To: Bourne Ltd £ 60 items of product B14 @ £10 each 600.00 VAT @ 20% 120.00 Total 720.00

Purchases day book

Date Details Invoice Total VaT Net Product a14 Product B1420-4 number £ £ £ £ £

30 June Blenheim Ltd30 June P Olumbi30 June Carholme Ltd30 June S Lucas

Totals


8.1 If a supplier duplicates a credit note for goods returned, the effect will be (tick the appropriate option):

(a) An increase in the total amount owing shown on the statement of account

(b) A decrease in the total amount owing shown on the statement of account

(c) No effect at all

8.2 A remittance advice is used to:

(a) Advise the customer of the total amount owing

(b) Advise the supplier’s bank of the total amount being paid by the customer

(c) Advise the supplier of the total amount being paid by the customer


8.3 The purchases ledger account of a supplier shows a credit note which is not shown on thesupplier’s statement of account. This:

(a) Can be adjusted by asking the supplier to issue an adjusting invoice

(b) Will mean the supplier’s statement of account will show a higher balance owing than the purchases ledger account

(c) Will mean the supplier’s statement of account will show a lower balance owing than the purchases ledger account


Prepare payments to suppliers8


8.4 Shown below is a statement of account received from Al Binoni Importers, a credit supplier, and thesupplier’s account as shown in the purchases ledger of Broadfield Traders.

Al Binoni Importers29 Gresham Avenue, London, EC2 8JX

To: Broadfield Traders Unit 18 Elgar Estate Mereford, MR2 5FG STaTEMENT OF aCCOuNT

Date Invoice number Details Invoice amount amount received Balance20-4 £ £ £1 Feb 1071 Goods 2,510 2,5103 Feb 1080 Goods 1,075 3,5857 Feb 1120 Goods 600 4,18528 Feb 1290 Goods 1,960 6,1451 March - Cheque 4,185 1,960

al Binoni Importers

Date Details amount Date Details amount20-4 £ 20-4 £1 March Bank 4,185 3 Feb Purchases 2,51028 March Bank 1,200 10 Feb Purchases 1,075

26 Feb Purchases 600

(a) Which item is missing from the statement of account from Al Binoni Importers? Select youranswer from the following list:

Invoice 1071, Invoice 1080, Invoice 1120, Invoice 1290, Cheque for £4,185, Cheque for £1,200

(b) Which item is missing from the supplier account in Broadfield Traders’ purchases ledger?Select your answer from the following list:

Invoice 1071, Invoice 1080, Invoice 1120, Invoice 1290, Cheque for £4,185, Cheque for £1,200

(c) Assuming any differences between the statement of account from Al Binoni Importers andthe supplier account in Broadfield Traders’ purchases ledger are simply due to omissionerrors, what is the amount owing to Al Binoni Importers?

£


8.5 Mereford Traders sends BACS remittance advice notes to suppliers on the last day of the monthfollowing the month of invoice. Mereford Traders banks with National Bank plc and Manzini & Cobanks with Europa Bank plc. Below is an uncompleted BACS remittance advice and an extract fromMereford Trader’s purchases ledger.

Mereford Traders45 College Street

Mereford, MR3 4GTBaCS rEMITTaNCE aDVICE

To: Date: The following payment will reach your bank account within 3 working days.

Invoice number Credit note number amount £

Total amount paid

Manzini & CoDate Details amount Date Details amount20-4 £ 20-4 £3 Mar Purchases returns credit note 120 15 Mar Purchases Invoice 2250 2,450

CN10720 Mar Purchases returns credit note 250 20 Apr Purchases Invoice 2449 1,946

CN14530 Apr Bank 2,080 29 Apr Purchases Invoice 2687 1,951

10 May Purchases Invoice 2946 1,452

(a) The BACS remittance advice will be sent:

(a) With the cheque

(b) To Europa Bank plc

(c) To Manzini & Co

(d) To Mereford Traders

Tick the correct option.


(b) What will be the date shown on the BACS remittance advice?

(a) 1 June

(b) 28 March

(c) 30 April

(d) 31 May


(c) What will be the items shown on the BACS remittance advice?

(a) Invoice 2250, invoice 2449, invoice 2687, invoice 2946

(b) Invoice 2250, invoice 2449, invoice 2687, credit note CN107

(c) Invoice 2449, Invoice 2687

(d) Invoice 2946, credit note CN145


(d) The amount of the remittance advice will be:

(a) £3,897

(b) £3,647

(c) £3,527

(d) £5,977



9.1 The following transactions all took place on 30 June 20-4 and have been entered into the cashbook of Martina Lockhart, as shown below. No entries have yet been made in the ledgers.

