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Solution Manual For Frank Wood's Business Accounting, 14th Edition by Alan Sangster, Lewis Gordon

Page 1

Sangster and Gordon, Frank Wood’s Business Accounting 1, 14e, Solutions Manual

Answers Note: To save time and space, the months are omitted in the Ledger accounts which follow. The day of the month is shown in brackets.

Answer to Question 1.2A

BA 1

(a) 49,000 (d) 48,100

(c) 65,800 (f) 85,900

(b) 75,100 (e) 81,300

Answer to Question 1.4A (a) Asset (b) Asset (c) Liability (d) Asset (e) Asset

BA 1

(f) Asset (g) Liability (h) Liability (i) Asset

Answer to Question 1.6A

BA 1

Assets List Wrong: Accounts payable, Capital. Liabilities List Wrong: Equipment, Computers.

Answer to Question 1.8A

BA 1

Fixtures 3,200 + Van 4,750 + Inventory 2,340 + Bank 520 + Cash 100 = Total Assets 10,910. Loan 5,000 + Accounts payable 1,910 + Capital (difference) 4,000.

Answer to Question 1.10A

BA 1 G Cook Balance sheet as at 30 June 2019

Non-current assets Equipment

9,720

Current assets Inventory Accounts receivable Cash at bank

6,430 9,280 410 16,120

Less Current liabilities Accounts payable

(8,380) 17,460

Capital

17,460

8 © Pearson Education Limited 2019


Sangster and Gordon, Frank Wood’s Business Accounting 1, 14e, Solutions Manual

Answer to Question 1.12A Assets (a) +Van (b) −Cash (c) +Inventory −Bank (d) +Cash (e) +Inventory −Accounts receivable (f ) +Inventory (g) −Cash (h) −Bank

BA 1

Liabilities +Accounts payable −Loan from F Duff

Capital

+Capital

+Accounts payable −Capital −Accounts payable

Answer to Question 1.14A

BA 1 J Hill Balance Sheet as at 7 December 2019

Non-current assets Equipment Motor Vehicle

6,310 7,300 13,610

Current assets Inventory Accounts receivable Bank Cash

8,480 3,320 9,510 485 21,795 35,405

Current liabilities Accounts payable

1,760 33,645

Capital

33,645

Answer to Question 2.11A Debited (a) Trailer (c) Loan from W Small (e) Office equipment (g) Bank (i) Cash

BA 1

Credited Cash Cash Dexter Ltd L Tait Loan from F Burns

Debited (b) J Tough (d) Cash (f) Cash (h) Bank (j) J Fife

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Credited Bank Trailer T Walls Capital Cash


Sangster and Gordon, Frank Wood’s Business Accounting 1, 14e, Solutions Manual

Answer to Question 2.14A (1) Capital (25) Cash

(5) Old Ltd (15) Cash (30) Bank

Bank 16,000 (2) Van 6,400 400 (12) Cash 180 (19) Carton Cars 7,100 (30) Office fixtures 480

Capital Loan Fox

(15) Bank (24) Cash

(5)

Drop

16,000

Vans Bank 6,400 Carton Cars 7,100

(19) Bank

Office fixtures 900

Carton Cars 7,100 (8) Van

7,100

Loan from Berry (21) Cash

500

BA 1

Bank 18,000 (8) Cash 4,000 (15) Loan Fox (17) Drop

Loan: T Fox 1,000 (2) Bank 500

400 1,000 840

(1) (8)

Capital Bank

Cash 1,500 (3) Computer 400 (24) Loan Fox

(3)

Cash

Computer 1,200

1,200 500

4,000

(17) Bank

Drop Ltd 840 (5) Display stands 840

(31) P Blake

P Blake (31) Printer Printer 400

Display Stands 840

Capital (1) (1)

Answer to Question 3.2A Debited (a) Purchases (c) C Riddle (e) Lorry (g) Bank (i) F Toms

Cash 180 (15) Office fixtures 120 500 (25) Bank 400

Old Ltd (5)

Bank

Answer to Question 2.15A

(12) Bank (21) Loan: Berry

(2) (8)

Office Fixtures 900 120 480 Capital (1)

(1) (2)

