GETTING STARTED: THE BALANCE SHEETs3.amazonaws.com/zanran_storage/ receivables 9,000 Bank loan 42,000 Cash at bank 15,000 Trade payables 24,000 Cash in hand 6,000 141,000 141,000 Question

Principles of Accounts for CSEC by David Austen Answers to Chapter 1

ISBN 978-1-4085-0911-1 © Nelson Thornes 2011 1

Chapter 1

Question 1 – p. 12

a) Vehicle Asset b) Shop fittings Asset c) Cash at bank Asset d) Bank loan Liability e) Owner’s investment in the business Capital f) Inventory Asset g) Trade receivables Asset h) Bank overdraft Liability i) Trade payables Liability j) Machinery Asset


a) Cash in hand Asset b) Equipment Asset c) Amounts owing to suppliers Liability d) Furniture Asset e) Land Asset f) Loan from a friend Liability g) Value of owner’s stake in the business Capital h) Amounts owed by customers Asset i) Cash at bank Asset j) Fittings Asset


Total assets Capital Total liabilities

Assets = Capital + Liabilities

$ $ $

Business A 80,000 60,000 20,000

Business B 42,000 31,000 11,000

Business C 57,000 24,000 33,000

Business D 650,000 490,000 160,000

Business E 190,000 170,000 20,000

Business F 640,000 558,000 82,000



Assets = Capital + Liabilities

$ $ $

Business G 220,000 190,000 30,000

Business H 912,000 826,000 86,000

Business I 325,000 273,000 52,000

Business J 560,000 483,000 77,000

Business K 917,000 865,000 52,000

Business L 262,000 220,000 42,000




a) Total assets: $123,000 b) Total liabilities: $34,000 c) Capital: $89,000 d)

Marlene’s retail unit

Balance Sheet at 31 December 2011

$ $

ASSETS CAPITAL 89,000

Furniture and fittings 64,000

Inventory 36,000 LIABILITIES

Trade receivables 10,000 Bank loan 20,000

Cash at bank 8,000 Trade payables 14,000

Cash in hand 5,000

123,000 123,000


a) Total assets: $141,000 b) Total liabilities: $66,000 c) Capital: $75,000 d)

Andy’s bicycle business

Balance Sheet at 28 February 2011

$ $


Equipment 78,000

Inventory 33,000 LIABILITIES

Trade receivables 9,000 Bank loan 42,000


Cash in hand 6,000

141,000 141,000


a) Total assets: $464,000 b) Total liabilities: $82,000 c) Capital: $382,000



d)

Donnie’s software business

Balance Sheet at 31 October 2011

$ $ $ $

NON-CURRENT ASSETS CAPITAL 382,000

Premises 300,000

Equipment 90,000 NON-CURRENT LIABILITIES

Delivery vehicle 32,000 Bank loan 60,000

422,000

CURRENT ASSETS

Inventory 16,000

Trade receivables 14,000 CURRENT LIABILITIES


Cash in hand 4,000

42,000

464,000 464,000

e)

Donnie’s software business

Balance Sheet at 31 October 2011

$ $ $ $

CURRENT ASSETS CURRENT LIABILITIES

Cash in hand 4,000 Trade payables 22,000

Cash at bank 8,000

Trade receivables 14,000 NON-CURRENT LIABILITIES

Inventory 16,000 Bank loan 60,000

42,000


Delivery vehicle 32,000

Equipment 90,000

Premises 300,000

422,000

464,000 464,000


Answer included in ‘Model answers to selected questions’ in book



Chapter 2


Balance Sheet at 2 March 2011

$ $


Vehicle 12,000

Equipment 15,000

Bank 13,000

40,000 40,000


$ $


Vehicle 12,000

Equipment 15,000 LIABILITIES

Furniture 8,000 Payable 8,000

Bank 13,000

48,000 48,000


$ $


Vehicle 12,000



Bank 28,000 Bank loan 15,000

63,000 63,000


$ $


Vehicle 12,000




60,000 60,000




$ $


Vehicle 12,000




54,000 54,000


Balance Sheet at 2 January 2011

$ $


Premises 90,000

Vehicle 15,000

Bank 5,000

110,000 110,000


$ $


Premises 90,000

Vehicle 15,000 LIABILITIES


122,000 122,000


$ $


Premises 90,000


Equipment 24,000 Payable 24,000


146,000 146,000


$ $


Premises 90,000




154,000 154,000




$ $


Premises 90,000




134,000 134,000



A = C + L

$ $ $

Starting figures 40,000 30,000 10,000

a) Owner withdrew a cheque for $4,000 for private use

36,000 26,000 10,000

b) Purchased new vehicle for $16,000 on credit 52,000 (+16,000)

26,000 26,000 (+16,000)

c) Repaid $2,000 of a loan from the bank. The funds were taken from the business’s bank account

50,000 (−2,000)

26,000 24,000 (−2,000)

d) Purchased some machinery for $7,000 and paid by cheque

50,000 (+7,000 −7,000)

26,000 24,000

e) Paid a payable $5,000 by cheque 45,000 (−5,000)

26,000 19,000 (−5,000)

f) Sold some equipment worth $3,000 and received a cheque for this amount

45,000 (−3,000 +3,000)

26,000 19,000





A = C + L

$ $ $

Starting figures 90,000 75,000 15,000

a) Paid a payable $8,000 by cheque 82,000 75,000 7,000

b) Purchased a new vehicle and paid $17,000 by cheque

82,000 (+17,000 −17,000)

75,000 7,000

c) Owner withdrew a cheque for $1,000 for private use

81,000 (−1,000)

74,000 (−1,000)

7,000

d) Purchased some new equipment for $10,000 on credit

91,000 (+10,000)

74,000 17,000 (+10,000)

e) Repaid part of a bank loan $6,000. The funds were taken from the business’s bank account

85,000 (−6,000)

74,000 11,000 (−6,000)

f) Some old machinery worth $6,000 sold on credit for this amount

85,000 (−6,000 +6,000)

74,000 11,000


2 February (example) A vehicle has been purchased for $18,000 and paid for by cheque. 3 February The owner withdrew a cheque for $3,000 for private use. 4 February Some equipment was purchased on credit for $16,000. 5 February The payable was paid $6,000 by cheque.


