Questions and Answers of Mastering Accounting Skills

John Dean has 1,560 in his business bank account on 1 April. Open a ledger account with this balance and then enter the following transactions, completing all the entries in the other accounts you
Food Supplies is a wholesaler which has Jim Turner, a retailer, as one of its customers. On 1 June Jim owed £250 from the previous month. The following transactions then took place:3 June 6 June 9
Prepare accounts to show the following information in(a) the ledger of Zoe Clough,(b) the ledger of Peter Blake.1 April Zoe Clough owed Peter Blake £450.3 April Zoe purchased £356 of goods on
Helen Berry started a retail business on 1 March 1989 with £3,000 in the bank, furniture and fittings worth £3,000 and premises valued at £15,000.She had borrowed £2,000 from Busifmance Ltd for
In your notebook make two headings like this:.Assets Liabilities Now place each of the following items under the correct heading.e Motor van Creditors Cash at bank Office equipment Stock of goods
Now place each of the following items under the correct heading —Assets or Liabilities e@ Premises Debtors Creditors Motor vehicle Office furniture@ Capital @ Cash in hand
A firm has the following assets and liabilities. What is the total of its assets? Capital Debtors 22,250 5,825 Cash at bank 1,500 Creditors 2,450 Office equipment 8,425 Stock of goods 9,250
A firm has the following assets and liabilities. What is the total of its liabilities? Capital 17,500 Office furniture 1,750 Motor van 6,450 Creditors 3,000 Stock of goods 3,230 Machinery 4,900 Cash
A firm has the following assets and liabilities. What is the total of its assets? Fixtures and fittings Office equipment 10,200 2,275 Capital 19,200 Stock of goods 1,750 Creditors 1,800 Debtors 2,825
Complete the table by calculating and filling in the missing figures. Assets (a) 42,000 Liabilities Capital 17,300 ? (b) 87,500 ? 61,000 (c) ? 19,950 39,800 (d) 71,450 22,750 ? (e) 64,500 ? 39,500
Complete the table by calculating and filling in the missing figures. Assets (a) 51,500 (b)? Liabilities Capital 19,700 ? 27,500 (c) 57,750 ? 64,700 38,800 (d) 63,330 (e) ? 14,500 ? 17,850 63,150
Complete the table by calculating and filling in the missing figures. Assets Liabilities Capital (a) 65,000 (b)? ? 32,250 16,750 27,900 (c) 78,350 (d) ? 18,900 ? 12,750 18,350 (e) 45,000 ? 20,200
Complete the table by calculating and filling in the missing figures. Assets (a) 47,200 Liabilities 18,250 Capital ? (b) 51,500 (c) ? ? 16,450 27,800 28,900 (d) 31,150 17,250 ? (e) 48,750 ? 26,650
On 21 January, David Nicholson decides to buy some office equipment costing £1,500 and pays by cheque. Draw up his balance sheet to show the effect of this transaction.
On 31 January, David Nicholson buys further goods on credit costing £1,800 and manages to persuade a business associate, A. Goodson, to lend him£5,000, which is placed in the business bank account.
William Dyson sets up a new business with the following assets and liabilities: premises £7,000; stock of goods £3,250; motor vehicle £5,750;creditors £2,200; debtors £3,950; loan from D. James
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
K. Chippendale 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 £2,000 in cash 3
S. Curtis started a new business on 1 April. In your ledger write up the double entry accounts needed to record the following transactions:Apr 1. Started business with £5,000 in a business bank
J. Patel started a new business on 1 June. In your ledger write up the double entry accounts needed to record the following transactions:Jun 1 Started a new business with £7,000 in cash Opened a
M. Sanchez started a new business on 1 October. In your ledger write up the double entry accounts needed to record the following transactions:Oct 1 Started business by placing £5,000 in a business
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 5,000 in cash 2 Bought goods
S. Munro started a new business on 1 July. In your ledger write up the double entry accounts needed to record the following transactions: Jul 1 2 Started a new business with 8,000 in a business bank
C. Gulliver started a new business on 1 September. In your ledger write up the double entry accounts needed to record the following transactions: Sep 1 Started a new business with 7,000 in cash 3
M. Gonzalas started a new business on 1 October. In your ledger write up the double entry accounts needed to record the following transactions: Oct 1 Started a new business with 9,000 in a business
Dean Sayer started a new business on 1 May. In your ledger write up the accounts needed to record the following transactions. May 1 Started business with 7,000 in cash 3 Sold goods on credit to K.