BA 1

Cash Bank

1,500 18,000

BA 1

Credited B Cowan Filing cabs M Davis Ltd M Peters Bank

Debited (b) Returns in (d) Purchases (f) J Hicks (h) Purchases (j) S Mulligan

10 © Pearson Education Limited 2019

Credited L Keith Cash Returns Out Bank Sales

400


Sangster and Gordon, Frank Wood’s Business Accounting 1, 14e, Solutions Manual

Answer to Question 3.4A Cash 7,400 (2) 54 (7)

(1) Capital (19) Sales

(4) (7)

BA 1 Bank Purchases

7,000 362

(2) Cash (24) F Holmes (Loan)

Bank 7,000 (5) Van 4,920 (29) J Watson 368 1,500 (31) Firelighters Ltd 820

Purchases 410 362

J Watson Cash

Returns Outwards (12) J Watson

(12) Returns (29) Bank

J Watson 42 (4) Purchases 368

(10) Sales

L Less 218

Sales (10) L Less (19) Cash

42

Fixtures 410

(22) Firelighters Ltd

(5)

Bank

820 Van 4,920 F Holmes (Loan) (24) Bank

(31) Bank

Firelighters Ltd 820 (22) Fixtures Capital (1)

Answer to Question 3.6A

Bank 18,000 (21) Printer 250 (29) B Hind

(5) Sales (12) Sales

Cash 210 (18) Bank 305

620 1,373

(2) (3) (8)

B Hind G Smart G Smart

250

Sales (5) Cash (10) P Syme (12) Cash (22) H Buchan

1,455

Purchases Purchases

472 370

(10) Sales

P Syme 483 (23) Returns In

160

(22) Sales

H Buchan 394 (25) Returns In

18

A Cobb (31) Machinery

419

(31) A Cobb

Machinery 419

18,000

(21) Bank

Printer 620

G Smart 47 (3) (8)

Capital (1)

820 7,400

Purchases 1,455 472 370

Purchases

(28) Returns Out

Cash

1,500

BA 1

(1) Capital (18) Cash

B Hind (6) Returns Out 82 (2) (29) Bank 1,373

218 54

Bank

(23) P Syme (25) H Buchan

Returns Inwards 160 18 Returns Outwards (6) B Hind (28) G Smart

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210 483 305 394

82 47


Sangster and Gordon, Frank Wood’s Business Accounting 1, 14e, Solutions Manual

Answer to Question 4.3A

BA 1

July (1) Bank Cash Capital (2) Stationery Bank (3) Purchases T Smart (4) Cash Sales (5) Insurance Cash (7) Computer J Hott (8) Electricity Bank (10) C Biggins Sales (11) T Smart Returns Out (14) Wages Cash (17) Rent Bank (20) Bank C Biggins (21) J Hott Bank (23) Stationery News Ltd (25) F Tank Sales (31) News Ltd Bank

Dr 5,000 1,000

Cr

6,000 75 75 2,100 2,100 340 340 290 290 700 700 32 32 630 630 550 550 210 210 225 225 400 400 700 700 125 125 645 645 125 125

12 © Pearson Education Limited 2019


Sangster and Gordon, Frank Wood’s Business Accounting 1, 14e, Solutions Manual

Answer to Question 4.4A

BA 1

Bank (1) Capital 11,000 (5) Stationery 62 (24) K Fletcher 250 (16) Business rates 970 (28) Business rates 45 (19) Rent 75 (28) J Biggs 830 (28) D Martin 415 (28) B Black 6,100

(1)

Capital

Cash 1,600 (3) Purchases (4) Rent (7) Wages (11) Rent (18) Insurance (21) Motor exps (23) Wages Capital (1) (1)

Bank Cash

(2) (2) (2) (3)

370 75 160 75 280 24 170

11,000 1,600

Purchases 830 610 590 370

J Biggs D Martin P Lot Cash

Sales (6) D Twigg (6) B Hogan (6) K Fletcher (15) T Lee (15) F Sharp (15) G Rae

370 290 410 205 280 426

Returns Outwards (10) D Martin

195

(13) B Hogan

Returns Inwards 35

(28) Bank

B Black 6,100 (20) Van

(4) Cash (11) Cash (19) Bank

Rent 75 75 75

(28) Bank

J Biggs 830 (2)

Purchases

830

(7) Cash (23) Cash

Wages 160 170

(10) Returns Out (28) Bank

D Martin 195 (2) Purchases 415

610

(5)

Stationery 62

Bank

(16) Bank

P Lot (2)

Business rates 970 (28) Bank

45

(6)

