aat
AQ2016
Bookkeeping transactions
ADDITIONAL QUESTION BANK ANSWERS
AAT BTRN : BOOKKEEPING TRANSACTIONS
136 KAPLAN PUBLISHING
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Published by
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© Kaplan Financial Limited, 2016
SUPPORT ANSWERS
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138 KAPLAN PUBLISHING
CHAPTER 1
BUSINESS DOCUMENTS
1 LITTLE MISS MUFFINS CAKE SHOP
The product code on the invoice does not match the purchase order.
The VAT amount is incorrect, which gives an incorrect total.
There is no VAT registration number.
There is no customer address.
No purchase order or delivery reference
The purchase order shows no sign of authorisation
ANSWERS
KAPLAN PUBLISHING 139
2 BALOTELLI
Ferguson Training
Unit 1 Old Trafford Road
Champion Park
Manchester
M11 3HU
VAT reg no: 618 2201 63
To: Balotelli Supplies
11 Main Road
Manchester
M1 2PW
Purchase order no. 40
Invoice Number 123
1,000 footballs product code MC2012
VAT
Gross
10 July 2012
£1,000.00
£200.00
–––––––
£1,200.00
Terms: 30 days net
Workings:
VAT = £1,000 × 20%
= £200
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140 KAPLAN PUBLISHING
3 MULTI CHOICE
C
D
All these codes might be used in a computerised accounting system.
D
ANSWERS
KAPLAN PUBLISHING 141
4 DOCUMENTS
(a) Order confirmation
(b) Price quotation
(c) Returns inwards note
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5 MEANING OF TERMS
(a) Errors and omissions excepted. The seller is trying to escape liability for any errors that might accidentally be on the invoice.
(b) The quoted price does not include delivery to the customer’s premises. The customer must either collect the goods from the seller’s premises, or must arrange and pay for delivery from the seller to the customer.
(c) Cash on delivery. The customer must pay for the goods immediately that they are delivered. No credit is available after this point.
ANSWERS
KAPLAN PUBLISHING 143
6 PHIL INN
A general ledger code is used to identify the account in which the purchases of goods are recorded
A supplier code is used to identify the organisation in which the goods were purchased from
A product code is used to identify the types of products purchased
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144 KAPLAN PUBLISHING
7 DOCUMENT FILES
Bank statements – Date order
Insurance documents – By class of asset
Sales Invoices – By customer and then by invoice number
ANSWERS
KAPLAN PUBLISHING 145
8 PURCHASE INVOICES
The grid stamp will contain entries for:
Purchase order number – the number of the original purchase order for the goods now being invoiced.
Delivery note number – the number on the delivery note sent with the goods.
Invoice number – a sequential number given to all purchase invoices received, for control purposes.
Cheque number – when known, the number of the cheque paying this invoice will be filled in.
Account code – the purchases ledger code for this payable.
Checked by – the employee checking the invoice and filling in the grid entries.
Date – the date the employee is filling in the grid entries.
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9 PURCHASE TRANSACTION
(a) The purchaser sends a purchase order to the supplier, to confirm the goods required.
(b) The supplier sends a delivery note to the purchaser, the delivery note accompanying the goods on their way to the purchaser.
(c) The supplier sends a credit note to the purchaser, confirming that some or all of the invoiced amount can be cancelled.
ANSWERS
KAPLAN PUBLISHING 147
10 DELIVERY NOTE
The three copies of a delivery note are used as follows:
One kept by the supplier as a record of the goods delivered.
One kept by the purchaser as a record of the goods that have been delivered to them.
One signed by the purchaser on receipt of the goods and then returned to the supplier to confirm that the purchaser is happy with the goods he has received.
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CHAPTER 2
BOOKS OF PRIME ENTRY
11 MEANINGS
(a) A book of prime entry is an accounting record where documents are individually recorded prior to their entry in the ledger accounts. An example in the sales system is the sales day book.
(b) The sales day book is a book of prime entry in the sales system. Each sales invoice sent out to customers is individually recorded in the sales day book. At the end of regular periods (e.g. monthly), the totals from the sales day book are posted to the general ledger accounts.
(c) The sales returns day book is another book of prime entry that can be used in the sales system. Each credit note sent out to customers is individually recorded in the sales returns day book. At the end of regular periods (e.g. monthly), the totals from the sales returns day book are posted to the general ledger accounts.
ANSWERS
KAPLAN PUBLISHING 149
12 ANALYSED SALES DAY BOOK
The advantage of maintaining an analysed sales day book is that it provides more specific information into the sales that have been generated. It could be analysed into different product types or perhaps sales within different geographical areas.
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13 SALES DAY BOOK
The typical columns in a non-analysed sales day book are:
Date, Invoice Number, Customer Name, Customer ledger code, Total (Gross sales), VAT, Net (Net sales)
ANSWERS
KAPLAN PUBLISHING 151
14 PURCHASES DAY BOOK
A typical (non-analysed) purchases day book will have the following columns:
Date Invoice no Purchases ledger code
Supplier Total £
VAT £
Net £
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15 TWO COLUMN CASH BOOK
A typical two column cash receipts book has the following column headings:
Date Narrative Bank £
Cash
£
VAT £
Receivables £
Other £
Cash sales£
ANSWERS
KAPLAN PUBLISHING 153
CHAPTER 3
DOUBLE ENTRY BOOKKEEPING – INTRODUCTION
16 ACCOUNTING EQUATION
The accounting equation states that:
Assets minus Liabilities = Capital
Assets are items owned and used by a business.
Liabilities are amounts owed by a business.
Capital is the amount that the owner has invested in the business. The business owes this amount back to the owner.
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17 CAPITAL AND REVENUE EXPENDITURE
The expenditures qualify as follows:
Capital expenditure Revenue expenditure
Purchase of new car Annual machine rental
Cost of new factory Purchase of goods for resale
Finance director’s salary
ANSWERS
KAPLAN PUBLISHING 155
18 ACCOUNTING ENTRY
C
An increase in capital and an increase in liability both require credit entries in the appropriate accounts.
Debits and credits must match each other.