M. Daswani started a new business on | June. In your ledger write up the accounts needed to record the following transactions. Jun 1 2 Started business with 10,000 in a business bank account Sold
Thomas Wagner started a new business on 1 July. In your ledger write up the accounts needed to record the following transactions. Jul 1 Started business with 8,000 in cash 3 Sold goods on credit to
Joseph McKenzie started a new business on 1 August. In your ledger write up the accounts needed to record the following transactions. Aug 1 Started business with 7,000 in a business bank account Sold
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. (For the moment we shall concentrate
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. (For the moment we shall concentrate
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. (For the moment we shall concentrate
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. (For the moment we shall concentrate on
A. Oldridge started a new business on 1 May 20-7. 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
Keith Wilson 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
Denise Shelley started a new business on 1 August 20-7. In your ledger write up the double entry accounts needed to record the following transactions: Aug 1 Started business with 5,000 in a business
Complete the blank spaces by inserting the name of the ledger in which the following accounts would appear. The first one is completed as an example. (a) D. Wilson customer's account (b) Purchase
Complete the blank spaces by inserting the name of the ledger in which the following accounts would appear: (a) Machinery account (b) B. Senior customer's account (c) Purchases account (d) Office
You are responsible for keeping the purchase, sales and nominal ledgers of Oaklands Fencing. Open ledger accounts and enter the following balances as at 1 February 20-6: DR Keswick Timber Premier
You are responsible for keeping the purchase, sales and nominal ledgers of David Williams. Open ledger accounts and enter the following balances as at 1 May 20-6:In your ledger write up the double
You are responsible for keeping the purchase, sales and nominal ledgers of Moorland Textiles. Open ledger accounts and enter the following balances as at 1 November 20-6:In your ledger write up the
Prepare a trial balance as at 30 November 20-6 using the balances remaining on the accounts for Moorland Textiles (see Assignment 6.4).
Prepare a trial balance as at 31 May 20-6 by listing the balances remaining on the accounts for David Williams (see Assignment 6.5).
(a) The imprest (float) to start the month was £150.00. You have petty cash vouchers to the value of £135.20. How much should be in your petty cash box?(b) The imprest at the start of the month was
Look carefully at the illustration of the completed petty cash book for the month of February 20-6 on page 72 and answer the following questions:What is the amount of the imprest?How much was spent
Pudsey Electronics operates an analytical petty cash book using the imprest system with analysis columns for: VAT, Postage, Stationery, Refreshments, Sundry expenses and Ledger. On 1 September 20-7
Mark Alexander is a sole trader who operates an analytical petty cash book using the imprest system, with analysis columns for VAT, Postage, Stationery, Refreshments, Sundry Expenses and Ledger. The
Hazar Khan operates an analytical petty cash book using the imprest system, with analysis columns for VAT, Postage, Stationery, Refreshments, Sundry expenses and Ledger. The imprest of £180.00 is
Michelle Singleton operates an analytical petty cash book using the imprest system, with analysis columns for VAT, Postage, Stationery, Refreshments, Sundry expenses and Ledger. The imprest of
Robert Groves operates an analytical petty cash book using the imprest system, with analysis columns for VAT, Postage, Stationery, Refreshments, Sundry expenses and Ledger. The imprest of £200.00 is
Thomas Wagner operates an analytical petty cash book using the imprest system, with analysis columns for VAT, Postage, Stationery, Refreshments, Sundry expenses and Ledger. The imprest of £190.00 is
Explain briefly the meaning of the term ‘standing order’.
(a) What does the abbreviation R/D stand for?(b) Give two reasons why a cheque may be marked R/D.
State two advantages of a current account.
What is a ‘bank overdraft’?
Why is it necessary to complete a cheque counterfoil?
Name the three participants involved when a cheque is used.
Explain why a BACS method of payment may be chosen.
(a) Who is the drawer on a cheque?(b) State the details that need to be completed when writing a cheque.
