Accounts Preparation I – Answers to Sample Assessment
Section 1
Task 1.1
Fixed assets register
Description / Acquisition date / Cost£ / Depreciation £ / Net book value £ / Funding method / Disposal proceeds / Disposal date
Computer equipment
Server main office / 30/09/X7 / 2800.00 / Cash
Year end 31/03/X8 / 840.00 / 1960.00
Year end 31/03/X9 / 840.00 / 1120.00
Year end 31/03/X0 / 840.00 / 280.00
HP printer
65438LKR / 28/03/X0 / 775.00 / Cash
Year end 31/03/X0 / 232.50 / 542.50
Motor Vehicles
AB 08 DRF / 01/04/X7 / 12000.00 / Cash
Year end 31/03/X8 / 3000.00 / 9000.00
Year end 31/03/X9 / 2250.00 / 6750.00
Year end 31/03/X0 / - / - / 5500.00 / 15/03/X0
AB 07 FRP / 31/01/X9 / 9,600.00 / Part-exchange /
Year end 31/03/X9 / 2400.00 / 7200.00 /
Year end 31/03/X0 / 1800.00 / 5400.00 /
Task 1.2
(a) and (b)
Vehicles at cost
Balance b/d / 10000 /Balance c/d
/ 14000Bank
/ 400014000 / 14000
Vehicles accumulated depreciation
Balance c/d / 3625 /Balance b/d
/ 3000/
Depreciation charge
/ 6253625 / 3625
Depreciation charge
Balance b/d / 1000 /Profit and loss account
/ 1625Vehicles accumulated depreciation
/ 6251625 / 1625
(c) New vehicle purchases should be authorised by a partner of the business.
Section 2 – Extending the trial balance using accounting adjustments
Task 2.1
(a)
Administration expenses
£ / £Bank
/ 6190 /Balance b/d
/ 790/
Balance c/d
/ 1200/
Profit and loss account
/ 42006190 / 6190
(b)
Selling expenses
£ / £1/4
/Bal b/d
/375
/31/3
/Profit and loss account
/ 910031/3
/Bank
/7900
/ /31/3
/Bal c/d
/ 825 / /9100 / 9100
(c)
Extract from trial balance as at 31 March 20X1.
Account / £ / £ Dr / £ CrAccruals / 825
Capital / 6000 / 6000
Depreciation charge / 850 / 850
Drawings / 11000 / 11000
Interest received / 70 / 70
Machinery at cost / 5600 / 5600
Machinery accumulated depreciation / 4200 / 4200
Prepayments / 1200
Task 2.2
(a)
Journal
Dr£ / Cr
£
Irrecoverable debts
/ 192Sales ledger control account / 192
(b)
Journal
Dr£ / Cr
£
Loan
/ 1300Suspense / 1300
(c)
Journal
Dr£ / Cr
£
Closing stock – balance sheet
/ 18225Closing stock – profit and loss account / 18225
(d)
Journal
Dr£ / Cr
£
VAT
/ 175Suspense
/ 175VAT
/ 175Suspense / 175
Task 2.2 (alternative)
(a)
Ledger balances / AdjustmentsDr
£ / Cr
£ / Dr
£ / Cr
£
Allowance for doubtful debts
/ 365Bank
/ 4300 / 1300Closing stock – balance sheet / 18225
Closing stock – P&L account
/ 18225Depreciation charge
Irrecoverable debts
/ 192Loan
/ 4000Loan interest
/ 240Plant and machinery – accumulated depreciation / 22000
Sales / 210000
Sales ledger control account / 24500 / 175 / 192
Suspense / 1125 / 1300 / 175
VAT / 5600
(b)
Account / Dr / CrProfit and loss account / a
Loan interest / a
Transfer of loan interest for year ended 31 March 20X1 to profit and loss account
Task 2.3
Extended trial balance
Ledger account / Ledger balances / Adjustments / Profit and loss account / Balance sheet£ Dr / £ Cr / £ Dr / £ Cr / £ Dr / £ Cr / £ Dr / £ Cr
Allowance for doubtful debts / 1300 / 300 / 1000
Allowance for doubtful debts adjustment / 300 / 300
Bank / 28380 / 500 / 27880
Capital / 4530 / 4530
Closing stock / 30000 / 30000 / 30000 / 30000
Depreciation charge / 15500 / 15500
Office expenses / 69550 / 500 / 69050
Opening stock / 26000 / 26000
Payroll expenses / 31150 / 150 / 31000
Purchases / 188000 / 900 / 188900
Purchases ledger control account / 29900 / 29900
Sales / 436000 / 436000
Sales ledger control account / 36000 / 36000
Selling expenses / 67000 / 67000
Suspense / 250 / 1150 / 900
VAT / 9800 / 9800
Vehicles at cost / 62000 / 62000
Vehicles accumulated depreciation / 26300 / 15500 / 41800
Net profit
/ 68850 / 68850508080 / 508080 / 47850 / 47850 / 466300 / 466300 / 155880 / 155880
Task 2.4
Adjustment for 1 / 62 / a
Adjustment for 2 / 90 / a
Adjustment for 4 / 3200 / a
Task 2.5
· Show how much each individual supplier is owed
Accounts Preparation I (Level 3) – Answers to Practice Questions
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