Questions and Answers of Mastering Accounting Skills

For the year ended 31 December 20-9 the following information is available for the Queensway Cricket Club:£Bank balance at 1 January 20-9 872 Light and heat 820 Ground maintenance 358 Members’
On 1 January 20-9 the Oakdale Youth Club had the following assets: furniture and fittings £1,500, games equipment £640, motor van £5,000, cash at bank £460. There were no liabilities.During the
On 1 June 20-8 the Northside Sports Club had the following assets and liabilities: sports equipment £1,580, furniture £1,090, cash at bank £692, sundry expenses owing £76, stock of drinks
On 1 June 20-4 the assets and liabilities of the Ambrose Cricket Club were as follows:£Club premises 65,000 Equipment 12,500 Cash at bank 7,370 Unpaid bill for travelling expenses 55 During the year
On 1 January 20-2 the Adelmead Tennis Club had the following assets and liabilities: equipment £9,000, cash at bank £850, cash in hand £270, unpaid electricity bill £45.During the year, receipts
On 1 June 20-6 the Woodside Sports Club had the following assets and liabilities: equipment £450, cash in hand £173, cash at bank £1,690, rent due but unpaid £75.During the year receipts and
On 1 November 20-6 the Lawnswood Tennis Club had the following assets and liabilities: club premises £45,500, equipment £12,750, bar stock £980, bank balance £5,220, cash £326, creditor for bar
You are an employee of Parkwood Garden Centre and you have been given the following information. All opening balances are as 1 May 20-9:A Bannister- opening balance£202.56 Cr D Lenton- opening
You are an employee of Nikas Sportswear and you have been given following information. All opening balances are as 1 April 20-9.the Airedale Fabrics- opening balance i, 376.94 Cr Hollywell Mills-
You are an employee of Focus Lighting and you have been given the following information. All opening balances are as 1 May 20-9:Purchase Ledger£Court Fabrics- opening balance 314.68 Cr Walkers Ltd-
You are an employee of Homestyle and you have been given the following information. All opening balances are as 1 May 20-9:Purchase Ledger£Fairburn & Lawson- opening balance 372.48 Cr Pudsey & Co-
Classify the following items under the heading of capital expenditure or revenue expenditure: LO6(a) Purchase of a new machine for use in the business(b) Quarterly account for electricity(c) Purchase
John Conway has a retail food business. Classify the following items under the heading of capital or revenue expenditure: LO6(a) Purchase of a refrigerated display counter(b) Repainting shop door(c)
Angus Scott is in business as an estate agent, some of his transactions are given below: LO6(a) Rent(b) Purchase of photocopying machine(c) Commission received from builder(d) Fees received from
The Pier View Garage paid for the items given below: LO6(a) Breakdown truck(b) Paper for photocopier(c) Sweets for sale in forecourt kiosk(d) Insurance for breakdown truck(e) New petrol pumps(f)
A Rogers opened his own business as a newsagent and paid for the following: LO6(i) Wages of shop assistant(ii) Purchase of a new cash register(iii) Repairs to leaking shop window(iv) Fire insurance
Mr Brown has recently started a new business and is puzzled by the terms capital expenditure and revenue expenditure.(a) Explain to him what ‘capital expenditure’ is.(b) Mr Brown has purchased a
State whether the following transactions of Salford Engineering Company are capital or revenue expenditure: LO6(a) Purchase of motor van(b) Yearly premium to insure motor van(c) Cost of rebuilding
(a) Briefly explain the difference between capital and revenue expenditure. LO6(b) Identify each of the following items of expenditure as capital or revenue and state whether you would expect to find
During the month of February Thomas Wilding paid for the following items: LO6(i) Fire insurance premium for factory(ii) Cost of building new extension to factory(iii) Legal fees paid in connection
Hongtai Imports is one of your suppliers. Their account in your ledger is as follows:Hongtai Imports Account 20-9 3 Apr Returns outwards£28.50 20-9 1 Apr Balance b/d£416.75 16 Apr Bank 395.92 4 Apr
Aztec Sportswear is one ofyour suppliers. Their account in your ledger is as follows:Aztec Sportswear Account 20-9 £20-9 £9 Feb Returns outwards 36.75 1 Feb Balance b/d 308.00 15 Feb Bank 292.60 5
Grangeway Products is one of your suppliers. Their account in your ledger is as follows:Grangeway Products Account 20-9£20-9£2 May Bank 428.00 1 May Balance b/d 450.00 2 May Discount received 22.00
J S Kingsley is one of your suppliers. Their account in your ledger is set out below:20-6 29 Jan Bank 31 Jan Balance c/d J S Kingsley Account£20-6£350.00 1 Jan Balance b/d 150.00 350.00 7 Jan
Alan Brown is one of your suppliers. His account in your ledger is set out below:Alan Brown Account 20-1£20-1£4 May Bank 4,056.00 1 May Balance b/d 4,160.00 4 May Discount 10 May Purchases 3,120.00
