ACCOUNTING

Q4: Write up the accounts to record the following transactions:

1. Started business with £750 cash and £9,000 in the bank.

2. Received a loan of £2,000 from B Blane by cheque.
3. Bought a computer for cash £600.
4. Bought display equipment on credit from Clearcount Ltd £420.
5. Took £200 out of the bank and put it in the cash till.
6. Repaid part of Blane’s loan by cheque £500.
7. Paid amount owing to Clearcount Ltd £420 by cheque.
8. Repaid part of Blane’s loan by cash £250.
9. Bought a printer on credit from F Jones for £200.

Q5: Enter the following transactions in the accounts of L Linda:

1. Started in business with £20,000 in the bank.

2. R Hughes lent us £5,000 in cash.
3. Bought goods on credit from B Brown £1,530 and I Jess £4,162.
4. Sold goods for cash £1,910.
5. Took £200 of the cash and paid it into the bank.
6. Sold goods on credit to H Rise £1,374.
7. Sold goods on credit to P Taylor £341.
8. Bought goods on credit from B Brown £488.
9. H Rise returned goods to us £65.
10. Sold goods on credit to G Pate £535 and R Sim £262.
11. We returned goods to B Brown £94.
12. Bought van on credit from Aberdeen Cars Ltd £4,370.
13. Bought office furniture on credit from J Winter Ltd £1,800.
14. We returned goods to I Jess £130.
15. Bought goods for cash £390.
16. Goods sold for cash £110.
17. Paid money owing to B Brown by cheque £1,924.
18. Goods returned to us by G Pate £34.
19. Returned some of office furniture costing £180 to J Winter Ltd.
20. L Linda put a further £2,500 into the business in the form of cash.
21. Paid Aberdeen Cars Ltd £4,370 by cheque.
22. Bought office furniture for cash £365.

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Q6: Enter the following transactions in the accounts:

1. Started in business with £18,000 in the bank.

2. Bought goods on credit from B Hind £1,455.
3. Bought goods on credit from G Smart £472.
4. Sold goods for cash £210.
5. We returned goods to B Hind £82.
6. Bought goods on credit from G Smart £370.
7. Sold goods on credit to P Syme £483.
8. Sold goods for cash £305.
9. Took £250 of the cash and paid it into the bank.
10. Bought a printer by cheque £620.
11. Sold goods on credit to H Buchan £394.
12. P Syme returned goods to us £160.
13. H Buchan returned goods to us £18.
14. We returned goods to G Smart £47.
15. We paid Hind by cheque £1,373.
16. Bought machinery on credit from A Cobb £419.

Q7: Write up the following transactions in the T-accounts of F Fernandes:

1. Started in business with £11,000 in the bank and £1,600 cash.

2. Bought goods on credit: J Biggs £830; D Martin £610; P Lot £590.
3. Bought goods for cash £370.
4. Paid rent in cash £75.
5. Bought stationery paying by cheque £62.
6. Sold goods on credit: D Twigg £370; B Hogan £290; K Fletcher £410.
7. Paid wages in cash £160.
8. We returned goods to D Martin £195.
9. B Hogan returns goods to us £35.
10. Sold goods on credit to: T Lee £205; F Sharp £280; G Rae £426.
11. Paid business rates by cheque £970.
12. Paid insurance in cash £280.
13. Paid rent by cheque £75.
14. Bought van on credit from B Black £6,100.
15. Paid motor expenses in cash £24.
16. Paid wages in cash £170.
17. Received part of amount owing from K Fletcher by cheque £250.
18. Received refund of business rates £45 by cheque.
19. Paid by cheque: J Biggs £830; D Martin £415; B Black £6,100.

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Q8: You are to enter up the necessary accounts for the month of May from the following information
relating to a small printing firm. Then balance off the accounts and extract a trial balance as at 31 May
20X6.