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19 KAPIL DEV
Assets Liabilities
Loan from A Lamb Wrong Receivables Wrong
Motor Vehicles Money owing to bank
Premises Inventories Wrong
Goodwill Loan from Riffle
Machinery Money owing to A Little
Cash in hand Fixtures Wrong
Capital Wrong Payables
Cash at bank Buildings Wrong
ANSWERS
KAPLAN PUBLISHING 157
20 MISSING FIGURES
Assets Liabilities Capital
£ £ £
(i) 50,000 7,200 42,800
(ii) 112,000 19,600 92,400
(iii) 67,200 17,200 50,000
(iv) 96,400 30,600 65,800
(v) 102,000 25,200 76,800
(vi) 209,600 50,600 159,000
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21 CLASSIFICATION
(i) Asset (vii) Asset
(ii) Liability (viii) Liability
(iii) Asset (ix) Liability
(iv) Asset (x) Asset
(v) Liability (xi) Liability
(vi) Asset (xii) Asset
ANSWERS
KAPLAN PUBLISHING 159
CHAPTER 4
LEDGER ACCOUNTING
22 CHANGES
(i) Debit
(ii) Credit
(iii) Debit
(iv) Credit
(v) Credit
(vi) Debit
(vii) Debit
(viii) Debit
(ix) Credit
(x) Credit
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23 ABIGAIL
Bank
£ Capital (1) 5,000 Sales (4) 600
£ Machine (2) 1,500 Drawings (5) 200 Electricity (6) 30 Payables (8) 500
Capital
£
£ Bank (1) 5,000
Machine
£ Bank (2) 1,500
£
Purchases
£ Payables (3) 500
£
Payables
£ Bank (8) 500
£ Purchases (3) 500
Sales
£
£ Bank (4) 600 Receivables (7) 800
Drawings
£ Bank (5) 200
£
Electricity
£ Bank (6) 30
£
Receivables
£ Sales (7) 800
£
ANSWERS
KAPLAN PUBLISHING 161
24 BASHIR
Bank
£ Capital (1) 2,000Sales (7) 400Receivables (8) 250 ––––– 2,650 –––––Bal b/d 1,370
£ Van (2) 400 Purchases (3) 700 Rent (5) 80 Drawings (6) 100 Bal c/d 1,370 ––––– 2,650 –––––
Capital
£ Bal c/d 2,000 ––––– 2,000 –––––
£ Bank (1) 2,000 ––––– 2,000 ––––– Bal b/d 2,000
Van
£ Bank (2) 400 ––––– 400 –––––Bal b/d 400
£ Bal c/d 400 ––––– 400 –––––
Purchases
£ Bank (3) 700 ––––– 700 –––––Bal b/d 700
£ Bal c/d 700 ––––– 700 –––––
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Sales
£ Bal c/d 900 ––––– 900 –––––
£ Receivables (4) 500 Bank (7) 400 ––––– 900 ––––– Bal b/d 900
Receivables
£ Sales (4) 500 ––––– 500 ––––– Bal b/d 250
£ Bank (8) 250 Bal c/d 250 ––––– 500 –––––
Rent
£ Bank (5) 80 ––––– 80 ––––– Bal b/d 80
£ Bal c/d 80 ––––– 80 –––––
Drawings
£ Bank (6) 100 ––––– 100 –––––Bal b/d 100
£ Bal c/d 100 ––––– 100 –––––
ANSWERS
KAPLAN PUBLISHING 163
25 SAMUELS
Trial balance at 31 December 20X2 Dr Cr £ £ Sales 47,140 Purchases 26,500 Receivables 7,640 Payables 4,320 General expenses 9,430 Loan from father 5,000 Plant and machinery 10,500 Motor van 4,600 Drawings 7,500 Rent and rates 6,450 Insurance 1,560 Bank overdraft 2,570 Capital 15,150 ––––––– ––––––– 74,180 74,180 ––––––– –––––––
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26 DEFINITION
Trial balance is a list of balances in a double entry bookkeeping system. If the records have been correctly maintained, the sum of the debit balances will equal the sum of the credit balances although certain errors, such as errors of omission of transactions, will not be disclosed by the trial balance.
ANSWERS
KAPLAN PUBLISHING 165
CHAPTER 5
ACCOUNTING FOR CREDIT SALES, VAT AND DISCOUNTS
27 AB LTD
(a) £2,000 × 20% = £400
(b) £480 × 20% = £96
(c) £4,800 × 120
20= £800
(d) £1,000 × 20% = £200
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28 RECORD
960 × 20/120 = 160 VAT
960 – 160 = 800 net
Receivables
Date Detail £ Date Detail £
Sales and VAT 960
Sales
Date Detail £ Date Detail £
Receivables 800
VAT
Date Detail £ Date Detail £
Receivables 160
ANSWERS
KAPLAN PUBLISHING 167
29 SALES
You are selling 100 items at £35 each excluding VAT.
A 5% trade discount is applied and a 3% discount is offered for settlement within 5 days.
a) Calculate the net, VAT and gross amounts to appear on an invoice.
b) Calculate the amount payable if paid within 5 days. a) £ 100 × £35 3,500.00
Trade discount – 5% (175.00) 3,325.00
VAT @ 20% 665.00
On face of invoice Net: 3,325.00 VAT: 665.00 Gross: 3,990.00 b) If paid within 5 days a total of 3% is deduced from the gross amount: Gross discount = £3,990 x 3% = £119.70 Payable amount = £3,990 - £119.70 = £3,870.30
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30 MORE SALES
(a) Net amount £240.00 VAT (240 × 20%) £48.00 Total £288.00
(b) Amount payable = £288 x 95% = £273.60 This equates to a gross discount of £14.40 Alternate working: £240.00 x 95% = £228.00 VAT @ 20% = £45.60 Gross amount payable = £273.60
Receivables
Sales and VAT £288.00 Bank £273.60 Discount allowed and VAT £14.40
Sales
Receivables £240.00
VAT
Receivables £2.40 Receivables £48.00
Bank
Receivables £273.60
Discounts allowed
Receivables £12.00
ANSWERS
KAPLAN PUBLISHING 169
31 MINICORP
INVOICE
Minicorp Ltd 22 The Square Wolverhampton WV2 4DD
Tel: 01902 44556
Invoice no: 1745
Tax point: 28 July 20X3
VAT reg no: 234 1116 92
Description Quantity VAT rate Unit price Amount ex VAT % £ £ Alphas 10 20 200 2,000.00
2,000.00 Trade discount (10%) (200.00) ––––––– 1,800.00 VAT at 20% 360.00 ––––––– Total amount payable 2,160.00 –––––––
Terms: 30 days credit is offered
To: Ahmed Trading 4 The High Street Stevenage Herts
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INVOICE
Minicorp Ltd 22 The Square Wolverhampton WV2 4DD
Tel: 01902 44556
Invoice no: 1746
Tax point: 28 July 20X3
VAT reg no: 234 1116 92
Description Quantity VAT rate Unit price Amount ex VAT % £ £ Betas 6 20 120 720.00
720.00 Trade discount (10%) (72.00) ––––––– 648.00 VAT at 20% 129.60 ––––––– Total amount payable 777.60 –––––––
5% prompt payment discount offered if paid within 21 days
Amount payable if paid within 21 days: £738.72
To: Bertie Ltd 31 The Mall Cheltenham Gloucs
ANSWERS
KAPLAN PUBLISHING 171
INVOICE
Minicorp Ltd 22 The Square Wolverhampton WV2 4DD
Tel: 01902 44556
Invoice no: 1747
Tax point: 28 July 20X3
VAT reg no: 234 1116 92
Description Quantity VAT rate Unit price Amount ex VAT % £ £ Alphas 2 20 200 400.00 Betas 4 20 120 480.00
880.00 Trade discount (20%) (176.00) ––––––– 704.00 VAT at 20% 140.80 ––––––– Total amount payable 844.80 –––––––
5% prompt payment discount offered if paid within 21 days
Amount payable if paid within 21 days: £802.56
To: Charlie Ltd 7 The Esplanade Clacton Essex
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32 MINICORP II
CREDIT NOTE
Minicorp Ltd 22 The Square Wolverhampton WV2 4DD
Tel: 01902 44556
Credit note no: CN144
Tax point: 29 July 20X3
VAT reg no: 234 1116 92