2 December (example) Some equipment has been purchased on credit for $22,000. 3 December Borrowed $15,000 from the bank. The funds were paid into the business’s bank account. 4 December Some equipment worth $6,000 was sold for this amount on credit. 5 December The receivable paid $3,000 by cheque. 6 December The payable was paid $11,000 by cheque.







Chapter 3

Question 1– p. 28

Vehicles 40,000 14,000

Bank

19,000 14,000 4,000 2,000

Capital

2,000 47,000

Bank loan 12,000 4,000


Equipment 27,000

4,000

Bank 8,000 4,000

2,000 700

Capital

700 29,000

Payable 2,000 6,000


First account affected

Second account affected Transaction

Account Increase/ decrease


Owner started business by investing money in a business’s bank account

Bank Increase Capital Increase

Purchased a vehicle and paid by cheque

Vehicle Increase Bank Decrease

Purchased some equipment on credit

Equipment Increase Payable Increase

Owner withdrew a cheque for private use

Capital Decrease Bank Decrease

Paid the payable by cheque Payable Decrease Bank Decrease




First account affected

Second account affected Transaction



Some furniture was purchased by cheque

Furniture Increase Bank Decrease

A bank loan was arranged. The funds were paid into the business’s bank account

Bank Increase Bank Loan Increase

Purchased a vehicle on credit Vehicle Increase Payable Increase

Sold some unwanted furniture on credit

Furniture Decrease Receivable Increase

Repaid part of the bank loan by a withdrawal of funds from the business’s bank account

Bank loan Decrease Bank Decrease


Dr Vehicle Cr 14,000

Dr Bank Cr

7,000 300 6,000 9,200 2,500

Dr Capital Cr

300 17,000 Dr Payable Cr

2,500 4,000 9,000

Dr Equipment Cr

9,000 9,200

Dr Bank loan Cr

6,000


Dr Vehicle Cr 13,000

Dr Equipment Cr

8,000 800 5,000

Dr Bank Cr

4,000 1,000 Dr Cash Cr

400 200 100



Dr Capital Cr

200 24,200 Dr Payable Cr

1,000 1,200 5,000

Dr Receivable Cr

800 100


Transaction Accounts affected Increase/decrease Debit/credit

Furniture Increase Debit Purchased some furniture by cheque Bank Decrease Credit

Payable Decrease Debit Paid a payable by cheque

Bank Decrease Credit

Capital Decrease Debit Owner withdrew cash for private use Cash Decrease Credit

Vehicle Increase Debit Purchased a vehicle on credit

Payable Increase Credit


Transaction Accounts affected Increase/decrease Debit/credit

Capital Decrease Debit Owner withdrew a cheque for private use

Bank Decrease Credit

Equipment Increase Debit Purchased equipment on credit

Payable Increase Credit

Payable Decrease Debit Paid a payable in cash

Cash Decrease Credit

Receivable Increase Debit Sold some unwanted furniture on credit

Furniture Decrease Credit

Cash Increase Debit Received cash from a receivable

Receivable Decrease Credit




Debit

Receiving value In

Credit Giving value

Out

Account Explanation Account Explanation

Purchased furniture and paid in cash

Furniture Receives value as new asset is purchased

Cash Gives value as money goes out of the account

Purchased machinery and paid by cheque

Machinery Receiving value as new machinery is purchased

Bank Giving value as money goes out of the account

Purchased equipment on credit

Equipment Receiving value as new equipment is purchased

Payable Giving value as supplier provides equipment

Paid the payable by cheque Payable Receiving value as payment is made to supplier


Owner invested an additional amount in the business’s bank account

Bank Receiving value as money goes into account

Capital Giving value as private resources are transferred to the business

Owner withdrew a cheque for private use

Capital Receiving value as money is given to owner





Debit Receiving value

In

Credit Giving value

Out

Account Explanation Account Explanation

Purchased a vehicle and paid by cheque

Vehicle Receiving value as new vehicle is purchased

Bank Giving value as money goes out of account

Paid a payable by cheque Payable Receiving value as payment is made to supplier

Bank Giving value as money is given to supplier

Sold some unwanted furniture on credit

Receivable Receiving value as customer receives the value of the furniture

Furniture Giving value as furniture leaves the business

Received cash from a receivable

Cash Receiving value as money is given by a receivable to the business

Receivable Giving value as money is provided by the customer

Owner increased investment in the business by transferring private funds into the business’s bank account

