Questions and Answers of Introducing Accounting

Darryl has discovered that the three debtors shown below are unable to settle their debts. He has therefore decided to write them off as bad debts in the year ended 31 December 20*8.RequiredPrepare
Umberto has discovered that the debtors listed below are unable to clear their debts. He has decided to write them off as bad debts in the year ended 30 September 20*8.Required Prepare the bad
Equipment costing £30,000 has been depreciated at 50% per annum using the reducing balance method. It was sold after three years of use for £3,700.RequiredPrepare a disposal account for the
Umair wishes to maintain a provision for doubtful debts in his general ledger.RequiredPrepare the provision for doubtful debts account for each year. Provision for doubtful debts Year 1 400 Year
Sheila wishes to maintain a provision for doubtful debts in her ledger at 31 December.RequiredPrepare the provision for doubtful debts account for each year. Provision for doubtful
Mee has her financial year-end on 31 August. She provides the following information:In each year there have been a number of bad debts which have yet to be written off.Mee wishes to make provision
Robin has his financial year-end on 31 January. He provides the following information:■ £700 is to be written off as a bad debt in the year ended 31 January 20*6.■ £200 is to be written off as
Try to fill the spaces for the next four years:To summarise:■ The amount needed to increase the provision for doubtful debts is entered as an expense on the profit and loss account.■ The amount
Pat provides the following information from his sales ledger:All the debtors are bad and need to be written off.RequiredPrepare the bad debts account for Pat. Dr Balance b/d Dr Balance b/d Defius
Doug informs you that there is no possibility of recovering any cash from the following outstanding debts:RequiredPrepare the bad debts account to record writing off the debts. Trish Glaster
A business has made a gross profit of £126,734 and a net profit of £64,211.Debtors amount to £32,967 before bad debts of £467 have been written off.A provision for doubtful debts of 4% is
Willie uses an age profile of debtors to calculate his provision for doubtful debts.He provides the following information for the year ended 31 May 20*8, on which to base the calculation.Requireda)
At 31 March 20*8 Morgan has debtors amounting to £40,000. She wishes to make a provision for doubtful debts of 2.5%.Requireda) Calculate the provision for doubtful debts.b) Prepare a balance sheet
Hayton uses an age profile of debtors to calculate his provision for doubtful debts.He provides the following information for the year ended 31 October 20*8, on which to base the
Trudy McDuff maintains a provision for doubtful debts equal to 2.5% of outstanding debtors at the end of each financial year. The following information is available:The following bad debts have been
At 30 June 20*8 Kingsley has debtors amounting to £68,000. He wishes to make a provision for doubtful debts of 5%.Requireda) Calculate the provision for doubtful debts.b) Prepare a balance sheet
Maureen Gill maintains a provision for doubtful debts equal to 5% of outstanding debtors at the end of each financial year. The following information is available:Bad debts not yet written off at 31
Glad Thomson provides the following information for the year ended 31 October 20*8. She maintains a provision for doubtful debts of 5%, based on outstanding debtors at the end of each financial
Ryder provides the following information for the year ended 30 April 20*8. He maintains a provision for doubtful debts based on 2.5% of debtors outstanding at his financial year-end.Bad debts not yet
During the year a trader receives £288 from Geot Ltd. This amount had been written off as a bad debt some years previously.RequiredPrepare the ledger accounts necessary to record the recovery of the
Jessie receives £761 from Prodo Ltd. Jessie had written the amount off as a bad debt some years ago.RequiredPrepare the ledger accounts necessary to record the recovery of the bad debt.
The following trial balance has been extracted from the books of Hanif Mohammed:Additional information at 29 February 20*8■ Stock was valued at £7,432.■ Rent owing £200.Requireda) Prepare a
Siobhan Murgatroyd has extracted the following trial balance from her books of account:Additional information at 31 July 20*8■ Stock was valued at £1,166.■ Insurance paid in advance amounted to
Hibo Ahmed has provided the following trial balance extracted from her books of account:Additional information at 31 May 20*8■ Stock was valued at £13,106.■ Wages owing £814.■ Insurance paid
Helen Duff provides the following information:Additional information at 31 December 20*8■ Stock was valued at £9,003.■ Helen provides depreciation on office equipment at 10% per annum using the
Lynn Parker provides the following information:Additional information at 31 October 20*8■ Stock was valued at £3,199.■ Lynn provides depreciation on all assets using the reducing balance method.