Vantage Products are one of your suppliers. Their account in your ledger is as follows:Vantage Products Account 20-8 £20-8 £12 Oct Purchase returns 75 1 Oct Balance b/d 1,625 28 Oct Bank 1,570 10
E Patterson is one of your suppliers. His account in your books is set out below:E Pattesson Account 20-9 £20-9 £6 May Bank 6,780 1 May Balance b/d 6,800 6 May Discount 20 13 May Purchases 1,350 12
Excel Products are one of your suppliers. Their account in your ledger is as follows:Excel Products Account 20-9 14 Oct Purchase returns £95 20-9 1 Oct Balance b/d £1,350 29 Oct Bank 1,330 8 Oct
James Miller is paid a standard rate of £6.00 per hour for a 40 hour week; any hours worked in excess of this are paid at time and a half. During the week ended 17 June 20-9 he worked a total of 52
Jean Bond works in the assembly unit of a local factory. The firm operates a piece work system; piece rates are paid at a rate of £30.00 for every 100 items produced. During the week ended 24 June
Paul Davies is paid at a basic rate of £7.50 per hour for a 38 hour week; all overtime is paid at time and half. During the week ended 30 July 20-9 Paul Davies worked a total of 50 hours.His
The following information relates to two employees for the week ending 8 August 20-9; LO2 Name Number of items produced G Forbes 4,800 B Carr 5,200 The firm operates a piece work system at a rate of
Jasvinder Patel is paid a basic wage of £8.40 per hour for a 35 hour week. The first five hours in excess of this are paid at time and a quarter; any further hours are paid at time and a half.During
David King works in the assembly unit of a local factory, his clock number is 17. The firm operates a piece work system; piece rates are paid at a rate of £17.25 for every 25 items produced.During
Donah Romero is paid a basic wage of £7.40 per hour for a 37 hour week. Any hours worked in excess of this are paid at time and a half, except for hours worked on a Sunday, which are paid at double
Valiant Sportswear runs a small factory. The following information relates to four employees for a typical week. LO2 Hours worked Name Basic Overtime Number of items produced J Oldridge 36 3,400 K
You are employed as a wages clerk by Harewood Builders. The following are the net wages of six employees working on a local building site for the week ending 3 August 20-9: LO2£H Greenwood 74.85 P
You are employed as a wages clerk by Adel Secretarial Services. The following are the net wages of the employees for the week ending 8 October 20-9: LO2£F Gibson 94.11 T Simpson 133.99 M Jackson
You are employed as a wages clerk by Superfoam Products. The following are the net wages of the employees for the week ending 15 October 20-9: LO2£B Gill 274.63 PFarraday 191.17 H Oliver 182.58
You are employed as a wages clerk by M & D Caterers. The following are the net wages of the employees for the week ending 6 November 20-9: LO2£S Farrar 194.11 L Crisp 203.72 A Hurst 180.95 B Walker
You are employed as a wages clerk by Newlooks Decorators. The following are the net wages of six employees working on a local building site for the week ending 20 November 20-9: LO2£WKeUy 184.63
Smart Garage is a firm that services and repairs motor vehicles. They use stock cards to record receipts and issues of the various items held in the stores.On 1 May there were 250 units in stock of
Adelgrove is a small engineering firm. They use stock cards to record receipts and issues of the various components held in the stores. It is the firm’s policy to keep up to date records of both
Botica Plastics use stock cards to record receipts and issues of the various items held in the stores.On 1 March there were 225 units in stock of item DWT/8. During the month of March the following
The Bestly Bottle Company supplies various sizes of bottles to the retail trade. Deliveries of bottles are made to the warehouse and orders are sent to customers from the despatch department.On 1
Seven Arches is a small engineering firm. They use stock cards to record receipts and issues of the various components held in the stores.On 1 May there were 39 items in stock of component number
Leda Components supplies various sizes of plastic containers to their customers.On 1 April there was an opening balance of 728 containers. During April the following quantities of 8mmwhite plastic
Selcom is a small engineering firm. They use stock cards to record receipts and issues of the various components held in the stores. It is the firm’s policy to keep records of both the quantity and
Zannit Products use stock cards to record receipts and issues of the various components held in the stores. It is the firm’s policy to keep records of both the quantity and value of stock items.On
Marsdens use stock cards to record receipts and issues of the various stock items held in the stores. It is the firm’s policy to keep records of both the quantity and value of stock items.On 1 June