Bank Receiving value as money is given to the business

Capital Giving value as money is provided by the owner

Owner withdrew cash for private use

Capital Receiving value as money is given to the owner

Cash Giving value as money leaves the business

Transferred cash to the business’s bank account

Bank Receiving value as money goes into the bank

Cash Giving value as money leaves the cash register

Question 11– p. 31

Dr Premises Cr Jan 1 Balance 90,000 Dr Equipment Cr Jan 1 Balance 12,000 Jan 5 Receivable 500 3 Payable 4,100 Dr Vehicle Cr Jan 1 Balance 9,000 Dr Bank Cr Jan 1 Balance 3,300 Jan 2 Bank loan 1,000 6 Capital 4,000 7 Cash 200 Dr Cash Cr Jan 1 Balance 700 Jan 4 Capital 300 7 Bank 200 Dr Capital Cr Jan 4 Cash 300 Jan 1 Balance 100,000 6 Bank 4,000



Dr Bank Loan Cr Jan 2 Bank 1,000 Jan 1 Balance 15,000 Dr Payable Cr Jan 3 Equipment 4,100 Dr Receivable Cr Jan 5 Equipment 500

Ross Balance Sheet at 7 January 2011

$ $ $ $


Premises 90,000

Equipment 15,600 NON-CURRENT LIABILITIES

Vehicle 9,000 Bank loan 14,000

114,600

CURRENT ASSETS CURRENT LIABILITIES

Receivable 500 Payable 4,100

Bank 6,500

Cash 200

7,200

121,800 121,800





Chapter 4

Question 1– p. 36

Dr Bank Cr Feb 1 Balance 12,000 Feb 2 Purchases 1,200 21 Sales 520 4 Rent 420 8 Insurance 180 18 Rent 420

Dr Cash Cr Feb 1 Balance 400 Feb 19 Insurance 40 5 Sales 330 24 Purchases 60 Dr Capital Cr Feb 1 Balance 12,400 Dr Purchases Cr Feb 2 Bank 1,200 11 Payable 840 24 Cash 60

Dr Rent Cr Feb 4 Bank 420 18 Bank 420 Dr Sales Cr Feb 5 Cash 330 14 Receivable 910 21 Bank 520

Dr Insurance Cr Feb 8 Bank 180 19 Cash 40 Dr Payable Cr Feb 11 Purchases 840 Dr Receivable Cr Feb 14 Sales 910


Dr Bank Cr June 1 Balance 14,400 June 2 Purchases 4,700 21 Sales 810 3 Rent 740 19 Electricity 210 Dr Cash Cr June 1 Balance 700 June 7 Wages 580 6 Sales 490 14 Wages 490 24 Purchases 110

Dr Capital Cr June 1 Balance 15,100



Dr Purchases Cr June 2 Bank 4,700 11 Payable 1,470 24 Cash 110

Dr Rent Cr June 3 Bank 740 Dr Sales Cr June 6 Cash 490 13 Receivable 1,420 21 Bank 810

Dr Wages Cr June 7 Cash 580 14 Cash 490 Dr Payable Cr June 11 Purchases 1,470 Dr Receivable Cr June 13 Sales 1,420 Dr Electricity Cr June 19 Bank 210


Dr Equipment Cr April 1 Balance 6,200 18 Bank 1,020 Dr Bank Cr April 1 Balance 8,400 April 8 Drawings 240 21 Sales 720 11 Purchases 510 18 Equipment 1,020

Dr Cash Cr April 1 Balance 300 April 13 Wages 620 5 Sales 1,230 19 Drawings 90 27 Wages 580

Dr Capital Cr April 1 Balance 14,900 Dr Purchases Cr April 4 Payable 3,600 11 Bank 510 Dr Sales Cr April 5 Cash 1,230 9 Receivable 470 21 Bank 720

Dr Drawings Cr April 8 Bank 240 19 Cash 90



Dr Payable Cr April 4 Purchases 3,600 Dr Receivable Cr April 9 Sales 470 Dr Wages Cr April 13 Cash 620 27 Cash 580


Dr Fittings Cr Oct 1 Balance 8,600 Oct 18 Cash 300 Dr Bank Cr Oct 1 Balance 7,800 Oct 11 Rent 770 22 Payable 3,000 29 Drawings 390

Dr Cash Cr Oct 1 Balance 700 Oct 4 Purchases 500 7 Sales 990 12 Drawings 110 18 Fittings 300

25 Receivable 210

Dr Capital Cr Oct 1 Balance 17,100 Dr Purchases Cr Oct 4 Cash 500 6 Payable 4,240 Dr Sales Cr Oct 7 Cash 990 15 Receivable 440 Dr Drawings Cr Oct 12 Cash 110 29 Bank 390 Dr Payable Cr Oct 22 3,000 Oct 6 Purchases 4,240 Dr Receivable Cr Oct 15 Sales 440 Oct 25 Cash 210 Dr Rent Cr Oct 11 Bank 770




Transaction Account to be

debited Account to be

credited

Paid wages in cash Wages Cash

Purchased goods for resale on credit Purchases Payable

Owner withdrew cheque for private use Drawings Bank

Paid payable in cash Payable Cash

Sold goods on credit Receivable Sales

Sold goods for cash Cash Sales

Purchased furniture by cheque Furniture Bank

Owner made additional investment of money in the business

Cash/Bank Capital

Paid rent by cheque Rent Bank

Received cheque from a receivable Bank Receivable


Transaction Account to be debited

Account to be credited

Paid salaries by cheque Salaries Bank

Arranged a bank loan. The funds were paid into the business’s bank account

Bank Bank loan

Sold goods and paid the proceeds into the bank Bank Sales

Purchased goods for resale for cash Purchases Cash

Owner withdrew cash for private use Drawings Cash

Paid payable by cheque Payable Bank

Sold goods on credit Receivable Sales

Paid bank loan interest. The funds were transferred from the business’s bank account