David Lycett provides the following information:Additional information at 31 January 20*8■ Stock was valued at £5,141.■ Wages owing £312.■ Light and heat expenses paid in advance £248.■
Gladys Jones provides the following information:Additional information at 31 August 20*8■ Stock was valued at £16,984.■ Insurance paid in advance £180.■ Telephone bill outstanding £351.■
Tom Green provides the following information:Additional information at 30 April 20*8■ Stock was valued at £612.■ Motor expenses accrued amounted to £182.■ Insurance prepaid £132.■
Isadorah Boom provides the following information:Additional information at 31 August 20*8■ Stock was valued at £6,543.■ Wages owing amounted to £380.■ Rent paid in advance £500.■ Provision
The following information is provided for Cindy Ash:Additional information at 30 November 20*8■ Stock was valued at £10,177.■ Motor expenses owing amounted to £130.■ Light and heat expenses
Jack Simms provides the following information:Additional information at 30 September 20*8■ Stock was valued at £27,492.■ Wages owing amounted to £853.■ Rates paid in advance £1,270.■ Jack
Annie Lim provides the following information:Additional information at 30 June 20*8■ Stock was valued at £9,284.■ Annie has taken goods from the business £1,750 for her personal use.■
Sanaa Malik provides the following information relating to her business for the year ended 31 August 20*8:stock at 1 September 20*7 £13,579; stock at 31 August 20*8 £14,217; purchases £126,993;
The business has just purchased a specialised piece of computerised manufacturing machinery for £240,000. It will be used for three years. It would certainly have no resale value because of its
Rent received for the year is £3,500. The tenant should have paid £4,000.The amount to be included in the profit and loss account is ………. . This is an example of using the ……………….
Select the accounting concept to be used in the following circumstances:(a) Wages outstanding at the end of the financial year: £362.■ Accruals■ Consistency■ Materiality■ Going concern(b) A
The following information relating to GraZeb Ltd for the year ended 31 March 20*8 is given:RequiredPrepare an extract from the income statement for the year ended 31 March 20*8. Profit for the year
Accounting policies should be relevant, ……………….., comparable and understandable. (Fill the gap.)
The information relating to Rutor Ltd for the year ended 31 December 20*8 is given:RequiredPrepare an extract from the income statement for the year ended 31 December 20*8. Profit for the year before
Select the accounting concept to be used in the following circumstances:(a) Jim feels that the old ‘Olivetti’ typewriter valued at cost £47 on the balance sheet could fetch £350 at auction.■
The following information is given for Helaminge Ltd at 30 September 20*8:Authorised and issued share capital 800,000 ordinary shares of 25 pence each; premises at cost £80,000; machinery at cost
The summarised balance sheet of Duvase Ltd at 30 November 20*8 is shown.On 1 December 20*8 Duvase Ltd issued a further 200,000 ordinary shares at £1.60 per share.RequiredPrepare a summarised balance
The following information is given for Arbres Ltd at 30 April 20*8:Authorised share capital 500,000 ordinary shares of 50 pence each; issued share capital 300,000 ordinary shares 50 pence paid;
The summarised balance sheet of D Lilly Ltd at 31 March 20*8 is shown.On 1 April 20*8 D Lilly Ltd issued a further 400,000 ordinary shares at 80 pence per share.Immediately after the share issue the
The summarised balance sheet of Ousby Ltd at 31 October 20*8 is given.The non-current assets were revalued at £400,000 on 1 November 20*8.RequiredPrepare the balance sheet of Ousby Ltd at 1 November
The summarised balance sheet of Graf Ltd at 29 February 20*8 is given.The non-current assets were revalued at £200,000 on 1 March 20*8.RequiredPrepare the balance sheet of Graf Ltd at 1 March 20*8
Douglas Ltd supplies the following information after the first year of trading:Additional informationThe directors wish to transfer £50,000 to general reserve and recommend a final dividend of
Donald Ltd provides the following information after the first year of trading:Additional informationThe directors wish to transfer £40,000 to general reserve and recommend a final dividend of
Hox Ltd provides the following summarised balance sheet at 31 May 20*8:The non-current assets were revalued at £300,000 on 1 June 20*8.RequiredPrepare a summarised balance sheet at 1 June 20*8 after
