簿记二册课后习题答案.pdf

Level 2 Book keeping the supplier is similar to a creditor therefore a current liability on the balance sheet Solutions to Target Practice Questions Question 1 a A prepayment for Heat and Light of 330 Dr Prepayments 330 Cr Heat and Light 330 b Accrued Motor Expenses of 927 Dr Motor expenses 927 Cr Accruals 927 c Sales of 2500 invoiced in advance Dr Sales 2 500 Cr Accruals and deferred income 2 500 d Rent receivable but not yet collected of 700 Dr Prepayments and accrued income 700 Cr Rent receivable 700 6 Question 2 a Telephone accrual 1 3 x 900 300 b Insurance prepayment 7 12 x 420 245 c Electricity accrual 2 3 x 840 560 d Rent prepayment 1 2 x 8000 4000 Question 3 Telephone 30 06 X1 Accrual 30030 06 X1 Profit and Loss Account 300 300 300 Motor Insurance 01 02 X1 Bank 42030 06 X1 Prepayment 245 30 06 X1 Profit and Loss Account 175 420 420 Electricity 30 06 X1 Accrual 56030 06 X1 Profit and Loss Account 560 560 560 Rent 01 04 X1 Bank 8 00030 06 X1 Prepayment 4 000 30 06 X1 Profit and Loss Account 4 000 8 000 8 000 Accruals 30 06 X1 Telephone 300 30 06 X1 Balance c d 86030 06 X1 Electricity 560 860 860 Prepayments 30 06 X7 Motor insurance 245 30 06 X7 Rent 4 00030 06 X7 Balance c d 4 245 4 245 4 245 7 Question 4 Rent Rates Electricity and Gas 01 10 X6 Balance b d Rent 78001 10 X6 Balance b d Electricity 275 01 10 X6 Balance b d Rates 1 50001 10 X6 Balance b d Gas 130 01 04 X7 Bank Rates 1 700 30 09 X7 Bank Rent 12 x 800 9 600 30 09 X7 Bank Electricity 3 00030 09 X7 Profit and Loss Account 16 778 30 09 X7 Bank Gas 1 900 30 09 X7 Balance c d Electricity 24530 09 X7 Balance c d Rent 800 30 09 X7 Balance c d Rent 10830 09 X7 Balance c d Rates 850 18 833 18 833 01 10 X7 Balance b d Rent 80001 10 X7 Balance b d Electricity 245 01 10 X7 Balance b d Rates 85001 10 X7 Balance b d Rent 108 Workings Rent prepayment 1 x 800 800 Rates prepayment 6 12 x 1700 850 Electricity accrual 245 Gas accrual 1 3 x 324 108 Question 5 Birch Trading Profit and Loss Account for the year ended 31 December 20X3 Sales 113 750 Cost of Sales Opening stock 4 025 Purchases 50 925 665 51 590 55 615 Less Closing stock 3 765 51 850 Gross profit 61 900 Less Expenses Wages 23 500 Rent rates and insurance 6125 350 1312 5 163 Heat and light 5525 210 5 315 Motor expenses 3489 300 442 3 347 Telephone and stationery 1672 136 95 1 713 Depreciation 3 938 42 976 Net profit 18 924 8 Birch Balance Sheet at 31 December 20X3 Fixed assets Motor vehicles cost 15 750 Less Accumulated depreciation 5 907 9 843 Current assets Stock 3 765 Debtors 3 553 Prepayments 442 1312 210 95 2 059 Bank 195 9 572 Current liabilities Creditors 3 290 Accruals 300 350 665 136 1 451 4 741 Net Current Assets 4 831 14 674 Capital account Balance b d 13 250 Add Net profit 18 924 32 174 Less Drawings 17 500 14 674 9 Chapter 3 Bad Debts and Provision for Doubtful Debts Answers to Think about it Questions Page 28 Why would a business decide to increase or decrease its provision for doubtful debts If the business financial records over a period of time show a trend in an increasing number of bad debts or if the economy is not doing well then it is likely that the business would increase the provision to ensure that profits and current assets are not overstated If trends shows that the level of bad debts is decreasing then the business may decrease the provision Solutions to Target Practice Questions Question 1 Dr Provision for Doubtful Debts Cr Profit and Loss Account Question 2 An increase in the provision for doubtful debts will decrease the net profit for the year and a decrease in the provision for