Questions and Answers of Frank Woods Business Accounting

The following data relates to the financial statements of Emery Ltd:● Issued share capital: 200,000 £1 ordinary shares● Profit for the year: £6,570● Retained earnings at the start of the
The issued share capital of Rahman Ltd was as follows:● 1,000,000 £1 ordinary shares● 300,000 £1 7% preference shares.Profits for the year were £64,140 and the retained earnings from the last
The following information relates to McCauley plc:● Issued ordinary share capital: 500,000 50p shares● Issued preference share capital: 50,000 6% £1 shares.Profits for the year were £18,543 and
Hopgood plc issues 500,000 ordinary shares of 50p each at a 10p premium. The issue is fully subscribed and paid for.Show the journal entries required to record this share issue.
Woodbridge plc issues the following shares:● 100,000 £1.50 ordinary shares at a 25p premium● 50,000 £2 preference shares at face value.Show the journal entries required to record this share
Ramshaw plc issues 2,000,000 25p ordinary shares at a premium of 5p per share. It also decides to revalue property originally valued at £700,000 to £1m.Show the journal entries required to record
From the following trial balance, construct the financial statements for Boothroyd Ltd for the year ended 31 December 2011.Additional information:1 Depreciation is to be provided on non-current
The following statement of financial position has been drawn up for the directors of Cousins Ltd.However, it was drawn up before the following changes were implemented:1 Property was to be revalued
The following statement of financial position has been drawn up for the directors of Gaurav plc as at 31 March 2018.However, the following changes were made after the first draft of the balance sheet
The following trial balance relates to the trading activities of Falhstrom Ltd. From this data and the additional information provided you are to construct a set of financial statements.Additional
From the following data, construct the sales ledger control account for the month of November 2018. Balances of trade receivables at 1 Nov 2018 Balances of trade receivables at 30 Nov 2018 For the
From the following data, construct the sales ledger control account for the month of January 2017. Balances of trade receivables at 1 Jan 2017 Balances of trade receivables at 31 Jan 2017 For the
From the following data, construct the sales ledger control account for the month of June 2012. Balances of trade receivables as at 1 June Balances of trade receivables as at 30 June For the month of
From the following data, construct the purchases ledger control account for the month of July 2018. Balances of trade payables at 1 July 2018 Balances of trade payables at 31 July 2018 For the month
From the following data, construct the purchases ledger control account for the month of November 2013. Balances of trade payables at 1 November 2013 Balances of trade payables at 30 November 2013
From the following data, construct the purchases ledger control account for the month of May 2014. Balances of trade payables at 1 May 2014 Balances of trade payables at 31 May 2014 For the month of
From the following data, construct the sales ledger and purchases ledger control accounts for the month of March 2016. Sales ledger balances as at 1 March 2016 Purchases ledger balances as at 1 March
From the following data, construct the sales ledger and purchases ledger control accounts for the month of June 2019. Sales ledger balances as at 1 June 2019 Purchases ledger balances as at 1 June
From the following data, construct the sales ledger and purchases ledger control accounts for the month of April 2011. Purchases ledger balances as at 1 April 2011 Credit sales for April Credit
From the following data, construct the sales ledger and purchases ledger control accounts for the month of September 2010. Sales ledger balances as at 1 September 2010 Purchases ledger balances as at
From the following data, construct the sales ledger and purchases ledger control accounts for the month of July 2010. Sales ledger balances as at 1 July 2010 Purchases ledger balances as at 1 July
From the following data, construct the sales ledger and purchases ledger control accounts for the month of January 2012: Sales ledger balances as at 1 January 2012 Purchases ledger balances as at 1
Outline three advantages of operating as a sole trader as compared to operating as a partnership.
Give three reasons why a sole trader may wish to convert into a partnership with others.
Suggest three reasons why one may prefer to operate as a company rather than as a sole trader.
Explain what is meant by a ‘separation of ownership from control’ in the context of limited companies.
Explain why profit maximisation is likely to be the prime objective of a company.