The following trial balance was taken from the books of Michael Seymour after one year’s trading. You are required to prepare a trading and profit and loss account and balance sheet for the year
Look at the following typical business transactions and work out which accounts are involved in each transaction. In every case, think what has happened and decide which account has received value
Look at the following typical business transactions and work out which accounts are involved in each transaction. In every case, think what has happened and decide which account has received value
M Sanchez started a new business on 1 October. In your ledger write up the double entry accounts needed to record the following transactions: LO3 Oct 1 Started business by placing £5,000 in a
P Fleming started a new business on 1 December. In your ledger write up the double entry accounts needed to record the following transactions: LO3 Dec 1 Started a new business with £4,000 in cash 3
Look at the following typical business transactions and work out which accounts are involved in each transaction. In every case, think what has happened and decide which account has received value
Look at the following typical business transactions and work out which accounts are involved in each transaction.Complete the blank spaces by inserting the name of the account to be debited and the
For each of the following transactions complete the blank spaces by inserting the name of the account to be debited and the name of the account to be credited:(a) Paid motor expenses in cash Debit
For each of the following transactions complete the blank spaces by inserting the name of the account to be debited and the name of the account to be credited:(a) Bought goods, paying in cash
For each of the following transactions complete the blank spaces by inserting the name of the account to be debited and the name of the account to be credited:(a) Paid electricity bill by cheque
For each of the following transactions complete the blank spaces by inserting the name of the account to be debited and the name of the account to be credited:(a) Goods are returned to R Bright
A Oldridge started a new business on 1 May20-7. In your ledger write up the double entry accounts needed to record the following transactions:May 1 Started business with £5,000 in a business bank
KWilson started a new business on 1 June 20-7. In your ledger write up the double entry accounts needed to record the following transactions:Jun 1 Started business with £10,000 in cash 2 Bought
D Shelley started a new business on 1 August 20-7. In your ledger write up the doulsle entry accounts needed to record the following transactions:Aug 1 Started business with £5,000 in a business
T Garside started a new business on 1 October 20-8. In your ledger write up the double entry accounts needed to record the following transactions:Oct 1 Started business with £7,000 in the business
F Patel started a new business on 1 November 20-8. In your ledger write up the double entry accounts needed to record the following transactions:Nov 1 Started business with £4,000 in a business bank
Look at the following typical business transactions and work out which accounts are involved in each transaction.Complete the blank spaces by inserting the name of the account to be debited and the
M Donaldson started a new business on 1 March. In your ledger write up the double entry accounts needed to record the following transactions:Mar 1 Started a new business with £5,000 in cash 3 Bought
J Singh started a new business on 1 May. In your ledger write up the double entry accounts needed to record the following transactions:May 1 Started a new business with £8,000 in cash 3 Paid £7,000
S Munro started a new business on 1 June. In your ledger write up the double entry accounts needed to record the following transactions:June 1 Started a new business by placing £5,000 in a business
C Gulliver started a new business on 1 August. In your ledger write up the double entry accounts needed to record the following transactions:Aug 1 Started a new business with £10,000 in cash 2 Paid
M Gonzalas started a new business on 1 November. In your ledger write up the double entry accounts needed to record the following transactions:Nov 1 Started a new business with £5,000 in a business
(a) Explain why a trial balance which agrees is not conclusive proof of the complete accuracy of the accounts.(b) State three types of errors which will not affect the trial balance agreement. LO8
(a) To what extent is the agreement of the trial balance proof of accuracy of the books? How would the omission of: LO8(i) the opening stock, and(ii) the closing stock affect the trial balance?(b)
On 31 March 20-4 the following balances appeared in the ledger of Terry Dennis: LO8£Drawings 1,600 Rent and rates 350 Stock, 1 April 20-3 5,500 Bank overdraft 750 Wages 8,000 Petty cash 60 Creditor