Description Quantity VAT rate Unit price Amount ex VAT % £ £ Gammas 3 20 100 300.00
300.00 Trade discount (10%) (30.00) ––––––– 270.00 VAT at 20% 54.00 ––––––– Total amount 324.00 –––––––
To: Ahmed Trading 4 The High Street Stevenage Herts
ANSWERS
KAPLAN PUBLISHING 173
CREDIT NOTE
Minicorp Ltd 22 The Square Wolverhampton WV2 4DD
Tel: 01902 44556
Credit note no: CN145
Tax point: 29 July 20X3
VAT reg no: 234 1116 92
Description Quantity VAT rate Unit price Amount ex VAT % £ £ Deltas 4 20 160 640.00
640.00 Trade discount (10%) (64.00) ––––––– 576.00 VAT at 20% 115.20 ––––––– Total amount 691.20 –––––––
To: Bertie Ltd 31 The Mall Cheltenham Gloucs
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CHAPTER 6
ACCOUNTING FOR CREDIT PURCHASES, VAT AND DISCOUNTS
33 PURCHASER
a) £ List price 1,000.00 Trade discount (5%) (50.00) ––––––– 950.00 VAT (£950 × 20%) 190.00 ––––––– Invoice total 1,140.00 ––––––– b) £1,140.00 c) £1,140 x 97% = £1,105.80
ANSWERS
KAPLAN PUBLISHING 175
34 THREE REASONS
Item different from order (wrong item sent)
Item not as described
Item not of satisfactory quality
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35 PROMPT PAYMENT DISCOUNTS
Amount payable is calculated as: £ Net of discount amount, before VAT (98% × £2,000) 1,960 VAT at 20% (0.2 × £1,960) 392 ––––– Total payable 2,352 –––––
ANSWERS
KAPLAN PUBLISHING 177
36 MR P
Invoice
Full amount £550.00
VAT £110.00
Total £660.00
Payment – taking the discount
£660 less 4%
Discounted amount £528.00
VAT £105.60
Total £633.60
Payables
Bank £633.60 Purchases and VAT £660.00Discounts received and VAT £26.40
Purchases
Payables £550.00
VAT
Payables £110.00 Payables £4.40
Bank
Payables £633.60
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Discounts received
Payables £22.00
ANSWERS
KAPLAN PUBLISHING 179
CHAPTER 7
CONTROL ACCOUNTS AND SUBSIDIARY LEDGERS
37 MISSING CELLS
Sales day book
Date Invoice No. Customer name Total £
VAT £
Net £
1/4/12 Henderson & Sons Building
660.00 110.00 550.00
1/4/12 Armstrong Carpentry 360.00 60.00 300.00
1/4/12 Mullen’s Roofing 216.00 36.00 180.00
1/4/12 Keady’s Ceilings 1,680.00 280.00 1,400.00
Total 2,916.00 486.00 2,430.00
Postings to the general ledger
Account Amount Dr or Cr
Receivables (SLCA) 2,916.00 Dr
VAT control 486.00 Cr
Sales 2,430.00 Cr
Postings to sales ledger
Account Amount Dr or Cr
Henderson & Sons Building 660.00 Dr
Armstrong Carpentry 360.00 Dr
Mullen’s Roofing 216.00 Dr
Keady’s Ceilings 1,680.00 Dr
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38 WILLIAMS WHOLESALE
What will be the entries in the sales ledger?
Account name Amount £
Debit
Credit
Brown’s 2,040
Raith & Son 10,500
Drogba 14,376
Bertrand 3,168
What will be the entries in the general ledger?
Account name Amount £
Debit
Credit
Sales ledger control 30,084
VAT 5,014
Sales 25,070
ANSWERS
KAPLAN PUBLISHING 181
39 CREDIT TRANSACTIONS
Sales ledger
Account name Amount £
Debit
Credit
Friedel 5,280
Naughton 10,680
General ledger
Account name Amount £
Debit
Credit
Sales ledger control 15,960
VAT 2,660
Sales returns 13,300
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40 FELIX & FALL
Sales day book
Date Invoice No. Customer name Total £
VAT £
Net £
15/10/12 245 Space Creators 228.00 38.00 190.00
15/10/12 246 Moon Motors 122.40 20.40 102.00
15/10/12 247 Hot Rod’s 414.00 69.00 345.00
15/10/12 248 King of Cool 744.00 124.00 620.00
15/10/12 Total 1,508.40 251.40 1,257.00
Postings to the general ledger
Account Amount Dr or Cr
Receivables (SLCA) 1,508.40 Dr
Sales 1,257.00 Cr
VAT 251.40 Cr
Posting to sales ledger
Account Amount Dr or Cr
Space Creators 228.00 Dr
Moon Motors 122.40 Dr
Hot Rod’s 414.00 Dr
King of Cool 744.00 Dr
ANSWERS
KAPLAN PUBLISHING 183
41 EMMA
What will be the entries in the purchases ledger?
Account name Amount £
Debit
Credit
Benny’s 2,520
Tots Tumbles 1,320
Susy Snoop 3,894
Freddie Frog 1,680
What will be the entries in the general ledger?
Account name Amount £
Debit
Credit
Purchases ledger control 9,414
Purchases 7,845
VAT 1,569
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42 JACOB
Purchases ledger
Account name Amount £
Debit
Credit
Delta 360
Romeo 120
General ledger
Account name Amount £
Debit
Credit
Purchases ledger control 480
Purchases returns 400
VAT 80
ANSWERS
KAPLAN PUBLISHING 185
43 GERRARD
Purchases day book
Date Invoice No. Supplier name Total £
VAT £
Net £
31/12/12 Ferguson Florals 120.00 20.00 100.00
31/12/12 Ollie & Co 240.00 40.00 200.00
31/12/12 Suarez 180.00 30.00 150.00
31/12/12 Manchester MOTs 276.00 46.00 230.00
816.00 136.00 680.00
Postings to the general ledger
Account Amount Dr or Cr
PLCA (Payables) 816.00 Cr
Purchases 680.00 Dr
VAT 136.00 Dr
Posting to purchases ledger
Account Amount Dr or Cr
Ferguson Florals 120.00 Cr
Ollie & Co 240.00 Cr
Suarez 180.00 Cr
Manchester MOTs 276.00 Cr
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44 SLCA AND SALES LEDGER
The sales ledger control account in the general ledger shows the total due from receivables at any time. The subsidiary (sales) ledger contains a separate ledger account for each individual receivable. The balance on each individual account in the subsidiary (sales) ledger shows the amount due from that individual receivable.
The total of the balances on the subsidiary (sales) ledger accounts should equal the balance on the sales ledger control account in the general ledger.
ANSWERS
KAPLAN PUBLISHING 187
45 STATEMENTS
C
The sales day book is not part of the double entry system and debit and credit balances must always be equal (and opposite).
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46 SALES DAY BOOK
£ £ Debit Sales ledger control account 12,000 Credit VAT account 2,000 Credit Sales account 10,000
ANSWERS
KAPLAN PUBLISHING 189
47 SALES RETURNS
£ £ Debit VAT account 200 Debit Sales returns account 1,000 Credit Sales ledger control account 1,200
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48 SALES REVENUE
B
A straightforward question compared with many others! Sales are recorded at their value excluding VAT, as credit items (income).
ANSWERS
KAPLAN PUBLISHING 191
49 DESCRIPTION
D
The sales day book provides totals for receivables, sales revenue excluding VAT and VAT on the sales. These totals are transferred to the nominal ledger by debiting total receivables account with the gross amount payable, crediting the sales revenue account with the value of sales excluding VAT and crediting the VAT account with the amount of VAT payable.