Classify the following into assets or liabilities:(a) Business premises(b) Bank overdraft(c) Money owed by others to the business(d) Equipment owned by the business(e) Mortgage on premises(f ) Cash
Classify the following into assets or liabilities:(a) Money owed to suppliers(b) Vehicles used by the business(c) Goods bought with the intention of their being sold for a profit(d) Computer used in
Classify the following into assets or liabilities:(a) Amount that business will need to pay another business for purchases of equipment(b) Cash in bank account(c) Balance on savings account(d) Bill
Complete the gaps in the table below: Assets (a) ? (b) 3,870 (c) 9,875 ? (d) (e) 6,767 Liabilities 4,100 ? ? 543 1,107 Capital 1,300 2,680 8,680 637 ?
Complete the gaps in the table below: Assets Liabilities Capital (a) 12,231 ? 7,887 (b) 23,434 18,312 ? (c) ? 23,111 51,312 (d) 54,524 9,090 ? (e) 31,231 ? 20,022
Complete the gaps in the table below: Assets 678 (a) (b) ? (c) 64,564 (d) 76,575 (e) 86,788 ? Liabilities 31,221 23,123 ? 11,200 31,231 Capital 33,343 76,990 54,693 ? ?
A business provides the following figures. Property Equipment 54,000 8,200 1,150 15,900 Bank Loan Based on the above data ascertain the size of the capital of the business.
For the following transactions state which accounts should be debited, and which should becredited.(a) Equipment bought on credit from M Sparks.(b) Motor car bought and payment made by cheque.(c)
Write up the following transactions in double-entry accounts of J White. 1 March White places 900 of his own money into the cash till for business use. 4 March He places 500 of the cash into a
Record the following transactions for S Vernon’s first month of business operations. 2009 2 January 25,000 of owner's money placed into business bank account. 7 January Premises are bought for
Write up the following transactions in the double-entry accounts for S Nower for April 2011. 8 April Bank loan taken out for 18,000 which is paid directly into the bank account. 11 April Plant
Write up the following transactions in the double-entry accounts for K Johnson for August 2012. 2 August Johnson places 950 of her own money into the cash till. 3 August Johnson borrows 1,200 from J
Record the following transactions in ledger accounts for R Wheatcroft for July 2013. 1 July Wheatcroft places 300 of his own money into the business cash till. 3 July Wheatcroft places 1,000 of his
Record the following transactions in ledger accounts for I Sharp for March 2009. 1 March Owner borrows 10,000 from the Essex Bank which is immediately paid into bank. 3 March Machinery is purchased
For the following transactions, state the accounts to be debited and credited.(a) Firm buys inventory and pays immediately by cheque.(b) Goods returned to the original supplier, A Rahman, due to them
For the following transactions state the accounts to be debited and credited.(a) Goods sold to K Jones on credit are returned due to unsuitability.(b) Butcher purchases new bacon slicer, paying by
Draw up the double-entry accounts to record the following transactions. 1 Mar Goods bought on credit for 32 from T Burke. 3 Mar Goods bought on credit for 81 from W Randlesome. 9 Mar We return goods
Write up the following transactions in the double-entry accounts in the books of M Cousins forthe month of December 2014. 1 Dec Cousins opens a business bank account with 8,000 of his own money. 4
Write up the following transactions in the double-entry accounts of J Lam for the month ofFebruary 2009. 2 February Lam places 400 of his own money into the cash till. 3 February Purchases made on
Construct the ledger accounts for S Gillespie from the following transactions. 2015 1 June Gillespie places 6,000 of his own money into the business bank account. 4 June Gillespie borrows 4,000 from
Write up in the following transactions in the double-entry accounts of J Jackson. 2008 1 September Jackson transfers 4,500 of his own money into the business bank account. 3 September Jackson
For the following transactions state which accounts should be debited, and which should becredited.(a) Rent paid by cheque.(b) Goods for resale purchased for cash from S Barnes.(c) Goods sold on
For the following transactions state which accounts should be debited, and which should becredited.(a) Insurance paid in cash.(b) Goods previously purchased returned to J Nesbit.(c) Cash banked.(d)
For the following transactions state which accounts should be debited, and which should becredited.(a) Private car to be used in future within business.(b) Wages paid by cash.(c) Goods purchased for
Will Pierce runs a small business. Construct the ledger accounts from the following transactions. 2014 1 August Pierce borrows 5,000 from K Johnson and places this into the bank. 1 August Pierce
