Questions and Answers of Mastering Accounting Skills

The following information refers to a small engineering business owned by Douglas Whitby:TYial Balance as at 31 October 20-8 Dr£Capital Premises 6,250 Debtors: P Cave 1,580 R Webster 1,640 V Bruce
The trial balance of Ken Stevens on 30 April 20-4 was as follows:Dr Cr££Sales 20,750 Purchases 13,170 General expenses 4,972 Fixtures 2,500 K Gibson 1,130 T Lowe 700 Bank 1,720 Drawings 2,800 7,228
J Fisher runs a small mail order business. A bank account is kept through which all amounts received and paid are entered. Amounts paid for packing materials and postage are entered into the general
David Williams owns a small manufacturing business which makes superior quality greenhouses and garden sheds.On 30 September 20-8 his trial balance was as follows:Dr Cr££Capital 8,525 Cash at bank
Complete the blank spaces by inserting the name of the ledger in which the following accounts would appear:(a) Purchases account(b) B Smith - supplier’s personal account(c) Returns inwards
Complete the blank spaces by inserting the name of the ledger in which the following accounts would appear:(a) Returns outwards account ledger(b) Brown & Co Ltd - customer’s personal account
Complete the blank spaces by inserting the name of the ledger in which the following accounts would appear:(a) Rent account ledger(b) Drawings account ledger(c) Office equipment account ledger(d) D
Complete the blank spaces by inserting the name of the book or ledger in which the following accounts would appear:(a) Rent received account ledger(b) Cash account book(c) K Chippendale -
$##$You are employed by Office Supplies in Leeds. The firm banks with the Lombard Street branch of Barclays Bank. Their current account number is 76543211. On 8 March 20-8, you pay the following
On 7 June 20-3 you received an account from Modern Office Equipment Ltd for the supply of two new electric typewriters. The amount due for payment is £1,890 and is subject to a small discount of 2V2
You are employed by White & Co as a cashier at their Westminster Branch. Their bank current account, number 76543211 is maintained at the Lombard Street Branch of Barclays Bank. On 15 May 20-7 you
On 8 November 20-4 J M England received an invoice from Parkway Garage for motor servicing and repairs. The invoice was for the sum of £358 and was subject to a discount of 2V2 per cent for payment
Diane Glover in account with Northern Joint Bank PLC Date Description Debit Credit Balance 20-6 May 1 Balance£££125 O/D (a)2 000344(b)220 (c)345 O/D 3Sundries 200 145 0/D 4Standing Order (d)10 155
Robert Hurford keeps a two-column cash book; during the month of May 20-8 the following transactions took place. Enter each transaction in the cash book, balance at the end of the month, and bring
Donna Lenton keeps a two-column cash book; during the month of June 20-8 the following transactions took place. Enter each transaction in the cash book, balance at the end of the month, and bring
Peter Colley keeps a two-column cash book; during the month of July 20-8 the following transactions took place. Enter each transaction in the cash book, balance at the end of the month, and bring
Ann Bannister keeps a two-column cash book; during the month ofAugust 20-8 the following transactions took place. Enter each transaction in the cash book, balance at the end of the month, and bring
Barry Ward keeps a two-column cash book; during the month of April 20-9 the following transactions took place. Enter each transaction m the cash book, balance at the end of the month, and bring down
William Dyson keeps a two-column cash book; during the month of June 20-9 the following transactions took place. Enter each transaction in the cash book, balance at the end of the month, and bring
Alison De Klerk keeps a two-column cash book; during the month of October 20-9 the following transactions took place. Enter each transaction in the cash book, balance at the end of the month, and
Denise Lockwood keeps a two-column cash book; during the month of January 20-9 the following transactions took place. Enter each transaction in the cash book, balance at the end of the month, and
Andrew Fox keeps a three-column cash book; during the month of August 20-9 the following transactions took place. Enter each transaction in the cash book, balance at the end of the month, and bring
Madhur Daswani keeps a three-column cash book; during the month of November 20-9 the following transactions took place. Enter each transaction in the cash book, balance at the end of the month, and
Joseph Simpson is a trader who keeps a three-column cash book; during the month of March 20-9 the following transactions took place. Enter each transaction in the cash book, balance at the end of the
Harry Bairstow keeps a three-column cash book; during the month of May 20-9 the following transactions took place. Enter each transaction in the cash book, balance at the end of the month, bring down
George Singer keeps a three-column cash book; during the month of August 20-9 the following transactions took place. Enter each trans¬ action in the cash book, balance at the end of the month, bring
Jean Jones opened a greengrocer’s shop on 1 April 20-4. She had £1,000 cash, of which she placed £900 into a bank account. Transactions for the shop during the month of April were:April 3
Cash Book (Credit side only)Date Discount Cash Bank 20-5£££May 1 Balance 2,200 (...)10 J Archer 20 (...)380 (.15 Bank 160 (.20 Purchases 95 (.27 Fixtures 750 (.31 Balances 55 (.440 (.20 310 3,770
John Dawson makes all payments over £20 by cheque and pays all money received into the bank. On 1 January 20-9 the bank column of his bank cash book showed a balance in the bank of £2,252.58.
