Questions and Answers of Introducing Accounting

The following errors have been discovered in the ledgers of Howard:1. Howard had recently purchased shop fittings £3,700 on credit from Minser. The item had been recorded in Howard’s journal as:2.
The following information is given for Timmy:1. Timmy sells goods for cash £750.2. He pays rent £100 cash.3. Timmy sells goods on credit £48 to Chas.4. He pays wages £78 cash.5. Timmy purchases
Complete the equations:Cost of sales + gross profit = ?£67,000 + £56,000 = ?
A general store sells the following items:■ Apples■ Magazines■ A freezer cabinet that is no longer required■ Fish fingers■ Caramel toffees.RequiredIdentify the items that are sales.A simple
Wendy owns and runs a card and stationery shop. The following is a list of accounts found in Wendy’s ledgers:Name the ledger in which the account would be found. Place a tick in the appropriate
The following accounts are given:RequiredBalance the accounts and carry down any balances. Dr Rent account (GL) Cr £ 450 450 450 Dr Sales account (GL) Cr £ 723 218 109 Dr Tungi
The following accounts are given:RequiredBalance the accounts and carry down any balances. Dr Albert £ 14 34 61 Cr £ 56 67 Dr Annie £ 28 51 Cr £. 9 7 49 Dr Arthur £ 79 17 70 Cr £ 52 34
State which of the following could be found in a trading account:■ Capital expenditure■ Returns inwards■ Carriage inwards■ Opening stock.
Complete the equations:Sales – cost of sales = ?£230,000 – £120,000 = ?
Kim Reddy provides the following information for the year ended 29 February 20*8:stock at 1 March 20*7 £502; stock at 29 February 20*8 £677; purchases £85,207; sales £137,503; returns inwards
The following information relates to the year ended 30 November 20*8 for the business of Rob Berry:stock at 1 December 20*7 £1,657; stock at 30 November 20*8 £2,004; purchases £54,672; sales
The following information relates to the year ended 30 April 20*8 for the business of Sahera Patel: stock at 1 May 20*7 £1,435; stock at 30 April 20*8 £1,265; purchases £34,328; sales £72,548;
Joe provides the following information for the year ended 31 December 20*8:stock 1 January 20*8 £238; stock 31 December 20*8 £432; purchases £34,930; sales £54,760.RequiredPrepare a trading
Eddie provides the following information for the year ended 31 July 20*8:stock 1 August 20*7 £12,907; stock 31 July 20*8 £10,987; purchases £143,673; sales £243,561.RequiredPrepare a trading
Clary provides the following information for the year ended 30 April 20*8:stock 1 May 20*7 £340; stock 30 April 20*8 £530; purchases £23,560; sales £52,900.RequiredPrepare a trading account for
Julie owns a small retail grocery store. She provides the following data:purchase of goods for resale £49,000; purchase of delivery van £14,500; stock at 30 June 20*8 £890; stock at 1 July 20*7
The following information relates to the business of Biddulph, for the year ended 31 March 20*8:Stock at 1 April 20*7 £4,560; stock at 31 March 20*8 £5,050; purchases for the year £47,800; sales
State whether the following headings are correct: Balance sheet for the month ended 31 March 20*8 Trading account for the year ended 30 April 20*8 Balance sheet at 31 May 20*8 Trading account at 30
State which of the following items could be found in a trading account:■ Capital receipts■ Returns outwards■ Carriage outwards■ Closing stock.
The following information is given for the year ended 30 June 20*8 for Trevor:stock at 1 July 20*7 £256; stock at 30 June 20*8 £641; purchases £71,006; sales £108,975.RequiredCalculate the value
The following information relates to the year ended 29 February 20*8 for Rodney:stock at 1 March 20*7 £230; stock at 29 February 20*8 £380; purchases £24,600; sales £39,400.RequiredPrepare a
The following information is given for the year ended 31 January 20*8 for Del:stock at 1 February 20*7 £970; stock at 31 January 20*8 £1,050; purchases £35,780; sales £56,710.RequiredPrepare a
The following information relates to the year ended 31 March 20*8 for Belinda’s business:stock at 1 April 20*7 £6,500; stock at 31 March 20*8 £5,850; purchases £266,000; sales £412,000;
The following information relates to the year ended 31 January 20*8 for Natalie:stock at 1 February 20*7 £1,560; stock at 31 January 20*8 £1,640; purchases £65,090; sales £176,040; returns
The following information is given for the year ended 31 October 20*8 for Elsie:stock at 1 November 20*7 £1,234; stock at 31 October 20*8 £1,357; purchases £48,961; sales £88,552; returns inwards
The following information is given for the year ended 31 December 20*8 for Mao:stock at 1 January 20*8 £12,651; stock at 31 December 20*8 £11,537; purchases £175,873; sales £342,960; returns
State whether the following statements are true or false: Capital expenditure is included in a profit and loss account. Capital expenditure is not included in a profit and loss account. Revenue
The following information is available for the year ended 30 June 20*8 for Jay:stock at 1 July 20*7 £12,641; stock at 30 June 20*8 £10,673; purchases £132,785; sales £410,006; purchase of office
List six items of revenue expenditure a supermarket would incur in an average month’s trading.