doubtful debts will increase the net profit for the year Question 3 Bad debt provision 55 400 2650 x 4 2110 Balance Sheet Extract at 31 December 20X4 Current Assets Debtors 55 400 2650 52 750 Less Provision for Doubtful Debts 2 110 50 640 10 Question 4 Year ended 30 September 20X5 20X6 20X7 Debtors 34 15039 27544 498 Bad debts written off 500 1 800 1 926 Revised debtors 33 65037 47542 572 Less specific provision 850 1 475 1 772 Balance of debtors 32 80036 00040 800 1 2 3 General provision 3287201 224 Add specific provision 8501 4751 772 Total provision 1 1782 1952 996 Question 5 Bad Debts 30 09 X5 Bad debts written off 500 30 09 X5 Increase in provision for bad debts 1 17830 09 X5 Profit and Loss Account 1 678 1 678 1 678 30 09 X6 Bad debts written off 1 800 30 09 X6 Increase in provision for bad debts 1 01730 09 X6 Profit and Loss Account 2 817 2 817 2 817 30 09 X7 Bad debts written off 1 926 30 09 X7 Increase in provision for bad debts 80130 09 X7 Profit and Loss Account 2 727 2 727 2 727 Bad Debts Recovered 30 09 X6 Profit and Loss Account 24530 09 X6 Bank 245 245 245 30 06 X7 Profit and Loss Account 42330 09 X7 Bank 423 423 423 Provision for Doubtful Debts 30 09 X5 Balance c d 1 17830 09 X5 Bad debts 1 178 1 178 1 178 01 10 X5 Balance b d 1 178 30 09 X6 Balance c d 2 19530 09 X6 Bad debts 1 017 2 195 2 195 01 10 X6 Balance b d 2 195 30 09 X7 Balance c d 2 99630 09 X7 Bad debts 801 2 996 2 996 1 017 801 Increase in provision 11 Alice Jones Profit and Loss Account for the year ended 30 September 20X7 Gross Profit xxx Add Bad debts recovered 423 Expenses Increase in provision for doubtful debts 801 Bad debts 1 926 Alice Jones Balance Sheet at 30 September 20X7 Current Assets Debtors 42 572 Less Provision for Doubtful Debts 2 996 39 576 12 Chapter 4 Introduction to Partnership Accounts Answers to Think about it Questions Page 33 What are some of the benefits of a partnership in comparison to a sole trader More capital available to invest in the business greater opportunity to expand the business Sharing of work load Access to a wider range of skills and knowledge which contributes to the success of the business Each partner won t have bear the loss on their own losses are shared among partners Page 38 What do these partner balances on their current account tells you Both George and Fred have credit balances on their current accounts this means that the business owes them money If the balances were debit then this would mean that the partners owe the business partnership Solutions to Target Practice questions Question 1 Term Definition Partnership A partnership is formed when two or more people set up in business together Partnership agreement A written document that sets out the terms of trade with each partner Capital Account Capital is the amount invested by a partner in the business and this is held in the capital account Current Account This is the account that records the balance owed to or from the partnership by the partners The balance on this account will fluctuate as profits are earned and drawings are taken Interest on capital This is an annual amount awarded to the partners based on a percentage of the capital they have invested It represents a return on their investment Drawings These are the amounts withdrawn from the partnership by the partners Interest on drawings This is interest charged at an agreed percentage to take account of the timing of drawings and to discourage partners from drawing from the business Salary This is a specified amount due to a partner before the profits are shared Profit share ratio The share or