Note that Martina Lockhart’s business is not registered for Value Added Tax.

(a) What will be the entry in the sales ledger? Select your account names from the following list: Balance b/f, Bank, Purchases ledger

control, Sales ledger control, Thorntons Ltd.


Date Details Cash Bank

20-4 £ £30 Jun Balances b/f 300 5,284

30 Jun Thorntons Ltd (trade receivable) 5,000

300 10,284

1 Jul Balances b/d 212 4,339

Date Details Cash Bank

20-4 £ £30 Jun Rent 2,250

30 Jun Wages 3,695

30 Jun Office expenses 88

30 Jun Balances c/d 212 4,339

300 10,284

Dr Cash Book CB69 Cr

Cash book9


(b) What will be the entries in the general ledger? Select your account names from the following list: Balance b/f, Bank, Office expenses,

Purchases ledger control, Rent, Sales ledger control, Stationery, Thorntons Ltd, Wages.


9.2 The cash book of Carolyn Daly shows a number of transactions which all took place on30 September 20-1:

(a) The bank balance brought forward of £2,130 on 30 September shows that, according to thecash book, the business has money in the bank. True or false? Indicate below.

Date Details Acc code Cash Bank

20-1 £ £30 Sep Balances b/f 90 2,13030 Sep Cash sales 120 30 Sep Cooper Ltd 1,150 (trade receivable) 30 Sep Balance c/d 975

210 4,255

1 Oct Balance b/d 135

Date Details Acc code Cash Bank

20-1 £ £30 Sep Nugent & Co 760 (trade payable) 30 Sep Cash purchases 24030 Sep General expenses 75 30 Sep Wages 2,36530 Sep Office equipment 89030 Sep Balance c/d 135

210 4,255

1 Oct Balance b/d 975

Dr Cash Book CB45 Cr

True False








General Ledger

(b) The bank balance brought down of £975 on 1 October shows that, according to the cashbook, the business has money in the bank. True or false? Indicate below.

(c) You are to transfer the data from the cash book into the general ledger of Carolyn Daly.Blank accounts are set out below. Note that a bank control account is not required.

(d) Show the entries in the sales ledger and purchases ledger of Carolyn Daly (see below forblank accounts).

Note: Carolyn Daly’s business is not registered for Value Added Tax.

True False











9.3 The balances in Luke Bryan’s cash book at 3 September 20-7 were as follows: £ Cash in hand 360 Bank overdraft 1,076

The following transactions took place:

3 Sep Sales £245, cash received 4 Sep Paid rates by direct debit £307 5 Sep Received a cheque of £1,160 from Ahmed Ltd (a trade receivable) in full settlement of a debt 8 Sep Paid wages £390 in cash 8 Sep Paid XJ Supplies (a trade payable) by cheque £720 10 Sep Drawings, £500 by cheque, made by Luke Bryan 10 Sep Paid rent by cheque £525

required:• Enter the above transactions in the cash book on the next page. • Balance the cash and bank columns at 10 September 20-7, and bring the balances down on

11 September 20-7.

Note: Luke Bryan’s business is not registered for Value Added Tax.





Sales Ledger

Purchases Ledger


D

r

Cash

Boo

k

Cr

Date

Det

ails

C

ash

B

ank

D

ate

De

tails

Ca

sh

B

ank

20-7

£

£

20-

7

£

£


9.4 Which one of the following transactions will be recorded on the receipts side of the cash book?

(a) Bank transfer of £10,000 to increase the owner’s capital

(b) Credit card payment for office stationery of £585

(c) Debit card payment to a trade payable for £450

(d) BACS payment of wages to employees for £8,490

9.5 Which one of the following transactions will be recorded on the payments side of the cash book?

(a) Cash sales of £125

(b) BACS transfer from a trade receivable for £680

(c) Bank charges of £35

(d) Refund of bank charges of £35


Statement True False

(a) The cash book is the book of prime entry for bank and cash receipts and payments (except for some low-value cash payments)

(b) The trade receivables column total from cash book is debited to sales ledger control account in general ledger

(c) The trade payables column total from cash book is debited to the purchases ledger control account in the general ledger

(d) The amount of VAT on credit purchases is recorded in the VAT column on the payments side of cash book


9.7 You are an Accounts Assistant at Cooper Limited. One of your duties is to write-up the cash book. The brought forward balances are: Cash £521 Debit Bank £1,155 Debit There are five payments to be entered in Cooper Limited’s cash book.

receipts for cash payments

Bank payments

received cash withthanks for goods bought.From Cooper Ltd, acustomer without a creditaccount.