Sales

D Twigg 370

6,100

Purchases

590

(18) Cash

Insurance 280

(6)

Sales

B Hogan 290 (13) Returns In

35

(21) Cash

Motor Expenses 24

(6)

Sales

K Fletcher 410 (24) Bank

250

(20) B Black

Van 6,100

(15) Sales

T Lee 205

(15) Sales

F Sharp 280

(15) Sales

G Rae 426

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Sangster and Gordon, Frank Wood’s Business Accounting 1, 14e, Solutions Manual

Answer to Question 4.6A

BA 1

(A) Goods bought on credit £27,000. (B) Borrowed £35,000 and immediately spent it on land and buildings £35,000. (C) Sold goods costing £20,000 for £30,000 on credit. (D) Debtors paid £13,000 which was deposited in the bank. (E) Debtors paid £2,000: This amount taken by proprietor as drawings. (F) Took £5,000 drawings by cheque and paid off £3,000 accrued expenses by cheque. (G) Equipment costing £30,000 sold for £21,000, resulting in a £9,000 loss on disposal. (H) Goods taken for owner’s personal use £1,000. (I) Took £6,000 cash as drawings. Alternatively could have been £6,000 cash stolen – thus reducing cash and causing a loss.

Answer to Question 5.6A (1) Sales (21) Sales (1)

Balance b/d

(1) Sales (8) Sales (21) Sales

BA 1

P Black 620 (19) Bank 180 (31) Balance c/d 800

620 180 800

(15) Returns Out (28) Bank

180 G Smith 84 (31) Balance c/d 322 860 1,266

(1)

Balance b/d 1,266

(1) (8)

Sales Sales

L Sime 1,200 (10) Returns In 448 (19) Bank (31) Balance c/d 1,648

(1)

Balance b/d 1,406

(1)

Sales

J Teel 608 (10) Returns In (12) Cash 608

(31) Balance c/d 1,266

(28) Bank (31) Balance c/d 62 180 1,406 1,648

Purchases

G Lime 180 (2) 30 210

Black, Smith and Sime are debtors. Donovan, Lime and Still are creditors.

14 © Pearson Education Limited 2019

T Still 21 (2) 100 (9) 40 363 524 (1)

63 215 278

Balance b/d

278

Purchases

210 210

(31) Balance b/d

(15) Returns Out (28) Bank (31) Returns Out (31) Balance c/d

190 190

I Donovan 278 (2) Purchases (9) Purchases 278 (1)

1,266

164 444 608

P Best 25 (2) 165 190

Purchases Purchases

30

360 164

524 Balance b/d

363


Sangster and Gordon, Frank Wood’s Business Accounting 1, 14e, Solutions Manual

Answer to Question 5.7A 2020 May 1 May 19 May 21

2020 May 1 May 8 May 21

2020 May 1 May 8 May 10 May 19

2020 May 1 May 10 May 12

2020 May 2 May 15 May 28

2020 May 2 May 9

2020 May 2 May 28

2020 May 2 May 9 May 15 May 28 May 31

Sales Bank Sales

Sales Sales Sales

Sales Sales Returns Bank

Sales Returns Bank

BA 1 F Black Dr 620

620 180 G Smith Dr 84 322 860 L Sime Dr 1,200 448

J Teel Dr 608

G Lime Dr

Balance 1,200 Dr 1,648 Dr 1,586 Dr 1,406 Dr

Cr

21 100 40

15 © Pearson Education Limited 2019

Balance 608 Dr 444 Dr 0

Cr 190

Balance 190 Cr 165 Cr 0

Cr 63 215

Balance 63 Cr 278 Cr

Cr 210

Balance 210 Cr 30 Cr

Cr 360 164

Balance 360 Cr 524 Cr 503 Cr 403 Cr 363 Cr

180 T Still Dr

Purchases Purchases Returns Bank Returns

Cr

25 165

Purchases Purchases

Purchases Bank

Balance 84 Dr 406 Dr 1,206 Dr

164 444

I Donovan Dr

Balance 620 Dr 0 180 Dr

Cr

62 180

P Best Dr Purchases Returns Bank

Cr


Sangster and Gordon, Frank Wood’s Business Accounting 1, 14e, Solutions Manual

Answer to Question 6.3A (1) Capital (28) T Potts (28) J Field (30) Capital

(1)

Balance b/d

(5)

Sales (26) Loan from B Bennet

(1)

