Essay on Debit Card and Purchases Ledger Control

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Basic Accounting II – Section 1 (Answers)

Task 1.1

(a)
Account name
Amount £
Debit

Credit

Suspense
19847


(b)

Error in the general ledger
Error disclosed by the trial balance
Error NOT disclosed by the trial balance
Recording a bank payment for heat and light on the debit side of both the bank and heat and light account.


Recording a payment for motor repairs in the motor vehicles account.


Recording a sales credit note on the debit side of the sales ledger control account and the credit side of the sales returns account.


Incorrectly calculating the balance on the rent account.



Recording a payment by cheque to a creditor in the bank account and purchases ledger only.


Recording a bank payment of £470 for motor repairs as £4700 in both accounts.



Task 1.2

(a)

Account name
Amount £
Debit

Credit

Bad debts
1560


VAT
273


Sales ledger control
1833



(b)

Account name
Amount £
Debit

Credit

Cash
150


Cash at bank
12350


Capital
23456


Fixtures and Fittings
2100


Insurance
825


Loan from bank
10000


Miscellaneous expenses
218


Motor vehicle
15650


Office expenses
613


Rent and rates
1550


Journal to record the opening entries of new business

Task 1.3

(a)

Account name
Amount £
Debit

Credit

Wages expense
6966


Wages control
6966



(b)

Account name
Amount £
Debit

Credit

HM Revenue and Customs
3158


Wages control
3158


(c)

Account name
Amount £
Debit

Credit

Bank
3508


Wages control
3508


(d)

Account name
Amount £
Debit

Credit

Trade Union
300


Wages control
300


Task 1.4

(a) (i)

Account name
Amount £
Debit

Credit

VAT
975



(ii)

Account name
Amount £
Debit

Credit

VAT
875


(iii)

Account name
Amount £
Debit

Credit

Suspense
100


(b) (i)

Account name
Amount £
Debit

Credit

Heat and Light
350


Bank
350



(ii)

Account name
Amount £
Debit

Credit

Heat and light
350


Bank
350



Task 1.5

(a)

Office stationery
Details
Amount £
Details
Amount £
Suspense
167

Rent and rates
Details
Amount £
Details
Amount £

Suspense
1800

Suspense
Details
Amount £
Details
Amount £
Rent and rates
1800
Balance b/f
1633

Office stationery
167

Bank interest received
Details
Amount £
Details
Amount £
Bank interest charged
98

Bank interest charged
Details
Amount £
Details
Amount £

Bank interest received
98

Task 1.6

Balances at 1 July

Debit £
Credit £
Motor vehicles 34536

Fixtures and fittings 17350

Stock 7300

Bank overdraft 5521

Petty cash 100

Sales ledger control 100625

Purchases ledger control

56119
VAT owing to HM Revenue and Customs

8300
Capital

22844
Sales

222955
Purchases
112250

Purchases returns

6870
Wages
25700

Motor expenses 1368

Office expenses 3354

Rent and rates 1444

Heat and light 2155

Insurance 3165

Miscellaneous expenses 2220

Suspense account (debit balance)

Total 317088 317088

Basic Accounting II – Section 2

Task 2.1

(a)

Cash-book – credit side
Details
Discount
Cash
Bank
VAT
Creditors
Cash purchases
Motor expenses
Balance b/f

16942

B. Smithson Ltd

235

35

200

H Hamnet

188

28

160

Renee Reid

320

320

Tenon Ltd
80

3600

3600

Vernon Motor Repairs

47
7

40
Total
80
743
20589
70
3600
680
40

(b)

Cash book – debit side
Details
Discount
Cash
Bank
Debtors
Balance b/f

1325

G Brownlow

749
749
S Barnett
30
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