Net £80

VAT £16

Total £96

Thorpe & Co

received cash withthanks for goods bought.From Cooper Ltd, acustomer without a creditaccount.

Net £120

VAT £24

Total £144

E Rojas

Melia Ltd(Purchases ledger accountPL150)£755

Southern Stationery(No credit account with thissupplier)£192 including VAT

watson & Co(Purchases ledger accountPL430)£1,750


(a) Enter the details from the two receipts for cash payments and the three bank payments intothe credit side of the cash book shown below and total each column.

Cash book – credit side

Details Cash Bank VaT Trade Cash Stationery payables purchases expenses £ £ £ £ £ £

Totals

There are two bank receipts and one cash receipt to be entered in Cooper Limited’s cashbook:

Bank receipts: S Paine Ltd £840 (credit customer) Bromfields £394 (credit customer) Cash receipt: F Bridger £312 (including VAT)

(b) Enter the above details into the debit side of the cash book and total each column.

Cash book – debit side

Details Cash Bank VaT Trade Cash receivables sales £ £ £ £ £

521 1,155

Totals


9.8 There are four payments to be entered in McKay Limited’s cash book. Payments to suppliers who do not offer credit accounts: • cash paid to Toni Gray of £264, including VAT, for goods purchased • a bank payment of £650, no VAT, to A-Z Insurers for property insurance Payments to credit suppliers: • BACS payments made as authorised on the two invoices shown below.

amos plc1 Victoria Place

Sandham Sa1 4HXVaT registration No 623 9768 12

Invoice No. 3671 30 June 20-4

To: McKay Ltd 28 Mill Street Whittingham, WH2 5BY £125 items of A12 @ £12.00 each 1,500VAT @ 20% 300Total 1,800

Authorised for payment of £1,764, £36settlement discount taken: J McKay

Terms: 2% settlement discount for payment in 10days or 30 days net.

V. Gosai2a Meadow roadGranton Gr2 3PQ

VaT registration No 149 3683 02

Invoice No. 8429 30 June 20-4

To: McKay Ltd 28 Mill Street Whittingham, WH2 5BY £100 items of B12 @ £8.00 each 800.00VAT @ 20% 160.00Total 960.00

Authorised for payment in full: J McKay

Terms: 30 days net.

(c) Using your answers to (a) and (b) above, calculate the cash balance.

£

(d) Using your answers to (a) and (b) above, calculate the bank balance. If your calculations show that the bank account is overdrawn your answer should start with a minus sign, for example –123.

£

(e) Will the bank balance calculated in (d) above be a debit or credit balance? Debit

Credit


(a) Enter the details of the four payments into the credit side of the cash book shown below and total each column.

Cash book – credit side

Details Cash Bank VaT Trade Cash Other payables purchases expenses £ £ £ £ £ £

Balance b/f 1,625

Totals

There are three amounts received to be entered in McKay Limited’s cash book. Cheques received from credit customers: • CBT plc £1,380 • Notley Ltd £1,465 Cash received: • £250 received from Kristina Ltd for rent of office space (No VAT)

(b) Enter the details of the three receipts into the debit side of the cash book shown below and total each column.

Cash book – debit side

Details Cash Bank VaT Trade Other receivables income £ £ £ £ £

Balance b/f 510

Totals


(c) Using your answers to (a) and (b) on the previous page, calculate the cash balance. £

(d) Using your answers to (a) and (b) on the previous page, calculate the bank balance. If your calculations show that the bank account is overdrawn your answer should start with a minus sign, for example –123.

£


10.1 When dealing with petty cash vouchers, which one of the following statements is true?

(a) They are always authorised for payment by the petty cashier

(b) They must have relevant documentation attached to show that the amount claimed is correct

(c) They need to be completed only for amounts claimed above £25

(d) They are used to draw cash from the bank to top-up the petty cash imprest amount

10.2 A petty cash control account has a balance b/d of £175 at the beginning of a month. During themonth, payments are made from petty cash which total £122. Which one of the followingtransactions will restore the balance of petty cash control account to £175?