Loan interest Bank

Received cash from a receivable Cash Receivable


1 January Purchased goods for resale and paid by cheque, $6,000 2 January Cash sales totalled $3,200 3 January Paid general expenses by cheque, $320 4 January Sold goods on credit, $1,730 5 January Purchased goods on credit, $2,290


1 May Sold goods on credit, $3,790 2 May Paid wages in cash, $280 3 May Purchased goods for resale and paid in cash, $170 4 May Purchased goods for resale on credit, $1,200 5 May Received cheque from receivable, $2,000


Dr Premises Cr March 1 Balance 120,000



Dr Vehicle Cr March 1 Balance 11,500 Dr Equipment Cr March 1 Balance 8,900 March 17 Bank 400 24 Bank 2,800 Dr Receivables Cr March 1 Balance 7,300 March 15 Bank 2,800 Dr Bank Cr March 1 Balance 6,400 March 3 Payable 1,700 5 Cash 800 10 Insurance 420 15 Receivable 2,800 18 Loan interest 120 17 Equipment 400 24 Equipment 2,800

30 Vehicle exp 230

Dr Cash Cr March 1 Balance 800 March 5 Bank 800 4 Sales 1,470 12 Wages 580 22 Sales 1,280 19 Drawings 250 26 Wages 630

29 Insurance 180

Dr Capital Cr March 1 Balance 116,000 Dr Bank loan Cr March 1 Balance 30,000 Dr Payables Cr March 3 Bank 1,700 March 1 Balance 8,900 8 Purchases 3,200 Dr Sales Cr March 4 Cash 1,470 22 Cash 1,280 Dr Purchases Cr March 8 Payable 3,200 Dr Insurance Cr March 10 Bank 420 29 Cash 180 Dr Wages Cr March 12 Cash 580 26 Cash 630 Dr Loan interest Cr March 18 Bank 120 Dr Drawings Cr March 19 Cash 250 Dr Vehicle expenses Cr March 30 Bank 230







Chapter 5

Question 1– p. 44

Trial Balance at 31 December 2010

Dr Cr

$ $

Furniture 15,200

Receivable 2,600

Bank 700

Cash 300

Capital 17,900

Payable 3,300

Purchases 4,100

Sales 3,100

Wages 1,100

Drawings 300

24,300 24,300


Trial Balance at 31 January 2011

Dr Cr

$ $

Vehicle 18,900

Receivables 3,300

Bank 1,100

Cash 500

Capital 10,200

Payables 8,400

Bank loan 6,000

Purchases 5,600

Sales 6,500

Rent 900

Drawings 800

31,100 31,100





Dr Cr

$ $

Advertising 600

Bank loan 7,000

Capital 10,500

Cash at bank 1,200

Payables 400

Receivables 900

Drawings 2,300

General expenses 700

Purchases 6,100

Sales 8,800

Vehicle 14,900

26,700 26,700


Trial Balance at 31 March 2011

Dr Cr

$ $

Capital 13,700

Cash at bank 600

Cash in hand 100

Payables 2,500

Receivables 1,400

Drawings 2,200

Electricity 300

Furniture 14,900

Loan interest 500

Purchases 7,700

Salaries 11,200

Sales 22,700

38,900 38,900


Dr Vehicle Cr April 1 Balance 14,800 Dr Equipment Cr April 1 Balance 11,200 11 Bank 800

Dr Receivables Cr April 1 Balance 4,700 April 18 Bank 2,700 22 Sales 1,600



Dr Bank Cr April 1 Balance 3,100 April 9 Rent 700 12 Cash 600 11 Equipment 800 18 Receivable 2,700 19 Drawings 600 20 Payables 2,000

Dr Cash Cr April 1 Balance 500 April 7 Drawings 200 4 Cash 1,000 12 Bank 600 25 Sales 800 15 Wages 500 28 Wages 900

Dr Capital Cr April 1 Balance 30,700 Dr Payables Cr April 20 Bank 2,000 April 1 Balance 3,600 1 Purchases 1,100 Dr Sales Cr April 1 Cash 1,000 22 Receivables 1,600 25 Cash 800

Dr Purchases Cr April 1 Payables 1,100 Dr Drawings Cr April 7 Cash 200 19 Bank 600

Dr Rent Cr April 9 Bank 700 Dr Wages Cr April 15 Cash 500 28 Cash 900

Trial Balance at 30 April 2011

Dr Cr

$ $

Vehicle 14,800

Equipment 12,000

Receivables 3,600

Bank 2,300

Cash 100

Capital 30,700

Payables 2,700

Sales 3,400

Purchases 1,100

Drawings 800

Rent 700

Wages 1,400

36,800 36,800







Chapter 6


a)

$ Sales 16,300

less Purchases 7,500

Gross profit 8,800

b)

$ Gross profit 8,800

less Total expenses 4,200

Profit 4,600

c) Dr Bank Cr Feb Balance 2,300 Feb Purchases 7,500 Sales 16,300 Rent 2,500 Wages of assistant 900 Insurance 800 d)

Sophie Balance Sheet at 28 February 2011

$ $


Fittings 19,400


Bank 6,900 Payables 1,900

32,500 32,500


a)

$ Sales 22,500


Gross profit 10,700

b)



Profit 5,100



c) Dr Bank Cr June Balance 3,500 June Purchases 11,800 Sales 22,500 Wages 4,200 Light and heat 500 Administration expenses 900 d)

Jack Balance Sheet at 30 June 2011

$ $


Shop premises 92,000



118,600 118,600


a)

