ANH VĂN CHUYÊN NGÀNH I – AC10 Ledger is used to record debtor accounts Sales is a general term for activities of the business transactions is an amount received from creditors when paying them within required time discount received Ledger is used to record creditor accounts Purchases is a direct means of transferring money through the bank systems, which is initiated by the paying party credit transfer is direct transfer between bank accounts, involving fixed accounts at regular intervals standi.
ANH VĂN CHUYÊN NGÀNH I – AC10 ………… Ledger is used to record debtor Sales accounts ……… is a general term for activities of transactions the business …… is an amount received from creditors discount received when paying them within required time ………… Ledger is used to record Purchases creditor accounts ………… is a direct means of transferring credit transfer money through the bank systems, which is initiated by the paying party ………… is direct transfer between bank standing order accounts, involving fixed accounts at regular intervals ………… is used to record Cash & Bank Cash book accounts ……………… account is used for regular current banking and withdrawal of money ……………… account cover various nominal income and expense accounts, e.g.sales, wages, etc ……………… account cover asset Real accounts such as premises, motor vehicles, etc ……………… account are individual personal accounts of debtors and creditors ……………means a charge paid by the Carriage outwards firm to carrier for delivering goods to customers: Cost of distribution …… is the Source document for Credit Invoice Sales ……….is indicated in the invoice …… is indicated in the invoice and Both Trade discount and Cash discount Cash discount recorded in the accounts typers of personal accounts include drawings capital, supplier, customer, and… A A general term for amounts owing to reditordebtor persons other than the owner is …… liabilities loan A…is someone who owers you money creditor debtor after you sell him/her on credit A…is someone to whom you owe money Creditor after you buy on credit According to double-entry rules, if a Liability account will be debited liability decreases, …… According to double-entry rules, if an asset asset account will be debited increases, …… B ‘Balance sheet’ is ……… Book-keeping entries relating to Payment a type of financial statement debit bank/ cash account & credit debtor’s received from debtor are: Book-keeping entries relating to Payment account debit creditor’s account & credit bank/ cash to creditor are: Book-keeping entries relating to Credit account debit customer’s (debtor’s) account & Sales are: Book-keeping entries relating to Sales credit sales account debit Returns Inwards account & credit Return are: Book-keeping entries relating to Credit debtor’s account debit purchases account & credit supplier’s Purchase are: (creditor’s) account Book-keeping entries relating to Purchases credit Returns Outwards account & debit Returns are: supplier’s (creditor’s) account Book-keeping entries relating to Cash Sales debit Cash/Bank account & credit Sales are: Book-keeping entries relating to Cash account debit purchases account & credit Cash/ Purchase are: Bank account C ‘Capital’ is …………… the amount of the owner’s stake in the Calculate Gross Profit from the following business £7,080 details: Cost of goods sold: £15,200; Sales £23,700, Returns Inwards £1,420 Calculate Net Profit from the following £8,720 details: Gross profit: £12,000; Rent payable: £1,500; Rent receivable: £420; Wages: £1,210; Insurance: £300; office expenses £420, travelling expenses: £270 Calculate Net Profit from the following £5,270 details: Gross profit: £12,400; Expenses £7,550, Commission £,420 Calculate Net Profit from the following £16,420 details: Total of Capital at the end of period: £62,000; capital at the beginning of period: £48,000, Drawings: £2,420 Calculate the total of Assets from the £39,460 following details: Fixed assets: Furniture and fittings: £12,000; Motor vehicle £7,000 – Current assets: Stock £2,200, Debtors: £1,850, Cash: £3,410, bank: £13,000 Calculate Current Liabilities from the following details: Fixed assets: £53,000; £6,700 Current assets: £28,500; Capital: £66,500; Long – term liabilities: £8,300 Calculate the Fixed Assets from the £44,060 following details: Total of assets: £73,600; Stock £2,200 Debtors: £2,800, Cash: £3,240, Bank: £21,300 H How is ‘Carriage inwards’ treated in final Carriage inwards is deducted in the amount accounts? How is ‘Carriage Outwards’ treated in final of Purchases Carriage outwards is added into expense accounts? How is ‘Carriage Outwards’ treated in final column Carriage inwards is added into expense accounts? column F From Sales Day book, detail is transferred General Ledger monthly to Sales account in…… From Sales Day book, detail is transferred Sales Ledger promptly to debtor’s account in…… From Sales Day book, detail is transferred Debtor’s promptly to….account in Sales Ledger From the transaction below: ‘A Smith owed £1,746 the business £1,800 for the goods sold to him & he paid his debt within required time; hence 3% cash discount was given to him’ How much did A Smith actually pay? From the transaction below: ‘A Smith owed Dr Discount allowed £45 & Dr Bank the business £1,500 for the goods sold to £1,455 him on May 10, Year The terms of sale allow for 3% cash discount for payment within days On May 15, Year 2, A Smith paid his debt by cheque.’ What entries in the cash book are necessary for this transaction? From the transaction below: ‘You owed A £1,940 John, a creditor £2,000 for the goods bought from him & You paid your debt within required time; hence 3% cash discount was received’ How much did you have to pay? From the transaction below: ‘You owed A £60 John, a creditor £2,000 for the goods bought from him & you paid your debt within required time; hence 3% cash discount was received’ How much cash discount did you received? From the transaction below: ‘You owed A discount received John, a creditor £2,000 for the goods bought from him & you paid your debt within required time; hence A John gave you cash discount’ What kind of discount is it? From the transaction below: ‘A Smith owed £54 the business £1,800 for the goods sold to him & he paid his debt within required time; hence 3% cash discount was given to him’ How much cash discount was given to him? From the transaction below: ‘A Smith owed discount allowed the business £1,800 for the goods sold to him & he paid his debt within required time; hence 3% cash discount was given to him’ What kind of discount is it? From the transaction below: ‘Credit sale to £54 P Starkey at list price of £360, subject to 15% trade discount’ How much discount will be given to P Starkey? From the transaction below: ‘ The business Cr Discount received £100 & Cr Bank owed L Turner £2,000 for the goods bought £1,900 from May 20th Year By paying by cheque within a specified time (May 23, Year 2), the business can receive a cash discount of 5% What entries in the cash book are necessary for this transaction? From the transaction below: ‘Credit sale to £306 P Starkey at list price of £360, subject to 15% trade discount’ How much will be recorded into accounts? From the transaction: ‘Credit purchase £176 from A John at list price of £880, subject to 20% trade discount’ How much discount will the business receive? From the transaction: ‘Credit purchase £704 from A John at list price of £880, subject to 20% trade discount’ How much will the business record into Day book? From the transaction: ‘Credit purchase £189 from S Letts at list price of £250, subject to 10% trade discount; them return goods to S Letts at list price £40’ How much will the business finally owe S Letts? From the transaction: ‘Credit purchase £36 from S Letts at list price of £250, subject to 10% trade discount; them return goods to S Letts at list price £40’ How much will the business record in Return Outwards account? From the transaction: ‘Credit purchase Purchases Day book; Dr Purchases £225; from S Letts at list price of £250, subject to Cr S Letts £225 10% trade discount’ In what Day book and what accounts will it be recorded & How much will it be recorded? From the transaction: ‘K Devine returns to Dr Returns Inwards £150 & Cr K Devine us goods with a list price of £150 No £150 discount was previously made’ In what accounts will it be recorded? From the transaction: ‘Return goods to S Returns Outwards Day book; Dr S Letts a/c Letts at list price £40’ In what Day book & Cr Returns Outwards a/c and what accounts will it be recorded? From the transaction: ‘S Smart – a debtor Dr Returns Inwards a/c in General Ledger returned goods to the business’ In what & Cr S Smart a/c in Sales Ledger accounts & what ledger will it be recorded? T The capital equation is: Assets less liabilities equals capital Liabilities equals assets less capital Capital equals assets and liablities The total of discount received column in Assets equals capital and liabilities General the cash book will be transferred to …… Ledger The invoice gives details of………… The word ……… in the heading of the Both Trade discount and Cash discount at balance sheet is linked to the idea of the snapshot photograph The term ‘Drawings’ means withdrawals from a business by the owner for the owner’s private use: in cash or The term ‘account’ means goods/ services A record of transactions by category (purchases, for example), or by person or The account ‘Bank’ has transactions organization £1,590 Dr during July, Year 4, including debit entries with £2,000 and credit entries with £170 and £240 How much is the balance