Graham Dean makes all payments over £20 by cheque and pays all money received into the bank. On 1 March 20-9 the bank column of his bank cash book showed a balance in the bank of £1,376.30. During
James McCann makes all payments over £20 by cheque and pays all money received into the bank. On 5 February 20-9 the bank column of his bank cash book showed a balance in the bank of £1,602.55.
Charles Hargreaves makes all payments over £20 by cheque and pays all money received into the bank. On 1 June 20-9 the bank column of his bank cash book showed a balance in the bank of £1,870.85.
Karen Jones makes all payments over £20 by cheque and pays all money received into the bank. On 1 May 20-9 the bank column of her bank cash book showed a balance at the bank of £3,258.During the
Gina Howard makes all payments over £20 by cheque and pays all money received into the bank. On 1 June 20-9 the bank cash book showed a balance in the bank of £1,405.During the month of June the
(a) The imprest (float) to start the week was £50.00. You have petty cash vouchers to the value of £35.20. How much should be in your petty cash box?(b) The imprest at the start of the week was
Look carefully at the illustration of the completed petty cash book for the week ending 5 May (Figure 13.4) and answer the following questions:(a) What is the amount of the imprest?(b) How much was
Mark Alexander is a sole trader who keeps his petty cash on the imprest system. The imprest of £100 is restored at the beginning of each month.During the month of February 20-8 the following
John Beaumont keeps a petty cash book with analysis columns for Travelling, Motor expenses. Postage and stationery and Ledger accounts. At the close of business on 31 March 20-8 his cash in hand
Jennifer Peterson is a florist who keeps her petty cash on the imprest system. The imprest of £150 is restored at the beginning of each month. Her petty cash transactions for the month ofAugust 20-8
Robert Groves keeps his petty cash on the imprest system. The imprest of £100 is restored at the beginning of each week. His petty cash transactions were:Voucher number Jun 16 Petty cash in hand
Hazar Khan keeps his petty cash on the imprest system. On 1 July there was £21.35 balance in hand and the first available petty cash voucher was number 28. The imprest of £150 is restored at the
Denise Fielding keeps her petty cash on the imprest system. On 1 August there was £35.28 balance in hand and the first available petty cash voucher was number 62. The imprest of £200 is restored at
George Mainwaring maintains a petty cash book for all payments less than £20. The imprest of £100 is restored at the end of each week. Other payments are made by cheque, and all receipts are paid
DougWigby pays all receipts into his bank account and makes all payments greater than £15 by cheque. All other payments are made out of petty cash, at the end of each week the petty cash is restored
Penny Wheelwright runs a small retail business. She makes all payments over £20 by cheque and pays all money received into the bank. On 1 April 20-9 her bank cash book showed a balance in the bank
James Rogers operates a small electrical business. He makes all payments over £25 by cheque and pays all money received into the bank. On 1 May 20-9 his bank cash book showed an overdrawn bank
Christine Groves’ cash book for the month of May 20-4 is shown below:Cash Book (bank columns only)20-4 May 1 Balance b/d£900.00 20-4 May 2 T Rogers«•£^ 175.00 9C Briggs 465.00 8YEB 368.00 18
Here is Andrew Garcia’s cash book for the month of June 20-4:Cash Book (bank columns only)20-4£20-4£Jun 1 Balance b/d 750.00 Jun 3 R Moore 298.00 4Sales 455.00 8B Ramsden 324.00 9B Sinclair
On 31 October 20-4 David Alexander’s cash book showed a bank balance of£2,750; on the same date his bank statement showed a balance of £2,290.The difference between the two balances was found to
Carol Sanderson’s cash book for the month of Mar 20-4 is shown below:Cash Book (bank columns only)20-4£20-4£Mar 1 Balance b/d 2,500.00 Mar 3 Drawings 150.00 8T Oliver 365.00 '6 R Kemp 263.00 15 L
On 2 May 20-9 Jenny Ashcroft received her bank statement for the month ofApril 20-9. On 30 April her cash book showed a balance in hand of£1,975.On checking her records the following information was
The bank columns of Robert Williams’ cash book for the month of April 20-5 are shown below:Cash Book Cheque number 20-5 1 Apr Balance b/d£765 .20-5 3 Apr Rent 59635! 170 5 Apr F Mills 250 7 Apr