$ Sales 9,900


Gross profit 6,700

b)



Profit 4,600

c), d), e), f) Dr Equipment Cr Aug 1 Balance 11,600 Dr Furniture Cr Aug 1 Balance 10,500 Dr Bank Cr Aug 1 Balance 2,900 Aug Purchases 3,200 Sales 9,900 Wages 800 Rent 700 Light and heat 600

Dr Capital Cr Aug 1 Balance 23,900 31 Profit 4,600 Dr Payables Cr Aug 1 Balance 1,100 Dr Sales Cr Aug 31 Trading 9,900 Aug Bank 9,900



Dr Purchases Cr Aug Bank 3,200 Aug 31 Trading 3,200 Dr Wages Cr Aug Bank 800 Aug 31 Profit and loss 800 Dr Rent Cr Aug Bank 700 Aug 31 Profit and loss 700 Dr Light and heat Cr Aug Bank 600 Aug 31 Profit and loss 600 Dr Trading Account for the month ended 31 August 2011 Cr Purchases 3,200 Sales 9,900 Gross profit 6,700 Dr Profit and Loss Account for the month ended 31 August 2011 Cr Wages 800 Gross profit 6,700 Rent 700 Light and heat 600 Profit 4,600 g)

Amy Balance Sheet at 31 August 2011

$ $


Equipment 11,600

Furniture 10,500 LIABILITIES


29,600 29,600


a)

$ Sales 10,300


Gross profit 8,200

b)


less total expenses 2,000

Profit 6,200

c), d), e), f) Dr Premises Cr Sept 1 Balance 65,000 Dr Equipment Cr Sept 1 Balance 12,200



Dr Bank Cr Sept 1 Balance 4,400 Sept Purchases 2,100 Sales 10,300 Insurance 700 Loan interest 200 Wages 1,100

Dr Capital Cr Sept 1 Balance 73,600 30 Profit 6,200 Dr Bank loan Cr Sept 1 Balance 8,000 Dr Sales Cr Sept 30 Trading 10,300 Sept Bank 10,300 Dr Purchases Cr Sept Bank 2,100 Sept 30 Trading 2,100 Dr Insurance Cr Sept Bank 700 Sept 30 Profit and loss 700 Dr Loan interest Cr Sept Bank 200 Sept 30 Profit and loss 200 Dr Wages Cr Sept Bank 1,100 Sept 30 Profit and loss 1,100 Dr Trading Account for the month ended 30 September 2011 Cr Purchases 2,100 Sales 10,300 Gross profit 8,200 Dr Profit and Loss Account

for the month ended 30 September 2011 Cr

Insurance 700 Gross profit 8,200 Loan interest 200 Wages 1,100 Profit 6,200 g)

Neil Balance Sheet at 30 September 2011

$ $


Premises 65,000



87,800 87,800


a)

$ Sales 7,700


Gross profit 2,400



b)



Loss 600

c), d), e), f) Dr Furniture Cr July 1 Balance 11,200 Dr Equipment Cr July 1 Balance 3,200 Dr Bank Cr July 1 Balance 1,800 July Purchases 5,300 Sales 7,700 Rent 1,100 Light and heat 600 Wages 1,300

Dr Capital Cr July 31 Loss 600 July 1 Balance 13,600 Dr Payables Cr July 1 Balance 2,600 Dr Sales Cr July 31 Trading 7,700 July Bank 7,700 Dr Purchases Cr July Bank 5,300 July 31 Trading 5,300 Dr Rent Cr July Bank 1,100 July 31 Profit and loss 1,100 Dr Light and heat Cr July Bank 600 July 31 Profit and loss 600 Dr Wages Cr July Bank 1,300 July 31 Profit and loss 1,300 Dr Trading Account for the month ended 31 July 2011 Cr Purchases 5,300 Sales 7,700 Gross profit 2,400 Dr Profit and Loss Account for the month ended 31 July 2011 Cr Rent 1,100 Gross profit 2,400 Light and heat 600 Loss 600 Wages 1,300



g) Winston

Balance Sheet at 31 July 2011

$ $


Furniture 11,200



15,600 15,600


a)

$ Sales 12,900


Gross profit 3,700

b)



Loss 1,500

c), d), e), f) Dr Premises Cr April 1 Balance 105,000 Dr Equipment Cr April 1 Balance 16,000 Dr Bank Cr April 1 Balance 2,700 April Purchases 9,200 Sales 12,900 Wages 3,100 Administration exp 1,300 Loan interest 800

Dr Capital Cr April 30 Loss 1,500 April 1 Balance 83,700 Dr Bank loan Cr April 1 Balance 40,000 Dr Sales Cr April 30 Trading 12,900 April Bank 12,900 Dr Purchases Cr April Bank 9,200 April 30 Trading 9,200 Dr Wages Cr April Bank 3,100 April 30 Profit and loss 3,100 Dr Administration expenses Cr April Bank 1,300 April 30 Profit and loss 1,300



Dr Loan interest Cr April Bank 800 April 30 Profit and loss 800 Dr Trading Account for the month ended 30 April 2011 Cr Purchases 9,200 Sales 12,900 Gross profit 3,700 Dr Profit and Loss Account for the month ended 30 April 2011 Cr Wages 3,100 Gross profit 3,700 Administration exp 1,300 Loss 1,500 Loan interest 800 g)