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50 TOM
C
Tom
£ £
1 January Bal b/d 500 17 January Returns out 100
12 January Sales 2,000 28 January Bank 1,600
23 January Sales 1,000 31 January Bal c/d 1,800
––––– –––––
3,500 3,500
––––– –––––
1 February Bal b/d 1,800
ANSWERS
KAPLAN PUBLISHING 193
51 DOUBLE ENTRY
£ £ Debit Purchases account 1,000 Debit VAT account 200 Credit Purchases ledger control account 1,200
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52 DOUBLE ENTRY II
£ £ Debit Purchases ledger control account 240 Credit Purchases returns account 200 Credit VAT account 40
ANSWERS
KAPLAN PUBLISHING 195
53 PQ LTD
The totals for the day will be posted to the general ledger: £ £ Debit Purchases account 600 Debit VAT account 120 Credit Purchases ledger control account 720 The individual purchases will be entered in the relevant accounts in the subsidiary purchases ledger:
Credit X Ltd’s account (PL code PL23) £480 Credit Y Ltd’s account (PL code PL27) £240
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CHAPTER 8
PAYMENTS AND RECEIPTS
54 NYAH’S FLORIST
Invoice 355
ANSWERS
KAPLAN PUBLISHING 197
55 NYAH CONTINUED
Postings to the general ledger
Account Amount Dr or Cr
Bank 467.00 Dr
VAT 12.00 Cr
SLCA 395.00 Cr
Sales 60.00 Cr
Posting to subsidiary ledger
Account Amount Dr or Cr
Cooper’s Corporation 77.15 Cr
Kingdon Building 63.00 Cr
Ryan’s Coffee Express 94.00 Cr
Smith’s Salon 160.85 Cr
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56 VICTOR
Postings to the general ledger
Account Amount Dr or Cr
Bank 1,264.95 Cr
VAT control 8.55 Dr
PLCA 1,213.63 Dr
Purchases 42.77 Dr
Postings to purchases ledger
Account Amount Dr or Cr
Will’s Exhausts 692.07 Dr
Bumble Tyres 167.43 Dr
Paddy's Parts 41.58 Dr
Mosshill Motors 312.55 Dr
ANSWERS
KAPLAN PUBLISHING 199
57 PETTY CASH
D
£14.10 + £25.50 + £12.90 + £28.20 = £80.70.
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200 KAPLAN PUBLISHING
58 DODD LTD
(a) Purple Bank plc – Words and numbers disagree
Orange Bank plc – More than six months old
Auburn Bank plc – Post-dated
Red Bank plc – Unsigned
(b)
NOTE
To: Danny Hanso
From: A Student
Date: 20 September 20X4
Subject: Checking cheques received
This note summarises the matters that you should check in respect of cheques received by the business:
date – should be no more than 6 months before today’s date and cannot be a future date
payee – should be payable to Dodd Ltd
words and numbers – the amount of the cheque should be entered in both words and numbers (and these should agree)
signature – the cheque must be signed by the drawer
Please let me know if I can be of further help to you in this matter.
ANSWERS
KAPLAN PUBLISHING 201
59 WRIGHTY
Account Amount Dr or Cr
Petty cash control 50.00 Dr
Bank 50.00 Cr
Postage 32.66 Dr
Staff welfare 22.00 Dr
Travel 42.40 Dr
VAT control 7.40 Dr
Petty cash control 104.46 Cr
AAT BTRN : BOOKKEEPING TRANSACTIONS
202 KAPLAN PUBLISHING
60 THE RIVERBANK
Account Amount Dr or Cr
Postage 10.66 Dr
Tea and coffee 15.07 Dr
Travel 50.76 Dr
VAT control 9.04 Dr
Bank 45.00 Cr
ANSWERS
KAPLAN PUBLISHING 203
61 JEFFERSON
Account Amount Dr or Cr
Postage 1.87 Dr
Tea and coffee 39.29 Dr
Travel 56.80 Dr
VAT control 11.36 Dr
Bank 10.00 Cr
AAT BTRN : BOOKKEEPING TRANSACTIONS
204 KAPLAN PUBLISHING
62 VAT REGISTERED
Date Narrative Total £
VAT £
Receivables £
Other £
Cash sales£
2.6.X6 Receipt 1 12,000 12,000
2.6.X6 Receipt 2 1,200 200 1,000
The VAT element is analysed in the cash receipts book for the cash sale only. The VAT on the credit sale will have been recorded in the sales day book at the time of the sale.
ANSWERS
KAPLAN PUBLISHING 205
63 CASH RECEIPTS
£ £ Debit Cash at bank account 3,700 Credit Rent received account 500 Sales ledger control account 2,000 Cash sales account 1,000 VAT account 200
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206 KAPLAN PUBLISHING
64 DOCUMENTS
a) A receivables statement reminds the receivable of the balance owing to the supplier at a particular point in time.
(b) A supplier of goods on credit will prepare an aged debt analysis to investigate the amounts due from each customer and how long the balance has been outstanding.
(c) A sales invoice will be sent to the customer to confirm the amounts payable for goods and services supplied and when the total amount is due to be paid.
Account Amount Dr or Cr
Postage 1.87 Dr
Tea and coffee 39.29 Dr
Travel 56.80 Dr
VAT control 11.36 Dr
Bank 10.00 Cr
ANSWERS
KAPLAN PUBLISHING 207
65 BB LTD
BB Ltd should be most worried about the debt due from C White. It appears that no current sales have been made to this customer but old balances remain unpaid. The situation should be investigated urgently.
AAT BTRN : BOOKKEEPING TRANSACTIONS
208 KAPLAN PUBLISHING
66 PROBLEM RECEIVABLE
You should write a polite letter to the receivable requesting payment and enquiring if there is any problem preventing prompt payment of the amounts due.
ANSWERS
KAPLAN PUBLISHING 209
67 ENTERPRISE
(a)
STATEMENT OF ACCOUNT
To: Archer Ltd ENTERPRISE LTD 21 Kirk Lane Leeds LS1 4AB
Statement date: 31 March 20X8 Tel: 0113 201407
Date Transaction Debit Credit Balance £ £ £ 1/3 Bal b/d 149.07 3/3 Inv 147 231.44 380.51 4/3 CN027 24.62 355.89 6/3 Inv 152 416.75 772.64 12/3 Inv 164 802.24 1,574.88 19/3 Payment 355.89 1,218.99 22/3 Inv 181 373.11 1,592.10
STATEMENT OF ACCOUNT
To: Forest Ltd ENTERPRISE LTD 21 Kirk Lane Leeds LS1 4AB
Statement date: 31 March 20X8 Tel: 0113 201407
Date Transaction Debit Credit Balance £ £ £ 1/3 Bal b/d 206.75 7/3 Inv 154 331.02 537.77 12/3 Inv 163 917.00 1,454.77 16/3 Payment 304.15 1,150.62 16/3 Discount 26.87 1,123.75 24/3 Inv 190 442.35 1,566.10
(b) There appears to be a problem with Forest Ltd. The payment received on 16 March appears to be in respect of invoice 154 dated 7 March (since £304.15 + £26.87 discount = £331.02).
The balance of £206.75 due at the start of the month has still not been paid. Forest Ltd should be contacted to find out why this has happened.
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210 KAPLAN PUBLISHING
68 BIGGS
(a)
STATEMENT OF ACCOUNT
To: Brazil Ltd BIGGS LTD 18 Green Lane Livingston EH54 6BT
Statement date: 30 June 20X5 Tel: 0144 716029
Date Transaction Debit Credit Balance £ £ £ 2/2 Inv 2430 206.92 206.92 13/3 Inv 2461 308.44 515.36 20/3 Inv 2472 179.16 694.52 30/3 Payment 301.00 393.52 30/3 Discount 7.44 386.08 7/4 Inv 2499 448.74 834.82 10/5 Inv 2516 91.22 926.04 22/5 Inv 2529 307.14 1,233.18 6/6 Inv 2544 269.87 1,503.05 17/6 Inv 2558 406.10 1,909.15
(b)
MEMORANDUM
To: Z Zidane
From: A Student
Date: X-X-20X5
Subject: Brazil Ltd
I have studied the sales ledger account and aged debt analysis for Brazil Ltd at 30 June 20X5 and have certain concerns:
(i) The debt due to us from Brazil Ltd has grown rapidly over the last few months. We should not allow the debt to grow further unless we are confident that this company will be able to settle the amounts due.