May 1 Started in business with capital in cash of £800 and £2,200 in the bank.
May 2 Bought goods on credit from the following persons: J Ward £610; P Green £214; M Taylor £174;
S Gemmill £345; P Tone £542.
May 4 Sold goods on credit to: J Sharpe £340; G Boycott £720; F Titmus £1,152.
May 6 Paid rent by cash £180.
May 9 J Sharpe paid us his account by cheque £340.
May 10 F Titmus paid us £1,000 by cheque.
May 12 We paid the following by cheque: M Taylor £174; J Ward £610.
May 15 Paid carriage by cash £38.
May 18 Bought goods on credit from P Green £291; S Gemmill £940.
May 21 Sold goods on credit to G Boycott £810.
May 31 Paid rent by cheque £230.

Q9: Enter the following transactions of an antiques shop in the accounts and extract a trial balance as
at 31 March 20X6.

March 1 Started business with £8,000 in the bank.

March 2 Bought goods on credit from the following persons: L Frank £550; G Byers £290; P Lee £610.
March 5 Cash sales £510.
March 6 Paid wages in cash £110.
March 7 Sold goods on credit to: J Snow £295; K Park £360; B Tyler £640.
March 9 Bought goods for cash £120.
March 10 Bought goods on credit from: G Byers £410; P Lee £1,240.
March 12 Paid wages in cash £110.
March 13 Sold goods on credit to: K Park £610; B Tyler £205.
March 15 Bought shop fixtures on credit from Stop Ltd £740.
March 17 Paid G Byers by cheque £700.
March 18 We returned goods to P Lee £83.
March 21 Paid Stop Ltd a cheque for £740.
March 24 B Tyler paid us his account by cheque £845.
March 27 We returned goods to L Frank £18.
March 30 G Prince lent us £1,000 by cash.
March 31 Bought a van paying by cheque £6,250.

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Q10: Record the following details relating to a carpet retailer for the month of November 20X7 and
extract a trial balance as at 30 November 20X7:

Nov 1 Started in business with £15,000 in the bank.

Nov 3 Bought goods on credit from: J Small £290; F Brown £1,200; T Rae £610; R Charles £530.
Nov 5 Cash sales £610.
Nov 6 Paid rent by cheque £175.
Nov 7 Paid business rates by cheque £130.
Nov 11 Sold goods on credit to: T Potts £85; J Field £48; T Gray £1,640.
Nov 17 Paid wages by cash £290.
Nov 18 We returned goods to: J Small £18; R Charles £27. 19 Bought goods on credit from: R Charles
£110; T Rae £320; F Jack £165.
Nov 20 Goods were returned to us by: J Field £6; T Potts £14.
Nov 21 Bought van on credit from Turnkey Motors £4,950.
Nov 23 We paid the following by cheque: J Small £272; F Brown £1,200; T Rae £500.
Nov 25 Bought another van, paying by cheque immediately £6,200.
Nov 26 Received a loan of £750 cash from B. Bennet.
Nov 28 Received cheques from: T Potts £71; J Field £42.
Nov 30 Proprietor brings a further £900 into the business, by a payment into the business bank
account.

Q11: Record the following transactions for the month of January of a small finishing retailer, balance
off all the accounts, and then extract a trial balance as at 31 January 20X8:

Jan 1 Started in business with £10,500 cash.

Jan 2 Put £9,000 of the cash into a bank account.
Jan 3 Bought goods for cash £550.
Jan 4 Bought goods on credit from: T Dry £800; F Hood £930; M Smith £160; G Low £510.
Jan 5 Bought stationery on credit from Buttons Ltd £89.
Jan 6 Sold goods on credit to: R Tong £170; L Fish £240; M Singh £326; A Tom £204.
Jan 8 Paid rent by cheque £220.
Jan 10 Bought fixtures on credit from Chiefs Ltd £610.
Jan 11 Paid salaries in cash £790.
Jan 14 Returned goods to: F Hood £30; M Smith £42.
Jan 15 Bought van by cheque £6,500.
Jan 16 Received loan from B Barclay by cheque £2,000.
Jan 18 Goods returned to us by: R Tong £5; M Singh £20.
Jan 21 Cash sales £145.
Jan 24 Sold goods on credit to: L Fish £130; A Tom £410; R Pleat £158.
Jan 26 We paid the following by cheque: F Hood £900; M Smith £118.
Jan 29 Received cheques from: R Pleat £158; L Fish £370.
Jan 30 Received a further loan from B Barclay by cash £500.
Jan 30 Received £614 cash from A Tom.