split of the remaining profits or losses between the partners This could be expressed as a percentage or as a ratio e g 2 1 13 Question 2 Debit Credit Share of profit Appropriation Account Partners Current Account Share of loss Partners Current account Appropriation Account Salary Appropriation Account Partners Current Account Interest on capital Appropriation Account Partners Current Account Interest on drawings Partners Current Account Appropriation Account Interest on loan from partner Profit and Loss Account Partners Current Account or Bank account Question 3 Using the accounting equation Assets Capital Liabilities the capital introduced by each partner can be calculated Exe Why Zed Total Plant and equipment 28 000 37 500 15 000 80 500 Motor vehicles 18 700 10 900 29 600 Stock 2 500 1 750 3 250 7 500 Debtors 8 208 6 023 1 615 15 846 Bank 1 115 864 1 234 3 213 Creditors 5 850 3 600 885 10 335 52 673 42 537 31 114 126 324 14 Exe Why and Zed Balance Sheet at 1 July 20X6 Fixed assets Plant and equipment 80 500 Motor vehicles 29 600 110 100 Current assets Stock 7 500 Debtors 15 846 Bank 3 213 26 559 Current liabilities Creditors 10 335 Net Current Assets 16 224 126 324 Represented by Capital Accounts Exe 52 673 Why 42 537 Zed 31 114 126 324 Note As the assets and liabilities contributed by each partner now become the partnership assets and liabilities they are shown as a total figure on the partnership balance sheet Question 4 The profit needs to be adjusted to account for the loan interest of 5 x 20 000 1000 The revised profit for appropriation is 39 661 1000 38 661 Jake and Misty Appropriation Account for the year ended 31 December 20X2 Revised profit 38 661 Add Interest on drawings Jake 16 620 x 5 831 Misty 23 760 x 5 1 188 2 019 40 680 Less Interest on capital Jake 26 000 x 8 2 080 George 19 500 x 8 1 560 3 640 Less Salary Misty 7 800 29 240 Profit share Jake 75 21 930 Misty 25 7 310 29 240 15 Partners Current Accounts Jake Misty Jake Misty 01 01 X2 Balance b d 4 42001 01 X2 Balance b d 2 340 31 12 X2 Interest on drawings 8311 18831 12 X2 Interest on capital 2 0801 560 31 12 X2 Drawings 16 62023 76031 12 X2 Salary 7 800 31 12 X2 Profit share 21 9307 310 31 12 X2 Balance c d 8 899 31 12 X2 Balance c d 12 698 26 35029 368 26 35029 368 Question 5 Tiger and Snake Trading Profit and Loss Account for the year ended 31 December 20X8 Sales 120 000 Cost of Sales Opening stock 2 750 Purchases 45 000 47 750 Less Closing stock 3 000 44 750 Gross profit 75 250 Less Expenses Wages 24 000 800 24 800 Insurance 2800 400 2 400 Depreciation equipment 40 000 x 10 4 000 Depreciation motor vehicles 18 500 3700 x 25 3 700 Bad debts 33 400 x 5 1002 668 35 568 Net profit 39 682 Tiger and Snake Appropriation Account for the year ended 31 December 20X8 Net profit 39 682 Add Interest on drawings Tiger 2000 x 5 100 Snake 4000 x 5 200 300 39 982 Less Interest on capital Tiger 40 000 x 7 2 800 Snake 20 000 x 7 1 400 4 200 Less Salary Snake 4 000 31 782 Profit share Tiger 2 3 21 188 Snake 1 3 10 594 31 782 16 Partners Current Accounts Tiger Snake Tiger Snake 31 12 X8 Interest on drawings 10020001 01 X8 Balance b d 11 3009 088 31 12 X8 Drawings 2 0004 00031 12 X8 Interest on capital 2 8001 400 31 12 X8 Salary 4 000 31 12 X8 Balance c d 33 18820 88231 12 X8 Profit share 21 18810 594 35 28825 082 35 28825 082 Tiger and Snake Balance Sheet at 31 December 20X8 Fixed assets Buildings at cost 65 000 Plant and equipment NBV 40 000 4000 4000 32 000 Motor vehicles NBV 18 500 3700 3700 11 100 108 100 Current assets Stock 3 000 Debtors 33 400 1670 31 730 Prepayments 400 35 130 