Wong Ltd provides the following summarised balance sheet at 31 December 20*8:The non-current assets were revalued on 1 January 20*9 at £210,000.RequiredPrepare a summarised balance sheet at 1
The summarised balance sheet of Norest Ltd at 31 January 20*8 is given.On 1 February 20*8 Norest Ltd issued a further 100,000 ordinary shares at a price of 30 pence per share.RequiredPrepare a
The summarised balance sheet of Trosh Ltd at 31 October 20*8 is given.On 1 November 20*8 Trosh Ltd issued a further 200,000 ordinary shares at £1.75 each.RequiredPrepare a summarised balance sheet
The summarised balance sheet of Smith-Patel Ltd at 31 March 20*8 is given.On 1 April 20*8 Smith-Patel Ltd issued a further 200,000 £1 ordinary shares at £1.50. On the same date the company revalued
The summarised balance sheet of Wiley-Fox Ltd at 30 November 20*8 is given.On 1 December 20*8 Wiley-Fox Ltd issued a further 100,000 ordinary shares at 40 pence per share. On the same date the
The following trial balance has been extracted from the books of Stephanie Hood Ltd on 30 April 20*8.Additional informationThe directors recommend:■ A transfer to general reserve £50,000■ A
Pling Ltd has an authorised capital of 500,000 ordinary shares of £1 each and 250,000 10% preference shares of £1 each. The following trial balance has been extracted from the books of account at
The owner of a business is planning to include his premises as an asset in the end-of-year balance sheet at cost value of £200,000. However, the finance manager feels that this is too low a value
Outline one reason why accountants apply accounting concepts when preparing end-of-year financial statements.
Complete the following statements:■ Although the staff who work in a business are often regarded as one of its most valuable assets, they are not included in the business balance sheet. This is an
Ifor Jones supplies the following information for the month of February 20*8:Requireda) Prepare a sales ledger control account for the month of February 20*8.b) Prepare a purchases ledger control
Rory McDuff supplies the following information for the month of December 20*8:Requireda) Prepare a sales ledger control account for the month of December 20*8.b) Prepare a purchases ledger control
Melodie Clyde supplies the following information for November 20*8:RequiredPrepare a debtors’ ledger control account for the month of November 20*8. Debit balances in debtors' ledger on 1 November
Xiu Jin supplies the following information for October 20*8:RequiredPrepare a purchases ledger control account for the month of October 20*8. Credit balances in purchase ledger on 1 October
Dick Dresden supplies the following information for March 20*8:RequiredPrepare a debtors’ ledger control account for the month of March 20*8. Total debtors on 1 March 20*8 Credit sales Cash
Claire Droy supplies the following information for August 20*8:RequiredPrepare a sales ledger control account for the month of August 20*8. Total debtors on 1 August 20*8 Credit sales Cash sales Cash
The following information is given for September 20*8 for Ted Brester:RequiredPrepare a purchases ledger control account for the month of September 20*8. Total creditors on 1 September 20*8 Credit
The following information is given for May 20*8 for Greg Trout:RequiredPrepare a purchases ledger control account for the month of May 20*8. Total creditors on 1 May 20*8 Credit purchases Cash
The following information relates to the debtors’ ledger of Martin Daley for the month of July 20*8:RequiredPrepare a debtors’ ledger control account for the month of July 20*8. Total debtors on
The following information relates to the sales ledger of Frew Niell for the month of December 20*8:RequiredPrepare a sales ledger control account for the month of December 20*8. Total debtors on 1
The following information relates to the creditors’ ledger of Phillip Tyke for the month of February 20*8:RequiredPrepare a creditors’ ledger control account for the month of February 20*8. Total
The following information relates to the purchase ledger of Tricia Clott for the month of October 20*8:RequiredPrepare a purchases ledger control account for the month of October 20*8. Total
Yip provides the following information from his books of prime entry for May 20*8:Requireda) Prepare a purchase ledger control account for May 20*8.b) Explain what the control account reveals. Credit
Yip provides the following information from his books of prime entry for April 20*8:RequiredPrepare a purchase ledger control account for the month of April 20*8.