Balance b/d

(3) (3) (3) (3)

J Small F Brown R Charles T Rae (19) R Charles (19) T Rae (19) F Jack

(1)

Balance b/d

(30) Balance c/d

(30) Balance c/d

(20) J Field (20) T Potts

(1)

Balance b/d

(30) Balance c/d

BA 1

Bank 15,000 (6) Rent 175 71 (7) Business rates 130 42 (23) J Small 272 900 (23) F Brown 1,200 (23) T Rae 500 (25) Van 6,200 (30) Balance c/d 7,536 16,013 16,013 7,536 Cash 610 (17) Wages (30) Balance c/d 750 1,360

(6) (1)

Bank Balance b/d

F Brown 1,200 (3)

(23) Bank

Purchases 290 (30) Balance c/d 1,200 530 610 110 320 165 3,225

3,225 (23) Bank (30) Balance c/d

3,225 (30) Balance c/d

3,225 Sales 2,383 (5) Cash (11) T Potts (11) J Field (11) T Gray 2,383

610 85 48 1,640 2,383

(1)

2,383

Balance b/d

Returns Outwards 45 (18) J Small (18) R Charles 45

18 27 45

(1)

45

Balance b/d

Returns Inwards 6 (30) Balance c/d 14 20

(30) Balance c/d

20

15,000 900 15,900

Balance b/d

15,900 11,150 11,150

11,150 Rent 175 (30) Balance c/d 175

175

J Field 48 (20) Returns In (28) Bank 48

(11) Sales

20

20 Capital 15,900 (1) Bank (30) Bank 15,900

(11) Sales

(11) Sales (1) Balance b/d

T Gray 1,640 (30) Balance c/d 1,640 Turnkey Motors 4,950 (21) Van (1) Balance b/d Trial Balance 7,536 1,070 3,225

Bank Cash Purchases Sales Returns Outwards Returns Inwards Capital Van Rent Business rates Wages Loan from B Bennet R Charles T Rae F Jack T Gray Turnkey Motors

16 © Pearson Education Limited 2019

Purchases

R Charles 27 (3) Purchases 613 (19) Purchases 640 (1) Balance b/d T Rae 500 (3) Purchases 430 (19) Purchases 930 (1) Balance b/d F Jack 165 (19) Purchases (1) Balance b/d T Potts 85 (20) Returns In (28) Bank 85

(18) Returns Out (30) Balance c/d

Van (21) Turnkey Motors 4,950 (30) Balance c/d (25) Bank 6,200 11,150 Balance b/d

Bank Balance b/d

1,360

1,070

(1)

(1)

290 1,070

Business rates 130 (30) Balance c/d 130 Wages (17) Cash 290 (30) Balance c/d (1) Balance b/d 290 Loan from B Bennet (30) Balance c/d 750 (26) Cash (1) Balance b/d J Small (18) Returns Out 18 (3) Purchases (23) Bank 272 290

(7) (1)

130

290

750 750 290 290 1,200 530 110 640 613 610 320 930 430 165 165 14 71 85 6 42 48 1,640

4,950 4,950

2,383 45 20 15,900 11,150 175 130 290 750 613 430 165 1,640 25,236

4,950 25,236


Sangster and Gordon, Frank Wood’s Business Accounting 1, 14e, Solutions Manual

Answer to Question 6.4A Cash (1) Capital 10,500 (2) (21) Sales 145 (3) (30) Loan: B Barclay 500 (11) (30) A Tom 614 (30) 11,759 (1) Balance b/d 1,419

BA 1

Bank Purchases Salaries Balance c/d

Bank (2) Cash 9,000 (8) Rent (16) Loan: B Barclay 2,000 (15) Van (29) R Pleat 158 (26) F Hood (29) L Fish 370 (26) M Smith (30) Balance c/d 11,528 (1) Balance b/d 3,790 (3) (4) (4) (4) (4)

Cash T Dry F Hood M Smith G Low

(1)

Balance b/d

(30) Balance c/d

(30) Balance c/d

(18) R Tong (18) M Singh (1)

Balance b/d

Purchases 550 (30) Balance c/d 800 930 160 510 2,950 2,950 Sales 1,783 (6) (6) (6) (6) (21) (24) (24) (24) 1,783 (1)