Current liabilities Bank overdraft 6 400 Creditors 21 960 Accruals 800 29 160 Net Current Assets 5 970 114 070 Represented by Capital Accounts Tiger 40 000 Snake 20 000 60 000 Current Accounts Tiger 33 188 Snake 20 882 54 070 114 070 17 Chapter 5 Admission and Retirement of Partners Answers to Think about it Questions Page 44 What are some of the specific reasons why someone would be willing to pay for goodwill Goodwill in a business may be based on the industry specific knowledge know how and good reputation for customer service that the business has Additionally if it is in a good location for business then this could add to goodwill Solutions to Target Practice Questions Question 1 Consideration amount paid 45 000 Assets and liabilities acquired Fixtures and fittings 22 400 Stock 3 700 Debtors 16 750 Creditors 2 895 39 955 Goodwill 5 045 Question 2 The goodwill introduced by the new partner needs to be shared between the existing partners The share that each of the existing partners receives is based on the difference between their old profit share and the new profit share now that a new partner has been admitted The double entry will be to debit the bank with the 25 000 and credit the capital accounts of the existing partners with the appropriate share of the goodwill Question 3 Dr CR Bank 18 000 Helen Capital Account 18 000 Being the payment of Helen s capital contribution into the partnership bank account Goodwill 3 000 Dan Capital Account 1 2 x 30 000 15 000 Collette Capital Account 1 2 x 30 000 15 000 Being the creation of goodwill written into the partners capital accounts in the old profit sharing ratio Dan Capital Account 3 6 x 30 000 15 000 Collette Capital Account 2 6 x 30 000 10 000 Helen Capital Account 1 6 x 30 000 5 000 Goodwill 30 000 Being the goodwill written out of the partners capital accounts in the new profit sharing ratio 18 Partners Capital Accounts Dan Collette Helen Dan Collette Helen 01 01 X7 Goodwill 15 000 10 0005 00001 01 X7 Balance b d 35 000 35 000 01 01 X7 Bank 18 000 01 01 X7 Balance c d 35 000 40 00013 00001 01 X7 Goodwill 15 000 15 000 40 000 50 00018 000 40 000 50 00018 000 Question 4 Revaluation Account Knot and Berry 31 12 X2 Plant and machinery 99 000 92 000 7 00031 12 X2 Goodwill 34 500 31 12 X2 Debtors 458 31 12 X2 Capital account Knot 2 3 18 028 31 12 X2 Capital account Berry 1 3 9 014 61 500 34 500 Bank Account 31 12 X2 Balance b d 12 12031 12 X2 Knot 28 705 31 12 X2 Capital account Rasp 25 00031 12 X2 Balance c d 8 415 37 120 37 120 Goodwill 31 12 X2 Revaluation 34 50031 12 X2 Capital account Berry 3 4 27 375 31 12 X2 Capital accounts Rasp 2 00031 12 X2 Capital account Rasp 1 4 9 125 36 500 36 500 Partners Capital Accounts Knot Berry Rasp Knot Berry Rasp 31 12 X2 Goodwill 27 375 9 12531 12 X2 Balance b d 90 000 74 000 31 12 X2 Bank 28 705 31 12 X2 Revaluation 18 028 9 014 31 12 X2 Loan 86 115 31 12 X2 Goodwill 2 000 31 12 X2 Plant and machinery 15 000 31 12 X2 Cash 25 000 31 12 X2 Balance c d 55 639 32 87531 12 X2 Current account 6 792 114 820 83 014 42 000 114 820 83 014 42 000 19 Berry and Rasp Balance Sheet at 1 January 20X3 Fixed assets Plant and machinery 92 000 15 000 107 000 Motor vehicles 32 700 139 700 Current assets Stock 19 125 Debtors 22 950 458 22 492 Bank 8 415 50 032 Current liabilities Creditors 11 100 Net Current Assets 38 932 178 632 Long term liabilities Loan from Knot 86 115 92 517 Represented by Capital Account Berry 55 639 Rasp 32 875 88 514 Current account Berry 4 003 92 517 Question 5 Revaluation Account Freeman and Hardy 01 07 X1 Fixtures and Fittings 37 500 35 000 2 