(ii) Brazil Ltd appears to be routinely taking more than the 60 days credit that we allow. For example, invoice 2430 dated 2 February 20X5 is still outstanding.
Please let me know if you wish me to take this matter further.
ANSWERS
KAPLAN PUBLISHING 211
69 HEADINGS
A typical cash payments book will have the following column headings:
Date Details Cheque no Ledger code
Total £
VAT £
Net £
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212 KAPLAN PUBLISHING
70 DISCOUNTS RECEIVED
If a business receives a prompt payment discount, it is entered into the discounts received day book.
At regular intervals, the discount received day book is totalled and the amounts are posted to the general ledger accounts: £ £ Debit Purchases ledger control account X Credit Discounts received X Credit VAT X
ANSWERS
KAPLAN PUBLISHING 213
71 PARIS
Paris Ltd
£ £ Cash book – payment 1,950 Balance b/d 2,000 Discounts received book – discount received 50 –––––
–––––
2,000 –––––
2,000 –––––
AAT BTRN : BOOKKEEPING TRANSACTIONS
214 KAPLAN PUBLISHING
72 PETTY CASH
An imprest system provides better control, since at any time the contents of the petty cash box (cash plus paid vouchers) must equal the amount of the imprest float. It can therefore be quickly checked at any time that no cash has gone missing.
ANSWERS
KAPLAN PUBLISHING 215
73 PETTY CASH COUNT
The total of the contents of the petty cash box is £65 + £14 + £111 = £190, whereas it should be £200. £10 appears to be missing and should be investigated. If everything is double checked but still adds up to £190, then it is possible that £10 has been lost or stolen.
AAT BTRN : BOOKKEEPING TRANSACTIONS
216 KAPLAN PUBLISHING
74 PETTY CASH FLOAT
Cash requisition = total of paid vouchers = £56. There will then be cash totalling £56 + £44 = £100 as required.
ADVANCED ANSWERS
AAT BTRN : BOOKKEEPING TRANSACTIONS
218 KAPLAN PUBLISHING
CHAPTER 2
BOOKS OF PRIME ENTRY
75 JUNIORS
PURCHASES DAY BOOK
Date Inv/CNno
Supplier Total £
VAT £
Pre- school
£
Board games
£
Other£
8.5.X4 00148 Renfree Ltd 175.44 29.24 146.20
00149 Goldspink Ltd 483.80 80.63 403.17
00150 Evans Ltd 101.52 16.92 84.60
00151 Sandford Ltd 256.12 42.68 213.44
00152 Richings Ltd 371.54 61.92 309.62
00153 Asforis Ltd 260.22 43.37 216.85
00154 Wiseman Ltd 74.24 12.37 61.87
00155 McClean Ltd 84.72 14.12 70.60
CN0077 Aaron Ltd (50.40) (8.40) (42.00)
CN0078 Calvin Ltd (87.79)
–––––––
(14.63)
––––––
––––––
––––––
(73.16)
––––––
TOTALS 1,669.41
–––––––
278.22
––––––
363.05
––––––
175.07
––––––
853.07
––––––
ANSWERS
KAPLAN PUBLISHING 219
76 STEVENS LTD
PURCHASES DAY BOOK
Date Supplier Total £
VAT £
Zone 1 £
Zone 2 £
Zone 3 £
14.9.X2 Bradley Ltd 252.00 42.00 210.00
Hannah Ltd 564.24 94.04 470.20
Spearritt Ltd 482.40 80.40 402.00
Lee Ltd 1,291.20 215.20 1,076.00
O’Meara Ltd 381.12 63.52 317.60
Cattermole Ltd 74.92 12.48 62.44
Barrett Ltd 129.36
–––––––
21.56
––––––
107.80
––––––
––––––– ––––––
TOTALS 3,175.24
–––––––
529.20
––––––
719.80
––––––
1,138.44
–––––––
787.80
––––––
AAT BTRN : BOOKKEEPING TRANSACTIONS
220 KAPLAN PUBLISHING
CHAPTER 3
DOUBLE ENTRY BOOKKEEPING – INTRODUCTION
77 BUSINESS EXPENDITURE
(a) Revenue
(b) Capital
(c) Capital
(d) Capital
(e) Revenue
(f) Revenue
(g) Revenue
(h) Capital
(i) Revenue
(j) Revenue
ANSWERS
KAPLAN PUBLISHING 221
78 MARK WAUGH
Total assets = Liabilities + Capital
Fixtures 12,000 Payables 8,400
Motor vehicle 30,000 Brother's loan 18,000
Inventories 21,000 Capital ?????
Bank 16,800
Cash in hand 600
––––––– –––––––
80,400 80,400
––––––– –––––––
Hence Capital = Assets – Liabilities = 80,400 – 26,400 = 54,000
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222 KAPLAN PUBLISHING
CHAPTER 4
LEDGER ACCOUNTING
79 HASTINGS PLC
Trial balance at 30 June 20X1
Account name Debit £
Credit £
Administration overheads 5,743.90
Irrecoverable debt 575.33
Bank account 9,116.61
Capital 48,281.35
Non-current assets 62,432.00
PAYE/NIC liability 5,222.38
Petty cash control 156.96
Purchases 165,819.41
Purchases ledger control account 28,233.49
Purchases returns 7,242.96
Sales 372,238.56
Sales ledger control account 70,098.61
Sales returns 10,387.54
Selling and distribution overheads 7,806.45
Inventory 39,012.25
Sundry expenses 1,898.43
VAT control 16,713.76
Wages/salaries expense 104,885.01
TOTALS 477,932.50 477,932.50
ANSWERS
KAPLAN PUBLISHING 223
80 ROBERT DEMPSTER
(i) Cash at bank account
£ £
(a) Capital 10,000 (e) Vans Galore 2,000
(f) Woodside Rugby Club 65 (e) Surgiplast Ltd 150
(g) Drawings 130
Balance c/d 7,785
–––––– ––––––
10,065 10,065
–––––– ––––––
Balance b/d 7,785
(ii) The separate entity concept is the principle underlying the treatment of the owner's private expenses paid by the business. This concept requires the transactions of a business to be recorded separately from those of the owner of a business. Consequently, this payment could not be analysed as 'electricity' as it is not the electricity expense of the business. It may be thought of as a withdrawal of cash from the business by the owner.
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224 KAPLAN PUBLISHING
81 TRIAL BALANCE
Trial balance is a list of balances on the ledger accounts. If the totals of the debit and credit balances on the trial balance are not equal, then an error or errors have been made either:
(a) in the posting of the transactions to the ledger accounts or
(b) in balancing of the accounts or
(c) in the transferring of the balances from the ledger account to the trial balance.