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 the cash book at the end of the
Ann Bannister keeps a two-column cash book. During the month of September 20-8 the following transactions took place. Enter each transaction in the cash book, balance the cash book at the end of the
James Chang keeps a two-column cash book. During the month of October 20-8 the following transactions took place. Enter each transaction in the cash book, balance the cash book at the end of the
William Dyson keeps a two-column cash book. During the month of September 20-8 the following transactions took place. Enter each transaction in the cash book, balance the cash book at the end of the
Alison D. 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 the cash book at the end of the
Douglas Lockwood keeps a two-column cash book. During the month of September 20-9 the following transactions took place. Enter each transaction in the cash book, balance at the end of the month, and
Harry Bairstow keeps a three-column cash book. During the month of June 20-9 the following transactions took place:You are required to:(a) Enter the opening balances.(b) Enter details of receipts and
Wilson Singer keeps a three-column cash book. During the month of September 20-8 the following transactions took place:(a) Enter the opening balances.(b) Enter details of receipts and Napiients
Gina Howard keeps a three-column cash book. During the month of October 20-8 the following transactions took place:You are required to:(a) Enter the opening balances.(b) Enter details of receipts and
Simms Enterprises keeps a three-column cash book. During the month of May 20-8 the following transactions took place:You are required to:a) Enter the opening balances.b) Enter details of receipts and
You are responsible for compiling, in date order, the analysed purchases and purchase returns day books for Pick-up Parts. The firm analyses its invoices and credit notes into two departments, Tyres
You are responsible for compiling, in date order, the analysed purchases and purchase returns day books for Europas Fashions. The firm analyses its invoices and credit notes into two departments,
You are responsible for compiling, in date order, the analysed purchases and purchase returns day books for Marcus Cavendish. The firm analyses its invoices and credit notes into two departments,
You are responsible for compiling, in date order, the analysed purchases and purchase returns day books for Kerterama Ltd. The firm analyses its invoices and credit notes into two departments,
You are responsible for compiling, in date order, the analysed sales and sales returns day books for Shandley Group. The firm analyses its invoices and credit notes into two departments, Paint and
You are responsible for compiling, in date order, the analysed sales and sales returns day books for Colorcraft Ltd. The firm analyses its invoices and credit notes into two departments, Blinds and
You are responsible for compiling, in date order, the analysed sales and sales returns day books for Avenger Sportswear. The firm analyses its invoices and credit notes into two departments, Shirts
From the following trial balance of Sandra Ramsden, who has been trading for one year, you are required to draw up a trading and profit and loss account and balance sheet for the year ended 31
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
From the following trial balance of Pauline Ellis you are required to prepare a trading and profit and loss account for the year ended 31 May 20-7 anda balance sheet as at that date. Trial balance as
From the following trial balance of Frederick Allen, you are required to draw up a trading and profit and loss account for the year ending 31 October 20-7 and a balance sheet as at that date. Trial
On 31 March 20-8 the following trial balance was taken from the books of James Conway: Trial balance as at 31 March 20-8 DR CR 38,200 Capital on 1 April 20-7 Cash at bank Cash in hand Debtors
David Nicholson is the owner of a textile business. He has completed his trading and profit and loss account for the year ended 31 December 20-2.The following balances remain in his ledger:You are
Anne Parfitt owns a retail carpet business. After her trading and profit and Joss account for the year ended 31 May 20-5 was completed, the following balances remain in her ledger:You are required
A packing machine was purchased for £20,000. The business plans to use it for five years, and it is estimated that at the end of that time it will have a disposal value of £5,000. Depreciation is
John Preston purchased a delivery van on 1 January 20-7 costing £8,000. He anticipated he would keep it for three years, and it would then be sold for an estimated figure of £2,744. He decided to
Michael Johnson purchased a new fork-lift machine costing £10,500. He expects to keep it for four years and at the end of that time its residual value is estimated to be £2,520.You are required to
Ross Brothers purchased a new machine in July 20-7 costing £3,000. It is estimated it will have a useful life of five years, and a disposal value at the end of this time of £712. Accounts are
D. Armstrong’s accounts are prepared to 31 December each year. He provides depreciation for his motor vehicles at a rate of 20 per cent per annum using the diminishing balance method.On 1 January
K. Gillow prepares his accounts annually to 30 June. He depreciates all his machinery at a rate of 30 per cent per annum on the reducing balance method. Details of the machines and the dates of
Graham Dyson purchased machinery for £3,000 in April 20-4. It is expected to have an effective working life of five years and its estimated disposal value at the end of this period is £712.You are
David Allen purchased a vehicle costing £23,000 on 1 January 20-3. Its useful life is anticipated to be five years. At the end of this time it is estimated to be worth £3,000. A provision for
Brian Tate purchased machinery costing £25,000 in March 20-5. It is the firm’s policy to depreciate machinery by direct depreciation on the machinery account, using the reducing balance method at
James Clayton purchased a motor van on 1 June 20-5 costing £10,800, paying by cheque. It was estimated he would keep it for three years, providing depreciation at a rate of
per cent per annum by the reducing balance method. On 1 June 20-8 the van was sold for £3,000 cash. Final accounts are prepared to 31 May each year.You are required to write up for the years 20-5,
William Evans is a sole trader, and his financial year ends on 31 December each year. On 4 January 20-5 he purchased machinery costing £15,500, paying by cheque. Evans plans to use the machinery for
(i) What is meant by depreciation, and why is it important for a business to provide for depreciation?(ii) A. Swain is a haulage contractor. On 1 January 20-6 he purchased three tipper lorries for
On 1 March 20-7, D. Nelson owes your firm £76.50. He is declared bankrupt and it is decided reluctantly on 30 March 20-7 to write off the debt as a bad debt. You are required to prepare D.
Alan Senior is a debtor who owes your firm £350. Because of serious financial difficulties he is unable to pay and asks you to agree to a payment of 50 per cent in full settlement of the debt. After
A. Baxter is declared bankrupt owing your firm £175. On 15 April 20-7, you receive a final settlement payment of 45 pence in the pound, in cash. You are required to prepare A. Baxter’s account and
John London’s debt of £220 was written off some years ago. On 3 August 20-7, you receive a cheque and a note saying he is now in a position to repay his debt. You are required to open the

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