of this account at the end of July, Year 4? The account ‘Bank’ has transactions £1,590 Dr during July, Year 4, including debit entries with £5,000 and credit entries with £170 and £240 How much is the balance of this account at the end of July, Year 4? The account ‘T Dove’ has transactions during May, Year 4, including debit entries with £150 & £80 and credit entries with £170 and £35 How much is the balance of this account at the end of £25 Dr May, Year 4? The account ‘T Smith’ has transactions £270 Cr during July, Year 4, including debit entries with £50 & £80 and credit entries with £170 and £230 How much is the balance of this account at the end of July, Year 4? The main difference between ‘Expenses’ ‘Expenses’ is the costs of running a and ‘Drawings’ is that…… business and ‘Drawings’ is withdrawals from a business by the owner for his The term ‘Transaction on credit’ means private use taking an ownership of an asset now, but …… paying for it at later stage The difference between current account and regular/ infrequent deposit account is that current account is used for ………… banking and withdrawal of money, and in deposit account withdrawals will be ………… The following detail appears in the T Smith a/c in Purchases Ledger; Purchases Purchases Day Book: ‘T a/c in General Ledger Smith56/637£656’To what accounts & Ledgers will this detail be transferred? The formula for Cost of goods sold is: Opening stock + Purchases + Carriage inwards – Returns outwards – Closing T-type Ledger accounts has the following stock two-sided account with debit side on the format: left and credit side on the right I In the following transaction: ‘The owner debit bank account & credit capital puts a further amount into the business by account cheque’, which account is debited and which account is credited? In the accounting equation, …… The two sides will always be equal to one In the transaction: ‘Paid £442 in cash to A another Cr Discount received £8 & Cr Cash £442 Dobbs in settlement of a debt of £450’ What entries in the Cash book are done? In the transaction: ‘Received a cheque of Dr Discount allowed £12 & Dr Bank £1,200 from A Smart in full settlement of £1,200 debt of £1,212’ What entries in the Cash book are done? In the transaction: ‘Withdrew £420 from Cr Bank £420 & Dr Cash £420 bank to make cash in office’ What entries in the Cash book are done? In the transaction: ‘Cash sale £1,410, in Dr Cash £410 & Dr Bank £1,000 which £410 was received in cash’ What entries in the Cash book are done? In the transaction ‘wages of £40 are paid in Dr wages account £40 & Cr Cash account cash’, which entries are correct? In the transaction ‘Goods sold for £210 on £40 Dr T Smith £210 & Cr Sales £210 credit to T Smith’, which entries are correct? In the transaction below: ‘You owed A discount received John, a creditor for the goods bought from him & you paid your debt within required time; hence A John gave you cash discount’ What kind of discount is it? Y You are presented with the following data: the two sides are equal Assets 13,970 the equation is correct Capital 2,934 the two sides are not equal One figure Liabilities 11,576 must be incorrect What comment would you make? You can calculate……profit in ‘Trading Capital is correct Gross account’ You can calculate……profit in ‘ Profit and Net Loss account’ S Sales Day book is used for…… Credit sales W Which item below is not an asset? Which item below is not an expense? Which account below may have either Creditor rent receivable Bank debit balance or credit balance? Which account below only has credit Sales balance? Which account below only has credit creditor balance? Which account below only has debit Cash balance? Which account below is not close off to Carriage outwards Trading account? Which account below is close off to Carriage Inwards Trading account? Which account below is close off to Profit Carriage Outwards and Loss account? Where balances are carried forward from c/f – b/f one page to the next, ‘balance ………’ would appear at the bottom of one page and ‘balance …….’ at the top of the next page When you received money from debtors who pay their debts within required time, the discount you give him is called… discount allowed ... will it be recorded? T The capital equation is: Assets less liabilities equals capital Liabilities equals assets less capital Capital equals assets and liablities The total of discount received... ……….is indicated in the invoice …… is indicated in the invoice and Both Trade discount and Cash discount Cash discount recorded in the accounts typers of personal accounts include drawings capital,... business by account cheque’, which account is debited and which account is credited? In the accounting equation, …… The two sides will always be equal to one In the transaction: ‘Paid £442 in