ANSWERS
KAPLAN PUBLISHING 225
CHAPTER 5
ACCOUNTING FOR CREDIT SALES, VAT AND DISCOUNTS
82 CHUNG TRADING
SALES DAY BOOK
Date Invoice no
Customer name Total £
VAT £
Wood £
Plumbing £
Roofing £
14.3.X1 14243 Abacus Ltd 723.16 120.52 86.40 367.20 149.04
14.3.X1 14244 Baltic Ltd 366.00 61.00 180.00 – 125.00
14.3.X1 14245 Chittenden Ltd 580.26 96.71 185.25 79.80 218.50
––––––– –––––– –––––– –––––– ––––––
Total 1,669.42 278.23 451.65 447.00 492.54
––––––– –––––– –––––– –––––– ––––––
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226 KAPLAN PUBLISHING
83 BONIFACE LTD
(a)
SALES RETURNS DAY BOOK
Date Credit note no
Customer name
Total £
VAT £
01 £
02 £
03 £
04 £
4.11.X7 CN812 Agate Ltd 115.20 19.20 96.00
4.11.X7 CN813 Borax Ltd 77.40 12.90 64.50
4.11.X7 CN814 Carfax Ltd 12.00 2.00 10.00
–––––– ––––– ––––– ––––– ––––– –––––
Total 204.60 34.10 10.00 96.00 – 64.50
–––––– ––––– ––––– ––––– ––––– –––––
(b)
MEMORANDUM
To: Abi Kanobe
From: A Student
Date: 4 November 20X7
Subject: The role of credit notes
This memo explains the role of credit notes in a sales system. When goods are sold, they are despatched to the customer and we send an invoice detailing the amount due.
However it is possible that the customer may believe that they should pay less than the invoiced amount. Perhaps the goods were damaged in transit, so the customer will have to incur costs to repair them or will ask us to take them back. Perhaps we accidentally overcharged the customer in our invoice.
If we agree that some or all of the debt described in the invoice should be cancelled, we acknowledge this by issuing a credit note to the customer. The customer can subtract the credited amount from the invoiced amount and only needs to pay the net amount.
Please let me know if you require any further explanation of this matter.
ANSWERS
KAPLAN PUBLISHING 227
84 CREDIT CONTROL
B
AAT BTRN : BOOKKEEPING TRANSACTIONS
228 KAPLAN PUBLISHING
CHAPTER 6
ACCOUNTING FOR CREDIT PURCHASES, VAT AND DISCOUNTS
85 ALEX STUDENT
Ward & Ward 15 Tyne
Oakland Retail Park Moortown NM18 9AA
Miss James Dickens & Co 154 Upton Street London EC1N 8AB
27 July 20X1
Dear Miss James
Re: Invoice 117761
We have today received your invoice 117761 for the total of £2,000 including VAT. On checking the details of the invoice I have noticed that the VAT calculation is incorrect, also giving an incorrect gross (total) amount. The VAT has been calculated as £400, when in fact it should be £320. The revised gross amount should be £1,920.
Can you please raise a credit note for £80 in respect of this error and forward it for my attention.
Should you require any additional information, please contact me.
Yours sincerely
Alex Student
Accounting Technician
ANSWERS
KAPLAN PUBLISHING 229
86 HAUSER LTD
(a) The following discrepancies can be identified:
ATI graphics cards with a code ATI346 were ordered, costing £40 + VAT each, but cards with a code ATI348 costing £48 + VAT each were supplied.
6 processors were ordered and invoiced for, but only 5 seem to have been delivered.
(b)
MEMORANDUM
To: Rosemary Smith
From: Accounts assistant
Date: X-X-XX
Subject: Order made to PC Traders
I have compared the purchase order, delivery note and purchase invoice in respect of order number 2177 to PC Traders Ltd.
I have noted two discrepancies:
although we ordered ATI346 graphics cards, we were supplied with slightly more expensive ATI348 graphics cards
although we ordered and were invoiced for 6 AMD processors, it appears that only 5 were delivered to us.
Perhaps you are already aware of these matters and have already sanctioned the delivery of higher quality graphics cards than originally ordered. Perhaps we have already received a credit note in respect of the undelivered processor.
If this is not the case, please advise me of any action that you would like me to take concerning these apparent discrepancies.
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230 KAPLAN PUBLISHING
CHAPTER 7
CONTROL ACCOUNTS AND SUBSIDIARY LEDGERS
87 SALES RETURNS DAY BOOK
(a)
SALES RETURNS DAY BOOK
Date Credit note no
Customer name Total £
VAT £
Net £
5.11.X4 CN255 Roberts Ltd 283.20 47.20 236.00
6.11.X4 CN256 Kitchener Ltd 85.80 14.30 71.50
8.11.X4 CN257 Haig Ltd 96.00 16.00 80.00
8.11.X4 CN258 Jellicoe Ltd 185.76 30.96 154.80
9.11.X4 CN259 Kitchener Ltd 367.20 61.20 306.00
11.11.X4 CN260 Anglesey Ltd 112.80 18.80 94.00
11.11.X4 CN261 Roberts Ltd 27.12 4.52 22.60
–––––––– –––––– ––––––
Totals 1,157.88 192.98 964.90
–––––––– –––––– ––––––
(b) General ledger accounts
Sales returns account
£
11.11.X4 SRDB 964.90
£
VAT account
£
11.11.X4 SRDB 192.98
£
Sales ledger control account
£
£
11.11.X4 SRDB 1,157.88
ANSWERS
KAPLAN PUBLISHING 231
(c) Subsidiary (sales) ledger accounts
Roberts Ltd
£
£
5.11.X4 SRDB 283.20
11.11.X4 SRDB 27.12
Kitchener Ltd
£
£
6.11.X4 SRDB 85.80
9.11.X4 SRDB 367.20
Haig Ltd
£
£
8.11.X4 SRDB 96.00
Jellicoe Ltd
£
£
8.11.X4 SRDB 185.76
Anglesey Ltd
£
£
11.11.X4 SRDB 112.80
AAT BTRN : BOOKKEEPING TRANSACTIONS
232 KAPLAN PUBLISHING
88 GENERATIONS LTD
General ledger
Purchases
£ £
18.8.X5 Bal b/d 4,562.12
24.8.X5 PDB 312.21
Purchases returns
£ £
18.8.X5 Bal b/d 904.77
24.8.X5 PRDB 28.50
VAT
£ £
24.8.X5 PDB 62.42 18.8.X5 Bal b/d 1,170.22
24.8.X5 PRDB 5.70
Purchases ledger control account
£ £
24.8.X5 PRDB 34.20 18.8.X5 Bal b/d 1,412.90
24.8.X5 PDB 374.63
Subsidiary ledger
Burton Ltd PL03
£ £
18.8.X5 Bal b/d 24.72
24.8.X5 PDB 4067 85.94
Frakes Ltd PL07
£ £
18.8.X5 Bal b/d –
19.8.X5 PDB 4063 31.44
McFadden Ltd PL12
£ £
18.8.X5 Bal b/d 87.92
22.8.X5 PDB 4066 52.23
ANSWERS
KAPLAN PUBLISHING 233
Meaney Ltd PL13
£ £
18.8.X5 Bal b/d 106.07
22.8.X5 PDB 4065 25.30
Sirtis Ltd PL19
£ £
22.8.X5 PRDB CN124 14.40 18.8.X5 Bal b/d 14.10
Spiner Ltd PL20
£ £
18.8.X5 Bal b/d 54.16
21.8.X5 PDB 4064 54.92
Stewart Ltd PL22
£ £
24.8.X5 PRDB CN125 19.80 18.8.X5 Bal b/d 41.02
19.8.X5 PDB 4062 124.80
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234 KAPLAN PUBLISHING
CHAPTER 8
PAYMENTS AND RECEIPTS
89 VASE LTD
A £ Amount to top up petty cash 500 Increase in float (50) –––– 450 Cash paid in by staff (photocopying) 25 –––– 475 Cash paid to employee in return for cheque (90) –––– Petty cash expenses in the month 385 ––––
ANSWERS
KAPLAN PUBLISHING 235
90 GLOBAL LTD
(a) The following differences can be identified:
CN 1402 on statement but not on ledger account.