Andrew Scott is a retailer selling newspapers and confectionery. On 29 February 20-8 the following trial balance was extracted from his books:Capital Drawings Rent and rates Lighting and heating
After a year’s trading the following balances appeared in the ledger of Nicholas Davidson on 31 May 20-6:£Stock 2,025 Drawings 1,396 Carriage outwards 194 Wages and salaries 16,830 Discount
You work in the accounts department ofMoortown Enterprises. On 30 April 20-9 the following balances appeared in the ledger:£Stock 3,095 Carriage outwards 249 Drawings 2,586 Discount allowed 403
You work in the accounts department ofWeetwood Enterprises. On 31 May 20-9 the following balances appeared in the ledger:£Purchases 11,026 Creditors 3,862 Stock 3,252 Returns outwards 493 Discount
From the following information, prepare a sales ledger control account for the month of May, clearly showing the balance carried forward at 31 May 20-9:£(i)1 May Sales ledger balances
From the following information, prepare a purchase ledger control account for the month of May, clearly showing the balance carried forward at 31 May 20-9:£(i) 1 May Purchase ledger balances
From the following information, prepare a sales ledger control account for the month of May, clearly showing the balance carried forward at 31 May 20-7:£1 May Sales ledger balances 4,760 Sales day
From the following information, prepare a purchase ledger control account for the month of May, clearly showing the balance carried forward at 31 May 20-7:1 May Purchase ledger balances£8,904
From the following information, prepare a sales ledger control account for the month of June, clearly showing the balance carried forward at 30 June 20-7:£1 June Sales ledger balances 6,869 Sales
From the following information, prepare a purchase ledger control account for the month of June, clearly showing the balance carried forward at 30 June 20-7;1 June Purchase ledger balances Purchases
Khalid Shah extracted the following balances from his books for the month of January 20-7:1 January 1 January£Purchase ledger balances 14,641 Sales ledger balances 17,542 Totals for January
The following information relates to the sales ledger control account for ledger number 2, K to R:£Debit balances on 1 May 20-4 3,788 Cash received from customers 2,300 Cheques received from
Emily McGregor has a small business which produces a wide range of educational toys and games. On 1 May 20-9 her sales ledger contained the following debtors:£A Butler 804.62 W Dyson 472.95 L
Jean Oldridge has a small business which produces an exclusive range of sports wear. On 1 May 20-9 her sales ledger contained the following debtors:£G Anderson 796.42 V Ellis 428.78 M Hariman 873.96
Bryan Forbes is the owner of a small electrical business. During the month of February 20-9 he has the following purchases on credit:2 Feb General Supplies Ltd, Invoice number G9054 12 electric
John Haines is the proprietor of a retail business. His purchases on credit during the month of March 20-8 were as follows:2 Mar Kenneth Ingram, Invoice number 67413 20 cassette tapes C120 at £1.30
William Giles owns a retail store. During the month of May 20-8 the following transactions took place:2 May Sold goods £282 on credit to F Spencer 4 May Sold goods £247 on credit to R Gordon 5 May
John Mortimer has a small business manufacturing a wide range of travel goods. During the month of June 20-8 the following transactions took place:1 Jun Sold goods on credit to G Spink £218, J
Owen Pritchard owns an electrical business. During the month of August 20-8 the following transactions took place:1 Aug Purchased goods on credit fromWLawrence £258 4 Aug Purchases on credit from
Elaine Rowe has a small business which produces a wide range of educational toys and games. During the month of October 20-9 the following transactions took place:1 Oct Purchased goods on credit from
The following account appears in the ledger of Dawn Gwinnett:Denise Hathersmith Account 20-6 £1 Jan Balance b/d 500.00 12 Jan Goods 1,800.00 2,300.00 Feb 1 Balance b/d 1,760.00 20-6£7 Jan Bank
State briefly the checking procedures you would follow before authorising payment of an invoice received from a supplier.
Statement JHunt 24 Coventry Road NUNEATON NC4 2MN R J Cook 14 Thorn Street DERBY DE3 5XH 31 March 20-4£££1 Feb Balance 130.42 6Invoice 512 140.64 271.06 8Cheque 127.16 Discount 3.26 140.64 12
You have been newly appointed as a clerk in your company’s credit control department and an order from an old established customer has been passed to you for clearance.(a) What procedure would you
Joseph Stephenson is a trader. During the month of April 20-8 sales on credit were made to the following;£250 178 490 155 212 364 2 Apr Sales to J Wilson 5 Apr Sales to K Allen 10 Apr Sales to F

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