Dawn Balance Sheet at 30 April 2011

$ $


Premises 105,000



122,200 122,200


a), d) Dr Fittings Cr Mar 1 Balance 21,200 24 Bank 1,300 Dr Vehicle Cr Mar 1 Balance 16,400 Dr Receivables Cr Mar 1 Balance 3,200 Mar 9 Bank 1,900 17 Sales 2,400 Dr Bank Cr Mar 1 Balance 2,400 Mar 7 Rent 1,000 9 Receivables 1,900 10 Bank loan 500 30 Cash 700 18 Loan interest 400 21 Payables 1,000

22 Drawings 700

24 Fittings 1,300

Dr Cash Cr Mar 1 Balance 500 Mar 11 Drawings 200 4 Sales 900 14 Wages 700 25 Sales` 1,400 28 Wages 800 30 Bank 700

Dr Capital Cr Mar 31 Drawings 900 Mar 1 Balance 34,900 31 Profit 500 Dr Bank loan Cr Mar 10 Bank 500 Mar 1 Balance 6,000



Dr Payables Cr Mar 21 Bank 1,000 Mar 1 Balance 2,800 3 Purchases 1,300 Dr Drawings Cr Mar 11 Cash 200 Mar 31 Capital 900 22 Bank 700 Dr Sales Cr Mar 31 Trading 4,700 Mar 4 Cash 900 17 Receivables 2,400 25 Cash 1,400 Dr Purchases Cr Mar 3 Payables 1,300 Mar 31 Trading 1,300 Dr Rent Cr Mar 7 Bank 1,000 Mar 31 Profit and loss 1,000 Dr Wages Cr Mar 14 Cash 700 Mar 31 Profit and loss 1,500 28 Cash 800 Dr Loan interest Cr Mar 18 Bank 400 Mar 31 Profit and loss 400 b)

Trial Balance at 31 March 2011

Dr Cr

$ $

Fittings 22,500

Vehicle 16,400

Receivables 3,700

Bank 100

Cash 400

Capital 34,900

Bank loan 5,500

Payables 3,100

Drawings 900

Sales 4,700

Purchases 1,300

Rent 1,000

Wages 1,500

Loan interest 400

48,200 48,200

c) Dr Trading Account for the month ended 31 March 2011 Cr Purchases 1,300 Sales 4,700 Gross profit 3,400 Dr Profit and Loss Account for the month ended 31 March 2011 Cr Rent 1,000 Gross profit 3,400 Wages 1,500 Loan interest 400 Profit 500



e)

Thomas Balance Sheet at 31 March 2011

$ $


Fittings 22,500


Receivables 3,700 Bank loan 5,500

Bank 100 Payables 3,100

Cash 400

43,100 43,100


a), d) Dr Premises Cr Sept 1 Balance 66,000 Dr Equipment Cr Sept 1 Balance 17,400 Sept 10 Bank 1,100 Dr Receivables Cr Sept 1 Balance 300 Sept 7 Cash 200 17 Receivables 600 Dr Bank Cr Sept 1 Balance 2,700 Sept 4 Payables 1,800 10 Equipment 1,100 5 Insurance 300 30 Sales 1,300 11 Drawings 600 25 Purchases 900

Dr Cash Cr Sept 1 Balance 600 Sept 13 Wages 1,400 7 Receivables 200 22 Insurance 100 9 Sales 3,300 24 Drawings 300 18 Sales 2,800 28 Wages 1,000

Dr Capital Cr Sept 30 Drawings 900 Sept 1 Balance 70,100 30 Profit 2,000 Dr Bank loan Cr Sept 1 Balance 15,000 Dr Payables Cr Sept 4 Bank 1,800 Sept 1 Balance 1,900 21 Purchases 2,300 Dr Drawings Cr Sept 11 Bank 600 Sept 30 Capital 900 24 Cash 300 Dr Sales Cr Sept 30 Trading 8,000 Sept 9 Cash 3,300 17 Receivables 600 18 Cash 2,800 30 Bank 1,300



Dr Purchases Cr Sept 21 Payables 2,300 Sept 30 Trading 3,200 25 Bank 900 Dr Insurance Cr Sept 5 Bank 300 Sept 30 Profit and loss 400 22 Cash 100 Dr Wages Cr Sept 13 Cash 1,400 Sept 30 Profit and loss 2,400 28 Cash 1,000 b)

Trial Balance at 30 September 2011

Dr Cr

$ $

Premises 66,000

Equipment 16,300

Receivables 700

Bank 1,500

Cash 4,100

Capital 70,100

Bank loan 15,000

Payables 2,400

Drawings 900

Sales 8,000

Purchases 3,200

Insurance 400

Wages 2,400

95,500 95,500

c) Dr Trading Account for the month ended 30 September 2011 Cr Purchases 3,200 Sales 8,000 Gross profit 4,800 Dr Profit and Loss Account for the month ended 30 September 2011 Cr Insurance 400 Gross profit 4,800 Wages 2,400 Profit 2,000 e)

Maggie Balance Sheet at 30 September 2011

$ $


Premises 66,000


Receivables 700 Bank loan 15,000


Cash 4,100

88,600 88,600




a), d) Dr Administration expenses Cr Dec 1 Balance 8,250 Dec 31 Profit and loss 8,690 17 Cash 440 Dr Bank Cr Dec 1 Balance 3,190 Dec 2 Purchases 2,200 30 Cash 6,200 8 Rent 1,250 10 Bank loan 500 22 Payables 2,600 23 Fittings 970 Dr Bank loan Cr Dec 10 Bank 500 Dec 1 Balance 8,000 Dr Capital Cr Dec 31 Drawings 21,810 Dec 1 Balance 31,870 31 Profit 7,990 Dr Cash Cr Dec 1 Balance 340 Dec 15 Wages 1,620 3 Sales 5,220 16 Drawings 600 6 Receivables 330 20 Sales 3,130