Inv 2200 is for £102.97 on statement but £120.97 on ledger.
Inv 2450 is for £57.06 on statement but £77.06 on ledger.
We are told that the statement is accurate, so we can enter the credit note CN 1402 on the ledger account and we must amend the amounts on the ledger for invoices 2200 and 2450 to £102.97 and £57.06 respectively.
(b) The terms of the discount offer a 2% deduction if payment is made within one week rather than waiting a maximum of 60 days which is approximately 9 weeks. The question is therefore whether it is worthwhile earning 2% for paying 8 weeks early.
2% over 8 weeks is equivalent to 2% × 8
52 = 13% annually
Since this 13% return is better than the 10% overdraft rate, the discount should be accepted.
(c) Invoice 2161 can now be paid since a credit note for £8.08 has been raised to settle the dispute.
Invoice 2182 should not be paid until the dispute is resolved.
The April transactions should now be paid, since they will be overdue by the time of the next statement.
The May transactions do not have to be paid yet; they should be delayed for payment until the next monthly statement is received, except for invoice 2506 which is eligible for the discount.
Total payable is therefore: £ Inv 2161 20.31 CN 1402 (8.08) Inv 2200 (as per statement) 102.97 Inv 2314 67.05 CN 1419 (50.00) Inv 2506 (0.98 × £41.35) 40.52 –––––– 172.77 ––––––
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236 KAPLAN PUBLISHING
91 LEWIS LTD
R E M I T T A N C E A D V I C E
Company name: Global Ltd Address: 4 The Rise Bigtown BG2 1FG
Date: 3 June 20X2
Date Our ref Amount Discount taken Paid £ £ £ 02.2.X2 Inv 2161 20.31 20.31 04.3.X2 CN 1402 (8.08) (8.08) 11.3.X2 Inv 2182 41.30 12.4.X2 Inv 2200 102.97 102.97 15.4.X2 Inv 2314 67.05 67.05 20.4.X2 CN 1419 (50.00) (50.00) 02.5.X2 Inv 2377 27.11 07.5.X2 Inv 2389 44.56 19.5.X2 Inv 2410 92.30 21.5.X2 Inv 2450 57.06 28.5.X2 Inv 2506 41.35 0.83 40.52
Total paid
To: Lewis Ltd 12 High Street Bigtown BG1 2DE
£ 172.77
ANSWERS
KAPLAN PUBLISHING 237
92 ARCHER LTD
(a), (c)
PETTY CASH BOOK
Receipts Payments
Date Details Total £
Date Details Voucherno
Total £
VAT £
Postage £
Office Expenses
£
Travel £
14.8.X8 Bal b/d 200.00 15.8 Window cleaner
2417 20.00 20.00
Printer cartridge
2418 12.00 2.00 10.00
17.8 Postage 2419 6.55 6.55
Refresh-ments
2420 2.40 0.40 2.00
Train fare 2421 18.74 18.74
18.8 News-papers
2422 1.08 1.08
Headache pills
2423 3.50 3.50
20.8 Taxi fare 2424 18.00 3.00 15.00
Stationery 2425 4.80 0.80 4.00
––––––
20.8 Bal c/d 112.93
––––––
–––––
–––––
–––––
–––––
200.00
––––––
200.00
––––––
6.20
–––––
6.55
–––––
40.58
–––––
33.74
–––––
21.8.X8 Bal b/d 112.93
Bank 87.07
(b) The vouchers for the week total £87.07, so this is the amount of the cheque required to return the petty cash to its imprest level.
AAT BTRN : BOOKKEEPING TRANSACTIONS
238 KAPLAN PUBLISHING
(d) General ledger accounts
VAT account
£ £
20 Aug Petty cash book 6.20 14 Aug Bal b/d 4,760.24
Postage account
£ £
14 Aug Bal b/d 602.41
20 Aug Petty cash book 6.55
Office expenses account
£ £
14 Aug Bal b/d 890.74
20 Aug Petty cash book 40.58
Travel expenses account
£ £
14 Aug Bal b/d 752.49
20 Aug Petty cash book 33.74
ANSWERS
KAPLAN PUBLISHING 239
93 JOHN FIELD LTD
(a), (b), (c) PETTY CASH BOOK
Date Narrative Total £
Date Narrative Total£
Cleaning£
Motorexps
£
Post £
Stationery£
Travel £
01 May Cash book 300 02 May Postage 18 18 03 May Travelling 12 12 04 May Cleaning 15 15 07 May Petrol 22 22 08 May Travelling 25 25 09 May Stationery 17 17 11 May Cleaning 18 18 14 May Postage 5 5 15 May Travelling 8 8 18 May Stationery 9 9 Cleaning 23 23 20 May Postage 13 13 24 May Van service 43 43 26 May Petrol 18 18 27 May Cleaning 21 21 29 May Postage 5 5 30 May Petrol 14
–––
––– 14
–––
–––
–––
––– 286 77 97 41 26 45
––– Bal c/d 14
–––
–––
–––
–––
–––
––– 300
––– 300
–––
01 Jun Bal b/d 14 Cash book 286
(d) At the end of the month, the totals of the expenditure columns must be debited to the relevant expense accounts in the general ledger:
£ £ Debit Cleaning expense account 77 Motor expenses account 97 Postage account 41 Stationery account 26 Travelling expense account 45 Credit Petty cash control account 286 The petty cash box will then be restored to its imprest:
£ £ Debit Petty cash control account 286 Credit Cash book 286
AAT BTRN : BOOKKEEPING TRANSACTIONS
240 KAPLAN PUBLISHING
94 SQUAD LTD
(a)
CASH RECEIPTS BOOK
Date Narrative Total £
VAT £
Cash sales £
Receivables £
4.9.X5
4.9.X5
4.9.X5
4.9.X5
4.9.X5
4.9.X5
4.9.X5
Cash sales
A Strider
M Kenzie
D Mello
B Thomas
B Rock
M Frick
Total
120.00
247.25
104.62
349.20
427.26
126.10
307.14
–––––––
1,681.57
–––––––
20.00
––––––
20.00
––––––
100.00
–––––––
100.00
–––––––
247.25
104.62
349.20
427.26
126.10
307.14
–––––––
1,561.57
–––––––
DISCOUNTS ALLOWED BOOK
Date Narrative Total £
VAT £
Net £
4.9.X5
4.9.X5
D Mello
B Rock
Total
10.80
3.90
–––––––
14.70
–––––––
1.80
0.65
––––––
2.45
––––––
9.00
3.25
–––––––
12.25
–––––––
Proof of cross-cast:
£ VAT 20.00 Receivables 1,561.57 Cash sales 100.00 –––––––
Total receipts 1,681.57 –––––––
ANSWERS
KAPLAN PUBLISHING 241
(b)
£ Credit VAT 20.00 Credit Receivables 1,561.57 Credit Sales 100.00 and Debit Discounts allowed 12.25 Debit VAT 2.45 Credit Receivables 14.70