Petra provides the following information, which has been extracted from her books of prime entry on 31 August 20*8:The dishonoured cheque for £360 was originally part of the monies received and,
On 31 December 20*8 Tracy Beddow’s cash book showed a debit balance of £374.On the same date it was found that:■ Cheques amounting to £236 had not been presented at the bank for payment■ A
On 31 March 20*8 the cash book of Nancy Best showed a bank overdraft of £590.On the same date it was found that:■ Cheques amounting to £938 had not been presented at the bank for payment■ A
On 31 August 20*8 Bernard Drouin received his bank statement. It showed a credit balance of £210. The bank columns of his cash book showed a debit balance of £170.On the same date it was found
On 30 April 20*8 Pat Nicholson received her bank statement. It showed a credit balance of £858.The bank columns of her cash book showed a debit balance of £180.On the same date it was found
The bank columns of Matthew Carter are as follows:Required(a) Make any necessary adjustments to Matthew’s cash book.(b) Prepare a bank reconciliation statement at 31 October. Dr 1 Oct 3 Oct 7
The bank columns of Vera Dawson’s cash book are as follows:Vera received her bank statement on 4 February.Make any adjustments to Vera Dawson’s cash book.Prepare a bank reconciliation statement
The bank columns of Leslie Vine’s cash book are as follows:Leslie received his bank statement on 4 July.Prepare a bank reconciliation statement at 30 June. Dr 1 June 8 June 16 June 30 June 1
The bank columns of Lily Baxter’s cash book are as follows:Lily received her bank statement on 2 February,RequiredPrepare a bank reconciliation statement at 31 January. Dr 1 Jan 15 Jan 29 Jan 1
The bank columns of Rebecca Florin’s cash book are as follows:Rebecca received her bank statement on 2 April.RequiredPrepare a bank reconciliation statement at 31 March. Dr 1 Mar Balance b/d P
The bank columns of Lucy Hill’s cash book are as follows:Lucy received her bank statement on 4 December.RequiredPrepare a bank reconciliation statement at 30 November Dr 2 Nov Balance b/d 10 Nov A.
The bank columns of Tim Robson’s cash book are as follows:Tim Robson received his bank statement on 3 May.RequiredPrepare a bank reconciliation statement at 30 April. Dr 2 Apr 10 Apr 27 Apr Balance
The bank columns of Philip Robb’s cash book are as follows:Philip receives his bank statement on 5 August:RequiredPrepare a bank reconciliation statement at 31 July. Dr 1 July 17 July 24 July 1
Bjorn Tyke had cash in hand £407 and a bank overdraft of £238 on 1 August.The following transactions took place during the first week in August:Requireda) Prepare Bjorn’s cash book for the period
Arthur Mow had cash in hand £237 and a bank overdraft of £2,875 on 16 October.The following transactions took place the following week:Requireda) Prepare Arthur’s cash book for the week ended 23
Roy Becker had cash in hand £281 and a balance at bank £834 on 6 December.The following transactions took place in December:Requireda) Prepare Roy’s cash book for the period 6 December to 12
Sven David had cash in hand £88 and a balance at bank £376 on 1 May.The following transactions took place during May:Requireda) Prepare Sven’s cash book for the period 1 May to 7 May.b) Post the
B Branden had cash in hand £861 and a balance at bank £1,307 at 1 November. The following transactions took place during November:Requireda) Prepare Branden’s cash book for the period 1 November
Tom Cunningham had cash in hand £217 and a balance at bank £1,132 at 1 February. The following transactions took place during February:Requireda) Prepare Tom’s cash book for the period 1 February
The following transactions relate to the business of Robin:Requireda) Enter the transactions in the cash book.b) Balance the cash book on 30 May. 23 May 24 May 24 May 25 May 27 May 28 May 29 May 30
The following transactions relate to the business of York:Requireda) Enter the transactions in the cash book.b) Balance the cash book on 25 October. 19 October 20 October 21 October 21 October 22
The following transaction relate to the business of Dublin:Requireda) Enter the transactions in the cash book.b) Balance the cash book on 8 May. 3 May 3 May 5 May 6 May 7 May 8 May Cash sales
The following transactions relate to the business of Golightly:Requireda) Enter the transactions in the cash book.b) Balance the cash book on 9 January. 2 January 3 January 3 January 5 January 6
The following transactions relate to the business of Lamb:Requireda) Enter the transactions in the cash book.b) Balance the cash book on 10 November. 3 November 5 November 6 November 6 November 8
The following transactions relate to the business of Hunter:Requireda) Enter the transactions into the cash book.b) Balance the cash book on 8 April. 2 April 3 April 4 April 6 April 7 April 8 April 8
The following transactions relate to the business of Silver:Requireda) Enter the transactions in the cash book.b) Balance the cash book on 9 October. 3 October 4 October 7 October 8 October 8

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