The following information is given for the year ended 31 December 20*8 for Pierre Roi:stock at 1 January 20*8 £613; stock at 31 December 20*8 £770; purchases £14,661; sales
The following information relates to the year ended 31 July 20*8 for Pauline:stock at 1 August 20*7 £429; stock at 31 July 20*8 £591; purchases £32,649; sales £71,544.RequiredPrepare a trading
Jack supplies the following information for the year ended 31 January 20*8:gross profit £43,719; wages £15,437; motor expenses £2,864; rent and rates £1,442; insurances £3,669; general expenses
The following information is given for the year ended 30 April 20*8 for Viv:gross profit £45,892; wages £27,769; rent and rates £6,000; insurances £4,575; motor expenses £7,814; general expenses
Terry supplies the following information for the year ended 31 May 20*8:stock at 1 June 20*7 £1,329; stock at 31 May 20*8 £1,275; purchases £23,664; sales £65,782; wages £12,674; motor expenses
Pablo supplies the following information for the year ended 29 February 20*8:stock at 1 March 20*7 £211; stock at 29 February 20*8 £485; purchases £27,665; sales £74,882; wages £32,559; motor
The following information is given for the year ended 30 November 20*8 for Gwenelle:stock at 1 December 20*7 £12,453; stock at 30 November 20*8 £10,661; purchases £157,994; sales £325,007; wages
You owe your Mum £10. Is she a debtor or a creditor?Your brother owes you £1. Is he a debtor or a creditor?Balance sheets are presented in two main ways. At the moment we shall use what is known as
Bill supplies the following information for the year ended 30 June 20*8:stock at 1 July 20*7 £438; stock at 30 June 20*8 £541; purchases £54,763; sales £99,063; returns inward £286; returns
Helen supplies the following information for the year ended 31 March 20*8:stock at 1 April 20*7 £1,554; stock at 31 March 20*8 £977; purchases £23,887; sales £51,311; returns inward £367;
Fill in the missing figures in the following table. Use the accounting equation to work out your answers. Fixed assets £ 70,000 ? 20,000 55,000 30,000 Current
Which items from the following list are liabilities of Anne’s Mini Market?■ Stock■ Money owed to Kelloggs for the supply of breakfast cereals■ A van used for collecting goods from the local
Classify the following items into fixed assets and current assets for an electrical goods retailer: 27 refrigerators for resale Delivery van Money owed by customers Money in till Display
Explain how one type of business can include a delivery van as a current asset on its balance sheet, and yet another type of business includes a similar delivery van as a fixed asset on its balance
Classify the following items into fixed assets, current assets and current liabilities for a garage: Electronic tuning equipment Money owed to BP plc Second-hand cars on
Carole has the following assets and liabilities on 31 August 20*8:Machinery at cost £120,000; vehicles at cost £70,000; stock £20,000; debtors £10,000; creditors £8,000; bank balance
Atul has the following assets and liabilities on 31 December 20*8:Premises at cost £60,000; equipment at cost £25,000; stock £5,000; debtors £4,000; creditors £8,000; money owed to the bank
The following information is provided by Sandeep, a painter and decorator, at 31 January 20*8:Capital £4,300; vehicle at cost £8,000; tools at cost £250, bank loan repayable in four years’ time
Archie, a newsagent, provides the following information at 30 September 20*8:Capital £45,300; premises at cost £73,000; mortgage on premises £48,000; shop fittings at cost £14,000; vehicle at
Sandra has provided you with the following information which relates to her business at 31 March 20*8:Premises at cost £40,000; machinery at cost £10,000; office equipment at cost £4,000; vehicle
Andrew is a door-to-door salesman selling cosmetics. He gives you the following information: Car at cost £12,400; bank overdraft £1,800; stock £240; debtors £180; creditors £400.RequiredPrepare
Your Uncle Jack has recently had his balance sheet prepared by his accountant. He cannot understand why his capital account is shown as a liability and asks you whether his accountant has got this
Explain the circumstances that could result in a mortgage being shown as a current liability.
