By Margaret Nicholson (auth.)
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Extra info for Accounting Skills
Consider the following personal account, before balancing. B. Senior Account Apr 3 Sales 15 Sales 25 Sales 235 350 145 Apr 10 Returns Inwards 28 Bank 46 189 To balance this account, the same principle will apply: total the side which is greatest in value, in this example the debit side, which is £730; total the credit side, £235; the difference between the two sides is the balance. After balancing the account will appear as follows: B. Senior Account Apr 3 Sales 15 Sales 25 Sales 235 350 145 Apr 10 Returns Inwards 28 Bank 30 Balance c/d 730 May 1 Balance bid 46 189 495 730 495 Further examples, before balancing: F.
8 Paid rent in cash (£75). 9 The proprietor took £50 cash for his private use. 12 Received a loan of £1,000 by cheque from G. Normanton. 14 Cash sales (£120). 15 Bought office stationery (£45), paying by cheque. 18 Received a cheque (£125) from E. Phillips. 20 Paid insurance (£95) in cash. 22 Bought goods on credit from J. Green (£450); M. Seal (£335). 24 Cash purchases (£250). 25 Proprietor took £50 cash for own use. 27 Paid rent by cheque (£75). 44 28 Paid by cheque S. Sutcliffe (£260); M. Seal (£240).
9 Bought office furniture (£700), paying by cheque. 14 Sold goods on credit to F. Green (£450). 17 Bought motor van (£5,000) on credit from Newtown Motors. 20 Sold goods (£50) for cash. 25 Paid G. Moore a cheque for £350. 30 Bought goods (£75), paying in cash. 7 You are required to enter the following transactions in the double entry accounts. Jun 1 Started business with £5,000 in a business bank account. 3 Bought goods (£150) on credit from C. Clifton. S Sold goods (£250), receiving payment by cheque.
Accounting Skills by Margaret Nicholson (auth.)