The following transactions relate to the business of J Clover for the month of May 2009. Fromthe details, construct the ledger accounts. 2009 1 May Goods purchased on credit from C Donner for 32. 3
Construct the double-entry accounts of Helen Clews from the following transactions andbalance off each account at the end of the month. 2010 1 November Clews opens a business bank account with 8,500
Post the following transactions to the double-entry accounts of D Weir and balance off theaccounts at 30 April 2017. 2017 1 April Owner places 500 of her own money into the business bank account. 4
Construct the double-entry accounts for the following transactions of N James, a sole trader,and balance off each account at the end of the month. 2016 1 January Business is started with opening up
Produce a trial balance from the data in question 2.20.Question 2.20:Construct the double-entry accounts of Helen Clews from the following transactions andbalance off each account at the end of the
Produce a trial balance from the data in question 2.21.Question 2.21:Post the following transactions to the double-entry accounts of D Weir and balance off theaccounts at 30 April 2017. 2017 1 April
Produce a trial balance from the data in question 2.22.Question 2.22:Construct the double-entry accounts for the following transactions of N James, a sole trader,and balance off each account at the
The following trial balance has been completed but errors have been made. You are to redraft the trial balance in correct form. You can assume that the balance on the suspense account will be zero in
Construct a statement of comprehensive income for C Palmer for the year ended 31 March 2009 from the following data. Sales Purchases Closing inventory Business rates Electricity Salaries Rent 81,400
Construct a Statement of Comprehensive Income for C Woods for the year ended 30 June 2001 from the following data. Sales Purchases Closing inventory Heating and lighting Marketing Wages and salaries
From the following, produce a statement of financial position for J Harkes as at 30 June 2005. Property Equipment Inventory Trade receivables Bank Trade payables Capital Net profit for year Drawings
From the following data construct a statement of financial position for D Wilson as at 30 April 2019. Fixtures and fittings Equipment Inventory Trade receivables Bank Trade payables Cash Capital Net
From the following, produce a statement of financial position for L Madden as at 31 December 2008. Premises 75,000 Fixtures and fittings 12,500 Inventory 4,995 Trade receivables 7,212 Bank 3,323
From the following data construct the statement of financial position for T Quinn as at 30 June 2012. Buildings Machinery Inventory Trade receivables Bank Trade payables Cash Loan repayable in 2017
From the following data construct the statement of financial position for N Pearson as at 28 February 2011. Premises Machinery Motor vehicles Inventory Trade receivables Trade payables Bank overdraft
Below is the trial balance extracted from the books of R Grime as at 30 September 2015.Construct a statement of comprehensive income for the year to 30 September 2015 and a statement of financial
From the following data construct a statement of comprehensive income for D Ferdinand for the year ending 31 December 2016 and a statement of financial position as at that date.Inventory was valued
From the following trial balance construct the statement of comprehensive income for P Miller for the year ended 31 December 2007 and a statement of financial position as at that date.Inventory as at
Below is a trial balance for A Bantick. Construct a statement of comprehensive income for the period ending 30 November 2011, and a statement of financial position as at that date.Inventory as at 30
From the following data, construct a trading account for the year ended 31 December 2010. Carriage inwards Sales Purchases Opening inventory Closing inventory 332 15,432 9,807 2,341 3,298
Copy out the following trading account filling in the necessary missing figures: Sales Less Returns inwards Net turnover Less Cost of goods sold Opening inventory Add Purchases Add Carriage inwards
From the following data, construct the trading account for the year ended 30 June 2007. Sales 43,555 Purchases 27,800 Opening inventory 3,780 Returns outwards 763 Closing inventory 2,943 Returns
From the following data, construct a trading account for the year ended 31 March 2006. Sales Purchases Returns inwards Returns outwards Carriage inwards Opening inventory Closing inventory 86,500
From the following data, construct a trading account for the year ended 31 October 2012. Sales Purchases Returns inwards Returns outwards Carriage inwards Opening inventory Closing inventory 17,424