Jill Chippendale makes all payments over £20 by cheque and pays all money received into the bank. On 1 May 20-9 the bank column of her cash book showed a balance at the bank of £2,780.During the
Denise Hemingway makes all payments over £20 by cheque and pays all money received into the bank. On 2 October 20-9 her bank cash book showed a balance in the bank of £2,304.During the month of
Gina Howard makes all payments over £20 by cheque and pays all money received into the bank. On 1 May 20-5 the bank cash book showed a balance in the bank of £1,405.During the month of May the
Your firm has decided to buy an Amastar Computer. Three different suppliers were asked for prices and delivery dates and the following quotations have now been received:(a) Use your calculator to
James Dickson of 34 Kingsway, Leeds LSI6 8ER is the proprietor of a small business. His sales on credit for the month of May 20-7 were as follows:2 May G A Coleman, 2 Parkfield, Nottingham, Invoice
Speed Electrics of 2 High Street, Huddersfield is a wholesale electrical business. During the month of June 20-7 they make the following sales:1 June James McMillan, 2 Spring Lane, Bradford, Invoice
Martin Greendale, 8 Parkside, Darlington is the owner of a garden acces¬ sories business. During the month of August 20-7 his sales on credit were:1 Aug Adel Garden Shop, Heathway, Adel, Leeds,
James Sellars, 34 High Street Bradford, is a textile wholesaler.Price list White cotton pillow cases 45p each White cotton sheets £2.50 each Grey mixture blankets £5.75 each White wool blankets
There is no limit to the number of people who may become members of the company. The capital of a company is divided up into what are called shares, which may be of any amount decided by the members,
The members of the company have limited liability. This means that the maximum amount that a member can lose is the capital which he has actually invested in the company. So unlike a sole trader or a
To test your understanding of these important points match each item in list A with the appropriate item in list B:List A 1 A company 2 Shareholders 3 Shares 4 The liability of shareholders List B
which has at least twenty shareholders True/False LO.1
which has a minimum authorised share capital of £50,000 True/False LO.1
whose name is followed by the letters 'ltd' True/False LO.1
which is registered as a public company with the Registrar of Companies True/False LO.1
Those wishing to form a company have to submit certain documents to the Registrar of Companies together with the relevant fee. The documents are:(a) The Memorandum of Association which gives the
Once these documents have been checked and passed, the Registrar of Companies will issue a Certificate of Incorporation. This then means that the company has come into existence as a legal entity. As
There are more sources of t1nance available. True/False LO.1
There is limited liability for the owners. True/False LO.1
There are fewer formalities. True/False LO.1
Accounts do not have to be audited. True/False LO.1
The company continues in existence even if the major shareholder dies.True/False LO.1
What laws govern the operation of limited liability companies? LO.1
Which of the following are public companies? Tick the correct items:(a) Dave Salmons, Motor Trader(b) Cowley's Cars Ltd(c) Vernon's Vehicles PLC(d) Cardiff Vehicles CCC(e) Cymru Cars Cyf. LO.1
The two main documents which have to be submitted to the Registrar of Companies in order to form a limited liability company are the ________ of Association and the of Association. Complete the
Tom Downes, a friend of yours, had built up a thriving business selling computer systems. He is now in need of more finance and is thinking of forming his business into a company. He asks you for
Complete the blanks in the following:There is a ___ rate of ___ payable on preference shares, but the amount payable. on shares may vary from year to year. LO.1
Tick the correct answer.Coalmans Ltd has authorised share capital of 10,000 £1 ordinary shares of which 5,000 have been issued and fully paid for. The directors proposed a dividend of 20%. How
To summarise the main features of debentures complete the blanks in the following paragraph:A is the written acknowledgement of a debt. Interest on debentures is charged at a rate. Debenture holders
Trading and profit and loss account. The only differences here will be the introduction of certain types of expenses peculiar to limited companies, e.g. directors' salaries and debenture interest.