AAT BTRN : BOOKKEEPING TRANSACTIONS
242 KAPLAN PUBLISHING
95 SOLID LTD
(a)
CASH RECEIPTS BOOK
Date Narrative Total £
VAT £
Receivables£
Cash sales
£
14.2.X8
14.2.X8
14.2.X8
14.2.X8
14.2.X8
14.2.X8
14.2.X8
D Asher
L Maffiah
G Mann
A Burrell
M Morgan
D Skatt
Cash sales
74.62
174.60
107.64
422.91
176.40
150.00
480.00
–––––––
1,586.17
–––––––
80.00
––––––
80.00
––––––
74.62
174.60
107.64
422.91
176.40
150.00
–––––––
1,106.17
–––––––
400.00
–––––––
400.00
–––––––
DISCOUNTS ALLOWED BOOK
Date Narrative Total £
VAT £
Net £
14.2.X8
14.2.X8
L Maffiah
M Morgan
5.40
3.60
–––––––
9.00
–––––––
0.90
0.60
–––––––
1.50
–––––––
4.50
3.00
–––––––
7.50
–––––––
ANSWERS
KAPLAN PUBLISHING 243
(b) General ledger accounts
VAT
£
DAB 1.50
£
CRB 80.00
Receivables
£
£
CRB 1,106.17
DAB 9.00
Sales
£
£
CRB 400.00
Discounts allowed
£
DAB 7.50
£
AAT BTRN : BOOKKEEPING TRANSACTIONS
244 KAPLAN PUBLISHING
(c) Sales ledger accounts
D Asher
£
£
CRB 74.62
L Maffiah
£
£
CRB 174.60
DAB 5.40
G Mann
£
£
CRB 107.64
A Burrell
£
£
CRB 422.91
M Morgan
£
£
CRB 176.40
DAB 3.60
D Skatt
£
£
CRB 150.00
ANSWERS
KAPLAN PUBLISHING 245
96 BROWN LTD
(a)
CASH PAYMENTS BOOK
Date Details Cheque no
Total £
Purchases ledger
£
Other £
31.5.X2 B Able 122177 723.78 723.78
Mann Ltd 122178 556.98 556.98
Sykes & Sons 122179 689.00 689.00
Dickens Ltd 122180 879.95 879.95
Barber & Co 122181 364.84 364.84
Ward & Ward 122182 287.66
–––––––
287.66
–––––––
TOTALS 3,502.21
–––––––
3,502.21
–––––––
(b) General ledger
Account : Purchase ledger control
Debit Credit
Date Details Amount £
Date Details Amount £
25 May Balance b/d 52,225.25
31 May Cash book – payments 3,502.21
Discounts received 23.24
Account : Purchases
Debit Credit
Date Details Amount £
Date Details Amount £
25 May Balance b/d 250,999.99
AAT BTRN : BOOKKEEPING TRANSACTIONS
246 KAPLAN PUBLISHING
Account : Discount received
Debit Credit
Date Details Amount £
Date Details Amount £
25 May Balance b/d 257.90
31 May DRB 23.24
(c) Purchase ledger
Account : B Able
Debit Credit
Date Details Amount £
Date Details Amount £
25 May Balance b/d 729.93
31 May Cash book – payment 723.78
Discounts received 6.15
Account : Barber & Co
Debit Credit
Date Details Amount £
Date Details Amount £
25 May Balance b/d 576.77
31 May Cash book – payment 364.84
Account : Dickens Ltd
Debit Credit
Date Details Amount £
Date Details Amount £
25 May Balance b/d 891.18
31 May Cash book – payment 879.95
Discounts received 11.23
ANSWERS
KAPLAN PUBLISHING 247
Account : Mann Ltd
Debit Credit
Date Details Amount £
Date Details Amount £
25 May Balance b/d 2,556.98
31 May Cash book – payment 556.98
Account : Sykes & Sons
Debit Credit
Date Details Amount £
Date Details Amount £
25 May Balance b/d 1,293.89
31 May Cash book – payment 689.00
Discounts received 5.86
Account : Ward & Ward
Debit Credit
Date Details Amount £
Date Details Amount £
25 May Balance b/d 7,725.98
31 May Cash book – payment 287.66
AAT BTRN : BOOKKEEPING TRANSACTIONS
248 KAPLAN PUBLISHING
97 RUNNERS LTD
(a)
CASH PAYMENTS BOOK
Date Details Cheque no
PL code
Total £
VAT £
Purchases ledger
£
Cash purchases and other
£
31.8.X7 Jackson Ltd 12042 PL17 123.06 123.06
Radcliffe Ltd 12043 PL31 310.40 310.40
Merry Ltd 12044 PL24 425.62 425.62
Francis Ltd 12045 PL12 979.20 979.20
Wells Ltd 12046 PL36 506.50 506.50
Lewis Ltd
Cash purchases
12047
12048
PL21 227.48
360.00 60.00
227.48
300.00
––––––– ––––– –––––––
––––––
TOTALS 2,932.26
–––––––
60.00
–––––
2,572.26
–––––––
300.00
––––––
DISCOUNTS RECEIVED BOOK
Date Narrative Total £
VAT £
Net £
31.8.X7
Radcliffe Ltd
Francis Ltd
9.60
40.80
50.40
–––––––
1.60
6.80
8.40
–––––––
8.00
34.00
42.00
–––––––
42.
44
ANSWERS
KAPLAN PUBLISHING 249
(b) General ledger
Purchases ledger control account
£ £
31 Aug Cash book – payments 2,572.26 25 Aug Bal b/d 8,264.70
DRB 50.40
VAT account
£ £
31 Aug Cash book – payments 60.00 25 Aug Bal b/d 1,916.54
31 Aug DRB 8.40
Purchases account
£ £
25 Aug Bal b/d 17,042.19
31 Aug Cash book – payments 300.00
Discounts received account
£ £
25 Aug Bal b/d 2,166.95
31 Aug DRB 42.00
(c) Subsidiary ledger
Francis Ltd PL12
£ £
31 Aug Cash book – payments 979.20 25 Aug Bal b/d 1,701.24
DRB 40.80
Jackson Ltd PL17
£ £
31 Aug Cash book – payments 123.06 25 Aug Bal b/d 502.93
Lewis Ltd PL21
£ £
31 Aug Cash book – payments 227.48 25 Aug Bal b/d 694.40
AAT BTRN : BOOKKEEPING TRANSACTIONS
250 KAPLAN PUBLISHING
Merry Ltd PL24
£ £
31 Aug Cash book – payments 425.62 25 Aug Bal b/d 474.02
Radcliffe Ltd PL31
£ £
31 Aug Cash book – payments 310.40 25 Aug Bal b/d 1,024.67
DRB 9.60
Wells Ltd PL36
£ £
31 Aug Cash book – payments 506.50 25 Aug Bal b/d 654.00
ANSWERS
KAPLAN PUBLISHING 251
98 ALPHA
C Alpha's ledger
account for Beta Beta's
statement £ £ Initial balance 4,140 8,950 Payment not yet allowed for (4,080) PPD disallowed 40 Goods returned, not yet recorded −
––––– (380)
––––– Adjusted balances 4,180
––––– 4,490
––––– The remaining discrepancy is £4,490 − £4,180 = £310.
AAT BTRN : BOOKKEEPING TRANSACTIONS
252 KAPLAN PUBLISHING
99 SUPPLIER STATEMENT
B
You think that you owe £150 more than the supplier has stated. With items, A, C and D the result would be that the supplier will state that you owe more, not less, than you think.
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