From the following data, construct a statement of comprehensive income for D Hirst for the year ended 31 December 2014. Sales Purchases Returns inwards Returns outwards Carriage inwards Opening
From the following balances, construct the statement of comprehensive income for P Warhurst for the year ended 31 December 2003. Sales 243,233 Purchases 165,764 Returns inwards 2,122 Returns outwards
From the following data construct a statement of comprehensive income for C Hopkins for the year ended 31 March 2011.Additional information:(a) Inventory as at 31 March 2011 was exactly 50% higher
From the following data construct a statement of comprehensive income for R Millward for the period ended 31 December 2014, and a statement of financial position as at that date.Additional
From the following trial balance construct the statement of comprehensive income for D Wilcox for the year ended 31 July 2015 and a statement of financial position as at that date.Inventory at 31
From the following trial balance for E Soormally, produce a statement of comprehensive income for the period ending 30 September 2017 and a statement of financial position as at that date.Inventory
From the following data construct a statement of comprehensive income for S Rogers for the year ending 31 July 2018 and a statement of financial position as at that date.Inventory at 31 July 2018 was
For each of the following, state in which day book the transaction would be recorded.(a) Sales made on credit.(b) Goods previously purchased by the business sent back to the original supplier.(c)
For each of the following, state in which day book the transaction would be recorded.(a) Purchases made for immediate payment.(b) Motor vehicle sold on credit.(c) Goods returned to us by credit
For each of the following, state in which day book the transaction would be recorded.(a) Owner’s car brought into business for business use.(b) Van bought by garage on credit for business use.(c)
From the following, construct the two-column cash book for the month of March 2010. Balances as at 1 March 2010 were as follows: Bank 560 (Dr) Cash 45 (Dr) March 2 Paid rent by cheque 240 March 4
From the following data, construct the cash book for the month of May 2011. May 1 Balance at bank 430 (overdrawn) and 21 cash in hand May 3 Sale of equipment for 120 with payment received by cheque
The following transactions relate to the cash book of P Rapley for the month of June 2011.Construct the cash book for that month. Jun 01 Balance at bank 450 (debit balance) and 198 cash in hand Jun
Write up a two-column cash book from the following data. May 01 Balances at start of month Bank 45.62 (0/d) Cash in till 23.92 May 02 Petrol paid 16.23 cash May 04 Cash sales of 215.00 paid directly
The following data relates to the cash and bank transactions of J Ashmore for the month of October 2013. You are required to construct the cash book for that month. Oct 1 Balance in cash till 41
The following data relates to the cash and bank transactions of S Hickling for the month of November 2012. You are required to construct the cash book for that month. Nov 01 Balances at the start of
From the following data, construct the cash book for the month of February 2015. Feb 1 Balances at the start of the month: Bank 878, Cash in hand 101 Feb 2 Bought equipment paying by cheque for 325
On 1 August, the financial position of Sarah Bowler’s business was:During August:1 The three debtors settled their accounts by cheque subject to a cash discount of 3%2 Sundry expenses of £32.80
The following items have not been recorded in the cash book of M Robins for the first week of December 2010.At the end of each month Robins will always ensure that all cash, except a float of £45,
The following is a summary of the petty cash transactions for S Donnelly for August 2005.(a) Rule up a petty cash book with analysis columns for expenditure on cleaning, travel expenses and
The petty cash book for Treebound Stories, a small bookshop, operates on a weekly basis using the imprest system. The entries have not yet been completed for the week ending 13 November 2005.(a)
For the following transactions write up the sales day book and post the details to the relevant accounts in the sales ledger. 2010 Jan 3 A Genn Jan 8 T Wright Jan 11 S Gill Jan 12 J Gillot Jan 18 A
For the following transactions write up the sales day book and post the details to the relevant accounts in the sales ledger. 2012 October October 3 I Sharp 6 T Wilson October 9 J Dolman October 14 T
For the following transactions write up the purchases day book and post the details to the relevant accounts in the ledgers. 2014 August 4 W Cann 43 August 11 G Michael 19. August 12 B Currie 27

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