Profit and loss appropriation account. As with a partnership, because there is more than one owner of the business, there must be a statement to show how the profits of the business are to be used.
Balance sheet. In the assets part of the balance sheet there will be no difference. In the finance part the balance sheet must show:(a) the authorised share capital and the issued share capital
Indicate where the following items would appear in the final accounts of a limited company, using 'P' for profit and loss account. 'A' for appropriation account and 'BS' for balance sheet. Some items
Indicate whether or not the following items are a true description of the reserves of a limited company. Reserves represent:(a) the profits of the company which are held within it and not distributed
The net profit for the year was £60,000. Out of this Joe proposed to transfer £10 000 to a general reserve, to pay the preference dividend and an ordinary share dividend of 10%. LO.1
The company had fixed assets of £141 ,000, current assets totalling£70,000 and its current liabilities for creditors and expenses were£30,000.The final accounts at the end of the company's first
The Clarke Welding Company Ltd has an authorised capital of£200,000, split into 150,000 £1 ordinary shares and 50,000 6% £1 preference shares. On 1 January 19-8 the company had issued 100,000
During the year ended 31 December 19-8 the Clarke Welding Company Ltd made a net profit of £50,000. The directors propose to pay the preference share dividend and a 10% dividend on the ordinary
The Marston Co. Ltd has an authorised capital of £400,000 dividend into 300,000 £1 ordinary shares and 100,000 6% £1 preference shares.Of these, 60,000 preference shares and 250,000 ordinary
The following trial balance was obtained from the books of Florists Ltd at 31 December:£1 debentures Freehold buildings at cost 80,000 Purchases 91,000 Sales Debtors and creditors 8,900 Rent
The following trial balance was extracted from the books of Shorts Ltd as at 30 June 19-9:Share capital - ordinary shares 10% debentures Building at cost Purchases and sales Debtors and creditors
A new company began trading on 1 January 1986. Its ftxed assets included new machinery which it had purchased for £13,000. This machinery had a life expectancy of eight years with an estimated scrap
Complete the following depreciation schedule for machinery X, using the reducing instalment method with a fixed rate of 10%. Depreciation should be calculated to the nearest £1.Machinery X: cost
Complete the accounts relating to the machinery and its depreciation up to the end of December 1988.LO.1
Complete the accounts relating to the machinery and its depreciation up to the end of December 1988. This time, use the provision for depreciation method.LO.1
The same business bought a motor vehicle for £5,000 on 1 Apri11989. It was decided to depreciate it by 30% per annum using the reducing instalment method. Calculate the amount of depreciation to be
Examine the following trial balance of M. Trigg, retailer, taken from his books at 30 June 1990.Fixed assets (at cost)Provision for depn on fixed assets Stock Debtors Provision for bad debts Bank
Complete the blanks in the following sentence to produce a definition of a partnership.A partnership has or owners who each provide for the business and are usually _____ _ liable for the debts of

Showing 200 - 300 of 527