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Q1: The prime function of accounting is to: Q7: Calculate the capital from the following figures
of Mr. A business:
A. Record economic data
B. Provide the information basis for action Buildings $30000, Stock $5600, Bank $750,
C. Classifying and recording transactions Creditors $220, Loan from K $7000.
D. Summarizing the data
A. $29150
Q2: Which of the following statement shows B. $36350
calculation of capital? C. $29130
D. None of the above
A. Assets + Capital = Liabilities
B. Liabilities – Capital = Assets Q8: A firm receive from its debtors by cheque.
C. Capital = Assets + Liabilities What is the on the assets and liabilities:
D. Capital = Assets – Liabilities
Effect upon Assets Effect upon liab:
Q3: Identify the incorrect statement:
A. Reduce bank Reduce Debtors
A. Assets - Liabilities = Capital B. Increase Bank Decrease Debtors
B. Capital – Liabilities = Assets C. Increase Cash Increase Loan
C. Assets = Capital + Liabilities D. Increase Stock Decrease Capital
D. Assets – Capital = Liabilities
Q9: Which of the statement is possible double
Q4: Which of the following is not an asset? entry:

A. Buildings Debit Credit

B. Cash Balance
C. Debtors A. Bank Bank
D. Loan from Mr. Z B. Vehicles Bank
C. Both of the above
Q5: Liability can be identify as: D. None of the above

A. Cash Balance Q10: Which one of the entries shows that a cheque
B. Loan from King was received by the firm from a debtor?
C. Debtors
D. Buildings Debit Credit
A. Bank Mr. Z
Q6: Firm treats which one of the following as a B. Mr. Z Cash
liability: C. Bank Cash
D. Cash Mr. Z
E. A building owned by the firm
F. Cash in the firm’s safe Q11: which entry records the purchase of
G. Money owed to the firm by its debtors equipment on credit?
H. Money which the firm has borrowed and
has not yet paid A. Dr. Creditors Cr. Equipment
B. Dr. Equipment Cr. Creditors
C. Dr. Creditors Cr. Purchases
D. Dr. Purchases Cr. Creditors

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Q12: Mr. A brings his private motor car into D. Dr. Drawing Cr. Bank
business, the double entry would be:
Q18: The double entry for receive for cash of from
A. Dr. Capital Cr. Cash customer is:
B. Dr. Capital Cr. Motor Car
C. Dr. Motor car Cr. Capital A. Dr. Sales Cr. Debtors
D. Dr. Motor Car Cr. Cash B. Dr. Cash Cr. Sales
C. Dr. Cash Cr. Debtors
Q13: Outstanding expenses: D. Dr. Debtors Cr. Cash

A. Are paid during the year Q19: when cash is deposited into the bank, the
B. Are received during the year entry will be:
C. Are paid in advance
D. Are due but not paid A. Dr. Cash Cr. Bank
B. Dr. Bank Cr. Cash
Q14: Which parts of the accounting equation are C. Dr. Cash Cr. Cash
affected by paying loan by cash? D. Dr. Bank Cr. Bank

A. Assets, Capital Q20: The double entry to record a purchase of

B. Assets, Liabilities furniture on cash:
C. Capital, Liabilities
D. Assets, Capitals, Liabilities A. Dr. Furniture expense Cr. Cash
B. Dr. Furniture Cr. Cash
Q15: Expense is: C. Dr. Furniture expense Cr. Furn: payable
D. Dr. Furniture Cr. Creditor
A. An amount is incurred for liquidation of
business
B. An amount is incurred to run the business
C. An amount is incurred for owner’s
purchases
D. None of them

Q16: Which of the following changes could not

occurred as result of an entry in bookkeeping
records?

A. Increase Assets and Increase Liability

B. Increase Assets and Increase Capital
C. Increase Capital and Increase Liability
D. Increase Capital and Decrease Liability

Q17: The owner withdraw cash from bank for

personal use, the double entry will be:

A. Dr. Capital Cr. Cash

B. Dr. Capital Cr. Drawing
C. Dr. Drawing Cr. Capital

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