Explain if the owner of a business could prepare a balance sheet on 9 December, or 23 June, or today.
Explain what the * represents in the accounting equation.Assets * Liabilities = CapitalNot only are the owners of a business interested in what their business is worth, they are also interested in
Ben runs a general store. Which of the following items are drawings?■ Money taken from till to pay staff.■ Money taken from till to buy Ben’s wife a bunch of flowers for her birthday.■ Money
A business shows an increase in its net assets over the year of £12,300. During the year the proprietor made drawings to the value of £16,000.RequiredCalculate the profit made during the year by
A business’s net assets reduced by £3,500 during the year. The proprietor’s drawings amounted to £8,900.RequiredCalculate the profit or loss made by the business during the year.
A business shows an increase in its net assets over the year of £35,000. During the year the proprietor paid an inheritance of £25,000 into the business bank account.RequiredCalculate the profit or
A proprietor’s capital account increased over the year by £12,700. She paid a £50,000 premium bond win into the business bank account during the year.RequiredCalculate the profit or loss made by
Over a year the capital account shown in a business balance sheet has increased by £17,800. During the year the proprietor paid a legacy of £4,000 into the business bank account. His drawings for
The net assets of a business have increased over the year by £2,750. The proprietor paid into the business bank account £35,000, withdrawn from her personal building society account. During the
The following information relates to Boogies Boutique:During the year ended 31 December 20*8, the proprietor of Boogies Boutique introduced a further £9,500 from a private source. She also withdrew
On 1 February 20*7 the net assets of Becky’s business were £83,000. During the year ended 31 January 20*8 she withdrew £18,000 for her private use. She also paid into the business bank account a
On 1 November 20*7 the business assets of Charles were as follows:Fixed assets £42,000; current assets £17,000, current liabilities £14,000.A year later, on 31 October 20*8, the fixed assets of
Place an x in the column which classifies the following receipts and payments made by Bloggs’ Garage.Profits can be calculated by using the ‘net asset method’. This method of discovering profit
Fill in the gaps:Net assets of a business is the same as the owner’s ………………..; both show how much the business is ………….... .
A clothes shop buys the following items:■ Jeans■ Sweatshirts■ Trainers■ A delivery van■ Leather jackets.RequiredIdentify the items that are purchases.
The following information is given for the year ended 31 October 20*8 for Les: stock at 1 November 20*7 £3,419; stock at 31 October 20*8 £3,491; purchases £43,771; sales £74,911; returns inward
The following information is supplied for the year ended 31 August 20*8 for Janice: stock at 1 September 20*7 £673; stock at 31 August 20*8 £891; purchases £29,041; sales £93,673; returns inward
Attil provides the following information for the year ended 31 December 20*8: stock at 1 January 20*8 £207; stock at 31 December 20*8 £870; purchases £43,672; sales £91,211; returns inward £75;
Ashley Peacock provides the following information for the year ended 30 June 20*8:RequiredPrepare a trading and profit and loss account for the year ended 30 June 20*8 and a balance sheet at that
The following information relates to the year ended 31 March 20*8 for Catherine: stock at 1 April 20*7 £1,549; stock at 31 March 20*8 £1,471; purchases £54,772; sales £127,773; returns inward
Frank Sert provides the following information for the year ended 31 March 20*8:RequiredPrepare a trading and profit and loss account for the year ended 31 March 20*8 and a balance sheet at that date.