(a) Debit bank £175; credit petty cash control £175

(b) Debit petty cash control £53; credit bank £53

(c) Debit petty cash control £122; credit bank £122

(d) Debit bank £122; credit petty cash control £122

Petty cash book10



Statement True False

(a) Petty cash vouchers are financial documents against which payments are made out of petty cash

(b) The petty cash book is a part of double-entry bookkeeping only

(c) Receipts from the bank to top-up the petty cash imprest amount are recorded on the debit side of petty cash book

(d) Petty cash book is the book of prime entry for low-value cash payments

10.4 A firm’s petty cash book is operated on the imprest system. The imprest amount is £200. At the endof a particular period, the analysis columns are totalled as follows: VAT £19.86; postage £25.27;travel £33.54; stationery £52.22; cleaning £15.38.

How much cash will be required to restore the imprest amount for the next period?

(a) £200.00

(b) £146.27

(c) £253.73

(d) £53.73


10.5 A company’s petty cash book is operated on the imprest system. The imprest amount is £150. Atthe end of a particular period the petty cash remaining comprised:1 x £10 note, 3 x £5 notes, 6 x £1 coins, 7 x 50p coins, 8 x 20p coins, 4 x 10p coins, 5 x 5p coins,10 x 1p coins.Provided no errors or discrepancies have occurred, how much cash will be required to restore theimprest amount for the next period?

(a) £36.85

(b) £150.00

(c) £113.15

(d) £186.85

10.6 The petty cashier of the business where you work tops up the petty cash at the end of the monthwith £65 withdrawn from the bank.

What will be the entries in the general ledger? Select your account names from the following list: Bank, Cash, Petty cash book, Purchases,

Purchases ledger control, Sales, Sales ledger control, Value Added Tax.



10.7 Vallance Limited maintains a petty cash book as both a book of prime entry and part of the double-entry accounting system. The following transactions all took place on 30 April and have beenentered in the petty cash book as shown below. No entries have yet been made in the generalledger.

Petty cash book

Date Details amount Date Details amount VaT Postage Travel Office expenses expenses 20-4 £ 20-4 £ £ £ £ £

30 Apr Balance b/f 73.00 30 Apr Post office 9.53 9.53

30 Apr Bank 77.00 30 Apr Envelopes 12.48 2.08 10.40

30 Apr Rail fare 19.55 19.55

30 Apr Copier paper 18.24 3.04 15.20

Balance c/d 90.20

150.00 5.12 150.00 5.12 9.53 19.55 25.60

What will be the entries in the general ledger? Select your account names from the following list: Balance b/f, Balance c/d, Bank, Copier paper,

Envelopes, Office expenses, Petty cash book, Postage, Post office, Rail fare, Travel expenses,Value Added Tax.

General ledger

account name amount Debit Credit £


10.8 The petty cash book below is maintained as a book of prime entry and part of the double-entrybookkeeping system. This is a summary of petty cash purchases during the week.

• Ring binders £20 plus VAT • Postage stamps £15. VAT not applicable • A4 paper £9.00 plus VAT

(a) • Enter the above transactions into the partially completed petty cash book below. • Total the petty cash book and show the balance carried down.Select your entry for the Details column from the following list: Balance c/d, Balance b/f, A4Paper, Office expenses, Postage, Postage stamps, VAT.

Petty cash book

Details amount Details amount VaT Stationery Postage £ £ £ £ £ Balance b/f 100.00 Envelopes 12.00 2.00 10.00

Total 100.00 Totals

(b) What will be the three accounts in the general ledger which will record the abovetransactions?

Select the appropriate accounts in the right-hand column.

(a) Stationery

(b) Petty cash control

(c) Postage

(d) Telephone

(e) VAT

(f) Petty cash book

(g) Cleaning

(c) At the end of the week what is the amount of cash that would have to be withdrawn from thebank to restore the imprest level of £100?

£


10.9 The following petty cash book shows a number of transactions of Avalos Limited for August 20-8.The petty cash book is kept solely as a book of prime entry.