R Tong L Fish M Singh A Tom Cash L Fish A Tom R Pleat

9,000 550 790 1,419 11,759

220 6,500 900 118 3,790 11,528

Returns Outwards 72 (14) F Hood (14) M Smith 72 (1) Balance b/d

30 42 72 72

(30) Balance b/d

(30) Balance c/d

T Dry 800 (4) (1)

(14) Returns Out (26) Bank

M Smith 42 (4) 118 160

Cash Balance b/d

25

160 160

(30) Balance c/d

G Low 510 (4) (1)

Purchases Balance b/d

510 510

(30) Balance c/d

Buttons Ltd 89 (5) Stationery (1) Balance b/d

89 89 89

(1)

Balance b/d

89

790

(10) Chiefs Ltd (1) Balance b/d

Fixtures 610 (30) Balance c/d 610

610

(15) Bank (1) Balance b/d

Van 6,500 (30) Balance c/d 6,500

6,500

Loan from B Barclay 2,500 (16) Bank (30) Cash 2,500 (1) Balance b/d

2,000 500 2,500 2,500

(30) Balance c/d

Chiefs Ltd 610 (10) Fixtures (1) Balance b/d

610 610

(6) Sales (24) Sales

L Fish 240 (29) Bank 130 370

(30) Balance c/d

(6)

Sales

(1)

Balance b/d

(6) Sales (24) Sales

(24) Sales (6)

Sales

(1)

Balance b/d

10,500 10,500

Purchases

Stationery 89 (30) Balance c/d

Salaries 790 (30) Balance c/d 790

(14) Returns Out (26) Bank

800 800

Buttons Ltd

(11) Cash (1) Balance b/d

25

Purchases Balance b/d

(5)

220

2,950

Balance b/d

Capital 10,500 (1) (1)

Rent 220 (30) Balance c/d 220

2,950

170 240 326 204 145 130 410 158 1,783 1,783

Returns Inwards 5 (30) Balance c/d 20 25 25

Bank Balance b/d

(8) (1)

370 370

M Singh 326 (18) Returns In (30) Balance c/d 326 306 A Tom 204 (30) Cash 410 614

614 614

R Pleat 158 (29) Bank

158

R Tong 170 (18) Returns In (30) Balance c/d 170 165 F Hood 30 (4) 900 930

20 306 326

Purchases

5 165 170

930 930

Trial Balance Cash Bank Purchases Sales Returns Outwards Returns Inwards Capital Stationery Rent Salaries Fixtures Van Loan from B Barclay Chiefs Ltd M Singh R Tong T Dry G Low Buttons Ltd

1,419 3,790 2,950 1,783 72 25 10,500 89 220 790 610 6,500 2,500 610 306 165

16,864

17 © Pearson Education Limited 2019

800 510 89 16,864


Sangster and Gordon, Frank Wood’s Business Accounting 1, 14e, Solutions Manual

Answer to Question 9.2A

BA 1 Cash 295 310

(1) Balances b/d (2) Sales (3) Cash (4) F Bell (9) Business rates (11) Bank (13) Sales (16) J Bull (Loan) (20) K Brown

150 430 1,500

2,685

Answer to Question 9.4A

BA 1

Disct

Cash 420

(1) Balances b/d (2) S Braga (2) L Pine (2) G Hodd (2) M Rae (3) Sales (8) Bank (10) Sales (12) B Age (29) A Line (30) Sales (30) Balance c/d

41 16 22 52 400 1,260 4 980 135

3,060

Cash Book Bank 4,240 (3) Bank (5) Postage 200 (6) Office equipment 194 (7) L Root 115 (11) Cash (12) Wages (14) Motor expenses (28) General expenses 174 (30) Insurance (30) Balances c/d 4,923

Cash Book Bank 4,940 (5) Rent 779 (6) M Peters 304 (6) G Graham 418 (6) F Bell 988 (8) Cash 740 (14) Wages (16) R Todd (16) F Dury 276 (20) Fixtures 324 (24) Lorry (30) Stationery 12,623 (30) Balance c/d 21,392

