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Double Entry Practice Question

The document describes three sets of transactions that need to be recorded and summarized: 1) Transactions in March 2018 for L Williams' business, including opening the business with £3000 cash, purchases and sales on credit terms, expenses, and asset purchases. 2) Transactions in November 2017 including starting with £10000 cash, purchases and sales on credit terms, expenses, and asset purchases. 3) Transactions in April 2017 for D Weir's business, including contributions from the owner, purchases and sales on credit terms, returns, expenses, and payments received. Trial balances need to be prepared for each set of transactions.

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119 views3 pages

Double Entry Practice Question

The document describes three sets of transactions that need to be recorded and summarized: 1) Transactions in March 2018 for L Williams' business, including opening the business with £3000 cash, purchases and sales on credit terms, expenses, and asset purchases. 2) Transactions in November 2017 including starting with £10000 cash, purchases and sales on credit terms, expenses, and asset purchases. 3) Transactions in April 2017 for D Weir's business, including contributions from the owner, purchases and sales on credit terms, returns, expenses, and payments received. Trial balances need to be prepared for each set of transactions.

Uploaded by

Kaung Satt
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd

I.

You are required to open the assets, liability and capital accounts to record the following
transactions for L Williams, balance off and extract a trial balance at the end of the month.

2018

March 1 Started business with cash ₤3000.

March 2 Paid rent by cash ₤56.

March 3 Paid ₤2000 of the cash into a business bank account.

March 4 Bought goods on credit from J Smith ₤592.

March 5 Sold goods on credit to C Morgan ₤108.

March 7 Returned goods ₤22 to J Smith.

March 8 Bought stationery ₤30 paying by cheque.

March 10 Cash sales ₤98.

March 11 C Morgan returned goods of ₤18 to us.

March 14 Sold goods on credit to K Brown ₤58.

March 17 Paid for repairs to the building by cash ₤36.

March 22 Paid J Smith ₤500 by cheque.

March 27 Cash purchases ₤250.

March 29 Bought a van paying by cheque ₤790.

March 30 Paid motor expenses in cash ₤30.

March 31 Bought fixtures ₤240 on credit from S Small.

II. Enter the following transactions in the accounts and extract a trial balance as at 30 November
2017.

2017

November 1 Started business with ₤10000 in the bank.

November 3 Bought goods on credit form: J Herris ₤320, P Mark ₤460, and W Booth
₤800.
November 5 Cash sales ₤480.

November 6 Paid rent by cheque ₤40.

November 7 Paid rates by cheque ₤380.

November 11 Sold goods on credit to L Mall ₤96, K Keen ₤64, and T Hill ₤1170.

November 17 Paid Wages by cash ₤ 80.

November 18 We returned goods to J Herris 20 and W Booth ₤60.

November 19 Bought goods on credit from W Booth ₤ 160 and P Mark ₤540.

November 20 Goods were returned to us by K Keen ₤4 and L Mall ₤6.

November 21 Bought van on credit from JW Motors ₤1000.

November 23 We paid the following by cheque: J Herris ₤250; P Mark ₤460; W Booth
₤600.

November 25 Bought another van, paying by cheque immediately ₤1400.

November 28 L Mall paid us ₤88 by cheque.

November 30 K Keen paid us ₤60 in cash.

III. Post the following transactions to the double-entry accounts of D Weir and balance off the
accounts at 30 April 2017. Extract a trail balance as that date.

2017

1 April Owner places ₤500 of her private money into the business bank account.

4 April Goods purchased on credit from J Sheridan for ₤67.

5 April Goods purchased on credit from P King for ₤98.

8 April Sales made on credit to C Turner for ₤99.

12 April Owner returns goods worth ₤22 to King.

16 April Commission received ₤45 cash.

18 April Sales made on credit to R Nilsson for ₤178.

20 April Nilsson returns ₤58 of the goods that he purchased.

24 April Owner withdraws ₤100 from the bank for private use.
25 April Nilsson paid in full in cash.

26 April Cash received totaling ₤50 from Turner.

28 April Wages paid by cheque ₤134.

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