Petty Cash Book PCB28

receipts Date Details Voucher Total analysis columns number payment VaT Travel Postage Stationery Sundry Ledger £ 20-8 £ £ £ £ £ £ £ 150.00 1 Aug Balance b/f 5 Aug Taxi 83 12.00 2.00 10.00 7 Aug Post office 84 7.65 7.65 12 Aug Window cleaning 85 24.00 4.00 20.00 14 Aug Copier paper 86 15.36 2.56 12.80 4.80 16 Aug H Clark 417 (postage) 20 Aug Rail fare 87 14.55 14.55 23 Aug T Carline (PL) 88 19.35 19.35 27 Aug Flip charts 89 12.48 2.08 10.40 105.39 10.64 24.55 7.65 23.20 20.00 19.35 100.59 31 Aug Bank 31 Aug Balance c/d 150.00 255.39 255.39

150.00 1 Sep Balance b/d

(a) You are to transfer the data from the petty cash book into the general ledger accounts(including cash book) as at 31 August 20-8. Note that a petty cash control account isrequired.

(b) Show the entry that will be recorded in purchases ledger as at 31 August 20-8.






















10.10 Part way through the month, the petty cash account of a business had a balance of £79.25. The cash in the petty cash box was checked and the following notes and coins were present.

Notes and coins £ 2 x £10 notes 20.00 8 x £5 notes 40.00 12 x £1 coins 12.00 9 x 50p coins 4.50 11 x 10p coins 1.10 13 x 5p coins 0.65 (a) Reconcile the cash amount in the petty cash box with the balance on the petty cash account.

£Amount in petty cash box

Balance on petty cash account Difference

At the end of the month the cash in the petty cash box was £33.97. (b) Complete the petty cash reimbursement below to restore the imprest amount of £200.

Petty cash reimbursement

Date: 31.10.20-7 Amount required to restore the cash in the petty cash box £


11.1 Which one of the following accounts always has a debit balance?

(a) Drawings account

(b) Purchases ledger control account

(c) Purchases returns account

(d) Discount received account

11.2 Which one of the following accounts always has a credit balance?

(a) Inventory account

(b) Bank account

(c) Petty cash control account

(d) Capital account

The initial trial balance11


11.3 You work as an Accounts Assistant for Kingham Trading. The Accounts Supervisor has asked youto work on preparing an initial trial balance as at 31 March 20-4. The supervisor has given you thefollowing list of balances to be transferred to the trial balance.You are to place the figures in the debit or credit column, as appropriate, and total each column.

account name amount Debit Credit £ £ £Bank (cash at bank) 2,649Loan from bank 8,500Office equipment 12,200Vehicles 20,750Inventory 8,608Petty cash control 66VAT owing to HM Revenue & Customs 1,261Purchases 89,738Purchases returns 2,107Purchases ledger control 26,846Sales 147,924Sales returns 3,842Sales ledger control 37,411Discounts received 276Discounts allowed 135Capital 34,731Drawings 13,244Advertising 2,827Insurance 967Heating and lighting 4,326Rent and rates 5,368Telephone 971Miscellaneous expenses 379Wages 18,164Totals –


11.4 You work as an Accounts Assistant for Charlbury Limited. The Accounts Supervisor has asked youto work on preparing an initial trial balance as at 30 September 20-7. The supervisor has given youthe following list of balances to be transferred to the trial balance.You are to place the figures in the debit or credit column, as appropriate, and total each column.

account name amount Debit Credit £ £ £Sales ledger control 40,272Sales 175,843Sales returns 2,316Purchases ledger control 22,433Purchases 105,871Purchases returns 1,045Office equipment 18,395Vehicles 34,170Rent and rates 6,842Advertising 3,776Insurance 2,097Wages 37,864Heating and lighting 3,791Postages and telephone 1,946Miscellaneous expenses 558Discounts received 654Discounts allowed 317Capital 75,737Drawings 25,650Inventory 12,415Petty cash control 119Bank (overdraft) 3,086VAT owing to HM Revenue & Customs 2,041Loan from bank 15,560Totals –


11.5 It is important to understand the difference between capital expenditure, revenue expenditure,capital income and revenue income.

Select one option in each instance below to show whether the item will be capital expenditure,revenue expenditure, capital income or revenue income.

Item Capital revenue Capital revenue expenditure expenditure income income

Receipts from sale of goods tocredit customers

Increase in owner’s capital

Purchase of office equipment

Purchase of stationery for usein the office

Bank loan received

Redecoration of property

Documents

BAW1.01.TZ Q copy - Osborne · PDF fileitems owed capital items owned ... (a customer), P Woodman (a supplier), Bank Loan. Purchases Ledger Sales Ledger General Ledger. ... Bank loan