Cash 200 80

Bank

310 94 150 400 81 35 1,970 2,685

Disct

Cash 340

9 24 10

320 3,968 4,923

Bank 351 936 390 400

540 15 12

70

295 400 4,320 14,300 56 2,124 3,060

21,392

Discounts Allowed 135

(30) Total for month

Discounts Received (30) Total for month

Answer to Question 9.6A

70

BA 1 Cash Book

Disct Balance b/d AB CD EF Bank ¢ Balance c/d

8 20 12

Bank 900 192 480 288

Disct Cash ¢ GH IJ Wages

Cash

45 70

Bank 100 555 1,330

130

100 40

Balance b/d

Cash 80

180 50

125 1,985

Balance c/d 115 Balance b/d

18 © Pearson Education Limited 2019

50 180

1,985 125


Sangster and Gordon, Frank Wood’s Business Accounting 1, 14e, Solutions Manual

AB Balance b/d

200

Bank Discount received

192 8

200

200 CD

Balance b/d

500

Bank Discount received

480 20

500

500 EF

Balance b/d

300

Bank Discount received

288 12

300

300 GH

Bank Discount allowed

555 45

Balance b/d

600

600

600 IJ

Bank Discount received

1,330 70

Balance b/d

1,400

1,400

Answer to Question 10.3A

BA 1 Petty Cash Book Total Office Exps

Receipts 450 (1) (1) (2) (2) (3) (6) (8) (11) (12) (12) (14) (16) (16) (21) (22) (23) (24) (25) (26)

1,400

Balance b/d T Wise Staples and tape dispenser Black Motors Cleaning materials Envelopes Petrol I Dodds J Marsh Paper clips Petrol Adhesive tape Petrol Car tyre T Randall J Marsh I Gray Paper Monday Cars

36 19 42 3 10 18 12 7 2 16 1 24 63 15 16 21 7 74

Motor Exps

Cleaning

Casual Labour 36

19 42 3 10 18 12 7 2 16 1 24 63 15 16 21 7

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74


Sangster and Gordon, Frank Wood’s Business Accounting 1, 14e, Solutions Manual

(29) (30) 425

(30) (30)

Petrol T Pointer

19 20 425

Cash Balance c/d

39

Sales Day Book 970 560 120 430 390 240 650 3,360 General Ledger Sales (31) Total for month

(a) Invoice summaries: A Portsmouth 22 metres plastic tubing @ £1 6 sheets foam rubber @ £3 4 boxes vinyl padding @ £5 Less Trade discount 25% B Butler 50 lengths polythene sheeting @ £2 8 boxes vinyl padding @ £5 20 sheets foam rubber @ £3 Less Trade discount 20% A Gate 4 metres plastic tubing @ £1 33 lengths polythene sheeting @ £2 30 sheets foam rubber @ £3 Less Trade discount 25%

26

20 104

BA 1

(1) S Fry (3) J Hall (5) R Dunn (7) P Kay (16) A Dale (23) D Fu (30) A Cook

Answer to Question 11.4A

256

450 875

875

Answer to Question 11.2A

19

(1)

Sales

Sales Ledger S Fry 970

(3)

Sales

J Hall 560

(5)

Sales

R Dunn 120

(7)

Sales

P Kay 430

(16) Sales

A Dale 390

(23) Sales

D Fu 240

(30) Sales

A Cook 650

3,360

BA 1

22 18 20 60 15 45 100 40 60 200 40 160 4 66 90 160 40 120

(b) Sales Day Book (1) A Portsmouth (5) B Butler (11) A Gate (21) L Mackeson (30) M Alison

(1)

Sales

Sales Ledger A Portsmouth 45

(5)

Sales

B Butler 160

(11) Sales

A Gate 120

(21) Sales

L Mackeson 29

(30) Sales

M Alison 120

20 © Pearson Education Limited 2019

45 160 120 29 120 474


Sangster and Gordon, Frank Wood’s Business Accounting 1, 14e, Solutions Manual

L Mackeson 29 metres plastic tubing @ £1

29

M Alison 32 metres plastic tubing @ £1 24 lengths polythene sheeting @ £2 20 boxes vinyl padding @ £5

32 48 100 180 60 120

Less Trade discount 331/3%

Answer to Question 11.6A

2,700 216 2,916 729 2,187

Less Trade discount 25%

F Clark 6 cricket bats @ £70 8 ice skates @ £40 5 rugby balls @ £34

420 320 170 910 182 728

Less Trade discount 20%

(a) Purchases Day Book (2) J Ring (11) F Clark (18) A Lane (25) J Jack (30) J Wood

(c) (30) Total for month

General Ledger Sales (30) Total for month

474

BA 1

Workings: Invoices J Ring 3 sets golf clubs @ £900 6 footballs @ £36

(b)