50001 07 X1 Land and Buildings 105 000 93 750 11 250 01 07 X1 Capital Account Freeman 3 5 22 87501 07 X1 Stock 29 500 28 125 1 375 01 07 X1 Capital Account Hardy 2 5 15 25001 07 X1 Goodwill 28 000 40 625 40 625 01 07 X1 Land and Buildings 11 25001 07 X1 Fixtures and fittings 2 500 01 07 X1 Stock 1 37501 07 X1 Capital Account Freeman 2 5 15 250 01 07 X1 Goodwill 28 00001 07 X1 Capital Account Hardy 2 5 15 250 01 07 X1 Capital Account Willis 1 5 7 625 40 625 40 625 Partners Capital Accounts Freeman Hardy Willis Freeman Hardy Willis 31 12 X1 Revaluation 15 250 15 2507 62531 12 X1 Balance b d 75 000 50 000 31 12 X1 Revaluation 22 875 15 250 01 07 X1 Balance c d 82 625 50 00025 37531 12 X1 Bank 33 000 97 875 65 25033 000 97 875 65 25033 000 20 Freeman Hardy and Willis Balance Sheet at 1 July 20X1 Fixed assets Land and buildings 93 750 Fixtures and fittings 37 500 131 250 Current assets Stock 28 125 Debtors 18 750 Bank 4600 33 000 37 600 84 475 Current liabilities Creditors 23 450 Net Current Assets 61 025 192 275 Represented by Capital accounts Freeman 82 625 Hardy 50 000 Willis 25 375 158 000 Current accounts Freeman 24 060 Hardy 10 215 34 275 192 275 21 Chapter 6 Dissolution of a Partnership Answers to Think about it Questions Page 69 How can you tell that the accounting entries for the sale of the partnership are correct They are correct because the balances on the partners capital account 8506 and 8038 for Yum and Zip respectively are equal exactly to the balance on the bank account Solutions to Target Practice Questions Question 1 Debit Credit Transfer of asset balances into the dissolution account Dissolution account Asset account Transfer of liability balances into the dissolution account Liability account Dissolution account Banking the proceeds from the sale of assets Bank Dissolution account Paying the costs of dissolution Dissolution account Bank Repaying any partners loans to the partnership Partners loans Bank Question 2 Fixtures and Fittings 31 12 X7 Balance b d 24 00031 12 X7 Dissolution account 24 000 24 000 24 000 Delivery Van 31 12 X7 Balance b d 4 00031 12 X7 Dissolution account 4 000 4 000 4 000 Stock 31 12 X7 Balance b d 8 40031 12 X7 Dissolution account 8 400 8 400 8 400 22 Debtors 31 12 X7 Balance b d 12 20031 12 X7 Dissolution account 12 200 12 200 12 200 Bank 31 12 X7 Balance b d 35531 12 X7 Creditors paid 9 050 31 12 X7 Sale of fixtures and fittings and stock 29 50031 12 X7 Costs of dissolution 600 31 12 X7 Debtors collected 12 20031 12 X7 Repay loan to Jake 12 000 31 12 X7 Capital account Ham 9 284 31 12 X7 Capital account Shem 3 668 31 12 X7 Capital account Jake 7 453 42 055 42 055 Creditors 31 12 X7 Dissolution account 9 34931 12 X7 Balance b d 9 349 9 349 9 349 Loan From Jake 31 12 X7 Bank 12 00031 12 X7 Balance b d 12 000 12 000 12 000 Dissolution Account 31 12 X7 Fixtures and fittings 24 00031 12 X7 Creditors 9 349 31 12 X7 Delivery van 4 00031 12 X7 Fixtures and fittings and stock sale proceeds 29 500 31 12 X7 Stock 8 40031 12 X7 Delivery van taken by Shem 2 500 31 12 X7 Debtors 12 20031 12 X7 Debtors collected 12 200 31 12 X7 Dissolution costs 60031 12 X7 Capital account Ham 1 567 31 12 X7 Creditors paid 9 05031 12 X7 Capital account Shem 1 567 31 12 X7 Capital account Jake 1 567 58 250 58 250 Partners Current Accounts Ham Shem Jake Ham Shem Jake 31 12 X7 Balance b d 2 26598031 12 X7 Balance b d 851 31 12 X7 Capital accounts 851 31 12 X7 Capital accounts 2 265980 851 2 265980 851 2 265980 23 Partners Capital Accounts Ham Shem Jake Ham Shem Jake 31 12 X7 Current account 2 26598031 12 X7 Balance b d 10 000 10 00