The following information relates to the year ended 29 February 20*8 for Fred:stock at 1 March 20*7 £2,765; stock at 29 February 20*8 £2,890; purchases £34,675; purchase of computer for shop
Leslie Harris provides the following information for the year ended 31 December 20*8:RequiredPrepare a trading and profit and loss account for the year ended 31 December 20*8 and a balance sheet at
Joan Hornby supplies the following information for the year ended 30 September 20*8:RequiredPrepare a trading and profit and loss account for the year ended 30 September 20*8 and a balance sheet at
The following information is available for the year ended 31 March 20*8 for Dratesh Narewal:RequiredPrepare the trading and profit and loss account for the year ended 31 March 20*8 and a balance
The following information relates to the year ended 29 February 20*8 for Rita Shah:RequiredPrepare the trading and profit and loss account for the year ended 29 February 20*8 and a balance sheet at
Trevor Smith owns and runs a general store. The following transactions took place last week:1. Trevor’s cash sales for the week amount to £1,634.2. He pays wages for the week £899, paying
In which ledger would you expect to find the following accounts? Tick the appropriate box Account name Tamsin; a credit customer Frank; a supplier to be paid next month Returns inwards account Cash
Ben Chan owns and runs a Chinese take-away. The following transactions are for his business:1. Ben pays wages £312 in cash.2. Cash sales amount to £321.3. Ben pays cash for rent £200.4. Ben pays
In the table below, enter the account that should be debited and the account that should be credited. Transaction Rent paid with cash Goods for resale purchased from Knight on credit Cash sales Wages
Gladys Voisin owns a shop selling games, DVDs, CDs, games and videos. The following transactions have just taken place:1. Gladys purchases games from her wholesaler £350, paying by cheque.2. She
The following information is given for the business of Derek:1. Derek purchases goods for resale £48 for cash.2. He purchases goods for resale £120 from Nita; he pays cash.3. Derek sells goods to
Harriet provides the following information relating to her business:1. Harriet pays cash wages £349.2. She sells goods £211 for cash to Albert.3. Harriet pays her telephone bill £62 with cash.4.
The following information relates to the business of Selena, a greengrocer:1. Selena purchases fruit and vegetables £104 on credit from Docker.2. She purchases a set of scales £270 on credit from
Bhinda owns and runs a garage. The following information relates to her business:1. Cash petrol sales amount to £1,287.2. Bhinda purchases a breakdown vehicle £42,500 on credit from W. Rekers.3.
Raymond is hairdresser. He provides the following information:1. Raymond purchases new hairdryers for use in his salon £125 on credit from B. Loway.2. He purchases hair colours and perms £72 from
Arnold owns and runs an electrical goods store. He provides the following information:1. Sales for the week £3,642 paid into the business bank account.2. Wages paid in cash £784.3. Arnold repairs a
Celia owns and runs a painting and decorating business. The following information relates to the business:1. Cash receipts for work done £2,653.2. She purchases paint £157 from B Rush on credit.3.
The purchases day book of Ghito is shown:Purchases day bookRequiredPrepare the ledger accounts from the entries in the purchases day book. Andrew Zara Kijah Peter £ 460 34 593 742 1,829
The purchases day book of Reg is shown:Purchases day bookRequiredPrepare the ledger accounts from the entries in the purchases day book. Collins O'Mally Otis Bradley £ 599 43 777 75 1,494
Bupesh owns and runs a supermarket. The following business transactions have taken place:1. Bupesh purchases goods for resale £457 from John, paying cash.2. His cash sales amount to £759.3. Bupesh
Bertrand receives the following purchases invoices:RequiredPrepare the appropriate day book and post the entries to the ledger accounts. Indicate the ledger used. Invoice no. 1 2 3 4 Supplier's
Charlotte receives the following purchase invoices:RequiredPrepare the appropriate day book and post the entries to the ledger accounts. Indicate the ledgers used. Invoice no. 5678 Supplier's
The sales day book for Rab is given.Sales day bookRequiredPrepare the ledger accounts from the entries in the sales day book. Parker Clive Gray Fitton £ 439 51 882 29 1,401
The sales day book for Mandy is given.Sales day bookRequiredPrepare the ledger accounts from the entries in the sales day book Sacks Baggs Perce Walls £ 510 409 67 111 1,097
Keith has the following copy sales invoices:RequiredPrepare the appropriate day book and post the entries to the ledger accounts. Indicate the ledgers used. Sales invoice no. 34 35 36 37 Customer
Alice has the following copy sales invoices:RequiredPrepare the appropriate day book and post the entries to the ledger accounts. Indicate the ledgers used. Sales invoice no. 175 176 177 178 Customer
The following purchases returns day book for Gwen is given.Purchases returns day bookRequiredPrepare the ledger accounts from the purchases returns day book. Indicate the ledgers used.

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