(c)

A Lane 6 sets golf trophies @ £55 4 sets golf clubs @ £720 Less Trade discount 331/3%

J Jack 5 cricket bats @ £48 Less Trade discount 25%

J Wood 8 goal posts @ £95 Less Trade discount 40%

2,187 728 2,140 180 456 5,691

Purchases Ledger J Ring (2) Purchases

2,187

F Clark (11) Purchases

728

A Lane (18) Purchases

2,140

J Jack (25) Purchases

180

J Wood (30) Purchases

456

General Ledger Purchases 5,691

21 © Pearson Education Limited 2019

330 2,880 3,210 1,070 2,140

240 60 180

760 304 456


Sangster and Gordon, Frank Wood’s Business Accounting 1, 14e, Solutions Manual

Answer to Question 11.8A

BA 1

(a) Purchases Day Book (9) C Clarke (16) A Charles (31) M Nelson

(b)

(c) (31) Total for month

Sales Day Book 240 160 50 450

(1) M Marshall (7) R Richards (23) T Young

Purchases Ledger C Clarke (9) Purchases

240

(1)

Sales

Sales Ledger M Marshall 45

A Charles (16) Purchases

160

(7)

Sales

R Richards 200

M Nelson (31) Purchases

50

(23) Sales

T Young 160

(1)

Sales

Sales Ledger B Dock 240 (10) Returns

(1)

Sales

M Ryan 126

(1) (6)

Sales Sales

G Soul 94 99

(1)

Sales

F Trip 107 (10) Returns

(6)

Sales

P Coates 182

(6)

Sales

L Job 203 (24) Returns

General Ledger Purchases Account 450 Sales Account (31) Total for month

Answer to Question 11.11A

405

BA 1

Sales Day Book

(1) B Dock (1) M Ryan (1) G Soul (1) F Trip (6) P Coates (6) L Job (6) T Mann (20) B Uphill (30) T Kane

240 126 94 107 182 203 99 1,790 302 3,143

Returns Inwards Day Book (10) B Dock (10) F Trip (24) L Job

General Ledger Sales (30) Total for the month

19 32 16 67

3,143

(20) Sales

B Uphill 1,790

(30) Sales

T Kane 302

(6)

T Mann 99

Returns Inwards (30) Total for the month

45 200 160 405

67 Sales

22 © Pearson Education Limited 2019

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Sangster and Gordon, Frank Wood’s Business Accounting 1, 14e, Solutions Manual

Answer to Question 11.13A

BA 1

Sales Day Book (3) E Rigby (3) E Phillips (3) F Thompson (8) A Green (8) H George (8) J Ferguson (20) E Phillips (20) F Powell (20) E Lee

510 246 356 307 250 185 188 310 420 2,772

Returns Inwards Day Book (14) E Phillips (14) F Thompson (31) E Phillips (31) E Rigby

18 22 27 30 97

Sales

Sales Ledger E Rigby 510 (31) Returns In

30

(3) Sales (20) Sales

E Phillips 246 (14) Returns In 188 (31) Returns In

18 27

(3)

Sales

F Thompson 356 (14) Returns In

Sales

A Green 307

Sales

H George 250

Sales

J Ferguson 185

(20) Sales

F Powell 310

(20) Sales

E Lee 420

(3)

(8) (8) (8)

Purchases Day Book (1) K Hill (1) M Norman (1) N Senior (5) R Morton (5) J Cook (5) D Edwards (5) C Davies (24) C Ferguson (24) K Ennevor

Returns Outwards Day Book (12) M Norman (12) N Senior (31) J Cook (31) C Davies

380 500 106 200 180 410 66 550 900 3,292

30 16 13 11 70

Purchases Ledger K Hill (1) Purchases

380

(12) Returns Out

M Norman 30 (1) Purchases

500

(12) Returns Out

N Senior 16 (1)

Purchases

106

R Morton (5) Purchases

200

J Cook 13 (5)

Purchases

180

D Edwards (5) Purchases

410

C Davies 11 (5)

Purchases

66

C Ferguson (24) Purchases

550

K Ennevor (24) Purchases

900

22

(31) Returns Out

(31) Returns Out

General Ledger Sales (31) Sales Day Book

Returns Inwards 2,772

(31) Returns In Day Book

Purchases (31) Purchases Day Book

97 Returns Outwards (31) Returns Out Day Book

3,292

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