17 Administration expenses

440

29 Sales 2,440 28 Wages 1,880

30 Bank 6,200

Dr Drawings Cr Dec 1 Balance 21,210 Dec 31 Capital 21,810 16 Cash 600 Dr Fittings Cr Dec 1 Balance 8,920 23 Bank 970 Dr Loan interest Cr Dec 1 Balance 640 Dec 31 Profit and loss 640 Dr Payables Cr Dec 22 Bank 2,600 Dec 1 Balance 3,480 Dr Purchases Cr Dec 1 Balance 83,470 Dec 31 Trading 85,670 2 Bank 2,200 Dr Receivables Cr Dec 1 Balance 570 Dec 6 Cash 330 13 Sales 210 Dr Rent Cr Dec 1 Balance 13,230 Dec 31 Profit and loss 14,480 8 Bank 1,250



Dr Sales Cr Dec 31 Trading 152,300 Dec 1 Balance 141,300 3 Cash 5,220 13 Receivables 210 20 Cash 3,130 29 Cash 2,440 Dr Vehicle Cr Dec 1 Balance 13,500 Dr Wages Cr Dec 1 Balance 31,330 Dec 31 Profit and loss 34,830 15 Cash 1,620 28 Cash 1,880 b)


Dr Cr

$ $

Administration expenses 8,690

Bank 1,870

Bank loan 7,500

Capital 31,870 Cash 720

Drawings 21,810

Fittings 9,890

Loan interest 640

Payables 880

Purchases 85,670

Receivables 450

Rent 14,480

Sales 152,300

Vehicle 13,500

Wages 34,830

192,550 192,550

c) Dr Trading Account for the year ended 31 December 2010 Cr Purchases 85,670 Sales 152,300 Gross profit 66,630 Dr Profit and Loss Account

