Level 2 Manual Bookkeeping
ICB Level 2 Manual Bookkeeping and Accounts Suggested Answers to Assignment 1
Question 1 Question 2 Question 3 Question 4 B - £12,000 - £2,000 - £6,000 + £4,000 = £8,000 B - £8,000 - £90 - £300 = £7,610 D - £12,000 - £6,000 + £4,000 - £90 - £100 = £9,810 A - We can assume that the machinery is not for resale, therefore, the Purchases account is £1,200 too high. A - Discount received should be credited to discount received account and debited to the creditor’s personal account. B - £10,000 - £6,000 + £8,000 = £12,000 B - £14,000 - £40,000 - £220 - £1,000 + £53,220 = £26,000 E – The error here is with the creditor’s personal accounts.
Question 5
Question 6 Question 7 Question 8 Question 9
Sales Ledger Control Account
Opening Balance Bank – Dishonoured Cheque Sales £ 63,924 400 120,160 Sales Returns Bad Debts Cash Received Discount Allowed Balance c/d £ 1,480 1,260 52,000 1,320 128,424 £184,484
£184,484 Balance b/d £128,424
Purchases Ledger Control Account
Cash Paid Discount Received Purchases Returns Balance c/d £ 42,000 2,100 690 92,920 £137,710 Opening Balance Purchases £ 58,710 79,000
£137,710 Balance b/d £ 92,920
Question 10 Capital
May 31 Balance c/d £5,000 May Jun 1 Bank 1 Balance b/d £5,000 £5,000
Bank
May 1 Capital £5,000 May 2 28 30 31 Electricity Carriage outwards D. Finnigan Balance c/d £ 40 35 760 4,165 £5,000
£5,000 Jun 1 Balance b/d £4,165
Electricity
May Jun 2 Bank 1 Balance b/d £40 £40 £40 May 31 Balance c/d £40 £40
Machinery
May 4 L. Stevens £1,250 May 18 Cash 23 L. Stevens 31 Balance c/d £ 300 100 850 £1,250
£1,250 Jun 1 Balance b/d £ 850
L. Stevens
May 23 Machinery 31 Balance c/d £ 100 1,150 £1,250 May 4 Machinery £1,250 £1,250 Jun 1 Balance b/d £1,150
Purchases
May Jun 6 D. Finnigan 1 Balance b/d £850 £850 May 31 Balance c/d £850
2
D. Finnigan
May 11 Purchases Returns 31 Bank Discount Received £ 50 760 40 £850 May 6 Purchases £850
£850
Sales
May 31 Balance c/d £650 May 9 Cash 14 E.
Question 1 Question 2 Question 3 Question 4 B - £12,000 - £2,000 - £6,000 + £4,000 = £8,000 B - £8,000 - £90 - £300 = £7,610 D - £12,000 - £6,000 + £4,000 - £90 - £100 = £9,810 A - We can assume that the machinery is not for resale, therefore, the Purchases account is £1,200 too high. A - Discount received should be credited to discount received account and debited to the creditor’s personal account. B - £10,000 - £6,000 + £8,000 = £12,000 B - £14,000 - £40,000 - £220 - £1,000 + £53,220 = £26,000 E – The error here is with the creditor’s personal accounts.
Question 5
Question 6 Question 7 Question 8 Question 9
Sales Ledger Control Account
Opening Balance Bank – Dishonoured Cheque Sales £ 63,924 400 120,160 Sales Returns Bad Debts Cash Received Discount Allowed Balance c/d £ 1,480 1,260 52,000 1,320 128,424 £184,484
£184,484 Balance b/d £128,424
Purchases Ledger Control Account
Cash Paid Discount Received Purchases Returns Balance c/d £ 42,000 2,100 690 92,920 £137,710 Opening Balance Purchases £ 58,710 79,000
£137,710 Balance b/d £ 92,920
Question 10 Capital
May 31 Balance c/d £5,000 May Jun 1 Bank 1 Balance b/d £5,000 £5,000
Bank
May 1 Capital £5,000 May 2 28 30 31 Electricity Carriage outwards D. Finnigan Balance c/d £ 40 35 760 4,165 £5,000
£5,000 Jun 1 Balance b/d £4,165
Electricity
May Jun 2 Bank 1 Balance b/d £40 £40 £40 May 31 Balance c/d £40 £40
Machinery
May 4 L. Stevens £1,250 May 18 Cash 23 L. Stevens 31 Balance c/d £ 300 100 850 £1,250
£1,250 Jun 1 Balance b/d £ 850
L. Stevens
May 23 Machinery 31 Balance c/d £ 100 1,150 £1,250 May 4 Machinery £1,250 £1,250 Jun 1 Balance b/d £1,150
Purchases
May Jun 6 D. Finnigan 1 Balance b/d £850 £850 May 31 Balance c/d £850
2
D. Finnigan
May 11 Purchases Returns 31 Bank Discount Received £ 50 760 40 £850 May 6 Purchases £850
£850
Sales
May 31 Balance c/d £650 May 9 Cash 14 E.