for the year ended 31 December 2010 Cr

Administration expenses

8,690

Gross profit 66,630

Loan interest 640 Rent 14,480 Wages 34,830 Profit 7,990



e) Bill


$ $ $ $

NON-CURRENTASSETS CAPITAL 18,050

Vehicle 13,500

Fittings 9,890 NON-CURRENT LIABILITIES

23,390 Bank loan 7,500

CURRENT ASSETS

Receivables 450 CURRENT LIABILITIES

Bank 1,870 Payables 880

Cash 720

3,040

26,430 26,430





Chapter 7


Dr Cash Cr

Feb 1 Balance 450 Feb 8 Drawings 150

14 Sales 1,200 24 Wages 990

28 Balance c/d 510

1,650 1,650

Mar 1 Balance b/d 510


Dr Bank Cr

Oct 1 Balance 2,200 Oct 6 Payables 1,400

12 Cash 500 12 Insurance 300

17 Receivables 1,300 24 Drawings 400

31 Balance c/d 1,900

4,000 4,000

Nov 1 Balance b/d 1,900


Dr Bank loan Cr

May 10 Bank 600 May 1 Balance 8,000

31 Balance c/d 7,400

8,000 8,000

June 1 Balance b/d 7,400


Dr Payables Cr

Dec 15 Bank 2,900 Dec 1 Balance 3,200

31 Balance c/d 1,700 28 Purchases 1,400

4,600 4,600

Jan 1 Balance b/d 1,700


Dr Cash Cr

Aug 1 Balance 370 Aug 12 Purchases 120

14 Sales 130 28 Drawings 210

31 Balance c/d 170

500 500

Sept 1 Balance b/d 170 Dr Capital Cr

Aug 31 Drawings 11,900 Aug 1 Balance 39,400

31 Balance c/d 45,900 31 Profit 18,400

57,800 57,800

Sept 1 Balance b/d 45,900



Dr Premises Cr

Aug 1 Balance 74,000 Dr Receivables Cr

Aug 1 Balance 3,600 Aug 31 Balance c/d 5,300

26 Sales 1,700

5,300 5,300

Sept 1 Balance b/d 5,300 Dr Payables Cr

Aug 31 Balance c/d 4,200 Aug 1 Balance 2,100

11 Purchases 800

25 Purchases 1,300

4,200 4,200

Sept 1 Balance b/d 4,200


Dr Bank Cr

Jan 1 Balance 3,240 Jan 8 Rent 1,050

15 Cash 620 14 Drawings 450

28 Cash 290 29 Salaries 2,140

31 Balance c/d 510

4,150 4,150

Feb 1 Balance b/d 510

Dr Payables Cr

Jan 31 Balance c/d 6,190 Jan 1 Balance 4,150

16 Purchases 2,040

6,190 6,190

Feb 1 Balance b/d 6,190

Dr Capital Cr

Jan 31 Drawings 3,870 Jan 1 Balance 62,100


77,180 77,180


Dr Fittings Cr

Jan 1 Balance 14,900

Dr Equipment Cr

Jan 1 Balance 4,980 Jan 31 Balance c/d 8,050

18 Bank 3,070

8,050 8,050





Dr Purchases Cr

Oct 14 Bank 3,820 Oct 31 Trading 5,910

29 Payables 2,090

5,910 5,910

Dr Sales Cr

Oct 31 Trading 7,070 Oct 5 Cash 1,250

11 Bank 3,780

25 Receivables 2,040

7,070 7,070

Dr Rent Cr

Oct 11 Bank 3,750 Oct 31 Profit and loss 3,750

Dr Drawings Cr

Oct 15 Bank 1,980 Oct 31 Capital 1,980

Dr Receivables Cr

Oct 1 Balance 4,240 Oct 29 Bank 6,280

25 Sales 2,040

6,280 6,280

Dr Trading Account for the month ended 31 October 2011 Cr

Purchases 5,910 Sales 7,070

Gross profit 1,160

7,070 7,070


Dr Sales Cr

April 30 Trading 5,810 April 7 Bank 3,720

14 Receivables 2,090

5,810 5,810

Dr Wages Cr

April 14 Cash 2,640 April 30 Profit and loss 4,910

28 Cash 2,270

4,910 4,910

Dr General expenses Cr

April 6 Bank 320 April 30 Profit and loss 410

18 Cash 90

410 410

Dr Insurance Cr

April 17 Bank 560 April 30 Profit and loss 560



Dr Payables Cr

April 29 Bank 3,770 April 1 Balance 1,040

17 Purchases 2,730

3,770 3,770

Dr Profit and Loss Account for the month ended 30 April 2011 Cr

Wages 4,910 Gross profit 12,880

General expenses 410

Insurance 560

Profit 7,000

12,880 12,880


Receivables

Date Details Dr Cr Balance

$ $ $

June 1 Balance 4,800 Dr

11 Sales 3,450 8,250 Dr

17 Bank 3,600 4,650 Dr

24 Sales 1,400 6,050 Dr

30 Bank 2,900 3,150 Dr


Payables


$ $ $

Aug 1 Balance 2,700 Cr

5 Purchases 7,400 10,100 Cr

11 Purchases 1,200 11,300 Cr

18 Bank 6,300 5,000 Cr

24 Bank 3,500 1,500 Cr


Cash


$ $ $

May 1 Balance 630 Dr

8 Office expenses 170 460 Dr

17 Drawings 80 380 Dr

22 Sales 1,050 1,430 Dr

22 Bank 1,200 230 Dr



Payables


$ $ $

May 1 Balance 1,820 Cr

17 Purchases 1,440 3,260 Cr

25 Bank 2,300 960 Cr


Bank


$ $ $

Sept 1 Balance 1,420 Dr

8 Rent 520 900 Dr

11 Drawings 200 700 Dr

11 Sales 1,600 2,300 Dr

18 Cash 750 3,050 Dr

27 Purchases 1,580 1,470 Dr

Bank loan


$ $ $

Sept 1 Balance 10,000 Cr

10 Bank 600 9,400 Cr

15 Bank 3,000 12,400 Cr


a), b), e), f)

Dr Bank Cr

Dec 1 Balance 2,040 Dec 5 Payables 5,840

8 Receivables 6,400 14 Purchases 1,290

18 Equipment 860

31 Balance c/d 450

8,440 8,440

Jan 1 Balance b/d 450

Dr Capital Cr

Dec 31 Drawings 17,780 Dec 1 Balance 124,650


152,340 152,340




Dr Cash Cr

Dec 1 Balance 310 Dec 23 Wages 1,450

22 Sales 2,180 28 Drawings 290

31 Balance c/d 750

2,490 2,490

Jan 1 Balance b/d 750

Dr Drawings Cr

Dec 1 Balance 17,490 Dec 31 Capital 17,780

28 Cash 290

17,780 17,780

Dr Equipment Cr

Dec 1 Balance 12,200 Dec 31 Balance c/d 13,060

18 Bank 860

13,060 13,060


Dr General expenses Cr

Dec 1 Balance 2,080 Dec 31 Profit and loss 2,080

Dr Insurance Cr


Dr Payables Cr

Dec 5 Bank 5,840 Dec 1 Balance 5,840

Dr Premises Cr

Dec 1 Balance 88,000

Dr Purchases Cr

Dec 1 Balance 142,300 Dec 31 Trading 143,590

14 Bank 1,290

143,590 143,590

Dr Receivables Cr

Dec 1 Balance 3,140 Dec 8 Bank 6,400

1 Sales 4,560 31 Balance c/d 1,300

7,700 7,700


Dr Sales Cr

Dec 31 Trading 245,300 Dec 1 Balance 238,560

1 Receivables 4,560

22 Cash 2,180

245,300 245,300



Dr Vehicle Cr

Dec 1 Balance 31,000

Dr Wages Cr


23 Cash 1,450

68,290 68,290

c)


Dr Cr

$ $

Bank 450

Capital 124,650

Cash 750

Drawings 17,780

Equipment 13,060

General expenses 2,080

Insurance 3,650

Payables –

Premises 88,000

Purchases 143,590

Receivables 1,300

Sales 245,300

Vehicle 31,000

Wages 68,290

369,950 369,950

d)

Dr Trading Account for the year ended 31 December 2010 Cr

Purchases 143,590 Sales 245,300

Gross profit 101,710

245,300 245,300

Dr Profit and Loss Account

for the year ended 31 December 2010 Cr

General expenses 2,080 Gross profit 101,710

Insurance 3,650

Wages 68,290

Profit 27,690

101,710 101,710



g) Mike


$ $ $ $


Premises 88,000

Vehicle 31,000

Equipment 13,060

132,060

CURRENT ASSETS

Receivables 1,300

Bank 450

Cash 750

2,500

134,560 134,560



Documents

GETTING STARTED: THE BALANCE SHEETs3.amazonaws.com/zanran_storage/ receivables 9,000 Bank loan 42,000 Cash at bank 15,000 Trade payables 24,000 Cash in hand 6,000 141,000 141,000 Question